255. Telegram From the Embassy in New Zealand to the Department of State1
2606. Subject: Vice President’s Visit to New Zealand: Substantive Wrap-up. Ref: A) Wellington 02433 (Notal), B) Wellington 02434 (Notal), C) Wellington 02487 (Notal), D) Wellington 02492 (Notal), E) Wellington 01503 (Notal), F) State 077179 (Notal), G) Wellington 01525.2
Summary: This telegram summarizes by topic the substantive aspects of the Vice President’s very successful visit to New Zealand. Formal talks consisted of meetings by the Vice President with PriMin Muldoon, with the entire NZ Cabinet, and with Labour Party opposition leader, W.E. Rowling. Public statements embodying substantive comments were made on arrival, following the VP’s meeting with Muldoon and the Cabinet, and at a State luncheon (texts in Refs A–D). Appropriate addressees please note various undertakings, declarations, and offers relating to trade and energy reported in paras 3B, 4A, 4B, and 8B. End Summary.
1. Regional Policy/ANZUS
A. Evincing the purpose of his trip, the Vice President took numerous opportunities to underline the importance President Carter attaches to the Asian Pacific region and to reaffirm the United States commitment to the ANZUS alliance.
B. PriMin Muldoon welcomed the VP’s statements on regional policy and, on behalf of the GNZ, reciprocated with equally strong statements of adherence to the alliance. “I can assure you,” he declared, “that New Zealand, under the present (National Party) administration, will continue to play its full part in the maintenance of the health and strength of that treaty.” Labour opposition leader W.E. Rowling, despite reservations about visits of nuclear powered and armed warships, confirmed, though in somewhat more tepid term, his support for the alliance as well (see para 2 below).
[Page 839]C. Embassy Comment: We have now come full circle with the Muldoon government on the doubts raised earlier last year about the Carter Administration’s Asian Pacific policy and the fear that New Zealand’s interests would be overlooked in what Muldoon thought was going to be a solely tri-lateral world view from Washington.3 In an ebullient mood following the visit, Muldoon pronounced that, “we have had more direct interest displayed in New Zealand and the South Pacific than we have had under any other (American) administration.”
2. Naval Visits
A. On three occasions, the Vice President expressed our appreciation for New Zealand’s hospitality to our Armed Services personnel and, in the Cabinet session, specifically thanked the NZ Government for permitting the visits of nuclear powered warships (NPW). In the Cabinet session, the Vice President also declared that such visits were essential to the defense of the whole area.
B. In a private session with the VP, opposition leader Rowling professed adherence to ANZUS, despite objections to NPW visits, and said that he wanted the VP to know that “when the new (Labour) administration comes in,” we will continue to be close allies despite disagreement “on small points.” Later, in his State luncheon speech, Rowling again mentioned the subject saying “some of us have doubts about such things as deployment and logistics, but there is no doubt about the friendship between our peoples . . .”
3. Multilateral Trade
A. With trade highest on the New Zealand agenda, PriMin Muldoon led off the Cabinet session with a description of New Zealand’s world market access problems. He said NZ feared that in the North-South dialogue the developed nations appear to show little interest or understanding of the problems of the developed agricultural producers. The PriMin said NZ’s terms of trade had declined 40 percent during the last five years and, despite appearances, there was no scope for growth of the NZ economy unless it had access to the markets of the developed countries. In an aside, Muldoon commented that NZ had developed an export trade with the Soviet Union and other centrally planned economies, but these markets were uncertain and, anyway, NZ did not wish to rely on the Soviet market in the long term.
B. The Vice President said he had great sympathy for the problems faced by New Zealand and agreed that multilateral trade negotiations had often failed to contain a satisfactory agricultural component. He then restated his awareness of NZ’s concerns, said he had received similar representations from Australian PriMin Fraser, and undertook [Page 840] to convey these concerns to the President’s Special Trade Representative, Robert Strauss. The Vice President also agreed that the fullest coordination was essential to obtain maximum leverage on the EEC to change its Common Agricultural Policy and said that Mr. Strauss would be asked to work with NZ to that end in the MTN. Later, in his press conference, the VP repeated his agreement on the importance of the MTN having a strong agricultural component and said that “we pledge to work closely with NZ in these talks.”
4. Bilateral Trade
A. The passage almost simultaneously with the VP’s visit of the Bentsen Amendment to the Meat Import Act of 19644 heightened NZ’s concerns about access to the U.S. beef market. Minister of Overseas Trade Talboys raised the subject in the Cabinet session with the VP. He said New Zealand had analyzed the legislation and had concluded that the bill would reduce very considerably NZ’s opportunities to sell beef to the U.S. He then noted that NZ beef imports were only 1.2 percent of total U.S. beef consumption and said it was important for the Carter administration to appreciate the vital importance to NZ of this small percentage of the U.S. market. The VP replied that he understood the importance of the U.S. beef market to NZ, noting that 50 percent of NZ’s beef exports were taken by the U.S. He, however, pointed out that the New Zealanders need to understand the strength of the domestic U.S. beef lobby and the period of acute depression which many ranchers have been experiencing. Mr. Mondale, nevertheless, recognized the crucial nature of the American market to the NZ livestock industry and undertook to discuss the situation with President Carter.
B. In his press conference, the VP was asked whether the Bentsen bill had been discussed with the GNZ. He confirmed that it had been discussed and then restated U.S. interest in continuing to be a substantial purchaser of NZ agricultural products. Despite insistence by the press, the VP did not take a position on the bill itself, saying only that administration policy was to continue to be a reliable market for NZ products.
C. In his State luncheon speech, PriMin Muldoon spoke out against what he called the “pernicious policy of agricultural protectionism which exists in most if not all of the great industrial nations.” Muldoon added, however, that he was delighted, when in his talks last November with President Carter,5 Mr. Strauss and others, he had received a “firm [Page 841] affirmation of the present administration’s policy of opposing agricultural protectionism”. The PriMin concluded his luncheon speech by declaring that if the VP took no other impression away from his visit to NZ, this is the one he wished Mr. Mondale to retain: “a solution to the problem of agricultural protectionism is vital for the future of NZ, and vital for the maintenance of its ability to play a significant role in the preservation of stability in the South Pacific.”
5. South Pacific Islands
A. Muldoon was quick to raise the subject of South Pacific island policy in his first meeting with the Vice President, pointing out that NZ had shifted most of its aid there and welcoming U.S. interest in the islands’ economic development. He reiterated this position in his State luncheon speech, stating that New Zealand gladly accepts its obligation to the island states, is increasingly directing its external assistance to them, and seeks the assistance and support of the United States and other friendly countries in this endeavor.
B. Embassy Comment: Muldoon’s tactic is to focus attention on New Zealand’s undeniable value to the U.S. in promoting stability in the rapidly changing South Pacific. Through this specific means and by other more general linkages between security and the economic health of his country, Muldoon obviously hopes to engage U.S. interest in and sympathy for NZ’s economic plight (cf. Muldoon quotation in para 4C).
6. Fishing
A. PriMin Muldoon, during the Cabinet talks, raised the issue of the U.S. position on highly migratory species (HMS) of fish, resulting from the Fishing Conservation and Management Act of 1976, and its impact on the Pacific island states. He stressed that if the rights of these very small states to their fishing resources are not recognized by a country of the stature of the United States, then no other country would recognize their rights.
B. The Vice President invited Asst. Secretary Holbrooke to reply. Mr. Holbrooke said that the United States would very much like to join the South Pacific Regional Fisheries Agency (SPRFA), but not if joining contravened the 1976 Act. He, however, expressed the opinion that this matter could be settled in discussions with the South Pacific states.
C. With regard to American tuna fishing in the NZ 200-mile zone, Fisheries Minister Bolger warned that the HMS problem would come to a head for New Zealand in November 1978 when the tuna fishing season opens. The GNZ would then have to either license American vessels or exclude them entirely.
D. Embassy Comment: This problem may be obviated entirely if, in the meantime, an SPRFA agreement satisfactory to the U.S., is [Page 842] concluded. If not, the Embassy will take steps to head off a last-minute problem such as occurred with the U.S.-owned “Voyager” in late March (see Refs. E–G). There are several alternative solutions possible including individual licensing of American vessels, joint ventures with NZ firms (the “Voyager” solution), or, less likely, a bilateral agreement.
7. Refugees
The Vice President, in the Cabinet session, reviewed what the USG is doing to respond to the plight of Indochinese refugees, thanked the GNZ for its relatively sizeable contribution to the solution of the problem, and encouraged the GNZ to consider taking more refugees. PriMin Muldoon agreed to “keep the situation under review,” but noted that the GNZ had a problem obtaining sponsors to assist in the settlement of refugees. To this exchange, Minister of Immigration Gill added that he expected a report soon on the settlement and assimilation of the 420 refugees already in New Zealand, and that the GNZ “could not afford” to make any further commitment until that report had been assessed.
8. Energy
A. During his discussion of this subject with the Cabinet, the VP said the U.S. would be pleased to engage with NZ in joint geothermal energy research studies. Minister of Energy George Gair responded that he would be pleased to look into the VP’s request for a joint program.
B. In his press conference, the VP stated that “we agree to review renewed cooperation in this field and intensified research and development in other energy fields as well.”
9. Neutron Bomb
A. A sour note was struck by opposition leader Rowling at the State luncheon when he said that he welcomed the decision by President Carter “not to go ahead with the neutron bomb, which so rightly has been described in your country as the ultimate obscenity. Nothing good can be said about such a weapon. One that destroys life while leaving property undamaged is an abomination.”6
B. Despite a recent exchange on this subject by the Embassy and opposition foreign policy spokesman Freer, it appears that the Labour leadership has failed to (or chosen to) misunderstand U.S. policy regarding the weapon. We intend to follow up.
[Page 843]10. Presidential Visit Invitation
During his State luncheon speech, PriMin Muldoon renewed the invitation which he extended last November to President Carter to visit NZ at any time during Mr. Carter’s presidency.
11. Overall Evaluation
From the point of view of the U.S., we can confidently say that the Vice President’s trip went off precisely according to scenario and completely achieved its goals. New Zealand official and public reaction to the visit have also been excellent. New Zealand officials believe they at least have won understanding of their economic problems and hope that the personal relationships which have been developed over the past nine months, starting with the Warren Christopher visit late last July,7 Muldoon’s Washington visits in September8 and November, and now with the Vice President’s visit, will assure them a hearing as vital bilateral and multilateral trade issues evolve.
- Source: Carter Library, Donated Historical Material, Mondale Papers, Foreign Trip Files, Box 131, [Vice President’s Visit to Asia, 4/29–5/10/78]: New Zealand—[Diplomatic Trip Cables], [2/14–5/17/78]. Confidential. Sent for information to Canberra, Port Moresby, Suva, CINCPA also for POLAD and ICA adviser, NSC, and Auckland by pouch.↩
- Reference telegrams A–D have not been found. Telegram 1503 from Wellington, March 24, addressed U.S. tuna fishing vessels operating within the New Zealand exclusive economic zone. (National Archives, RG 59, Central Foreign Policy File, D780129–0703) Telegram 77179 to Wellington, March 24, and telegram 1525 from Wellington, March 28, also discussed U.S. tuna fishing vessels. (National Archives, RG 59, Central Foreign Policy File, D780133–1273 and D780131–0578)↩
- See Documents 233 and 236.↩
- Reference is to S. 294 (95th Congress), which would restrict the importation of fresh, chilled, or frozen meat.↩
- See Document 249.↩
- In an April 7 statement, Carter indicated that the United States would defer production of enhanced radiation weapons. (Public Papers: Carter, 1978, Book I, p. 702)↩
- Christopher attended the ANZUS Council meeting July 27–28, 1977. See footnote 8, Document 106.↩
- Muldoon visited the United States in September-October 1977 to attend the UN General Assembly session. He did not visit Washington.↩