Mr Muldoon snubbed by Aust. P.M.—newspaper

Press, 2 September 1980, Page 1

Mr Muldoon snubbed by Aust. P.M. —newspaper

By Tom Bridgeman, NZPA correspondent in Sydney Australia and New Zealand were involved in a “top-level” confrontation over Pacific issues which at one stage had led to a threat of a boycott of the Commonwealth Heads of Government regional meeting in India by the Prime Minister (Mr Muldoon) according to a report in the “Australian” newspaper yesterday. But the Deputy Prime Minister (Mr Taiboys) said he liad no knowledge of the alleged confrontation. “It all sounds like somebody’s imagination to me,” he said last evening. New Zealand Government sources in Sydney have, described the story

as a “highly coloured and inaccurate version” of the exchanges between the two Governments on the issue in question, the Pacific Forum Shipping Line. The “Australian” report, from a correspondent in North America travelling with the Australian Prime Minister (Mr Fraser), said that in a “highly confidential”, cable to Mr Fraser about a week ago Mr Muldoon called on Australia to support the need for a one-day debate on Pacific area issues.

In a blunt, confidential reply Mr Fraser made ’ it clear he would not support Mr Muldoon, the report said. “The significant differences between the two leaders on Pacific issues

have led to a war of words, which has included the threat by Mr Muldoon to boycott the 16-member ' Prime Ministerial meeting.” The Australian Government believed that to accede to Mr Muldoon’s request would be a slight to other countries in the regional meeting because of the broader Commonwealth issues . involved. At issue is the future of the Pacific Forum Shipping Line, with its headquarters. in New Zealand, which faces estimated losses of $9 million. The “Australian” report said . New Zealand had ' urged Australia to give up to $4 million a year to help the line out of its

problems, but Australia had believed that such help could come out of its aid allocations to Pacific States. • -/ Forum Transport Ministers met in Christchurch early last month and agreed that there should be an early meeting of forum political leaders to look at the financial problem of the line. ' The Pacific Forum Shipping Line was set up in 1978 “to promote the export trade and development of the Pacific Island Statr-.” . ' The line has three vessels, one provided by New Zealand and two by the West German Government as aid, and carries about 50 per cent of the trade in its area. . / "/