C.E.R. options kept open

Press, 21 November 1987, Page 1

C.E.R. options kept open

By

BRENDON BURNS,

political reporter

Australia had an open mind on its future economic relationship with New Zealand, said its visiting Prime Minister, Mr Hawke, yesterday in Wellington. Emerging from the first day of his talks with Mr Lange on what next year’s review of Closer Economic Relations should produce, Mr Hawke said Australia was prepared to examine all options. Earlier, at a Beehive banquet in his honour, Mr Hawke had said his Government’s disagreement with New Zealand over the nuclear ships Dan was serious and not yet concluded. But the over-all friendship between the countries would not be eroded by this difference of view on defence policy.

CE.R. had worked extremely well, beyond all expectations, since it was introduced in 1983, Mr Hawke told journalists. Next year’s review should accelerate the process of free trade in merchandise goods. “Anything can be on the table,” he said. Mr Lange had indicated that .no startling initiative would emerge from his three days of talks with Mr Hawke. He said earlier this week that suggestions that the two countries could form a common market or even an economic union, were premature. • f ast week, Australian and New Zealand business leaders signalled that as a minimum, they would like to see equal competition and access on both sides of the Tasman for trade and invest-

ment. The two Prime Ministers will fly to the Bay of Islands this morning to continue their talks. They will relax with a deep sea fishing trip, and for Mr Hawke, a game of golf. About a dozen protesters wearing trench coats, slouch hats and dark glasses greeted Mr Hawke on his arrival at Parliament. Among their placards was one saying "Aussie spies not welcome.” This referred to the recent report claiming Australia monitors New Zealand intelligence traffic. Questioned later if this was true, Mr Hawke had an emphatic reply: “Bullshit.” The peace activist, Mr Nicky Hager, said the Australian Government wanted New Zealand back in a nuclear A.N.Z.U.S.

alliance.

In his banquet speech, Mr Hawke said there was no secret about the disagreement between the two Governments on port access for allied warships, although Australia had been happy to step up defence exercises with New Zealand after the A.N.Z.U.S. row. Australia welcomed ship visits by the United States and he accepted the need for nuclear deterrence. It was recognised that New Zealand had a different view. “I am not suggesting that this disagreement is not serious or that it is in any sense behind us.” But it was a sign of maturity in the relationship that such disagreements would not corrode the over-ail friendship. Picture, page 9