N.Z. sees victory in O.E.C.D. talks

Press, 16 June 1979, Page 2

N.Z. sees victory in O.E.C.D. talks

NZPA Paris New Zealand was claiming: a victory after the two-day O.E.C.D. meeting ended with! a broad promise to work to-! wards lowering barriers against agricultural trade. I The communique issued* by ’he Organisation for' Economic Co-operation and, Development did not specifi-1 cally mention farm barriers but said that Ministers had ‘•reaffirmed their attachment to an open world trading system and their determination to continue to fight; against protectionism in aIL sectors and to work towards' improvements in the sys-| tern.” The communique also met. in broad terms the specific requests made by the Prime Minister (Mr Muldoon); agreeing "to make particular efforts in the work of ’he organisation in the com ng year to study the problems of the agricultural trade." Mr Muldoon said later, that the O.E.C.D. conference: had "been two good days from our point of view.”

The O.E.C.D. was "the most useful forum of the lot,” combining as it did the world’s 24 richest Western nations, "all the wealthy countries, all the agricultural protectionists,” in a grouping small enough to allow

nations like New Zealand to ensure that its message was heard. The communique wording is a significant advance on the past, two years but Mr Muldoon admitted that apart: from the “study” pledge the diplomatic triumph may have limited practical application. “1 don’t know how much these things mean,” he said, “but we keep chipping away at it. “These things are very, very slow . . . but we are writing in the basis for a reduction in agricultural protectionism. What I am concerned with is progress, and what is agreed to at this meeting must inevitably affect our bilateral negotiations.” There had also been a “breakthrough” for New Zealand in getting support for its efforts to toughen the O.E.C.D. line on farm barriers, not only from Australia. but from the United States and Canada, which were both fighting the farm trade blocks imposed by the European Community and Japan. The two days of almost constant talking at the Chateau de la Muette (Castle of the Mute) were dominated bv the growing oil crisis and ; th? communique warned of 'real dangers to the international economy. i ”... Without responsible (policies by oil consumers and producers alike, the 'energy situation will se- , riously damage the world (economy,” it said. i “There is no escape from the reduction of - real incomes caused by higher prices for imported oil. Claims for compensatory increases in money incomes will only make matters worse by aggravating inflation and increasing unemployment.” Earlier Mr Muldoon had 'akerr the world’s main industrial nations to task over their responsibilities in the oil crisis.

An allocation of supplies, effective action by all consuming nations to cut demand. and action against use of the “spot market” by oil companies bidding the price up in the search for supplies. were needed, he said. “It has been distressing, in a vulnerable country such as mine, to see how badly the major consumers of oil, members of this organisation, have managed the situation in recent months,” Mr Muldoon said. The main industrial economies had a special responsibility to reduce their demand for oil imports. I “New Zealand has already ! taken steps to reduce its oil 'consumption beyond the I international energy agency (target (of 5 per cent). I “I sincerely trust that all other member countries will take the matter equally seiIriously,” Mr Muldoon said.