CONFIDENTIAL
Glenbrook Steel Project
2. Mr Whitney said he would like to take this opportunity to con- firm Britain's continuing interest in the second phase of the Glenbrook Steel Project. He said that it was our understanding that the bid submitted by the Japanese competitors did not conform with the specified requirements on New Zealand content. Mr Norrish noted our interest but said that the acceptance of the Japanese offer was conditional on the tender terms being met, and that as far as he was aware further talks were still to be held before any final
decision was taken. He said that care was needed to ensure that
Japan did not become New Zealand's only supplier but that they had not reached this point yet.
UK Economy
3.
Mr Norrish said that he had been posted to London for a short time in the early seventies when the British economy was in a mess and queried whether it had really got better. Mr Whitney said that there had been a radical change since then. Trade union attitudes had changed the decks had been cleared, admittedly at a cost of unemployment but the economy and industry was now in a better position than ever before to take off with a sustainable recovery. Productivity and demand were up and we were looking for a steady take-up of the unemployed. The approach was "steady, steady" and the British public had got the message that there was no quick fix.
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Falklands
4.
Mr Norrish said that the future of the Falklands was of great interest to New Zealand. There had been an instinctive reaction in New Zealand to support Britain, and there was a strong body of opinion in New Zealand that the Government got it wrong in sending the Navy to the West instead of to the East. But he personally thought the public support went too far. Mr Whitney said that Britain had been most grateful for New Zealand's help and support and hoped that we could continue to rely on that support in the forthcoming debate in the UNGA. He said that it was unrealistic to expect us to negotiate with Argentina whilst they refused to declare a cessation of hostilities, but we were doing what we could to normalise relations. Mr Norrish
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2
CONFIDENTIAL
/agreed.
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