Face-to-face test for Muldoon threat to Japan

Press, 4 August 1977, Page 3

Face-to-face test for Muldoon threat to Japan

NZPA Kuala Lumpur New Zealand’s “fish for farm products” trade bid with Japan will reach a vital stage on Sunday when the Prime Minister (Mr Muldoon) will meet the Japanese Prime Minister (Mr Takeo Fukuda) at the A.S.E.A.N. leaders meeting in Kuala Lumpur, Malaysia, j According to reliable ; sources in Kuala Lumpur, ■New Zealand has already demanded a formal reply from Japan to its requests for an indication of willingness to ease import restrictions on dairy products and beef. The message apparently was conveyed to the Japanese Government about two [weeks ago. [ The ultimatum came after [nearly two months of hedging by Japan, in response |to strong speeches by’ Mr, (Muldoon and the Minister of! [Foreign Affairs (Mr Tal-| iboys), saying that Japanese [access to New Zealand’s [2OO-mile fishing zone would: I depend on its willingness '.o[ [take beef and dairy; products. Diplomatic analysts say [the week-end talks will set, [the tone for further negotiations, although they do not [believe it likely that even! the outlines of an agreement [will emerge. ' Mr Taiboys is scheduled , to visit Tokyo later in the; [year, and it appears that the Government would like him,

to be in a firmer position to discuss problems remaining. , But if the two leaders Tail to achieve such an under-j [standing in Kuala Lumpur,' the Government may well be faced with the prospect of' taking steps to cut back hard on Japanese fishing in New Zealand's waters — jn, line with the threats made by Mr Muldoon. in diplomatic terms, Mr Muldoon was seen to have been extremely lough in the warnings he gave Tokyo on the fishing access question. I The Japanese Government I has refused to react, or even' to show its hand. The Muldoon-Fukuda talks will take place while the; Australian Prime Minister [ (Mr Fraser) meets the j A.S.E.A.N. heads of Government in Kuala Lumpur. After the meeting. Mr Fu-I kuda will himself talk with [the A.S.E.A.N. leaders. He is: [expected to provide details [of a Japanese plan to pro-; vide sUSlbillion in loan[ imoney to assist the five - nations of the group with: industrial projects they plan ■to establish. Mr Muldoon is scheduled to meet the A.S.E.A.N. lead-' ers the next day.