Ships in war zone

Press, 25 September 1980, Page 3

Ships in war zone

PA Wellington The conflict between Iran and Iraq was potentially “very serious’’ for world oil supplies if . it damaged the oil facilities in the area of conflict or put at risk the shipping lanes from the Persian Gulf region, said the Minister of Energy (Mr Birch) yesterday. “The impact on New Zealand would be great because some 50 per cent of our crude oil comes from Saudi Arabia alone, with lesser quantities from Kuwait and Qatar,” Mr Birch said. However, unless the conflict escalated, the direct effect on New Zealand would be limited, Mr Birch said. In the last year New Zealand had imported only a small amount of oil or oil' products from Iran, none since April. None had been imported from Iraq. Three New Zealand meat ships are tied up in Iran’s Bandar Khomeini port just outside the war zone. However, their cargo has already in effect been paid for. Letters of credit issued after the ships sailed mean that cargo losses would • have to be sustained ' by the Iranian buyers. Shipping insurance com-

panies have declared the area a war zone. “This means substantial extra premiums for us,’’ said the traffic manager of Blueport Act (N.Z.), Ltd, Mr W. Petter, in Wellington yesterday. It is his company’s ships that are in Bandar Khomeiny. Another is due on October 4. Their cargo of New Zealand iamb completes this year’s Meat Board contract with Iran of 64,60.0 tonnes of lamb and 1150 tonnes'of lamb liver. Bandar Khomeiny hasnot so far been attacked Wool exporters are watching the war closely. A $3.6 million shipment of wool now on its way to .Iran may have to unload before-it reaches Bandar Khomeini. Wool exporters are being warned that another shipment due to leave' New Zealand next month may also have to unload at another port if the situation looks to dangerous. A $2.5 million shipment of tallow due to leave New Zealand for Basra, the Iraqi port under attack by Iran, is also causing concern. One shipment of lamt> due to arrive in Basra in two weeks has been diverted to another port, understood to be Aqaba in Jordan. The - Minister of- Over--1 seas Trade (Mr Taiboys) is

going ahead with plans for a four-day visit to Bagdad, the capital of Iraq. A spokesman from his office said yesterday conflict between Iraq and Iran was being monitored daily but Mr Taiboys still intended to visit Bagdad to sign an agreement for the development of bilateral trade between New Zealand and Iraq. On October 1, New Zealand and the other 20 members of the International Energy Agency were due to take part in an exercise designed to test the oil-sharing system used in the event of an oil supply crisis. A Ministry of Energy source in Wellington said yesterday that the exercise, as far as he was aware, was still on, although he agreed it might quickly change from being an exercise and become the real thing. Telephone, telex, and telegraph services to Iran and Iraq had been severely disrupted since the outbreak of the war, said the Chief Postmaster in Chistchurch (Mr D. Page) last evening. "Severe congestion is being experienced in handling calls, and considerable delays can be expected until further. ~ notice,”-’ Mr Page said. A