TALKS ON N.A.F.T.A.

Press, Volume CXII, Issue 32860, 8 March 1972, Page 10

TALKS ON N.A.F.T.A.

IN.Z. Press Association)

WELLINGTON, March 7.

Negotiations had been going on between Australia and New Zealand at Government level on the effect of New Zealand’s decision to replace import control on motor vehicles with a replacement scheme, the Prime Minister (Mr Marshall) said yesterday. Talking after this morning’s meeting of the Cabinet, he said -that the N.AT.T.A. problem had been exaggerated. ’ He said that it was understood before the decision was taken that article 3:7 of the N.A.F.T.A. agreement, which provides for reciprocal concessions, would have to be varied in regard to motor vehicles as a result. "The Government has taken the view that it wishes to make more motor vehicles available,” he said. “We have the overseas funds to do it, there has been a continuing shortage of motor vehicles which we want to eliminate, and we also want the disinflationary effect this policy will bring.” The Minister of Overseas Trade (Mr Taiboys) would be attending the annual N.A.F.T.A. meeting in Australia, probably in about two months, and the question would be settled then if not before.