Nuclear stance brings warning

By FRAN O'SULLIVAN

An influential United States businessman has warned that New Zealand and the US must find a way to deal effectively with the nuclear issue if negotiations for a free trade agreement are to start.

Fred Benson - president of the United States New Zealand Council - said recent editorials supporting a change in New Zealand nuclear policy made it appear that it was in fact an open issue.

Speaking at an Auckland dinner to celebrate former Prime Minister Mike Moore's achievements as Director-General of the World Trade Organisation, Benson suggested New Zealand should carefully deliberate the issue that had "once again been thrust before its citizens".

"Weigh the arguments, weigh the costs, make your decision and stand by it. As long as it is perceived as an open issue, the US will be less likely to move to negotiations."

Benson cited two factors that caused US players to question why New Zealand still held to its ban. First, no nuclear weapons had been carried on US surface ships for 10 years, and second, New Zealand's own 1993 study had concluded that dockside nuclear accidents from nuclear-propelled ships were extremely improbable.

Benson's direct comments clearly surprised Prime Minister Helen Clark and senior Cabinet ministers Phil Goff and Jim Sutton, who were at the dinner.

None responded publicly.

It was left to Moore - who had done the Washington rounds himself two weeks ago - to leap to his feet and try to dampen the issue.

In his formal speech Moore had earlier carefully sidestepped the controversy, focusing instead on issues that united the two countries. He said that a New Zealand, Australia and United States agreement would be a catalyst for more action in Geneva and force the pace to conclude the Doha Development Round.

But Moore later acknowledged that Benson was "speaking the truth" about the views of some influential Washington players.

He personally believed that if New Zealand's nuclear stance was linked directly with negotiations for a free trade agreement "there could be some big misunderstandings".

"Bluntly, brother, if it is ever suggested - and I speak for none other than myself - that these are part of the deal there will be those in New Zealand who will not understand this," Moore said.