HKK040/6

RECEIVED IN AQUISTRY

- 2 rap 1984

DESK OFFINA

INDEX

PA

RESTRICTED

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Action Taken

CM18/2

(24)

RECORD OF CONVERSATION BETWEEN THE FOREIGN AND COMMONWEALTH SECRETARY

AND THE LEADER OF THE NEW ZEALAND LABOUR PARTY HELD AT THE FOREIGN

AND COMMONWEALTH OFFICE AT 5.00 PM ON MONDAY 30 JANUARY 1984

Present:

The Rt Hon Sir Geoffrey Howe QC MP

Mr D Lange MP

Mr J S Chick

Head of South Pacific Dept

Mr P F Ricketts

Assistant Private Secretary

Leader of the New Zealand

Labour Party

HE The Hon W L Young

New Zealand High Commissioner

Mr B M Brown

New Zealand Deputy High

Commissioner

1.

Mr Lange said that in New Zealand foreign affairs were approached on a bi-partisan basis and the first point he wished to emphasise, in keeping with the line taken by the New Zealand Government, was the vulnerability of the New Zealand economy. New markets may be found, but they were not dependable. Mr Young commented that New Zealand's access to European markets had been so restricted

He had that the present level constituted an irreducible minimum. been encouraged to hear the Prime Minister say earlier in the day that Britain would assert New Zealand's entitlement to access.

Sir Geoffrey Howe said that we would do all that we could but, in addition, the New Zealand Government should continue to press its

own case in European capitals.

2.

Mr Lange asked about the prospect of something more than an interim solution being reached within the Community on the budgetary problems in March. Sir Geoffrey Howe summarised the issues in the post-Athens negotiations and added that elections to the European Parliament in June were an incentive to early agreement. concluded that, in his own view, the odds on a comprehensive agreement being reached by March were not better than even.

He

:

3.

Mr Lange noted that peace-keeping in the Caribbean had faded as an issue. As regards the Falklands, there were close ties between the island community and New Zealand. Mr Muldoon had brought off a coup in despatching the frigate. The response to the conflict had shown that the ties between New Zealand and Britain were stronger

than many had thought.

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