Japanese talks warning note

Press, 27 October 1977, Page 7

Japanese talks warning note

PA Hamilton One of New Zealand’s leading farmer spokesmen has sounded a warning against starting a tariff war with Japan, in the wake of unsuccessful trade talks in Tokyo. Such a move could only be to New Zealand’s disadvantage, said the immediate past-president of Federated Farmers, Mr J. T. Kneebone, speaking from his Tirau farm. Mr Kneebone said he knew that the threat of higher import duties had been mentioned in the Tokyo negotiations. But retaliation for a Japanese refusal to allow more imports of New Zealand primary products could close the market. “We are such small fry in their eyes.” he said. “Politically, we have got very little clout.

“Our only hope is providing a better product at a competitive price, and appeal to their sense of fair play and commercial ethics.”

Mr Kneebone said he was impressed with the firm line being taken with the Japanese Government. New Zealand had never been so open, and aggressive.

The normal approach had been low-key, avoiding accusations which might cause the Japanese to “lose face.” The charge had been made that New Zealand negotiators were too light in their approach — that it was trying to play the Oriental game, and not winning, he said. “The present talks are a very good example of the extreme difficulty New Zealand is going to face world-wide.”