Japan had 17 years to talk — Minister

Press, 15 April 1978, Page 22

Japan had 17 years to talk — Minister

Wellington reporter In 17 years New Zealand had made little or no progress in trade talks with Japan, said the Minister of Fisheries (Mr Bolger) when discussing why Japan was excluded from New Zealand’s 200-mile zone. “New Zealand has been endeavouring for 17 years to try to make progress on some trade issues with Japan. As well, over the last 10 years, it is roughly estimated that Japanese fishing boats have caught about 750,000 tonnes of fish from New Zealand waters that now constitute our 200-mile zone,” Mr Bolger said. “Valued at today’s prices, that tonnage of fish is worth about S7SOM. These figures are only estimates, but give us a reasonable guide to the benefits Japan has extracted from the waters around New Zealand. “In effect, while we have made little or no progress over 17 years, Japan' hgs caught hundreds of millions of dollars worth of fish. I believe it is time we called a stop to this harvest until we make some progress on other trade matters. I do not believe that is unfair. “In the context of what is fair, it is worth remembering that we are not trying to extract trade concessions out of a poor, undeveloped country, but rather one of the strongest economically in the world. “A few weeks ago, the Japanese Cabinet agreed on an emergency import purchase plan of S2OOOM. They intend to purchase SIOOOM worth of imports to help stabilise the yen against the falling United

States dollar. In fact, latest reports suggest that the Japanese buying spree in the United States could total $2 billion. They plan to do this while at the same time we are told they cannot concede to any of New Zealand's modest requests. “None of the Japanese proposals faced up to the real request of New’ Zealand — that Japan should adjust her agricultural support system so as to encourage consumption. Such encouragement would improve the market for both domestic and New Zealand supplies. “At present, for example, butter sells in Japan for about five times the New Zealand price, and beef at more than six times the price here. The only substantive response offered by Japan under the four headings of dairy, beef, timber and squid was to offer to continue to talk. We have done a lot of talking in the last 17 years.

“We have made public the fact that we are prepared to hold in reserve for a while most of the fisheries quota we had been intending to allocate to Japan. Japanese fishermen and fishing companies could have no clearer expression of New’ Zealand’s good intentions to them and their industry.

“We feel no antagonism towards the Japanese fishing industry. I personally feel considerable sympathy for the small Japanese fishing operator who, I am sure, would like his Government to conclude an agreement with New Zealand so he can continue fishing.

“By the same token, I

would also hope that the Japanese fishermen would have the same sympathy for our farmers and the producers of those products which we wish to sell to Japan. “However, the reserve quota cannot be held in reserve for very long. Progress must be made or it will have to be allocated elsewhere. “That is not a threat, merely a statement of my responsibilities under New Zealand’s legislation, which in turn was drawn up to incorporate the spirup to incorporate the spirit of the understanding of the Law of the Sea Conference — that fish surplus to that which can be caught by a coastal state is allocated to others to harvest. “There is, of course, no difficulty in allocating the fish: our problem is that there are more countries seeking, fish than there are fish to allocate. “An editorial in the Japanese newspaper, the ‘Tokyo Shimbum’ said: ‘Frankly speaking, we feel regret, thinking that Japan ought to have answered New Zealand’s requests more positively. “Isn’t it necessary for Japan, which is a big Power, to purchase more agricultural products from New Zealand for the reduction of its trade surplus as well? Will not Japan become an orphan among nations, if it continues to seek its own interests alone?’ it asked.

“That editorial echoes the sentiments of most New Zealanders. They are my sentiments exactly. I regret that Japan has not answered our requests ‘more positively’,” Mr Bolger said.