Ban on Iran ‘does not affect N.Z.’

Press, 16 January 1980, Page 2

Ban on Iran ‘does not affect N.Z.’

PA Auckland * Nothing that had happened at the United Nations had altered New Zealand’s views on continued trade with Iran, said the Prime Minister (Mr Muldoon) yesterday. The United States, which will go ahead with its trade sanctions was “quite clear” on New Zealand’s views, he said.

' The American call for a trade embargo against Iran was vetoed by the Soviet Union in the United Nations Security Council on Monday, but afterwards the United States called on other countries to join it in a trade ban.

New Zealand has consistently said it will continue its lamb trade with Iran (food is exempt from any embargo, with medicine) and the export of wool for carpets. “Our view remains as it was, and we have been in touch with the United States and other governments close to us constantly throughout this period,” Mr Muldoon said. “Our position has been built up as a result of these continuing discussions. Nothing that has happened at the United Nations has altered our position.” The New Zealand Ambassador to Iran (Mr C. Beeby) was one of “a small number of ambassadors there who are close to the United States?’ As such New Zealand had helped the United States ( in several ways. “We have been in the

forefront of those who have been in constant touch with the Iranian regime, the Revolutionary Council, with a view to trying to solve the problem,” Mr Muldoon said. For the year ended June, 1978, New Zealand exported goods worth $7O million to Iran. Of that, lamb was by far the biggest item at $44.9 million. Next was wool ($20.6 million) butter ($2 million), and mutton ($830,000). New Zealand would commit “economic suicide" if it took part in any trade ban against the Soviet Union or Iran, said Federated Farmers’ meat and wool chairman (Mr B. Chamberlain). “Our country would be the worst hit in the world if we took part in any ban,” he said. “Both these countries are increasingly becoming important trading partners for agricultural produce. “With a worsening economy, we would be committing economic suicide,” he said.

A Press Association report from the United States said New Zealand meat exports to the Soviet Union could become a big issue. The White House press secretary (Mr Jody Powell) said that United States cuts in grain exports would “take more meat off the tables of Soviet consumers than any single action since World War II.” This could mean that the Russians would again seek to buy meat from New Zealand.