New Zealand Executive Government Speech Archive

On the 16th having a breeze, we sailed along the shore of the land we had passed the day before, which appeared as wild and romantic as can be conceived. Rocks and mountains, whose tops were covered with snow, rose in view one above another from the waters edge; and those near the shore were cloathed with wood whose summits reached the clouds.

This was the image caught by one of our early European explorers, Captain Cook, when he sailed our coastline in 1769. Images of New Zealand have not varied much. For many today it is still one of clear sparkling scenery - from tropical bright green to mountainous ice blue.

This evening Ill take you on a quick journey around the world and at each stop tell you about our foreign policy as it relates to the region we visit.

Well find we arrive back here in London and Ill finish by reminding you of the vital part Britain plays in our foreign policy considerations.

Australia

Our first stop would be in Australia. Wed probably call them our first cousins. They are not far way and as a consequence one of our most important relationships.

Most New Zealanders dont see Australia in any sort of foreign policy framework for them whats really important is that our rugby team thrashes theirs. Wallaby/All Black games are always sell outs. No matter what the sport there is no greater satisfaction than beating the Aussies. For all this, especially when we bump into them overseas, there is also a real camaraderie between us and Australia.

This stems particularly from our early days as ANZAC soldiers.

On the foreign policy front, they are our biggest export market, taking roughly 20% of our exports. This large volume of trade had been supported and encouraged by our free trade agreement, CER. There are virtually no tariffs on goods traded between ourselves and barriers continue to come down.

We also have a very close security relationship with Australia despite the breakdown of the ANZUS agreement ten or so years ago. We are half way through the joint production of several naval frigates and regularly part take in joint military exercises with the Australians.

The Pacific

Onwards to the Pacific - it would take several weeks to get round these Islands. They are a real Kiwi tourist Mecca and every bit as idyllic as the brochures depict.

But behind this many are struggling to gain economic independence. The Pacific receives the largest proportion of our aid - $77 m of our $165 m budget. Increasingly we are channelling this away from straight budgetary support to projects and specific development assistance. I am very concerned living standards in these small fragile economies do not fall too far behind ours and Australias.

We also have in the Pacific strong allies in the fight against nuclear proliferation. With the Tongas imminent signature of the Treaty and France, the US and Britains recent signing of the protocols, the South Pacific Nuclear Free Zone Treaty will soon reflect exactly that.

The only real security concern we have in the Pacific is Papua New Guinea and the four year old independence unrest in Bougainville. We continue to do all we can to support the reconciliation efforts of both sides. In 1992 we even sent one of our frigates to act as a neutral venue for peace talks.

Asia

From the northern Pacific we head straight across into Asia. My first trip as Foreign Minister outside the immediate Pacific was to Indonesia. Its the starting point of South East Asia. Half of all world growth is likely to be generated from east Asia alone by the end of the decade and we have to make the most of the opportunities this offers.

From Indonesia north to Japan, encompassing the ASEAN states, China, Hong Kong, Taiwan and Korea is an area which now accounts for 40% of our trade, a third of our imports and 400 000 of our tourists and these figures are all growing.

I am particularly proud of the ease with which New Zealanders have moved into Asia. Their unassuming manner and willingness to really get to know the people gives them a real advantage. I believe part of this ability stems from our relative size and a real sure we can do this attitude - the No.8 wire mentality as we call it.

The increasing and inevitable importance of Asia makes us very conscious of the regions security. To this end we play an active role in the newly established ASEAN Regional Forum and take our responsibilities as an Association of South East Asian Nations (ASEAN) dialogue partner and Asia Pacific Economic Cooperation forum member very seriously. In July we will host an APEC trade ministers meeting in Christchurch where free trade work will no doubt progress.

Knowing New Zealand thinking would need to change and knowing we had to bring all New Zealanders with us, one of the first initiatives we took to raise awareness of Asia, and Asias of us, was establishing the Asia 2000 Foundation. An Honorary Board includes ministers, ex-ministers and leading business people from Asia.

The Middle East

Back in our plane we fly across the Middle East, the destination of several million tons of our dairy products and a region we all never take our eyes off for long. Like most of the world we are very conscious of the impact it has on global security.

New Zealand has recently extended its participation in the Sinai Multinational Force and Observers for a further two years as a signal of our commitment to region security. I believe the MFO is indispensable as a source of confidence and stability.

The latest increase in tensions between Israel and Lebanon give us all cause for concern. Inspite of the difficulties however I remain optimistic about the prospects for the peace process. Recently strides have been made towards peace with Middle East Leaders talking more and making greater concessions than has been the case.

Europe

We now touch down for a look at Europe. When New Zealanders think of Europe a number of images come to mind - a 24 hour plane trip to get there for starters. But this hasnt stopped it being an overwhelmingly popular destination for young Kiwis doing their OEs - overseas experiences - as we call them.

But my preoccupation with Europe has two focuses - one being trade - Europe is one of the pillars of our foreign policy (the others being North America and Asia). Trade, including invisibles,immigration, investment and people to people links are still very strong.

A sixth of our trade is with Europe and for many years New Zealand ministers have trooped to Europe to ensure we have trading access for our dairy products and sheep meat. The implementation of the Uruguay Round has certainly eased these problems.

The other focus is on EU expansion. It is going be a major issue for the Union for several more years. European unity is particularly important to us - we were drawn into two world wars due to its disunity in the past.

The other issue that leaps to mind when one thinks of Europe is Bosnia. The containment of this conflict remains vital for the security of the Balkans and Europe. There can be no doubt about the success of the Dayton Accords in bringing a real element of stability to the conflict but am terribly concerned about its durability when the US pull out at the end of the year. Europe has to face up to the task at hand in this respect.

We will now fly out of Europe to North and South America and return to Britain shortly.

North and South America

New Zealand as a small nation spends most of its foreign policy energies managing relationships with large countries and the relationship with the worlds only economic and military superpower is no exception. The US, as with most of the rest of worlds nations, looms very large on our radar screen.

The completion of the Administrations review of our relationship in 1994 was warmly welcomed in New Zealand. High level diplomatic, defence and political contact was restored and the way open again for dialogue on bilateral strategies and broad security issues.

One of our major preoccupations with North America is trade. We have therefore watched with interest, and a degree of apprehension, the implementation of NAFTA. While it remains GATT consistent we certainly have nothing to fear. Its possible expansion into Latin America and the Pacific would also be very welcome.

To South America - this year we are turning our attention here, in much the same way we did with Asia in 1990. Although our nearest neighbour to the east, our linkages have been thin. We are obviously aware these countries may offer some tough competition in our traditional product areas, but this is all the more reason to get along side them. One of our first steps into Latin America, recognising its economic potential
is the exploration of a free trade agreement with Chile.

Back to London

Now to get back here wed probably fly out of Buenos Aires and come via New York. And Id like to take the opportunity of this stopover to have a quick word about the United Nations. As the only global organisation with a mandate to address political and security issues it has seen a quantum leap in demands for its services.

Even before this influx of demands the UN was reaching the stage where an overhaul of its structures was becoming necessary. As a Security Council member this became very obvious. So I want to make a very strong plug here for real commitment from the players who can really have some influence to sign up to the UN reform process. The UNs credibility is at stake - financially and representationally.

Having said my piece on this weve arrived back in London. Im delighted to be here.

Without doubt Britain retains a special place in thousands of New Zealanders hearts. Many of the older generation still refer to it as home. But slowly and inexorably we have grown up and away from Britain. Napoleon once said England is a nation of shopkeepers. For many years those shopkeepers were just about the only ones in the world selling New Zealand goods. Four fifths of our exports came to Britain,today only a twelfth do.

However, Britain still dominates our trade with Europe. Of the $3.2 billion worth of exports we send, Britain is by far the biggest spender, spending more than $1.2 billion last year. Thats up 8.5% on the previous year and in dollar terms means you bought nearly another $100 million dollars worth of New Zealand products. I was delighted to see a number of New Zealand wines on British Airways.

British trade with New Zealand is also important. We spent $1.3 billion on your goods last year. Up 18.7% on the previous year. And Britain remains a traditional source of foreign investment in New Zealand. Although you no longer the play the kind of role you used to in the Asia Pacific its a part of the world you should certainly remain aware of as the worlds economic powerhouse.

However, there is more to us than purely mercenary considerations. Our links to Britain are firmly grounded in our mutual Commonwealth membership. And we are pleased to be working with you on the Commonwealth Action Group Committee to help errant states get back on the democracy path.

We have also appreciated the close cooperation and working with you in Bosnia, especially while the Kiwi battalion was stationed in Vitez. We look forward to working with you again as we work towards the conclusion of a Comprehensive Nuclear Test Ban treaty too. And could I take this opportunity to warmly welcome your signature of the South Pacific Nuclear Free Zone Treaty protocols last month.

So let me reinforce it - Britain holds a very special place in our hearts - you were a major part of our foundation as a nation and for this reason alone we will always be the closest of friends and the most loyal of allies.

Thank you for the opportunity to speak to you tonight. I hope you enjoyed the trip!