Rhodesia insurance activities legal

Press, Volume CXIV, Issue 33493, 26 March 1974, Page 12

Rhodesia insurance activities legal

(New Zealand Press Association) WELLINGTON, March 25. The Government has decided it cannot take legal action under existing law to prevent the New Zealand and South British Insurance Companies from working in Rhodesia. ,

The Acting Prime Minister (Mr Watt) made this clear in a letter to the vicepresident of the New Zealand University Students’ Association (Mr A. Shaw). Although the Government was unable to stop the companies under present regulations, he was not happy with their continued involvement in Rhodesia. Mr Watt said. The Students’ Association said in a statement that it , had decided not to bring a private prosecution against the two companies. “We have decided that pressure on the Government to strengthen the United Nations sanctions and the (Government’s own regulations might be more profitable,” said Mr Shaw. “What ; is needed is an amendment i to the regulations that makes , continued involvement in , Rhodesia impossible for New Zealand companies.”

In his letter to Mr Shaw, Mr Watt said the Government was concerned about the way in which Rhodesia’s part of the world looked at New Zealand.

“From that point of view, I would prefer, for so long as the Rhodesian problem remains unsolved, that New Zealand countries refrain from participating in the Rhodesian economy,” he said.

“I also accept the advice lof the Ministry of Foreign [ Affairs that the fact that certain New Zealand companies have so far chosen not to sever these links with Southern Rhodesia does not in itself constitute a breach of either the ' Security Council’s sanctions or of New Zealand law.” '

Mr Watt said he had sent a copy of the letter to the general managers of both insurance companies.