Wait-And-See Govt Policy

Press, Volume CIX, Issue 31974, 29 April 1969, Page 1

Wait-And-See Govt Policy

(New Zealand Press Association! WELLINGTON, April 28. A wait-and-see policy was being taken by the Government tonight after the resignation of President de Gaulle.

At a press conference, after today’s Cabinet meeting, the Prime Minister (Mr Holyoake) said the matter had been discussed "only very briefly” by his col-1 leagues. "It is very difficult to say what the resignation might portend for New Zealand,” he said. “It is very difficult to prophesy. “A lot of dust will have to I rise and settle before we get any indication of new French policies, if in fact new policies emerge.” Some observers said they

, believed that if there was a change of French attitude on the question of British membership of the European Economic Community it could well be "even stronger" against British admission. This belief was based on: (their feeling that a new presi-l ■dent would have to be more* : responsive to the wishes of, (the French people than' General de Gaulle had been. There was a great deal of opposition from the French peasant farmers to British entry, i But the observers also conceded that since de Gaulle had been cited as the major, and almost single, stumbling block to British moves to join the E.E.C. there would almost certainly be a new, concerted drive by the British Government to join. It was expected that momentum would be added to the British campaign now under way with the “friendly five”—West Germany, the Netherlands, Belgium. Italy and Luxemburg. The attitude of West Germany. however, could be affected by its desire not to “rock the boat” with a new French administration, and by the fact that West German general elections were due to be held later in the year. Financial sources had mixed opinions on the likelihood of a devaluation of the franc. They believed it would either be done fairly quickly or, if it was “on” at all, later! in the year. The possibility of any franc, devaluation being linked to a! revaluation of the German' mark could not be ruled out!

The extent or depth of any franc devaluation would determine the likelihood of devaluations in other currencies, including sterling.

Maiden Voyage. The Union Steam Ship Company’s new roll-on, roll-off cargo ship, the Maheno, will leave Auckland on May 27 on her maiden voyage to Sydney via Wellington, Lyttelton and Wellington. The Maheno is now on her way to New Zealand from the shipyards in Dundee.