Vital stage reached in N.Z. affairs, says P.M.

Press, Volume CXI, Issue 32629, 10 June 1971, Page 3

Vital stage reached in N.Z. affairs, says P.M.

New Zealand was close to a watershed in its history, said the Prime Minister and Minister of Foreign Affairs (Sir Keith Holyoake) in his introduction to the annual report of the Ministry of Foreign Affairs, which was tabled in the. House of Representatives yesterday.

“In the name of European unity,” said Sir Keith Holyoake, “decisions are likely to be taken soon which will determine for decades ahead the course of New Zealand’s development and the welfare of our people.”

These decisions would determine New Zealand’s ability to play a full part in international efforts to promote peace, withstand aggression, and assist the less-developed nations to achieve the social and economic goals to which they and this country aspired, he said.

“Few in New Zealand are unaware of the realities of New Zaland’s economic situation and the nature of our international trade. But it is timely to remind ourselves and others what is at stake for us as Britain and the European Economic Community negotiate together over its enlargement.

“Grassland agriculture is the industrial base of our economy and provides over 80 per cent of export income. In little over 100 years our pastoral industries have been brought to an unmatched standard of efficiency. “We have today an economy which to a critical degree is dependent on, and complementary to, that of Britain. It is there that 90 per cent of our butter, 75 per cent of our cheese and 86 per cent of our lamb exports are still sold,” said Sir Keith Holyoake.

Logic, justice “These are the simple and stubborn facts on which we base our case for special safeguards. I believe that the logic and justice of our case are now widely accepted, but I cannot be certain that they will prevail. “Should Britain join the E.E.C. a continuing arrangement subject to review is needed to preserve the volume and value of New Zealand’s traditional trade to the enlarged Community in butter, cheese, and lamb. A simple transitional arrangement would not be the answer. At best this would be a temporary palliative for New Zealand’s trading problems and would impose a massive dislocation of our economic resources together with grievous social effects.” New Zealand had achieved considerable success, especially over the last decade, fn diversifying its products and markets, and was reducing its substantial dependence on the British market for products other than butter, cheese and lamb. In those commodities, however, no such large-scale diversion was possible, Sir Keith Holyoake said. E.E.C. trade “We still believe that it makes sense to earn our living from these commodities, and that it is in Europe’s own interest to accept a trading partnership within which our farming can continue to exist and to grow. This is not charity, it is business. The countries which would form an enlarged Community of Ten already comprise the largest single source of New Zealand’s imports. “When invisible payments are taken into account, the Ten benefit to the extent of 50.4 per cent of New Zea-

land’s total annual overseas payments. I think there is every chance, especially if current trends of supply and demand in Europe continue, that the trade interests of New Zealand and the E.E.C. in the dairy and meat sectors will coincide, not diverge. “The New Zealand Government supports the principle of wider European integration. If thereby the European nations can live together in harmony and collectively grow stronger, the interests of world peace will be served. But I cannot believe that European unity demands the dislocation of a small economy in the Pacific. “The problems of a hardworking nation of two and three-quarter million can be accommodated comfortably and equitably by a grouping of 300 million. If they are not, the claims and aspirations of the Community will inevitably lose conviction,” said Sir Keith Holyoake.

South Pacific “The movement towards unity in Western Europe commits us to a struggle for our economic survival.” said the Prime Minister. “But we accept regionalism as a reality of our time. In areas close to us we are playing a part in the development of regional association and are moving towards new forms of partnership. “We accept the realities of communications, trade, politics, and sentiment and we sense the potentialities of current events. With the entry into the Commonwealth of three of the independent States of the South Pacific, a new era has begun in our part of the world. “Plainly, we are going to have much closer links with the Islands and their people; and if New Zealand may seem to have certain advantages over her partners she also has much to learn from them.”

There was a general desire on the part of Island leaders for a forum in which they could meet to talk about issues of common concern. New Zealand welcomed this and would be glad to join in, Sir Keith Holyoake said.

Co-operation “At the same time the Island states have been looking more widely afield, and moving to join various international organisations. In these settings, and elsewhere, the co-operation of the New Zealand delegations and New Zealand missions abroad will always be available to them. “Indeed, there are many ways in which New Zealand is able to help and in the long run some of these may prove more important than financial aid.”

In Asia, New Zealand’s relationships had a different basis and had yet to achieve »the same intimacy and , he said. “There is considerable scope still for the creation of new opportunities, particularly in business, and for the extension of contacts throughout a wide field of economic and technical co-

operation. At the same time, there can be no mistaking the warmth of existing ties nor the significance of the many areas of activity in which New Zealand and Asian countries are already working together.” Defence cited

Defence was an obvious example, he said. The growing political and economic strength of Asian nations had made them increasingly able to assume greater responsibilities. The United States, while reaffirming its treaty commitments, was adopting a lower military posture in the area. The British presence was also being substantially reduced.

“In the context of these developments New Zealand is reshaping its own defence role. Our concern for regional security is undiminished,” said Sir Keith Holyoake. “Our contribution is still needed, for the countries of the area are not yet able to stand alone. In South Vietnam, however, we are moving from a combat to a training role. “The character of our contribution to the defence of Malaysia and Singapore is also changing in keeping with the new situation. Encouraging progress has been made in the evolution of Commonwealth defence arrangements in this area. The British presence in future will be commensurate with that of Australia and New Zealand.

No peace yet, “But peace in South-East Asia is not yet in sight. Indeed, during the last year the scope of the conflict in Indo-China widened as fighting intensified in Laos and aggressive Communist action was extended to Cambodia. In both countries North Vietnam displayed a rooted refusal to respect the rights of its neighbours. In Cambodia this was flagrant.” The Djakarta conference was of great significance. It demonstrated not only the concern of other Asian Governments about the situation in Cambodia, but also their desire to play a part in dealing with it—to find Asian solutions to Asian problems. “The fact that New Zea-

land, with Australia, took part, also showed that Asian countries have come to accept us as partners in their search for peace and stability. “Not the least significant aspect of the Djakarta conference was the participation of Japan. Its contribution to the work of the conference, and to the three-nation mission set up by it, showed that, in co-operation with other Asian countries, Japan is prepared to play an active and responsible role in dealing with the political as well as the economic problems of the area.

New Zealand welcomed this development, and looked forward to further close collaboration with Japan in such endeavours, said the Prime Minister.

“I should like to be able to say the same thing about Communist China, but there is still little ground for expecting its co-operation. Of all the countries whose relations with Peking have improved substantially in the last year, only two are in Asia, and they are North Vietnam and North Keora.

“Peking has yet to respond to any of the attempts made by other Asian countries to discuss with its repreentatives the basis of a new relationship. “New Zealand would like to have direct relations with Peking, and to see its representatives seated in the United Nations; but we are not prepared to see the interests of Taiwan sacrificed to these ends. We value our longstanding association with the Republic of China, and we intend to retain it.”

Concluding his survey, the Prime Minister said: “As New Zealand’s international circumstances shift and alter, we must be able to respond in ways that secure or advance our national interests. We must be prepared for varied and sustained effort—in trade, in aid, in military assistance, in regional co-oper-ation, in personal relations and in diplomatic activity.

National interest “At all times, we shall need to ensure that the pattern of our representation abroad equips us to meet our problems and our opportunities. In Europe, where our relationship with the members of the E.E.C. may soon be transformed, the work of our diplomatic missions will grow not diminish, in importance. “Elsewhere, and particularly within the fuH range of the Pacific Basin, we must consider constantly whether to supplement existing missions or to create new ones. “The test must be the national interest. For many years, New Zealand governments have insisted that our representation be directly governed by need. I am convinced that this approach has served us well. As this report shows, the range of New Zealand’s international involvement is vast: it is also inescapable.”