Senator moves for trade curbs on N.Z.

Press, 8 February 1985, Page 1

Senator moves for trade curbs on N.Z.

NZPA staff correspondent Washington A United States senator has introduced a resolution calling for punitive action against New Zealand for refusing visits by nuclear-capable warships.

The resolution, from a Maine Republican, Senator William Cohen, chairman of the armed services subcommittee on seapower, urges both trade retaliation and withdrawal of military co-operation. In a fast-moving day two officials said in separate background briefings that the United States would not “impose” trade sanctions against New Zealand.

Those same officials made it clear that the Administration will no longer protect New Zealand when Congressmen introduce bills to limit New Zealand exports to the United States, or to impose tariffs on them.

As well, the Secretary of State, Mr George Shultz, came up with a dazzling political manoeuvre — deciding that the United States does not need Australian airfields to monitor testing of MX missiles in the Tasman, thus avoiding Australian “denial” of airfield access. The United States appeared, finally, to accept that New Zealand’s decision to refuse visits by all nuclear-capable or nuclearpowered warships was firm.

Mr Shultz indicated that the United States and Australia would go it alone on exercises to replace the cancelled tripartite Sea Eagle manoeuvres originally planned for the Tasman next month.

New Zealand’s newly appointed Ambassador, Sir Wallace Rowling — one of the architects of the Labour Government’s policy — told NZPA it was “a bit strong” to describe the situation as a crisis.

The story is getting frontpage play in newspapers and lead treatment on American television, but Sir

Wallace in spite of requests, has not so far appeared on television or spoken on any radio programme to explain New Zealand’s point of view.

Sir Wallace arrived only last Thursday, just as the fuse blew. He has yet to present his credentials. Sir Wallace gave an interview yesterday to the “Wall Street Journal,” an influential business newspaper which yesterday ran an editorial sharply critical of New Zealand. He told NZPA he had other interviews lined up, but saw no point in getting into “a war of words with speculative journalists.”

Senator Cohen’s resolution — it is non-binding, designed to persuade rather than force — calls for the United States to exercise its right under the General Agreement on Tariffs and Trade to remove the “injury” test for New Zealand from April 1. American producers seeking to have penal tariffs imposed on subsidised New Zealand imports must now prove — a difficult test -- that those imports are reducing their profits.

The New Zealand Government is cutting out the subsidies on farm exports, but says the process cannot be completed until 1987.

Senator Cohen’s resolution also urges the Administration to press. New Zealand, to reverse its decision on port access.

It calls for the United States to exclude New Zealand from military and related activities with the United States and for negotiation of a bilateral defence treaty with Australia to replace A.N.Z.U.S. The message was that if New Zealand persisted in denying port access “we see

no need to assist you either militarily or to provide economic restraints on our own producers of similar products,” he said. “We cannot impose our will on any other country,” Senator Cohen said, “but they (New Zealand) ought to know that there are definite consequences.” Vietnam was not going to reciprocate by denying port access to Soviet vessels, he said, and “Fidel Castro is not closing up Havana harbour.”

One of the officials who briefed journalists yesterday said the United States was not planning to impose any economic sanctions against New Zealand, but warned: “That doesn’t mean there will be no repercussions”.

The officials made it clear that New Zealand had benefited from Administration help in the past to kill bills introduced by congressmen representing farming districts which were designed to limit imports of New Zealand primary produce. The argument that New Zealand deserved special help as a loyal ally would no longer apply, they said. “We have been prepared to work to find half-way ground as long as we can essentially carry out our responsibilities,” said one official. “I think it is very much up to them (New Zealand) to find whether there is some sort of halfway ground. “We cannot alter our world-wide posture of neither confirming nor denying whether our ships carry nuclear weapons on board. We cannot start writing a text book for the Russians about which ships do or do not carry nuclear weapons, or when they are

carrying nuclear weapons.” The Australian Prime Minister, Mr Hawke, has arrived in Washington embarrassed by the revelation that he had agreed to allow United States planes to use Australian airfields as bases to monitor proposed tests in the Tasman of the MX missile.

One of the officials said the MX tests would splash down in the Tasman in international water beyond Australia’s 200-mile exclusive economic zone. He was unable to pinpoint the precise splash-down site.

The American officials said yesterday that Australia had not denied general access to airfields, and discounted any link between the Australian and New Zealand positions. Mr Shultz said New Zealand had changed the “operational character” of A.N.Z.U.S., but the United States and Australia would adjust to that.

“New Zealand has made a decision,” he said. “We are sorry about that. We have great affection for the people of New Zealand. But we must remind them that those who value freedom have to be willing and prepared to defend it.”