Oil crisis may dominate O.E.C.D. talks in Paris

Press, 14 June 1979, Page 3

Oil crisis may dominate O.E.C.D. talks in Paris

The annual meeting of senior Ministers of the Organisation for Economic Cooperation and Development nations, which opened in Paris yesterday, seems likely to be dominated by worldwide concern over the escalating oil crisis. Ministers from the 24 Western nations which form C.E.C.D. — the rich men’s club — will meet for two days of solid talking. The second day is largely devoted to “overcoming the obstacles to sustained economic growth.” The Prime Minister (Mr Muldoon) said before the talks that New Zealand was not the only nation seriously affected by oil shortages. “We are heading for a very, very dangerous financial situation internationally and I believe the major industrialised nations are going to have to do something” he told a NZPA correspondent. Mr Muldoon has already

made public his fears, hypothesised by leading energy consultants and petroleum economists that the price of oil could still treble in the current year. He is expected to devote one of his two speeches to New Zealand’s fears about the inherent dangers in the present situation of the “rapidly escalating price of oil and the fact that this time much more of the increase is going to be a surplus over and above what the oil producers can spend.” The surplus money would then be “recycled” into loans to enable the consuming nations to maintain their levels of oil usage. Mr Muldoon was to have made his first speech — ’‘intevention’’ in O.E.C.D. jargon — last evening, when he was likely to attack fellow members for continuing to follow protectionist policies against agri-

cultural producers like New Zealand.

But the speech will not be the fierce broadside predicted last month when Mr Muldoon billed it as the “toughest” speech he would make outside the country. “I will make a fairly firm statement on agricultural protectionism — and all the culprits will be there,’’ he said beforehand.

But the speech had been “softened a little” after the visit to New Zealand by the European Economic Community’s Agriculture Commissioner (Mr Finn Gundelach). Mr Gundelach has proposed a still confidential formula which Mr Muldoon said in London would guarantee New Zealand indefinite access for butter after the present transitional arrangement expires at the end of next year. “We have made a little progress there. I do not want to upset people too much,” he said. . .

Mr Muldoon is still thought to be planning to list the “culprits” imposing barriers against agricultural trade, in spite of the avowed aim of the O.E.C.D. trade pledge to remove all barriers between members. But he was evasive on whether New Zealand would actually carry out its now traditional threat to refuse ft sign the pledge. Last year, the, Minister of Foreign Affairs and Overseas Trade (Mr Taiboys) signed “with reluctance.” The year previously, Mr Muldoon himself signed ' only after making clear New Zealand’s substantial reservations that the pledge was actually being adhered to.

Asked if the progress made during Mr Gundelach’s visit had swung the balance in favour of signing for the fifth consecutive year, Mr Muldoon told reporters to wait and see.

“We must retain a few little mysteries and secrets,” he said.