Threat to alliance worries P.M.s

Press, 11 June 1982, Page 4

Threat to alliance worries P.M.s

;NZPA staff correspondent Sydney Destruction of the A.N.Z.U.S. alliance would have a big impact on security for New Zealand and Australia’, and lead to increased ■ defence spending, said the Prime Minister (Mr Muldoon) last evening. “It would upset the whole strategic balance in this sector of the Globe, which is the whole of the South Pacific," he said. Mr Muldoon said that the Australian Prime Minister (Mr Fraser) was concerned that an Australian Labour government could destroy A.N.Z.U.S. if its annual conference in July resolved ■against or A.N.Z.U.S. American warships using Australian ports. Last week the new Labour Government in Victoria announced plans to make the stale nuclear free, which would involve banning nuclear-powered or nucleararme'd ships from its ports.

Mr Fraser accused the Victorian Premier (Mr Cain) of "tearing up the. A.N.Z.U.S. ■Treaty." and last evening said legislation would be introduced to ensure that American and British nuclear-armed ships could enter Australian ports. Mr Muldoon said that if the A.L.P. conference changed policy on A.N.Z.U.S. that would be binding on the Parliamentary party. He believed that that was not the case in New Zealand, where the conference and Parliamentary party could have differing views. Also on defence Mr Muldoon said that he and Mr Fraser had talked about the Falkland Islands issue and its impact on defence thinking in Australia and NewZealand. particularly in the purchase of military -hardware. He said both countries should harmonise defence purchasing so that whatever was being used in the Armed

Forces there would be joint servicing equipment which would in • some cases be in Australia and others in NewZealand. Mr Muldoon said that NewZealand and Australia would sign the Closer Economic Relations trading pact some time later this year, but not at the South Pacific Forum meeting at Rotorua in August. He said that after discussions with Mr Fraser, it was decided that there be a separate signing ceremony rather than have it as an adjunct to another decision. Mr Fraser had preferred this because he thought C.E.R. was “so important," said Mr Muldoon, and also because the Australian Cabinet would not have finalised its deliberations on C.E.R. by the time of the forum meeting. No date had been decided for the signing, said Mr Muldoon.