Muldoon stand helped secure Iran deal

Press, 22 June 1985, Page 8

Muldoon stand helped secure Iran deal

New Zealand’s stand on certain international issues helped secure the recent $35 million scoured wool export deal with Iran, according to the Minister of Overseas Trade, Mr Moore. He has just returned from a visit to Iran.

“One of the best things the Muldoon Government did was not to support America’s trade boycott with Iran during the hostage crisis there,” Mr Moore said yesterday in Christchurch. “Iran also takes a positive view towards New Zealand’s stand on apartheid in South Africa and on visits by nuclear ships to our ports. “All these factors have helped to generate Iran’s confidence in our country and a willingness to trade with us. Visits by Ministers from other countries have sometimes been cancelled which has not helped Iran to lead as normal a diplomatic life as possible during its war with Iraq.”

By contrast New Zealand’s trading and diplomatic staff in Iran had been prepared to face the dangers of war and Iran’s difficult cultural conditions, Mr Moore said.

“They have worked hard and consistently to win

Iran’s confidence which has resulted in trade agreements like this $35 million scoured-wool deal. With Iran as New Zealand's fifthlargesl; trading partner we are very reliant on the dedication of this handful of people for the welfare of our economy. “I think this deal will be more than a one-off but that, of course, is dependent on how the war develops. Iran needs scoured wool for its carpet industry and it has to decide what funds it will allocate to this and what funds have to go towards the war effort.” Mr Moore said that he had made it clear to Iranian officials that New Zealand’s stand on nuclear issues was not an anti-American stand.

“I explained that New Zealand did not embrace Iran’s concept of the twin foreign devils — America and the Soviet Union.” The Iranian officials had understood this and relations with them had been good, Mr Moore said.

“It appeared that there was no end to the war in sight and the religious policies of Iran seem to be as fervent as they were during the revolution. Five million Iranians demonstrated their support for the Government in a crowd 38 miles long, while I was there.” Mr Moore said that he had told Iranian officials that New Zealand sought a

peaceful solution to the war. “I said that peace, and not who was the winner, or loser, was the issue that we are most concerned about.” Iraq’s bombing of Iran was designed not so much to kill many people but to destabilise the political system and turn the people against their Government, he said.

“That is why Iran appreciates our efforts to deal with them in as normal a manner as possible without too much reaction to the war going on.” Mr Moore said that he was confident that Iran would pay the $lOO million due to the Meat Board, which is losing interest calculated at about $1 million on the late payment. “The late payment is not a sinister move by Iran. It is part of dealing with a war-time economy and other overdue payments from Iran have always eventually come through,” he said.

The board plans to seek compensation for the delay which is blamed on faulty paperwork and the bureaucracy in Teheran. Mr Moore said that New Zealand had to be sophisticated in its dealing with Iran, and take advantage of any deals offered.

“Although we have not signed any deals in other New Zealand products like

cheese or in technology we have our expectations in these fields. When an Iranian Minister visits New Zealand soon we intend to show him what we are doing with forestry and pastoral management.”

Iran “badly needed” to plant more trees and pasture and manage them carefully, Mr Moore said. “With eight million people in Teheran now the Government would like, war permitting, to introduce regional development policies to encourage more people to remain in the rural areas. Since we are the best when it comes to pastoral management, we have a lot to offer them in this way,” he said.

“Our exports to Iran are valued far above their exports to us.”

Mr Moore said that a suggestion to even the trade by New Zealand importing more carpets was not practical as there was noneed for imported carpet. “If we get to a stage where we are purchasing a substantial amount of Iran’s products we may be in a position to apply more pressure on them with regard to the prices for our products. With the war effort /constantly a burden on their funds, the sort of prices they are willing to pay for our products are not high.”