Malta and Russia nearer agreement

Press, Volume CXI, Issue 32802, 30 December 1971, Page 11

Malta and Russia nearer agreement

(N.Z.P. .4 .-Reuter—Copyright)

VALETTA, December 29.

The Prime Minister of Malta (Mr Mintoff), whose Labour Party holds only a one-seat advantage in Parliament, has announced that his Government and a Soviet Union trade delegation have agreed on principles of collaboration which could lead to the development of substantial Maltese-Russian economic and commercial exchanges.

Mr Mintoff told the House of Representatives last night that complete projects to achieve this had been examined; but he did not disclose details.

The two sides had declared, he said, that they should extend favourednations treatment with regard to customs tariff regulations, and to formalities connected with their exports and imports, “after taking into consideration their respective international obligations.” They had agreed to hold economic consultations alternately in the Soviet Union and on Malta whenever the need arose. The two delegations discussed imports and exports, shipbuilding and repair, industrial co - operation, tourism, and machinery for public works. In his statement to the House, Mr Mintoff said that Britain and her N.A.T.O. allies were constantly changing their stand in the second round of talks on financial arrangements for the continued use of British bases on the island. “Malta is asking for so much, and Britain is offering so much,” Mr Mintoff said, “and the situation remains rigid.” He did not mention any figures last night, but he has been reported as having told a meeting of Government department heads and trade unionists that he wanted £lBm a year, and that the latest British offer amounted to just over half that figure. Under an interim agree-

ment, Britain gave the island about £4.7m for six months, but, in spite of stringent economies, Mr Mintoff says, Malta faces a deficit of £llm at the end of the present financial year. From London, K. C. Thaler,

of United Press International, reports diplomatic sources as saying that any new commercial agreement would be regarded as part of a determined Soviet Union drive to establish naval facilities at the island for her growing Mediterranean fleet.

I Malta has served for years . as an important British naval ; base, and, more recently, as . a base for N.A.T.O. The British Minister of i Defence (Lord Carrington) will fly to Malta later this , week for further talks with Mr Mintoff, the diplomatic sources say, adding that Britain is not prepared to bow to “blackmail,”, and might even withdraw' from the island rather than pay more. Other N.A.T.O. allies are said to be concerned that Russia might move in bodily if Britain does withdraw. Talks with Libya Mr Mintoff has been putting out feelers for possible new sources of income in recent months. He has been in close consultation with Libya, which is said to have offered money if Britain’s bases were removed from the island. For some time there have been close contacts with the Soviet Union, whose Ambassador to Britain (Mr Mikhal Smirnovski) flew to the ■ island recently to press for : the establishment of a Soviet ' Union mission. Mr Mintoff has concluded f a series of trade and comi mercial agreements with 1 such Communist countries as ■ Poland, Hungary, North . Korea and Rumania.