U.S. official warns of economic retaliation

Press, 2 December 1985, Page 1

U.S. official warns of economic retaliation

NZPA-AFP Washington New Zealand could suffer economic consequences, as well as an end to its 34-year-old military alliance with Australia and the United States, if it votes for a new law this month denying United States nuclear ships access to its ports, according to a United States official.

“Should such legislation be enacted, we would have to review our whole commitment to New Zealand under A.N.Z.U.5.,” the treaty that links the three countries, said the assistant secretary for east Asian and Pacific affairs, Paul Wolfowitz, in a “Washington Post” report on Saturday. In an interview to be shown on a “Close Up” television programme on December 12, from which the “Post” published extracts, Dr Wolfowitz said that there could be economic repercussions for New Zealand if the Prime Minister, Mr Lange, went ahead with the ban.

He emphasised that Washington would not take any formal economic sanctions against New Zealand, but said it would be “a mistake to say that there are no consequences outside

of the security relationship.” A top United States State Department official, quoted in the same article, but not identified, said that a review of United States policy in the region would not affect United States relations with Australia.

But, the official said, “as far as New Zealand is concerned, our relationship as allies would not exist.”

Mr Lange has said that in mid December he will submit for Parliamentary approval the law denying United . States nucleararmed ships access to New Zealand ports.

The crisis dates back to Mr Lange’s coming to power in July, 1984. It sharply worsened in March this year when A.N.Z.U.S. manoeuvres had to be cancelled.

This was after the United

States reiterated its traditional refusal to identify which of its ships parry nuclear weapons. In this case, it was the United States destroyer Buchanan which was due to take part in the exercise. In a “New Zealand Times” report by Roger Foley, a United States Congress leader says that New Zealand and the United States might be better off without A.N.Z.U.S.

If the present row cannot be resolved, it might be better for the alliance to be "terminated” in the longterm interests of a close relationship between the two countries, says Stephen Solarz.

Mr Solarz is chairman of the East Asia sub-commit-tee of Congress’s Foreign Affairs Committee. He has taken a special interest in the A.N.Z.U.S. argument.