Trudeau backs Fraser plan

Press, 21 May 1982, Page 6

Trudeau backs Fraser plan

NZPA Ottawa The Australian Prime Minister (Mr Malcolm Fraser) yesterday found some common ground with the Canadian Prime Minister (Mr Pierre Trudeau) on his threepoint plan to abolish trade protectionist measures. He told a press conference after two hours of talks over lunch with Mr Trudeau that he had been encouraged by his reaction. “He left me with the strong impression that he is interested in the proposals and that they have merit,” Mr Fraser said. Australian said that initial indicationVfrom Japan were that the proposals would be favourably received there. They also quoted the United States special trade negotiator, Mr William Brock, as telling a National Press Club lunch in Washington on Wednesday that he would like to see measures of the kind proposed by Mr Fraser adopted.

But he doubted that this could be achieved at the economic summit meeting of the seven main Western

economic Powers with only two weeks remaining before they meet in Versailles. Mr Trudeau is believed to have agreed with Mr Fraser yesterday that there was an . urgent need for action to break out of the current world economic recession. His view of the world economy, sources said, was at least as bleak as any picture Mr Fraser had ever painted of it. Mr Trudeau has also exSressed strong opposition to le practice of subsidised interest rates for export credits and would be pushing very hard for something to be done about this at the Versailles summit meeting. He told Mr Fraser that he would like to see exports financed on standard commercial terms. But the main problem he saw in the Australian proposals was the political difficulties involved in winding back protection. Mr Fraser’s talks with the Canadian leader took place during a four-hour stopover on his way from New York to Tokyo. He will outline his plans to the Japanese Prime Minister (Mr Zenko Suzuki) there today.