‘Ships row affecting U.S. trade sympathy’

Press, 11 September 1985, Page 2

‘Ships row affecting U.S. trade sympathy’

By

OLIVER RIDDELL

in Wellington The row over nuclearcapable ships is affecting the extent to which New Zealand can expect a sympathetic ear in the United States on trade issues, according to the Leader of the Opposition, Mr McLay. He was addressing the New Zealand-American Connection in Los Angeles yesterday. In the past, when protectionist legislation had been threatening in Congress, successive Republican and Democratic Administrations had lobbied on New Zealand’s behalf, Mr McLay said. In essence, the argument of each Administration had

been that New Zealand was a safe, sane, solid ally of the United States responsible for stability in the South Pacific, and that nothing should be done to damage New Zealand’s export-based economy. There was concern in New Zealand that, as a result of the recent A.N.Z.U.S. argument between the two countries, such legislation by Congress might have a greater chance of success than in the past, he said. Only last month Dr John Morris, a New Zealander who was now vice-president of the Safeway Supermarket Organisation, had said that the ship ban “has eroded a lot of the good will that

New Zealand has in the United States Congress.” Last week a countervailing duty of 36c a pound had been imposed on New Zealand lamb entering the United States; 17c of those 36c arose from the S.M.P. scheme that was to expire in three weeks. “It is not easy to resolve such matters since the two countries have spent the last year shouting at each other,” Mr McLay said. As a result of the Government’s decision to ban nuclear-capable ships from its ports, its defence alliance with the United States and Australia was now “inoperative.” This policy had caused

deep anxiety among many of the independent States of the South Pacific, had damaged New Zealand’s relationship with the United States, and had prompted concern throughout the Western alliance, he said. One of the messages he would convey to Congressmen and others he met in the United States was the importance of not doing anything that damaged New Zealand’s long-term - trade interests.

Even if defence issues led to a review of A.N.Z.U.S. by the United States, it was his strong hope that it should not also lead to trade retaliation against New Zealand, Mr McLay said.