Australia retaliates with uranium deal

Press, 13 June 1978, Page 3

Australia retaliates with uranium deal

NZPA London Australia has taken the first retaliatory step against the European Economic Community for rejecting its proposals for increased trade into the Community. Against the wishes of the i E.E.C., Australia is now i negotiating uranium contracts separately with the member countries and not with the E.E.C. Commission which wants to act as the controlling body. It was the Prime Minister (Mr Fraser) who unwittingly revealed this move at a London press conference on Friday, just hours after the E.E.C. had rejected Australia’s 25-point plan for freer trade and greater access. ' Mr Fraser said Australia and Britain had initialled aj draft safeguards treaty but it was learned during the. week-end that no document; had been signed at all. What Mr Fraser was re-| ferring to was a verbal agreement between the two countries which is expected 1 to lead to a contract worth 1 hundreds of, millions of dol- ’ lars. By dealing direct with Britain, a key member of the Community, Australia has 1 rejected outright th E.E.C.’s” proposals that it act as middie-man for all member countries. Australian officials have 1 since made it clear they will' 1 deal only with individual I countries. From Canberra, it is re-' !

i ported that the Acting Prime , Minister (Mr Anthony) ; yesterday continued his ; threats of retaliation against ; the E.E.C. if it continues to ! restrict imports of Austra--1 lian agricultural products. Mr Anthony stopped short ' of suggesting a “trade war.” but he did suggest the Gov- ! ernment might give prefer- ! ence in its purchasing policies to places other than the E.E.C. “That means that when deciding on tenders that might be submitted from different countries in the; world, the E.E.C. would certainly have a lower prior-; lity,” he said. The Federal Cabinet has; I already discussed attitudes; | to a wide range of items, in- ■ Icluding communications! iequipment, defence hardIware, and aircraft. Sources said an important; iitem which might be; ! affected by the proposal was! the French Airbus, a strong l contender for introduction as a short haul, wide-bodied jetp on Australia’s domestic air 1 routes. Replacements for the R.A.A.F.’s Mirage fighters l might also be involved, they ■ said. Other defence items coming up for eventual decision include a replenishment ship ; for which design studies 1 have been let to a French i firm. There are also designs for a possible new aircraft car-ii

: rier, including the British i Harrier “jump-jet” carrier, ; communications equipment, ; coding devices, trucks, and a > variety of missiles.