U.S. plan threat to N.Z. dairy exports

Press, 15 February 1985, Page 3

U.S. plan threat to N.Z. dairy exports

NZPA-Reuter Washington

The United States is considering a move that could hurt New Zealand’s dairy export business, according to Reagan Administration officials.

The plan surfaced after New Zealand’s Prime Minister, Mr Lange, rejected a request to allow a United States nuclear-capable warship to visit New Zealand during joint naval exercises. The proposal, which is to dump United States surplus dairy products on the world market for animal feed, is being pushed by the United States Agriculture Depart-

ment trade experts, officials said.

Under the plan, part of a huge stockpile of 500,000 tonnes of non-fat dried milk would be sold to Spain at subsidised prices for use as animal feed under the plan. The Under-Secretary for Agriculture, Mr Daniel Amstutz, is considering the plan, but no final decision has been made, agriculture officials said. New Zealand is the world’s largest dairy exporter and would be hardest hit, a New Zealand Embassy official said.

Earlier this year the United States withdrew from the International Dairy Agreement in protest over a subsidised European Community sale of butter to the Soviet Union. United States trade officials said then they were annoyed by New Zealand and Australian acquiescence to the Community deal. Since then, Washington has sold dairy products to Egypt, Mexico and Iraq.

American relations with the New Zealand Government have been cool since the fuss over United States nuclear-armed warships.