Iran prepared to invest in N.Z.

Press, Volume CXIV, Issue 33653, 1 October 1974, Page 1

Iran prepared to invest in N.Z.

(New Zealand Preu Atsociation) WELLINGTON, September 30. Iran is prepared to invest some of its oil revenue in New Zealand. The Shah of Iran told a press conference in Wellington today that any Iranian investment would depend on New Zealand’s wishes.

Iran did not wish to become an economic imperialist, but would be happy with minority interests in joint New Zealand - Iranian ventures, said the Shah.

He hinted that such ventures might include woolprocessing plants and meat works.

New Zealand might be involved, “if not entirely, in some of its aspects,” in the Indian Ocean Common Market he hoped to form. Iran wanted to process its own crude oil, and if crude oil were sent to New Zealand, Iran would like to have have "down-stream operations.”

“That means if crude oil is, for instance, sent to New Zealand, we would like to participate in processing, refining, petro-chemicals, distribution, pumping stations, and even chemical factories. This is our basic oil policy.” Asked if this were a possibility in New Zealand, he said this remained to be discussed.

“Mild spokesman”

The Shah, who described himself as “a very mild spokesman for a very moderate oil producer,” said recent oil price increases were responsible for only 1| per cent of the inflation rate which had reached as high as 20 per cent in some countries. He accused Western countries of sometimes not working hard enough, producing little for the money spent in production. “First they have got to put

their house in order,” he said. Monetary system “Then you need a more sound world monetary order. We know very well that the world monetary system has been rather sick for some time now. This has to be cured also.

“So you have got to consider the whole picture at the same time.”

The Shah outlined his proposal to obtain one oil price — differing only for quality and geographic location — in place of the present complicated and confusing situation.

This price, he said, could then be fixed to a basket of between 20 and 30 basic world commodities. Oil prices would follow world inflation or deflation. Effects of prices He agreed higher oil prices were acting against the interests of underdeveloped countries, but said that so were high prices for wheat, sugar, cement, fertiliser, and vegetable oil. “Iran has already set up billion-dollar credit arrangements for Egypt, Pakistan,

India, and some African countries," he added. The Shah said that big consuming nations could only lose in any confrontation with oil-producing nations. “I would not recommend to the big consuming countries any confrontation policy.’’

On joint Iranian investment in New Zealand, the Shah said this might be in the form of joint ventures, or anything that the two Gov, emments decided to do together. Mutual benefit The object would be to develop new resources in New Zealand which would be of benefit to both countries, and which would lead to exports to Iran or other countries. The Shah said he could not say “in exact figures” how much sheepmeat Iran was prepared to buy. “I think we, like you, are not putting all our eggs in one basket. We are not going to be your sole export market.”

Special oil supply arrangements between New Zealand and Iran were not the main basis of the trade agreement between the two countries, the Shah said.