CONFIDENTIAL
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Air Services
8. Mr Talboys said that he had discussed with Mr Dell the current problem of air services between Hong Kong and New Zealand. There was a quite different approach between the UK and New Zealand negotiators. New Zealand's problem was that she had no intention of moving out of the Pacific area and no
But interest, therefore, in routes such as London/Auckland. the British negotiators seemed intent on maintaining a hold on all the action. There was obviously a need for compromise. Dr Owen said that he would keep a close watch on the issue. When he remarked jocularly that he was sure that justice was on the New Zealand side, Mr Talboys responded that he himself was not sure of this. People were arguing both cases in New Zealand.
Other Trade Issues
9. Dr Owen asked whether there were any other issues which Mr Talboys wished to raise in connection with relations with the EEC. Mr Talboys said that the New Zealanders were negotiating in the MTNS about cheese. He had recently discussed the MTNs with the US Special Trade Representative who had impressed upon him Dr Owen said that one the need for greater efforts all round. should not always take what the Americans said on trade matters at face value. He was becoming rather tired with the tendency for the US Administration to plead Congressional difficulties as an excuse for obtaining what they wanted. could not control Congress it would have to suffer penalties. On many issues, the Americans were more protectionist than anybody. Mr Talboys remarked that the New Zealanders had less difficulties in the US market, for example for beef and lamb, than they did elsewhere.
If the Administration
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