Boycott Rumour Not Disregarded

Press, Volume CV, Issue 31001, 5 March 1966, Page 1

Boycott Rumour Not Disregarded

(From Our Own Reporter)

WELLINGTON, March 4.

Political circles in Wellington do not dismiss the likelihood of French threats —or moves —to block imports from New Zealand unless the Dominion drops its international campaign against the French nuclear tests in the Pacific.

Both the new French Ambassador (Mr J. F. Duflos) and officials at the Quai d’Orsay in Paris have denied recent reports that France has renewed hints of discriminatory trade obstruction against New Zealand.

The Prime Minister (Mr Holyoake) last night also denied knowledge of such hints. The Federation of Labour has been examining plans for an embargo on the shipment of goods to France. If the French retaliated in kind, New Zealand would be the greater loser. Intimations of the French move this week are said to have been passed on through informal diplomatic contact at the United Nations. The original hints of such French action came almost three years ago, when France delivered a formal note to New Zealand, warning the Government that continued protests by New Zealand and other governments could "affect friendly relations be-

tween New Zealand and those countries.” Authorities who analysed the note at the time reported three possible forms of French action. In order, they were: Steps to interrupt trade between New Zealand and France. A hostile or at least uncooperative attitude by France in G.A.T.T., the E.E.C. or other international forums, particularly on the question of improved access for trade commodities. An uncooperative attitude on air traffic rights in Tahiti for New Zealand regional or trans-Pacific air services. New Zealand has continued her protests at French plans. But she has had to stop flying to Tahiti and is un-

able to fly through there for lack of French sanction. And French attitudes in the E.E.C. have, until quite recently, paralysed the search for a better deal for agricultural products within G.A.T.T. Last year New Zealand sold France £15.8 million of goods, mainly wool, hides and skins. In return, she bought only £2.3 million worth of French commodities, mainly cars, petroleum products, wines, fertiliser and textiles. Trade treaties complicate the possibility of withdrawal of trading concessions or outright import blockade, but one possibility is French withdrawal from wool sales, even though the French might have to continue to buy some New Zealand wool products through London. Another possibility is pressure by the French Government on individual importers to switch their purchases from Zealand to other sources. Mr Holyoake expects to discuss the situation with Mr Duflos when he receives him for a long-fixed courtesy call on Monday afternoon. Yesterday the Ambassador spent some time with the Minister of Overseas Trade (Mr Marshall).