Aust. Treasurer hits back at Mr Muldoon

Press, 29 June 1983, Page 4

Aust. Treasurer hits back at Mr Muldoon

NZPA Canberra The Australian Treasurer, Mr Paul Keating, hit back yesterday at Mr Muldoon, saying that certain remarks Mr Muldoon had made last week about investment policies had "stunned and embarrassed officials from both countries.” Mr Muldoon has blocked approval of about 20 Australian proposals to invest in New Zealand because he believes that the new Hawke Labour Government in Australia is discriminating against New Zealand companies that want to invest in Australia. Mr Keating has bluntly denied that such discrimination exists. The Australian Treasurer issued a long press statement in Canberra yesterday, replying to a series of statements that Mr Muldoon has made since he and Mr Keating met in Canberra last Friday. Mr Keating said that Mr Muldoon was told in that meeting that Australia worked on a “non-discrimi-natory foreign investment policy.” “It was explained that this was consistent with our international treaty obligations,” said Mr Keating. “It was therefore not possible to treat New Zealand investments more favourably that those from other countries. For this reason, the recently concluded C.E.R. arrangements ex-

eluded any change on a discriminatory basis to Australia’s foreign investment policy.” However, because of particular concerns which had been expressed by New Zealand, it was agreed that there should be an exchange of letters outlining the practice both countries would follow in their foreign investment policies, in respect of the financial sector, said Mr Keating. “As agreed, I forwarded the Australian Government’s letter to Mr Muldoon on March 29 in the expectation that Mr Muldoon’s confirmatory reply would then constitute an arrangement between the two Governments.” However, Mr Muldoon had replied in April that he wished to put aside the letter for the time being. In a key passage of his statement, Mr Keating added: “His remark during his meeting with me last week that no agreement regarding the texts of those letters had been reached stunned and embarrassed officials from both countries.” Mr- Keating said that after he had met Mr Muldoon last Friday he believed Mr Muldoon had acquired a “better understanding” of Australia’s foreign investment policies. Mr Keating said that in spite of this he had taken

pains to indicate to Mr Muldoon that in the practical working of Australia’s policy there was no cause for concern on his part or on the part of New Zealand investors. Mr Muldoon pleaded ignorance when faced with his Australian counterpart’s charge that he had been “bagging” Mr keating. “I do not know what the term means. I have never heard it used before,” said Mr Muldoon. Informed that a dictionary definition said that the colloquial term meant “severe, especially sarcastic criticism,” Mr Muldoon’s only reply was: “Does it?” He went on to say that Mr Keating had been “totally unresponsive” to New Zealand submissions on foreign investment. A lack of progress in the talks led Mr Muldoon to say that- he was a “little disappointed” in Mr Keating. The Australian Prime Minister, Mr Hawke, told the National Press Club in Canberra that the only hiccups in relations between the two countries could be Mr Muldoon’s “tendency across the Tasman, for perceived domestic purposes, to bag my Treasurer.” Mr Muldoon laughed off any suggestion that Mr Hawke’s speech comments could place a strain on the trans-Tasman relationship.