‘Ominous sign’ for crucial talks

Press, 17 July 1980, Page 3

‘Ominous sign’ for crucial talks

PA Wellington An ominous sign for the New Zealand dairy industry emerged ’ om talks between the Common Market Farm Commissioner (Mr Finn Olav Gundelach) and the Leader of the Opposition (Mr Rowling) in Wellington yesterday. Under a Common Market Commission proposal, New Zealand will be guaranteed access for butter, albeit on a reducing scale, at least until 1984. But the proposal still had to be approved by the Market’s Council of Ministers and, according to Mr Rowling, France and other European countries might not accept any access proposal beyond two years. Mr Rowling said he had also gained the impression from Mr Gundelach that New Zealand could expect no more than a 10 per cent reduction on the present 20 per cent tariff it pays on its lamb exports to Britain.

New Zealand’s demand for the abolition of the tariff is among what the Prime Minister (Mr Muldoon) describes as the "serious snags” to be ironed out in detailed talks with Mr Gundelach today on the E.E.C. sheepmeats regime. On the butter question, Mr Rowling said Mr Gundelach was obviously concerned that he would not be able to get a reasonable term of access when the commission’s proposal went before the European Ministers. “He is saying — if I have interpreted him correctly, and I have no reason to believe otherwise — that France in particular is not likely to agree to anything beyond a two-year period, whatever proposition he puts forward in respect of tonnages,” Mr Rowling told journalists. He spoke with Mr Gundelach for about 40 minutes in his office at Parliament Buildings. Just “listening and reading between the lines,” Mr Rowling said Mr Gundelach had given the impression that he was thinking of a “halfway” reduction in the 20 per cent lamb tariff.

Certainly Mr Gundelach had said that he would not succeed in having the tariff abolished, Mr Rowling said. Mr Gundelach yetserday talked privately with Mr Muldoon and the Minister of Foreign Affairs (Mr Taiboys). After an hour-long meeting late yesterday afternoon. Mr Gundelach repeated his assertion that New Zealand had nothing to fear from a sheepmeats regime in Europe. Mr Gundelach said he had discussed the general politics behind the regime with Mr Muldoon, and said that he believed Mr Muldoon had accepted his analysis. “Having discussed the general politics of it. . . I think we are at a point where we can discuss the details tomorrow,” Mr Gundelach said. Mr Muldoon told reporters that his discussions with .Mr Gundelach had “cleared the air.” “We are all ready to start talking detail,” Mr Muldoon said. In reply to a question, however, Mr Muldoon said there were still some “serious snags.” He said he accepted that Mr. Gundelach was in New Zealand to be as helpful as possible.. .( “I think we will just work our way through it carefully in an atmosphere of co-oper-ation and good will and see where we end up,” Mr Muldoon said. All day today has been set aside for the talks. The outcome might be revealed in the evening, when Mr Gundelach is due to hold a news conference. The Dominion President of Federated Famers (Mr A. F. Wright) said in Wellington that the visit by Mr Gundelach was an opportunity to re-emphasise to him first hand the vital importance for New ■ Zealand to retain its traditional trading links with Europe. “A century of trade in butter and lamb hangs in the balance and much of what is said and learnt here within the next few days will do much to determine New Zealand's future,” Mr Wright said. Gundelach interview — Page 9