U.S. told of N.Z. military costs

Press, 27 March 1981, Page 3

U.S. told of N.Z. military costs

NZPA staff correspondent: Washington

The New Zealand Secretary of Defence (Mr Denis McLean) has underlined New Zealand’s difficulties in coping with the huge cost of modern military equipment in talks with United States officials in Washington this week.

Mr McLean made it clear after the talks that he had nor held any specific discussions “but I pointe*.’, out the need for the Americans to see the problems that a small ally with an economy such as that of New Zealand faces with the soaring cost of defence technology.”

The New Zealand Government has had informal dicussions with the United States with a view to obtaining favourable credit terms to buy new military equipment. At the top of the list is a replacement for the ageing frigate Otago.

Mr McLean said that he had not any specific talks on this matter. He rejected a suggestion that New Zealand sought military aid. 1 Mr McLean came to the .United States to attend a 'conference on “big alliances and small countries” organised by the International Studies Association in Phila~ 'delphia. He came to Washington to “touch a few bases” with the new Reagan Administration.

“In view of the A.N.Z.U.S. council meeting coming up in Wellington this year and the Administration’s expressed intention to heighten its alliances, it was very valuable to make contact at this stage,” he said.

Mr McLean visited the Boeing Aircraft Company’s plant at Seattle, where an R.N.Z.A.F. Orion will be refitted with modern computer equipment later this year. The Air Force’s four other Orions will later be adapted in New Zealand in a $4l million programme that will give tham a greatly enhanced surveillance capacity.

Mr McLean also had talks on New Zealand’s purchase of three surplus Boeing 727 aircraft which will be used fot troop carrying. American plans for a multi-national peacekeeping force in the Sinai peninsula were outlined by Mr McLean during his talks in Washington.

He said that the United States had not made any specific request to New Zealand to supply troops for the force. A State Department spokesman, Mr William Dvess. told reporters that •the United States was “consulting informally” certain governments to see if they .would take part in the force. 'He declined to name the countries involved.