r .

":

OCtober 19171

CON'l'ENTS

"'-""'""""o;"";'" ..... ··.·~'-= .. -'"..:»='.

1. Major Talks in Nelsor;lwithJtlPanese Businessmen 2.N6tioes and Brief itehlS '. ,., ~U ' ,., ' •• ".' <.,., '.":"f'

3. Trident Base for Mt J61m?·., e- , , , • 0' ,. 0 u. , ,n' "

4. Coma.Lco+s Power Supply .19,76-77 •. ' Latest figures ••... "

5. Kaiser - the ot118r half ofColl1aloo .0 0 •• ' , .

6. NZ Special Air S(3rvioe.Soldie~sin Thailand •••. ,." • 0

7. Fijian Strikes - the other side of the story .0' •.••.••

8. How to get Someone Else to buy you an Oil Company ••• ,

9. Review; Exploitation of N ~ Z, WOJ;'kers • '0' • 0 ••••• ~ •. ~ •

.p 1 P .2· P 3 p 4· P 5 P 6 p 7 P 8 pSt

KDITORL\L

For C.Al~CINZ there ar'e , two.~.m:'po:rtcmt events coming up-the talks with Japanesebusine~srrien inNelson~ and opposition to the iie« repressive legisla:(:;iol(- in the Se9urity$ervice J\illendment Bill.

Phetal].cs irrNels6hshouldbem~de as unpleasant for the participants 'as was i PBES' . Butgroimdwcirk l1JJ)S1; b.edone in Nelson to make. this possible. l'!.~bs ori.·'m~.!!fu ers,.jJ.le8. s~-20ns.:kieE_.tlll.§,.

G!"FC]NZ opposes the So 10 i3, both because+of its ties with theC ., and

because its actions musthemper us as .anorganisation. We therefore urge all readers' iotake part in acti,ons throughout the country to prevent the

BiTlbecoming law 'and tOpreveritth.e secret police anct-eas ing their powers.

See below for details of the Christchurch protests.

Thankf:l to everyone fbi-' suhs,andencouragemel1t" Keep. the infoI'mCltiol'l'comingin. i:iAJOlt'l'AIKS JNNIi;r:SON \:rITH J1PllNJ~SJC BUSJ}rE~SSNlFJ'J

''P"-' __ ' _'~"'''''';' __ ",";~~.",,,,,"~,,", .. ,,,,,,,,,,,_: .,_. ' .. · .... '_'~i"._ .... ~:~""''''"''',..'_.·.'J. .... :r'''''''·.".' ..... ·'''·''i=~''''~,··.~ ... L'""';iJ~~'h'":""o..::...;"..,;~""","",:"-"."", ... ,,,,,,,

F'r-om qh!:ip>J911~!.c;h.IT,e.§.~ September 21 1977:

HSirty Japanese business leaders will visit New Zealand next month for the fourth round oft211kpoi' t.he. Japan - New Zealand

:businessmenl'sconferen.ce to"9~ J~eld in Ne Lson.;

The delE'ogation\Vil1 '68 led by M:fNori~h:Lge Hasegawa, president of Sumitomo Chemica1 Company Ltd,and w:Ul i,nclude top representatives of the largest compam.ee in J apan;."

"".""j":.''':

III\Tmv ZeaLand will be well represented oonmez-c'i.a L,

industria.I, and f'Lnano i.a.L lCfulersC',El 'Nell as the producerboar-ds and other quasi-Government corporations, wIr JOM Mowbray, cha.i.rrnan of the Development Finance Corporr,tion, will lead the New Zealand t.eam,

The conference will be opened by the :Prime Wiinister (Mr MUldoon).

'rhese high-hJVel talks ar-e he ld annually, The main purpose is to improve and strengthen economic Elnd trading relationships,1!

These talks are therefore a mini ITS]~C conference - on D. more practical and harmf'u.l level, If you 'have more information about them" or can help

organise to protest against them, please corrtac t us URGENTLY" ~IDQr!....E,~~Fd§ fLE,/lSE.JiQ.1'~! ,

Tuesday October 11., B,()Op ,(JORSO hal1,206 Barhadoes .Chaxi st.church,

Subjeot: "For-e i.grr Investment in New Zealand. 11 ....

Chair: . Kevin McCartin,

Panel: Dr n~· Deane, Economist, Reserve Bank, Alan Langford, Deve.Lopmerit, J"inanr.::e Cor-p,

Brian Easton, Econcmi.s't , Canterbury Ul1iversity Bill Rosenbbrg, CAFCINZ,

The format is ten minutes' from each pane I member :follov'18d by questions.

'Ehe Security ~)ervice Am.e:1drnent }jilt and Mihoguel s criticism.of' it have brought the 0,)1. t s local 'branch inN,Z. back into the; riews ,." A pub Lf.e • meeting is 'being planned irlOhristchurch to oppose this new legislation which would legalise a Watergate in No Z,8.nd force members of one family to spy on eadl 'other. It is to taKe place on Monday'October 1.0. For- further details watch .the 'newspapers. Other actions are bei-ng organ:i$ee~ in other centres.

OOALITION li10R PEOPLE I S RIGH'.r~\ CHHI~:jTOHUHOH.

--,,",,~-"I..""-":"~""""'~""7?"' -="'~"'~_~"""""''''''''''''JO't

The Coalition.fori Peoplets'Rights at its final meeting to wind up the activities connect.ed with the llicllY,and disouss itp future, made the fpllowing decri.s Lons ,

The Ooalition is to remain [~B a structure so thl'.tt\1.o groups involved can

'collectively rnake a dec'i.s ron to come together once' again over a specific issue when +he need arises, HeanwIiile a contact list of groups has been circulated so that the co-operation between groups f'ormi.ng the Coalition can be fostered and encouraged,

VIe ar-e f'ao ed 'with a debt and have already beld 8 film evening to r-ai.ae money, and belOW-are the details of 8.. Jumble Sale organised by Christchurch Vvomen's Uniohfor the Goalit;Lon. Our aim is to clear our debt and hopefully leave a rrurdrnum amount of money jn the bank thereby enab'l i.ng a small financial stnrt for any future Coali:tion activity thBt. may .bs he Ld,

Phillipstovm Maori Mission, Saturday 1 CSth October,

12 00 p. Ill,

If you have anyt hi.ng to donat e lee.ve goods at 314 Bea Ley jIve, or 84 Shakespeare Hd or ring '557-982 or 62· .. 15.3 ..

All CJ>FCllrZ members are urged to attend the regular CAFClNZ meetings. The next meetings are held on October 6th and 20th, and November 3rd and 17th,

at 7 Ferry Road Christchurch; 8.00p.m., or ring Lynne at 893-257 for further .inf'ormat.Lon,

~EJ.FT~ ....

Some people will have received a receipt with this issue of "Watchdogll• lNe

had not sent receipts out to many people over the past ye.ar or so because of the ext.r-a cost involved in sending them individually. This method of sending them involves us in no extra cost EDJ.d we w.i.Ll, continue to use it as receipts accumulate,

\VATCflDOG

We always need people to help produce V1atchdog" This involves writing articles, addressing wrappers, typing stencils, printing, collating, sorting and posting, If you can help in any way, please write in or ring John Christie 62-153 'or

Bin Rosen"berg 794--771, Thanks to those who have helped in the past. And

by the way - postage is now going U:D from 3cents per copy to 7cents.

TRIDENT BASE FOB NiT JUf-IN?

--.~ .. - ..•.. -"""'"- .. ~-,~-~ ..... ~ .... ,

The Minister of Foz-e'i gn Affairs (BriaJl Talboys) recently stated, in reply to a Parliamentary question, that the U, S,Naval Obseruetory W8.S considering Black Birch (at Mt?Cook) and MtJ9hn (at Lake 'I'ekapo ) as potential site~sfor a telescope site. (Other sites being considered are in Western Australia and South Amer-i.ca},

Main requirements for the seven inch telescope site are a lot of cLear- nights and as great n distance as possible from the Equator. Two members of the Naval Observatory staff visited }T, Z. in April;JIffay for preliminary discussions with the Cleerter Observatory and the University of C1:U1terbury (which has its own observa.tory on lilt John and which used to sublet the land +her'e to the

U c So Air Force for its Observatory).

The telescope 'will "be us ed in e. 10 year' pr-ogr-anme , Operation Southern Hemi.spher-e Transit Circle wh.i.oh the U, S. hopes to start about 1980.

It will be concerned with fundamental geodetic nnd astronomic positioning, and will involve up to 10 American professional astronomers, probably with some local assistance.

Haven't we seen all this before? Mt .Iohn already hosts a Baker Nunn observatory wh.i.oh in the: te 60' s was sublet to the S ,\. by the University of Canterbury vvitll bland aasurances of "pur-e scientific reseccrch, :cesul ts

freely available I? etc, etc which was all bullshi t. lJt.T ohn is an ilitregal

part of America's space warf'ar-e apparatus V-Then the pressure got too great, both the University of Canterbury and the U. SoP .• got out Now the observatory is run on behalf of the Pentagon by the Bendix Corporotion, a huge American mult :Llat .i.oria.L,

This proposed U, S. Navy Observiltory is just DS sinister 0 Its' potential existence was revealed 'when Labour's ShDdow Foreign Minister, Warren Freer, asked Talboys whether the obaer-ve.t or-y would have E:i defence fUnction for N. Z.

or the Do So Talboys gave the usual waffle"

The giveaway wor-d is "geode't i.c'", Let the D,S. Navy speak for itself.

" ••.. Geodetic surveys SUPT:Or'C a wide range of activities amongst whi.chare the precise positioning of hardware for naval operatin.g bases and test f1r:tcili ties, and determining oerrt er=of'» ocean co-ordinates for long range (i. E'O. Loran and Omega) navigation systems. 11

(US Congress, House Appropriations COlITIl1ittee;Hearings on Defense A:PI)rOpriations, fiscal year 1 975, Operation and Maintenance, Nfay

1971+. (DMA testimony) p.668) DWU\ -- Defense Mapping Agency,

In short its all to do with Trident - Pmerica t s next generation of massive submarines, equipped with multiple nuclosr missiles which can be fired from the home port and still reach their target. 'I'ne advent of Goody Goody Two Shoes to the WhiteHouse hasn't s t opped the Il. S, from surging ahead with new weapon systems, Already subma.rine pens have been built at the Australian Navy's base at Cockburn Soubd (Just south of Perth) in preparation for the American Tridents NOT h8.S N. Z, been forgotten.

The project will determine centre of ocean co-ordinates for NAVSTAR and maybe Omega to allow high precision calibration of NAIJSTAR so that it can be. used by Trident, The 10 year programme will involve full time observations from NZ

in aasoc i.a t Lon with mob i.Le : observations from various islands and a ship, A similar network already exists.

It will be for extending the gecd errt i.c control th~t theU,S.N, already has

in the Northern. Hemisphere to the Southern Hemisphere where it ~vill be needed for extending coverage ond giving more precise control, in keeping with the requirement for first strike accuracy for the Trident II niissile.

It is but one of a serie,g of geodesy related things that are happening in connection 'with Trident ,some of which have appeared inN 0 Z, For example, the p'Lane.Ioad of cesiwnclocks that came into Christchurch in .Ju'Ly, ·Itis very similiar to the 60's when there was a series of geodetic operations in NZ as part of the business of measur-ing up the world for the benefit of Minutemen .. and. other missile trajectories.

So once again the Yanks are trying to suck us into their war machine, Omega was pr event Bd from ever being established in NZ - the same must happen to this US Navy observatory. Trident subs, the Pentagon and the whole kitten Caboodle of US military imperialism must be kept out of NZ.

If you heer of anything - h8rd facts or rumours - related to these developments please let us know.

CUMl\ lqQ.~13 _ f,9Y';E1L~}rf'f:1:1 Jl.1.§~~:lL_f~BJ~I:~~_" FI£l:ill~§" ,tr~~ii.J?EE .. .':l!l.~,~~ .. of ... eL~E.!.r .. tc:i.!L.tki.~~.J.:.t. - .,I~().9£J:

o 17 cents

"~.J:'::,'+·"I'i\i,~,;"""'1!!!'':fi'~::'''·b;l

~J~~"-f~7~.(T!C:f'2%'.3f:; .. d. .. ~~f;l ... E.J?~e,E9.:;;nt,E\EE3, .0.:f .. ,.,to.t.~1 .. ~,lS~cJ£~Lc}.;.ty Ren~£pti.<?E.2.p B.~:

-, ....... ~"""""= ........ ..,..,""'..,. &\:i.-li~".

t:~~ t 1~-f!-:W1~-;~S~d;fs 2::-,p,eE.9.c:n ~B£.S: .... 2LJ..o:tf:~J, .. .s:le.9,t.rig,i.~y_, ay.'" l.l.~b 1e. __ 0f .. ,~s.~ In

~"''''''-'''.'''''''''~''''''''''''''-'~'-~''-'-'''''-''''-''''-''~-''' i'.!j~.c\

Above are the latest figures on Comalco I s power use in NZ The r-ea aon they might he different from other figures you might have seen is, firstly., because for theft~~t~Jm~ we ihave an authentic figure for the price Coma'Lc o has been paying, secondly because the amount of power COll1'Jlco uses has changed / they're using more), and thirdly the amount of electicity generated in NZchanges each year. Below are more details on the figureD, 1tVe_~9~+~g~_e12.Ee<?..if1lJ.Y..~~Ic...._~ &:r,?_~~.~~2~.19t"j;£1_eJF_rg.ernE~FD,~kl1.£yl_,.~h9_~<:-1:"El..!.e~~t!l.&L¥'e s -2.ll.S=~~El.;..l9 0 I ~ £Jec:t£.~~~~, .

PRIC~;: Officially the amount Comalco pays for its electricity is kept secret for commercial reasons. In fact it is kept secret for political r-ea sona - so that the people of NZ will not know just to what; extent they o.rebeing robbed by Corna Loo , In the past we have known roughly what. the price is: there have been vnTious figures mentioned in the newspapers, usually 0.2 or 0.2.5 cents per 'unit, We got conf i.rrre.t i on for the rough accuracy of these figures when in 1974, aComalco employee told a OlFGINZ member that the figures were ile.boutri[!;ht!".

But in ~Jl~.J:E~13'§', 18,.2.77, the corporate manager' of Comalco in NZ, M.B, Bennett, was quoted as follows:

"Mr Bennett said the officials r committee (L e. the Government committee renegotiating the pClV'ler price with Gomalco) had proposed t.ha t the cost of olectric)kty supplied to the smelter be increased by

600 per cent. !bj.1:'~:~~2.1.1J~~E1:.qL~;p~~~tj~}}\1 :to,?, ,~.he,,~9_o..st ._of22~.lJEJpL,.tb·.£ s~E31t £.:r~b.~_",'3,_8.,~~i'

From trlis His possible to calculate the price per unit of electicity.

If' a 600-;; increase would cost ,~\27M, then the present cost per year must be

one-sixth, or .5million, COII12J.CO is us i.ng electricity at a rate of

295,000 kilowatts. 'I'her-ef'or-e the number of Ul1.itsused in a yerrr is 295,000 multiplied by the number' of hours in a year, Divide this into ·t;Lf- 5M and we arrive at .Q ... fllt,~gent.~.'.Re~run~.:t. This is even lower than what. 'we had thought! but we must mention here that this is precisely the figureth'l.t Dr Goer ge Serrallach of J/i.assey University had pr-evi.ous Ly calculated using. the comp'l Lca't ed forrnulae laid out in the Act of Parliament governing the agreement with Coma Leo,

'I'he household rate for power in Christchurch is 2.2137 cents per unit. This means Chr-ist.chur-ch consumers, New Zealanders, pay lJ~ t~~~l.as,1£~9E: as Comalcowhich is in contrast 10q% foreign-controlled.

MiiOUNTOF POWER: 'rhe 1 97G-77N" Z. Tiepon has just been p\,l.blished. The

t ;t·~:;'Un.t-·-;'..;r~ power gencrstedin the year ended }'I 1>lTarch 1 977 was 20 ~ 91 ~million emits - taking line Los se s into accoun+ , 19,869 mi.Lli.on units were available for use. 'I'he amount Coma Leo used waco 2, 58~. million units (calculated by multiplying 29l), ClOO by the number- of hours in the year). This figure i's 12,)Jr% ofrL Z. IS tots1 production, and 13'>1 of the total electricity that can actually 1)C used.

KAISER - TEE OTB]'<:;U IL\.TFOF COMt,ICO

-~." ~", ... ,~."," "' ... ,~~ ...... ~",,,,,,,---,,,,,,-'l.,:.~~.o.>r~,.="-"~' __ '~'=,--,-,,,",,,

Recently we received the 1 976 Annual T?oDort and other publications of the ;tCgti§£r 1: l~min.:hlJm .. Chen~~ca l..i~r.P~C?~:::.tloJ:} ..

Kaiser, a U. S; company, O'NnS

of Comalco which means it sh8rescontrol of

Coma.Leo with Conzinc Rio Tinto. of Australia (CoR,!\.,), who also own 4-:>%.

In the past we have looked mainly at CoR. A, and its· parent company, the

Rio Tinto Corporation of Great Britain, when talking about who controls Comalco, and this is the first time we have received much detailed information about Kaiser. For your interest, here is a summary of the main information

in the repo rt s.

Kaiser has its headquarters in Oakland, California, ana has operations. in North America, Latin America, ASia, Africa, Europe and Australasia i. e.

they operate allover the world. It describes itseli' as It a fully integrated aluminium producer" (bauxite mining, alumina production, aluminium smelting

and fabrication) but is also involved in agricultural and industrial chemicals, international commodity trading, resl estate (land speculation!) and other activities, It has four aluminium smelters in the Uo S. and one each in Germany, Ghana, Great Britain and Bahrain, as well as its share in ComeLco ts two smelters at Bluff and in Tasmania In 1976 its total sales were

$1 ,852 million and its profit W8.S $4-5 million (which was low - the previous year's profit was ~:~95 million) 0 It was particularly happy with Comalco' s high profit for 1976 -:1:26 million (thus Coma'l.co produced only about 8%

of Kaiser's aluminium but nearly 3Wo of Kaiser's profits!'!)

Kai.ser- is having trouble, just as Comalco is, with their cheap energy contracts for their aluminium smelters - several of their suppliers in the UoS. want to raise the price for their electricity< The annual report canments that

getting guaranteed energy supplies "ranks as one of management's highest priorities". The major focus of Kaiser's research activity is aimed at reducing the amount of electricity required to produce aluminiulU. One interesting fact is that at the beginning of this year, l~{ rainfall into hydroelectric catchment areas in the north-west United States forced Kaiser

to close two pat lines equivalent to one-third of the capacity of the Bluff smelter. This underlines once again the great advantage to the company of

the ComEllco contract - right now (early September - Ed.) there is low

rainfall at Manapouri and it cannot meet all of Cornalco I sdemands. But

instead of having to cut baok its production, Comaloo gets power from the national grid, and it is the NZ people who have togo short.

One other interesting fact in the reports is that Kaiser is the supplier of most of the secondary raw :me.terials required by the Bluff sme l t er e. g. calcined petroleum coke (for making cathodes and anodes), fluorspar, oryolite. This provides.another simple method for Kaiser to extract extra profits from No Z, - it merely has to charge higher than normal prices for these materials. ViThether or not they actually are using this method is not known; because the prices are not public information.

In the 121st issue of "'Natchdogi!, we printed an article entitledHNext Vietnam!! which repocted two pieces of information about No Zo S, S. troops operating in 'I'ha i.Land; 'r'NO supporters of CAFCThTZ have now sent us more information whioh confirms virtually eve~Jthing contained in our article.

'I'hey got into conversation with a soldier who had just finished h years in the army, 2 of which were spent in Singapore He was quite open about what was going on. S. 0 ~,). troops paas through Singapore l'.f1ilitary Base for 2 to 3

week tours of duty around the Malay-rrhai border area DS HlistenersH.. i e. reconnaissance. This is supposed to be top secret, but II ever'ybody''

-7·'

(the soldiers) knows about it now, he sa i.d, He confirmed the capture of 3 S. I" S. men in Nhlay-Thai border area. He mentioned that the S.A, So had very sophisticated equipment for their job,

Speaking 'of No Z. ! S military baae in Singapore, he said that much' of its equipment had been supplied by the Americans - left-over equipment from the Vietnam war. And although he had very crude anti-communist views, he admitted t.ha t the No Z. Government is really doing dirty work for the U. S, in Malaysia and Singapore.

On a slightly different subject, he also said that in Vietnam theN.Zo regular soldiers spent a lot of time traininc U 0 S 0 conscript s ,

GbFCJNZ has now received .mf'orma't Lon from 3 independent sources all of which say the same thing: that NoZ. troops are directly involved in another civil war in As i.a, 'I'hl.s latest infornntion differs on1y Ln that it points to the Malay-Thai ;)order ruther than to 'I'ha i Land proper. Once again we emphasise that it is very important to spread the information where-ever possible,

As the fonner soldier said, it if; nothing but dirty work for the U 0 So and is in the interests of neither the 'Malay nor Thai people nor the N,Z, people.

FIJIAN S'rRIKES - TIm CJTJIJi:R SIDE OF rCHE S~'ORY

.""-_~"",-"=,<."""~",_,_"'.:"'",",=,.,,,,,,.,,,,",,._,,,,.;,,,,."-'-"""".~"':'''' .. "· ... ~'.~· .. ''"''' .. ~.~·.,~·.,-C,'''--'',.~_,.o",'''-',,,'.' .. ~,_,' .. """'~'-,""_"_",c·';~>,_ ... * .... ,, .. - __ ",."." .. "," •. "-'.""- .. ~",,-,¥"'"'

'I'he Fiji waterfront strike has recently been making headlines in the 1\10 Z, media but as usual only a part of the story is told, We hcer nothing of the exploitation of workers in li'iji, of the climate of massive unemployment,

freely av a i.Lab Le scab labour and G'overnmcnt repression whioh theI<'ij i Waterside

Workers and Seaman! s Union exists in, The multinational C, (Colonial

Sugar Jlefinery) whose tentaole extend into N, ,is a good examp l.e of the big companies which dominate l':iji: to quote a member- of the crew of the Ngahere "t.he (sugar) mill itself Was outdated and the conditions quite primitive, The exploitation of' the worker-s was acube ", Irl t.t.Lo wonder then that the monopolies' friends in government are so keen to crush the watersiders union when it dared to strike in suppor-t of. a wage claim \Jhen the CrEJIN of the Ngaher'e ob ject ed

to the use of scab labour in loading the ship they were attacked by riot

Ilolice us ing tear gas and llato11.s· Muldoon as usual tried to make political capital with h i s familiar red-baiting, It didn't worry him that a N. Z. ship

had been f'or-o i.b'Ly boarded by trIe I1'i,jiPolice, and the crENT arrested for the

n cr-Ime" ofsnpportill.g the Trade Union pr-i.no Ip l,o of working class solidarity.

'I'he mar-ch in E~uva E\cainst Z. again received a lot of pub'l i.o i ty here, This f!spontancous protest against outside interference!1 was organised by the wife of the I{liji general manage r of J\.ir No Zo, while companies gave t irce off' so

employees cou Ld at.t.end later march of 3000 .in support of the union Was

of course virtually icnored T~ight union officials are stHl in prison and as the one r-ema'in i.ng official IrIanuael Vas i.a exp'Lo ins, the government has given suspended sentences to 21 foremen which effective1y prc.>ve!1t them being involved .iri f'ur-t her st r-ckes .

Once again the rnultinationalE3 and their friends in government show the lengths to which they will go to ma,intain their profits and exp'Lo i.ta't i.on,

HOW

Europa Oil used to advertise itself "1 N. owned" 0 In 'l972 this g:irrrmj,ck

quietly dic3appeared when the Todd f'ami Ly .- the people controlling Eur'opa - sole] 60;1, of their shar'es to "New 7,ealand Ltd in exohange for shar-es in

o "s U, :paren.t COlTlPbX1Y wor-bh a]?p:'co:x:iro[:,,,tely· :l~.26nl 'r1~arlier -t:his yeB.l~ t.he

Overseas Investment Comml s ad.on approved the sale of the Todd family's other

L~o;:G to 130 - again presurrnbly for a tidySill11

'I'he huge amourrt s of wea Lt.h gained the Todd f'anri.Ly have 1ed to all outcry

by other It shar-eho l der-s in Europa, Not because the control of Europa wp.s

going over-seasr rbut because they were not sharing in the mi11ion dollar lolly serD,mble 'I'h i s outcry hem rcc,ulted in a great deal of dirty linen being aired in pub l i.c - and very interesting dirty linen too,!

It ljrovides a very clear and blatant example of hOVT a SIDElll rrri.nor-i.t.y of share-

holders (in this case in a company can control that company and it shows

how talk abouf "local partici.pation" through shares in minority controlled ventures mill be s imp l.y a t.ri.ck vto nri.Lk that "Loca.l par-t i o i.pa.t Lon" of its money for the benefit of the controlling minority.

Europa ( then called]', - .Associated IViotorists Petrol Co Ikd) was ae t l~p

with the encouragement of the N. Z, (~overr>,l11ent in 1931 as aN .. Z, -ovmed independent oil 'wholesaler to compete with tho giant oil multinationals by buying from different sour-ces ." principally the U, S, fl. n, A price-cutting war followed which ended only when the govenunent stepped in to protect Europa to prevent lin oil monopoly forming. The protection took the form of state-fixed petrol pricing

- s t i.L'l. in force. Europa Inter lost all independence from the Oil l![ul trnationals

- it changed its source of supply to Cu'Lf Oil.

The Government of the day left it to thG 'I'odd family to set up 'Europa, It was f'oundod with a cap i t a'L of :1;200,000. The 'I'odd' s supplied only ti;1 0, 000 -

but kept complete control of the company_ They did this by obtaining the remaining ~~1 90,000 through preference shares ~. non-voting, jnterest-bearing shares. Pref'er-ence shareholders were promised a magnificent 837'0 return on their investment: 890 in interest, 75% through a petrol rebate 'I'he r-eba+e ended in 19,36 and interest was put up to 1 qV; and to 11 in 195,3 By 19513, taking irrClationinto account preference shareholders were effectively getting

a r-et.urn of only 9 since their capita1 did not increase,

Meanwhile the 'l'odda - with full control, and benefitting from the increasing dividends of the state-protected ent.er-pr-i.se - were prospering 'rhey put [; further :);hO,OOO into the company, but with p Lowed-rback profits, fJY 1958 ,!J:19,~E share capital hi Eur opa waa ~j;~j. 7L~mil1ion, compared wi.t.h the preference share-.

holders' static 90,000. In 2ddition -Co this increased Europa shareholding

the Todds bad also taken further profits out of the company and invested them in other profitable family verrbu res YThen they sold 6q% of their shareholrling

to 130 P, in 1972 it wn[-l valued at The remaining will prob2bl'y be

sold this year.

'I'he rroc1ds did not negotiate a f3jJnilar deal for their preference Elhareholders,

~)o from a risk capital of :':50, DOO ~. and control of' the company - the Todds have

made :~;)+O million and more" Fr-om a r-Lsk capital of 90,000 their original

supporters are ;just Vi/here started, - rrri.nus inflation"

ii.hi,