Discussions on increased defence co-operation

Press, Volume CX, Issue 32462, 24 November 1970, Page 2

Discussions on increased defence co-operation

(New Zealand Press Association) WELLINGTON, November 23. Discussions on increasing the industrial defence capacity of Australia and New Zealand formed an important part of talks between Cabinet Ministers and Australia’s Minister for Defence (Mr Malcolm Fraser) today.

Mr Fraser told a press conference this today. Other topics discussed included Australian-New Zealand co-operation in Vietnam and SingaporeMalaysia, and Russian encroachment into the Indian Ocean.

Mr Fraser will have talks with New Zealand officials tomorrow on the memorandum of understanding and co-operation in defence supply, signed between the two countries last year. He said the agreement was of considerable potential value, but added: “These things move slowly.” Both New Zealand and Australia recognised that in a significant emergency the

only secure line of supply for defence forces was local production.

It was hoped to increase ’ industrial capacity to meet i defence needs as far as was reasonable, although there would always be equipment bought, or part-bought, from i overseas.

In the matter of defence production, New Zealand bore to some extent the same relation to Australia as Australia had borne to the United States. MAIN ADVANTAGE The main advantage from the agreement in defence supply so far had been in identifying areas in which action might need to be taken. He gave as an example the process by which New Zealand companies could tender for Australian defence orders. He said Australia had already given an assurance that the New Zealand Airtourer aircraft would be considered by the Royal Australian Air Force when the time came to order a replacement training aircraft He said Australia’s options were still open regarding the possible building of an independent system of nuclear weapons, but noted that Australia had signed the Nuclear Non-Proliferation Treaty. Australia’s expenditure on the west coast naval base at Cockburn Sound would reach s3Bm, and the naval establishment would be able to

handle four escorts and three destroyers. "We hope the facilities will

be used by friendly ships from time to time,” he said. "In the past, our naval forces have been very much concerned in the east. Clearly this will not be so in the future.” Any future reopening of the Suez Canal to Russian naval vessels would assist their deployment in the Indian Ocean, and Australia clearly had to play an increased role in the area. The Prime Minister (Sir Keith Holyoake) said today that the Cabinet had had a very useful discussion with the Australian Minister. However there were no fresh developments in the defence production arrangements of the two countries or on the future of the Aus-tralian-New Zealand defence arrangements in Singapore.