Shipping line high on forum agenda

Press, 7 August 1982, Page 6

Shipping line high on forum agenda

NZPA Political reporter Rotorua New Zealand might spend 58.5 million over three years as part of an all-out bid to put the Pacific Forum Line regional shipping venture on a viable footing. The estimated bill for New Zealand is part of a proposal representatives of 13 governments will consider at the South Pacific Forum meeting starting tomorrow.A consultants' report will make major suggestions for overcoming by December. 1984. the big problem which had dogged the line — undercapitalisation. Shipping Ministers will recommend favourably on the draft of solutions,' according to informed sources.

The crucial point in the discussions will come with a European offer which aims to properly capitalise the P.F.L. and gets its functions established at break-even point. Under the Lome Agreement, which provides European aid to African. Caribbean, and South Pacific countries. the European Investment Bank and the European Development Fund are offering a total SUS 6.3 million (SNZB.S million). Most is in the form of a loan at nominal interest of about 1 per cent from the bank, while the fund is willing to grant about SUSI million so the line can

buy containers. With the aid suggestions is a crunch tag: the bank wants forum members to find about SUSI 2.6 million (SNZI7 million) of their own in capital.

Not all the forum countries have been enthusiastic about the P.F.L. in .the past, but the shipping Ministers apparently think the proposition is viable if brought in over three years. New Zealand would probably have to contribute $8.5 million because it agreed at a New Delhi mini-form to foot half the line’s losses. New Zealand is paying about $8.5 million over three years in losses anyway, and sees the European idea as a way to end the annual costs. The Pacific leaders will meet informally in Rotorua tomorrow, extensively canvassing the issues they face, and then ratify their decisions in formal sessions on Monday and Tuesday. Independence moves’ in French territories will probably trigger the most politically significant discussions in what is traditionally regarded as a political gathering. The forum members — Australia. Cook Islands. Fiji. Kiribati, Nauru, New Zealand. Niue. Papua New Guinea, Solomon Islands, Tonga. Tuvalu. Vanuatu, and Western Samoa — will be

aware of recent unrest in the French territory of New Caledonia.

Melanesians have long sought independence and one of their leaders. Yann Celene Uregei. will be at Rotorua briefing forum members and monitoring the outcome. His people want the forum to push the United Nations to list New Caledonia for decolonisation. hoping it will pressure France to announce a timetable for independence.

The timely appearance of some Pacific leaders in New Zealand may partly overshadow the business of the forum itself. Australia’s Prime Minister (Mr Fraser) will not be able to sign the closer economic relations agreement at the forum, as had been hoped at one stage. ;>' ' But- his meetings with the New Zealand Prime Minister (Mr Muldoon) will provide an opportune time to firm up a signing date — at present forecast for about October — particularly since the closing date for submissions on the draft agreement was last week.

Mr Muldoon will have discussions , with Western Samoa's Prime Minister, Va'ai Kolone, immediately' after the forum, on the pressing citizenship question arising out of the Privy Council decision last month.