P.M. holds out olive branch to Aust.

Press, 2 September 1977, Page 4

P.M. holds out olive branch to Aust.

NZPA Brisbane jn An appeal for New Zea- ’ ’and and Australia to make! the peaceful adjustment! 1 necessary to reach a closer), relationship was made by the _ Prime Minister (Mr Mui- J. doon) in Brisbane last evening. I d In a speech to a banquet given bv the Premier of|* Queensland (Mr Joh Bjetke-i*. Petersen). Mr Muldoon said;’ that the pressure of world) events could divide Newj Zealand and Australia if each i country biamed the other fori its economic difficulties. .. “Alternatively we can* move closer together.” he said. “We can act to |, strengthen our economies)' and defence capacities by an expanded programme of/ freer trade, and then be in a', position to deal with the rest ' of the world more surelyU and more confidently. “This process will involve some painful adjustments in. ll both our countries, but theyiy will be small compared with;o the ones we may be called c upon to make as our involve-'y ment with other neighbours ' Mr Muldoon said he was ; personal!' in no doubt aboutltl which path the people of t New Zealand wished to fol- c low. a “We are prepared to play jo our part to further our com-; mon interests — the restc

must be done on this side of is the Tasman.” he said. t Earlier in his address. Mr t Muidoon said New Zea- 1 landers had been far too inclined to ignore the wide I role played by various state t Governments in the internal' administration of Australia. £ “We have not fully under- *■ stood the significance of the * fact that Australia has a , federal system of govern-]* ment.” he said. “We must take this into ! account in our efforts tor create goodwill between New ! Zealanders and Australians 1 living in all parts of Aus-L traiia.” Mr Muldoon said ordinary - Australian and New Zealand j citizens believed the closest r and most cordial relations < should be maintained be- | tween the two countries and ] expected their Governments to act accordingly. L “In New Zealand we ' intend to do our part and s while we are aware of some differences between our two > countries we are also con- J vinced that our common 1 interest must prevail.” he ' said ; Mr Muldoon emphasised the role of the A.N.Z.U.S. , treaty, and referred to the re- \ cent Australia-New Zealand agreement on defence co- , operation. “It was recognised that our ; countries might find them- i

; selves in circumstances where they would wish to give military support to each other,” he said. “Accordingly we have both pledged ourselves to consult with each other on ways in which we might, develop our armed forces so that they can work easily and effectively together.” On Wednesday evening, Mr) (Muldoon told about 500) 'students at the University of I Papua New Guinea that New ■ (Zealand was not seeking a I balance of trade with Australia. Answering questions after! (giving an address which i largely concentrated on NewZealand’s role in the Pacific, he said New Zealand did not mind the present imbalance of about two to one in Austra-j lia’s favour remaining at that) level. “We have never said we) ■are seeking a balance of trade) with Australia,” Mr Muldoon) said. Before the New Zealand-! Australia Free Trade Agree-) ment was introduced. Australia’s trade to New Zealand; was about five to one in its! (favour. Now it was about! two to one. “We don’t mind it staying) at two to one against be-' cause we get things from! Australia that we are not) going to make in New Zea-1 land — cars, for example.” j Mr Muldoon said. “We do not seek a balance. “What we do seek, of) course, is a fair go.” ! Speaker •resting' The Speaker of the House; of Representatives (Sir Roy! Jack) was yesterday resting! | ; n Wellington’s Bowen Hos-i (p’.ial after undergoing major surgery on Wednesday after-: :noon. A spokesman in Sir! (Roy’s office in Parliament! said he had been visited by) ■ Lady Jack yesterday morning! land was resting comfortably. (PA).