Trade access the familiar cry

Press, 3 February 1984, Page 16

Trade access the familiar cry

From

MICHAEL HANNAH,

Parliamentary reporter

Trade access for New Zealand exports and monetary reform will be the familiar thrusts of the next venture overseas by the Prime Minister, Sir Robert Muldoon, who leaves for Europe and the United States next Friday.

He will run against the present world tide of protectionism and press political leaders for more favourable access for New Zealand exports.

He will also attempt to influence the people who influence politicians — universities, newspapers and magazines, bankers and company directors — in a campaign to drum up political support for world monetary reform. In the latter instance, Sir Robert will spend much of his month overseas giving more speeches on economic reform to a wider range

of groups than he has done so far in almost two years of campaigning.

The speaking engagements make the trip an arduous one for the start of what promises to be a busy year for the Prime Minister, culminating in a General Election that is still widely expected to be held in November.

Calls for monetary reform and removal of trade barriers are closely linked. Protectionism — a product of recession and unemement, particularly in the ed States and Europe — threatens to dampen economic recovery, while several countries cannot even contemplate economic recovery, let alone increased trade, while they carry large foreign debts. By far the greater part of Sir

Robert’s trip will be taken up with lobbying political leaders and specialist groups for more progress towards solving the “trade and payments” crisis facing countries like Brazil, Turkey and Nigeria.

“It’s really becoming a political question and not a technical question any longer," Sir Robert told “The Press” in a recent interview.

Because of its political nature, “you’ve got to go to a wider audience of people, who can perhaps influence the political people, particularly in the United States,” he said.

The Prime Minister will first attend a special meeting of Ministers of Finance from countries of the Organisation of Economic Cooperation and Development in Paris before having talks with the French Minister of Agriculture and the Minister for the Community, and possibly President Mit-

terand, though this still had to be confirmed.

He will also see the Prime Minister of Ireland, Dr G. FitzGerald, for the first time, and will meet other Irish Ministers. Talks of trade access are planned at a time when Sir Robert says negotiations with the European Economic Community are at a “very difficult” stage.

Similar talks will be held in the United States, where they will be dominated by the threat of a flood of United States dairy products in Jamaica.

Sir Robert said that there was evidence the American Administration did not fully appreciate the damage that could follow from the move in Jamaica, and there was perhaps a “slight lack of communication” with the Administration's aid section, which had proposed the dairy sale. “This has now been rectified and

so obviously I’ll be talking to them about that’.” Sir Robert said. A meeting with President Reagan is also on Sir Robert’s schedule. In London he will also meet Ministers or other representatives of eight countries, who will discuss officials' progress on Commonwealth proposals for monetary reform.

New Zealand has been represented at the officials' meetings in London by Mr Gerald Hensley, head of the Prime Minister's Department, who has reported to Sir Robert that some progress has been made.

The progress involves a more “forthcoming” attitude from the British Treasury while, on another front, the Indian delegation has suggested the issue should be handled by the Interim Committee of the International Monetary Fund. Sir Robert saw this particularly as a breakthrough . because poorer countries had earlier favoured action through the United Nations rather than the I.M.F. Sir Robert believed the latest proposal to hand the matter to the I.M.F.'s' Interim Committee could meet with American support. “Then, we’ve made real progress,” he said. The British Treasury's change of attitude, however, does not necessarily mean a change of heart by the British Prime Minister. Mrs Thatcher.

After last year’s Commonwealth conference in New Delhi, Sir Robert described Mrs Thatcher as the “main obstacle” to reform. She was reported at that meeting as suggesting that developing nations should “pull up their socks.” She’s not a lady that changes her mind very easily; that’s part of the problem,” Sir Robert said. Although the British Treasury were more forthcoming, he warned:

“She won’t necessarily change her mind simply because the Treasury say, well, you know, really we’ve got to do something about this. “She has the same view of Treasury that I have, that you listen to what they’ve got to say, and then you make up your own mind.

“But I’m hopeful that she will go along with this thing on the basis that she’s intellectually convinced that the time has come to do it. Well, that’s what I’m hoping to persuade her of.”

On both sides of the Atlantic Sir Robert will speak to groups that he believes could influence politicians’ attitudes. They include the Institute of Directors in London, the Economic Club in New York, bankers’ forums and university gatherings. “Really, I’m going to spend a very active month talking to a wider audience. This is what it’s really all about. It’s a political question now. Essentially, the technical side I’m sure could be done.” Sir Robert is due to return to New Zealand via Hawaii on March 11.