Officials investigate Soviet car charge

Press, 29 January 1986, Page 9

Officials investigate Soviet car charge

Officials from the Trade and Industry Department and the Ministry of Foreign Affairs are investigating the production of Lada cars in the Soviet Union, in response to an assertion that they are built partly by prison labour.

The assertion was made last week by Mr T. R. Loudon in a letter to the editor printed in “The Press.”

Mr Loudon said that according to information supplied by an Israeli, some parts for Lada and Niva cars were made by prisoners in camps throughout the Soviet Union.

Section 48 of the Customs Act, 1966, forbids the importation of goods that

are manufactured wholly, or in part, by prison labour, or within or in connection with any prison, jail or penitentiary.

The Comptroller of Customs, Mr M. J. Belgrave, said in Wellington that Mr Loudon’s information was new to his department and warranted further investigation.

Mr Belgrave said yesterday that the Trade and Industry Department and the Ministry of Foreign Affairs had been asked to inquire into the matter, because both had representatives in the Soviet Union.

“We’ve asked them to do some searching for us, but we haven’t had any response yet,” Mr Bel-

grave said. "We’re doing our best to find out who makes the cars.” Mr Belgrave said Mr Loudon’s complaint Was the only one of its kind that had been brought to the Customs Department in recent months. He did not know what action would be taken if the assertion proved correct. “We would have, to see exactly what the position was and make our decision from there,” he said. Mr Peter Reyn, the manager of Canterbury Motors, the Christchurch agent for Lada, said yesterday that there was a steady market for Ladas. “They are much cheaper than anything else so sales are going well,” he said.