O.E.C.D. members restricting N.Z. trade —P.M.

Press, 31 March 1979, Page 6

O.E.C.D. members restricting N.Z. trade —P.M.

Several member; of the Organisation for Economic Co-operation and Development had tried to restrict New Z<ailand trade in the last year, the Prime Minister (Mr Muldoon) told the Ashburton Chamber of Commerce last evening.

“We shall continue to trade internationally on the normal basis of competitiveness, but the actions of other countries have forced us to toughen our approach. "That will be the message I will give to the O.E.C.D. Ministers at Paris in June," he said. He also criticised the Dutch, the French, and the Japanese. He accused the Dutch Government of being unhelpful to New Zealand. He accused the French of refusing to “heed the cries of traditional food suppliers to Europe.” He also said the French could not expect too much sympathy from this country over the “growing difficulties” they were having! with their colonies in rhe! South Pacific.

He said that New Zealand ■ bought S3OM worth of railway carriages from Hungary,! instead of Japan, because the i Hungarians would take an! equivalent amount of New! Zealand products. New Zealanders would. have read with a sense of i shock the statement made on behalf of Dutch farmers I recently, to the effect that New Zealand and New Zea- ■ land produce were not ' wanted in Europe, he said. "There was the time when 1

the Dutch were regarded as among our best friends tn the European Community, ;but they have seen the prospect of expanded intra- ; Community exports and this, ! clearly in the minds of many (and particularly the farmers, overrides any feeling they may have had for New Zealland. I “There are thousands of ' expatriate Dutch people in this country who have come I here, mainly since World ] War 11, and for the most (part made good. “They can help their ,adopted country by letting their friends and relatives at ; home know that if their Government takes steps which j harm New Zealand, it is harming them as well,” he said.

“Unfortunately, it is not simply the Dutch farmers, but the Dutch Government as well that is taking an unhelpful attitude in the councils of the European Community as far as New Zea|land is concerned.” i He recalled that France had a close, friendly relationship with New Zealand in the past, and particularly during two world wars. “During the last decade, i however, France is the (country which perhaps more than any other member of the community has supported the iniquitous common agricultural policy and refused to heed the cries of traditional suppliers of foodstuffs who, as in our case, have-built up their farming industries for a hundred years in order to supply cheap, high-quality

food to Britain, tn particular, and to Europe.” He said France was facing growing difficulties in the South Pacific as the main French colonies, New' Caledonia and French Polynesia, became more and more restive in aspiring to independence.

The Australian Labour Government’s easing of restraints on imports of competitive goods from low-cost countries was the root cause of Australia’s unemployment, Mr Muldoon said.

Nothing that the present Australian Government had done recently by adopting a more protectionist stance had had much effect on unemployment.

i The New' Zealand Govern|ment had told analysts, both ; internal and international I that it did not accept their advice that it should ease restraints on imported goods to provide competition. “We do not propose to export jobs or import unemployment,” he said. The Government had gone into a big deficit to stimulate the economy w'hen the downturn was going beyond what was reasonable or necessary.

I “It is true that this perpetuates a system of subsidies and other artificial aids. But the days when we spoke glibly of free multilateral trade are w’ell behind us, and the worst offenders in breaking down that concept are the affluent industrial nations who should have been the leaders towards that goal.”