‘lnterest’ in E.E.C. treaty

Press, 24 June 1981, Page 3

‘lnterest’ in E.E.C. treaty

NZPA Bonn The West German Chancellor (Mr Helmut Schmidt) was receptive to the idea of a trade treaty between New Zealand and the European Economic . Community, the Prime Minister (Mr Muldoon) said after a working lunch with the Chancellor yesterday. President Mitterrand of France and the British Prime Minister (Mrs Thatcher) have already given what Mr Muldoon calls a positive response to the proposal. "On present indications I think we will pursue the treaty,” the Prime Minister told a news conference. With the transitional period since Britain joined the E.E.C. formally ending last year, Mr Muldoon said that it was a good time to try to arrange a trade treaty. A formal, agreement would remove the necessity for interminable. negotiations “which are an irritant to the community and a worry to

New Zealand,” the Prime Minister said.

Replying to questions, he said that he hoped the discussions on a treaty would run parallel to the community’s review of the controversial Common Agricultural Policy (C.A.P.). rather than wait until the review was completed. Mr Muldoon will discuss the proposal further with the W'est German Foreign Minister (Mr Hans-Dietrich Genscher) when he sees him todav.

In his talks with Mr Schmidt, Mr Muldoon said that he discussed the world economy, particularly in the light of the policies of the Reagan' Administration. They had also discussed the situation in the South Pacific in some detail. Mr Muldoon said that neither he nor Mr Schmidt had expressed misgivings or surprise about the United States decision to sell arms to China. “From where we sit out in

the South Pacific we are perfectly happy with the decision,” he said. “We don’t see any such arms being pointed in our direction.”

In an address to leading bankers and businessmen at a reception hosted by the Federation of German Chambers of Commerce last evening, Mr Muldoon said that there was every reason for growth and development in New Zealand’s relations with Germany and with the E.E.C.

“The difficulties with access for our dairy and lamb exports, vital though these are, have not turned us away from Europe,” he said.

“While your primary concern must necessarily lie in greater ’ Europe and. within the community, please do not forgefthat you have in New Zealand a reliable friend and partner in the South Pacific.”

Speaking about investment, opportunities- the Prime Minister said that a greater level of investment was re-

quired to develop energy resources than could be found in New Zealand alone. • ‘‘We must turn to the overseas investor for assistance,” he said. “My Government will continue to borrow for

developmental purposes, but in addition our economy’s requirements of equity capital are substantial. “So far there has been little German investment in New Zealand, but I am confident that this will change. “There are opportunities not just in energy development, but oyer a wide range of primary- and secondary industries.”, “ •' Mr Muldoon told the business leaders: “We are a politically stable, sophisticated, and developed Western democracy.” “Although our search for new markets and economic partners has drawn us closer to the Middle East and the Asia-Pacific region, it has by no means excluded Europe,” Mr Muldoon said.