1) 2) 3) 4) 5) 6) 7)

No 35

ISSN 0111-0896 Doo ornbo r , 1981.

CONTENTS

PAGE

GAFCINZ Releases Secret Docrumonts

2

GAFCINZ at Oon soz-vrrt Lon'i s t s t Convontion

'7 8

No NZ 'Ilr ocpa to Middlo East

CAFCINZ Tours Wostland Mining Sitos

9

Exchange of Insults with Minorsl Union

11

CAFCINZ at Poaco Conferonco

Roc o Lvcd in thoI/lan

16

Corso Ckdendar

1 t:. .l...U

UN Pub l Lc at Lone on. 'I'r-an sna+Lon af s

16 16 17 18

Rosorve Bank on Fbroi[~ Invostmont Raw Materials Roport

Mul tinational Strategios for Power

CAFClNZ wishes all our supporters a fighting New Yearo

We are already

planning ac-tivitios against sonding Now Zoaland troops to Sinai and

against tho Black Birch observatory.

The "Think Big" (think multi-

national) programme will demand the united opposition of individuals and groups throughout tho c ourrt r'y ,

So have a good holiday!

(And d on t t forget to buy a IlBloodless Blitzkriogll at only ~L20 !)

1)

In it was tho Com co document. In 1 1 it was to be h

Am r i o an documents. Only hw of th m (not on p ar- "lith the Pcrrt agon Pape r-s ) 9

and 1 years old at that, bu th revelations contained therein we eXDlosive ~nough"

Although both had boon secret, thoy had .in fac t been declassifiod in 1979. However, deolas ificotion by itself does not ensuro that suoh mater~al

becomos pub l i,c knowledge. They had been st oz ed in American libraries

(specifically the Ll3J Library and. the DlAright D. Eisenhoi"lCr Library)? and were obtaincd by the library of the Univerc:ii ty of Arhus in. Sweden, which is res~·· ponsible for ma.i.n t a i.n a c o l I ecb i.orr of official US document s , Fr-om there they woro discovered by CAFCINZ founder, Owen Wilkes, ourrently working for

the Stoclcholm International Pc ac e Research Lna t i +u t e , He sent them to

CAFCINZo (They had b e on obtained perfectly logi timately under the mj

li'reed.om of Information Ad) 0

The two d ocumerrt s are a National Security Council one d at cd January 169 1961, entitled "Long Range US Policy Errt o r-e a t s In .Australia and New Zealand." 9 and the US Information SClrvico 9 loJellingt on, C'ourrt rry Assessment Report for

Calendar Year, 1965. It is dated li'ebruarY179 19660 It is stamped

"Sanitised V!ersion" and has been released lid th numerous paragraphs d e Le t ed,

lnJhy should two 20-yoar·-old documents be of any Lrrt e r-e s t today? Because

only the details have ch ang ed , NZ is still a poli tioal, economic C111.d mili t~

ary ally of the US. We1re st i I.I in JUJZUSo The Language employed in the

NSC document about NZ! s shor-t o omings as perceived by the US Government have

a cur-Lous l.y contemporary ring about 't h em , The USIf) d ocumerrt rolates to

the US persuading/pressurising/manipulatingthe Holyoako Government to send NZ troops to the. Vietnam war - anything that reveals the true) story of NZ's

involvement in that s or-di d ad.von.t ur-e .i s invnlUctbleo But it is 1'1.180 very

r-c l ovarrt t od.ay , with tho Ro ag an Govornrnent9 none too subtly having "persuacled!! Muldoon and Co ·1;0 make an Hin pr-Lnc ip l c" commi 'tm ent. to take }:'.1rt in the

cont r-ove r-s i.a.l Sirlai po ac eko f'o r-c e , Ho pef'u Ll.y we TtlOTI.ft havo to ~·Ja.it

years to f Lnd out tho true story of that little p i cc e of arm-.twistingo

This is tho o.l.d e r- of the tl<>J09 d.ating back to the Eis0mho1'ITer and Kennedy

governmonts:\' 'I'h e NSG as such ifl c om ori s ed of four men ~ the President?

Vice-President9 Secretary of Sta.toand Secretary of Defense (in latter yc ar-s

t.tlorc h ae b e en a Nat i.ona.I Security Adviser as well) 0 Btm e at.h tl'!.em is a

wh o l e bur-c aucn-acy of c omm i.t t oee and sub-commi ttoos 9 00 go thc) notorious

"40 commi ttooH of the Kissinger ye ar-e , 1J.l}lO NSC has over-s i gh t of the entire

US int ell:Lgence oommuni ty 9 the; a,ptlynClJJled "Invisiblo Gov'rnmcmtll" This comprises the CIA~ National Soourity Agency 9 Defense Int ell igenoe Agoncy,; Army, IIT;lV1J9 and Air Foroe Intelligenc89 tho FBI9 Atomic Enorgy Agency and tho State Department! s Bur-eau of Lnt e l I gence"

It do a'l s with AUl3tralia and NZ togethc1'9 at t ach i.ng greater st,ratqgic

import ance to the former ~- that h aan ' t ch ang ed in 20 years. vIe 111:· skip

tb.e Australian c orrt errt ,

It contains some f'aac rn at generalisations -,. NovJ Ze a.Lande r-s are

"rrons e r-va.ti.vo 9 p ar-och i.a.I and dc e p Ly "JcdCLc3cl to t ho traditions and Le ade r-eh.i p

of Bri tain. II NZ's po't orrt La l leadership in Asia or elsolirhere is Hby' no moans

c omp ar-ebl.e tc that of' Aus t r-a'l La'", 'I'h i.s influence is "o i r-curnac r-i.bed both by

its s i z s- and the limited nature of its rnSOllTcef3 as ,veIl as the mental attitude of' t he people!! (~)

The emphasis given to trade and foreign investment is very revealing9

oonsidering that it is a National SECURITY Counoil dooument. One Australian

Quote worth reprinting9 for instanoe~ ilThe further realtsation of the Australian potential in the J:t"lar East might be oonsiderablY facili t at sd , however~ if labour .d i.apu't e mechanisms and trad,e union policies \...-ore signif-

icantly changed and productivity was significantly increased." There is

a general oritique of the NZ economy - HHigh labour and capital c os t s , power shortages9 transportation difficulties 9 and tho emphasis gi von to

socialised welfare programs are Ltm L ting f'ac t or-a , II Sound familiar?

II The climate for foreign investment in New Zealand is fairly good9 though foreign exchange controls and restrioted import licensing are unfavourabff0

factors at present 0" This sniping at import restrictions hasoontinued

unabated for 20 year~ (along with foreign exchange controls and the remi ttance of profits they have been considerable eased during that time) 0

There is a detailed list of US political. eoonomic and military

objectives for both Australia and HZ. Some quotes are worth highlighting~

e e go "0." seek to enhance the capacity of Australia and New Zealand to

assume a greater share of the freo world responsibilities in SE Asia and

to enhance their prestige in that area 0 u To encourage Australia and New Zealand to maintain a favourable climate for private capital investment •• D. To continue to participate with Australia and New Zealand in .ANZUS and

SEATO operational exeroisos and military planning~ including planning for

the availability of FACILITIES IN BOTH COUNTRIES IN THE EVENT OF LIMITED HOSTILITIES IN THE FAR EAST (our emphasis) • D. To continue to urge

.Australia and New Zealand progressively to standardise their rnili tary equipment from US models and continue to facilitate, as appr-opr-La b e , the purchase by Australia and New Zealand of US equd pmerrt for their own f01"'c$. $.11 These latter two quotes are straight forward - the US migivt; need bases here

in the event of, an Asian war, and they wanted the US arma-rnanuftrtu r er-s to',

reap profits frOID; Austrqlia and NZ. (In the event, they didn I t get

1:tases here but they got sqmething better _ NZsoldiers to die for them in Vietnam)o

There is one other splendidly patronising quote& "In the event othcra.reas Ln the Far East were denied to the Froe World~ Australia and New Zealand oouldprovide a fall-back posi tiona liThe Yanks were worried about poor old Wally Nash" This come~ out in a seotion on the now defuncd South East Asia Treaty Organisation (SEATO)" "New Zealand is a full participant in SEATO activities but under former Prime Minister Nash9 did not always agree with US vievis on the natura of the Communist subve rad ve thrEft in the Treaty Area and espeoially Questioned tho desirability of SEATO contingency planning to counter such a throEtt.iI

The most revealing quote of al1 however is this: ".Although relatiorm between the United S'tates and Now Zealand have 'boen, exc:-ellent9 the praisE!' given by the then Prime Minister Walter Nash to Soviot leaders, their objectives and achievements during a visit to Russia in April $ 19609 was

a matter of great concern to the United Stat eS9 as was the p-ossibili ty that in fulfilment of a plank on the LaUnur Party platform of 19579 New Zealand might reoognise C-ommunist China (-this in fact d i dri I t happen until

the Kirk Government _ od., ] The installation in December~ 19609 of the now

National Party government ~ under Prime Minister Kai th Holyoake holds promise of closer, mora understanding l"olationships between tho United states end New Zealand. The National Party had expressed its intention

of working closely with the United States and has + akcm a definite stand)

in harmony with US positi8ns on such muttors as disarmament and non-

recognition of Gommun Ls t h i.na., Pr-Ime MinistGr Holyoake favors olose

bonds with the Commonwealthg ANZUS and SEAT01 and has publicly rejected Soviet blandishments."

The later USIS document shows us exactly Hhoro tho !!closer? more understanding r-e Lat t o nah i.pa'' led us.

(Bofore leaving this NSC documon t , it offers a fascinating glimpsE) of

a completely unrelated story. ObviouslY9 whoover photocopied it also

caught tho top sliver of another document. It is h o ad od aTop Secret

Security Information" 9 is dated Oc t obcr , 19539 and at tho bottom of one pagn of tho NSO documont is the startling phrasog "Support with US forces of an at t ompf by the C'hinese Government on Formoso. (i. o , Taiwan) forcibly to overthrow .0." Othor snippots at the bottom of other pages make it clear

it is about cJhina. What could we have stumbled on here? Plans by

Chiang Kai-shok to invade China with US help?)

The US Informatiton Service Documcrrt s

OK par-anod d s , this is the one .. wlvo beon waiting for. This is the

JUlCY one. It 's quite the opposite of the NSC one - Australia docsn't rate a men t t on ; it I S faSCinatingly detailed and its tone is self-congratulatory. Also unlike the older ono it is written by an. identifiable individual - Thomas T.Driver9 Public Affairs· Officer at the US Embassy in Wellington e

The USIS! is the information ami propaganda arm of the US Government.

It is centred in Wcllington9 where it runs a well-stocked Reading Room.

As pointed out earlier this document has been released in censored f'orm

(!lSanitised Version")o Oneean only guess at the contents of the numerous

crblotedpassages9 but if tho rest of it is anyth1.ng to gObY9 they'd make

faSCinating reading. So would the State Dep?rtment's "Guidelines for

Policy and Operations in NevfZealand'l ~ mentioned ini t ,

Like the NSC documentl this ono contains US objoctives for NZ. called "PSYCHOLOGICAL OBJEC'rIVESI! and there are three of t.h ems

1) "TO ENCOURAGE THE CONTINUATION OF NEW ZEALANIl'S ALIGNM.ENT WITH THE WESTERN DTIMOCRJ\CIES AND ACTIVE SUPPORT OF US FORh"IGN

POLICY POSITIONS. II 2) "TO CREATE A GREl,TER AWARENESS OF NEW zEALAND'S

PARTICIPATION IN POLITICAL9 ECoNornc AND SECURITY MEASURES DESIGNED TO RESIST COMMlliUST PENETRATION IN So Be ASIAo IN THIS CONNECTION TO ENCOURAGE NEW ZEALAND'S FULL SUPPORT OF SEATO AND ANZUSa II

3) "TO CONVINCE NEW ZEALAND TARGET AUDIENCES THAT ANZUS IS A TREATY WITH BOTH PURPOSE AN,]) rmSCLE.AND Ir:HAT NEW ZEALAND AND THE US HAVE ~mCH TO GAIN A.1'1'D NOTHING TO LOSE BY MEIYIBERSlilP IN THIS EXCLUSIVE

'llREATY." (Our emph as t s throughout) a

They are

It's worth noting that tho oponing worels iJf tho document are "The current Country Plan remains valiel since no psychological objective remains fully achieved. If One GP.n only gu3SS at the "Country Plan" or the referonce to

tho "Country Team" of which tho USIS was only a part.

,

The document d.etails progress towards attaining those "psyohological opjectivesll• It uses as its starting point Holyoakols announcement on rtlay 271 19659 that the NZ Government would send troops to join the war in

Vietnam. Page 2' is worth quoting (what'Ej not d o Lo't ed , that is)g

"The task ahead for USIS r-e l.a't i ve to this objective (No 1 - ed , ] is to convince the Now Zealand public that i t8 govor-nmon t has chosen tho only right course of action, in Viotn811'l despite tho heavy propaganda barrage to the contrary w4ich aroso from tho political OppositionPartY9 church loaders,

the Univorsities, intellGctuals9 media editors and c ommcnt at or-a , Tho most

important targ:ct and i.enc ce ranched in. endeavouring to implement Ob,jeotivE)

. No 1 were tho Prime Ministor9 Cabinet mt:ro?iGrs, rnombc r-s of the press,

municipal authorities? mayor-a, editors of tho University newspapers9 military loaders? tho New Zealand Returned Servicemen's Association (tho NZ ccurrtcr-part to the Amerioan Legion) and through speeches addressed to civic: groups such as tho L'i one , Rotary1 Senior and Junior Ch8mbcrs of Commer-ce .0.00 USIS/Wellington makes no inflated claims but '!tIe do modestly submit and we honestly believe that our contribution as a member of tho Country Toam has had more than a little effoct on tho stirring "Groat Dob at o" which rocked N{)w Zealand in 1965. It would be naivo to beliove that the tarrant of US Vio'~n;:un policy mat cr-t al., background information, etc. wh Lch USIS!trJellington kept flOWing across tho desk of the Primo Ministor? Members of his Cabinet and Parliamentarians had no influence on tho positive position taken by

Prime Minister Ho l.yo'akc s " (Th'e rest has been deleted).

Tho Yanks were very keen to win over students and academics. "The

post held three ~Gad.ing Room seminars on US policy in Viotnam? each involving at least two Embassy officors9 fOr select audiences. Tho. first~ for a group of Victoria Univorsitystudent Lead.oz-a , most of thorn opposed to American policy, featuring the Ambassador as one of the participants. The second sominar was held for stUdents of an Asian Studios class at tho Wallington Polytechnic. The third, s0rved as a briefing session for interested

American faculty members and their wives from Victoria Univ(;)rsity. Tho latter

group had request ed assistance from tho CAO (? - ed.) in an effort to counter intensive campus criticism of US policy."

"One of the post's most fruitful pursuits in tho long run may well be the assistance it is granting to C'antorbury Uni ve r-s I ty' snow Amorican Studies

Program. In tho belief that more comprehensive and widospr0ad. toaching

about tho United States will increase understanding of the United Statea the Embassy has exicndodevery possible encouragement to Canterbury's Vico-

Ohancrellor with regard to tho devolopment of this program 0 •• (og) Tho post

has. awarded a 75-day International Visitor gr,E',ut to Professor N .G~ Phillips, Chairman of Canterbury's American Studies Program? who had novel' proviously

boon to the s~ates •• 0'1 (Neville Ph i Ll.Lps , of o our-ae , went on to become

Canterbury's icc-(}hanccllot', and a man vJell krrovn to those campai.grri.ng to get tho US Air Force off university land at :Mt John.)

T.hore is even a wry adm Las i on , ,,~ .. The schoo l system of Now Zoaland,

which is rapidly installing 'Amorican Studies' at all oducational levels from primary grades through universi tY9 places hoavy demands on us for good claS:Broom motion picturos on America devoid of propaganda and American flagwaving, which we find difficult 9 if not d ownr-Lgh t impossible to supply."

The thing is full of priceless quo t ee , O.gd "Visits of US statesmen

ahd top military figures arc used as a device to make subtle referencro to ANZUS ••• The IPS wireless file is basic to our ontire operation and tho mesaenger from External Affairs (foreign office) novel' frdlsto collect it each day whereupon it is faithfuitvly rushed to the Primo Minister's office for his immediate attention. I am: reliably informed thnt he reads it thoroughly each d~ •• a"

Three disturbing quostions are raised in. its (unconsored.) cant errt , First - "USIS /Wellington has continued to provide support to 'RevieW', the

Returned Servicos monthly magazine. Almost all of it has forced i -lis way

into print." The question is - WHAT SORT Oil' SUPPORT? WHAT lrJAS THE

RELATIONSlITP BETWEEN THE RSA AND THE US FlIiBASSY IN PERSUADING ROLYOAKE TO SEND TROOPS?

6.

Second - "Spacial o ornmend.at i on goes 't o USIS/Scdgon for tho hardhitting photographic material they furnished klellington during E cr-i tical period

hero which were used with telling effeote Also for the facilitative assist-

ance and indoctrinations of Now Zeq.la.n.d journalists sent to Saigon und o r US

Information Agenoy aegis. The journalist program oontinues to pay dividends

and will far into tho f'u t ur-o ;" WHO vmRE THE NZ JOUlli"JALISTS 'INDOCTRINATED'

IN SAIGON? WHERE ARE THEY NOW? (Ono or two names used to be bandied

a bout at the time - is this some oblique proof?)

Third - "USIS/t-vellington be l Lcvcs that its close support of the AntiCommun i.sf Committeo and various othor similar groups vuith every form of mat-

orial aas Lst anc o available to us 0 <- 0 tI WHAT 1'1AS THIS 'MilTEHIAL ASSISTANCE'?

WHAT WAS THE ANTI-COMMUNIST COMMITTEE? WHO lVERFJ THE I SIMILAR GROUPS I ?

The final par-agaraph is worth quoting in f'u Ll ; if only for tho crudeness.

of political anal.ys i s, "Evaluaticm. Self evaluation is always hazardous.'

It has boen aydifficul t year for USIS/~vellington .wi ththe Communist Front

Committee on Le t nam strewing our path with pr-opaganda booby traps. However9

despite tho all-out HZ Communist Party effort to keep New Zealand out of Viotnam~ tointimidato tho e l.cc t o r at o , to d1scrodi t tho Prime Minister9 and the governmont 9 tho final docisions gave no comfort, to the Committeo, am

Vietnam. The significance of SEATO and ANZUS outweighed a thousclndfold tho

best lStay-out-of-Vidnarnf campaign that tho Communists and anti-government

forces could muat cr-, USTS/Wellington believes that i is closo support of tho

Anti-Communist Committoe B .. nd various other similar' groups with every form

of matorial assistance available to us helpod to tip tho sc a.l cs in tho right diroction in tho greatest divisive issue that has disturbod New Zealand polHics' and philosophy in tho past thirty yoarsc Even though not fully

at t.adn od , discernible progress is being made."

So thore you are, you tens of thou sa nels who mar-ched against tho Vietnam war for years - you wore all just Communist dupcso

All one can say about this document is that if it emanat-ed from tho Sovio't Embassy, overy poli ticirXl and editor would havo donounced it as subvorsion and an Lrrt o Lor-ab Le interferenco in lIrZ's internal affairs.

Reaction to tho Reloaso:

Strictly a one day wond cr-, but still better than we expected. G,onsider-

ing their ago and tho fact that thore was only two of them ~ they actually

got bettor coverage than tho moro recent, voluminous and politically more

explosive Comalco documents. Then tho "Pross!! did a feature on CAl!'CINZ

which was flattering but not quito -eho point - this time they did. an oxce l Lerrt feature on the subject at hand.

Considering they ltlGrc roleased the SCJfDO night Muldoon oponed tho e1oo;;io1'1

campaign? they made quit 0 a splash. The next mornings "Press" billboard

read "How US Helped NZ Into fNam War". It was front; page stuff? backed up

by the excellent feature. It lrJas PAeel and rnad.o tho front page in Auckland' s

"New Zealand Hcr-al.d'", After a scoptical approach by TV (had KGB dis inform-

ation sproad to Christohurch?) it was national nCMS on both channels.

Radio ran it locally and nationally

Then it d Ls appe ar-od , Ho l.yo akc , aroused from his dotage in Taupo,

declined to o ommerrt , Journalists f union spokesmen said that although

journalists might have b o en indoctrinated in 19659 it couldn't happen now. Nobody made any approach to thcNZ Government or the US Emb as sy ,

This stuff is only' tho tip of the iceberg (or shoUld H be the paperberg?) If this is ,whe,t the USIS report s back to head offico9 imagine what must be

in tho ambassador's reports or those of the CIA station chiefs. Material

of this nature is sitting around availablo under the US Freedom of Information

Aot (which Reagan plans to omasculate). It's a fair bet that no official

material on ANZUS or tho Vietnam War will over become available from the

Wellington end. We must rely on this pennies from heaven approach to our

own vi tal historY9 history with consequenoes whioh still haven I t been fully wo rlcod through? past mistakes that have kept right on to become presont mist ake s ,

For our par-t , if We come abross material of this nature from C'om a'l c o , Fletchcrs~ Nat i.ona'l , Labour? tho US Embas sy , tho Soviet or South African

ones 9 we will make it public without hesitation (after having est~blishcd its

authenticity - somebody tried to sot us up two y o ar s ago). The Now Zealand

people are fu~ly onti tIed "to know ttlhat is being done in their name with their

money, whose strings arc being pulled by our "allies". Our position is

quite olear. Let tho old proverbial hit the fan.

Documonts available from CAPCINZg

Of. necessity we h avo paraphrased? seleotively quoted and e.nalysod tho

US dooumonts. If you want to r-o ad tho complote things~ thon send ¢3

to CAFCINZ, Box 2258, Obristchurch (to cover photooopying costs), and wo will sond you a oopy of each, plus tho page-by-pago analysis that wont to

, .

the media.

- - - - - - - - - - - - - - - - - -

2') @:AFCINZ AT CONSERVATIONISTS' CO:trVENTIONg

This convorrt Lorr, \1aS staged by IUCN (International Urri.om for tho Cons~rvation of Nature and the Environment) in Ghristchurah during Oc t obcr , CAFCINZ was invited to sot up a display standdesignod to highlight tho

(frxtent of our aot tv i t ios as wcdl as our aims. tho Cl\FCINZ committeo

accopt cd tho invitation and arranged 2, display and organised a. rostor of people to bo prosont at our display.

Considoring that the vonue for tho displays, including our own, was rather socluded from tho goneral public? we wore pleasod thai; many of the people who did find tho venue for tho displays showed intorest im our aims

and activities. A numbor spent time r-e ad i.ng our material on the! display

stands and some collect od onrolment forms to subscz-i.bc to "Watchdog" e

N eVDrtheloss~ we f'e o I th"i; many people who vi01,rcd tho displays arc still unable to make the connootion betr,well" tho caca l at Lng destruction of our natural resources (which they rightly lamont) and tho rapid solI-out of these resources to 100a1 and foroign cap Lt al.Le't s by am ob l Lg ing Giwornmcnt? loo:al bod i csr, businesses and individuals ltlithin Now Zealand.

OAFOINZ has warned for s orne time of the d2,nger of New Zealand f s alliance with the U. S.' Li, tary. It has pointed out how we will bE) drawn into military adventures of no concern to us.

Now it has happened. N.Z~ forces ate to join the U.S. sponsored l1multination8.lll force in the Sinai. N.Z. is militarily ~~plicated in the Middle East powder keg.

The United States for a long ~riod has been interferring in Middle East af f a.i r s to s e cu.r-e strategic and economic

advantage. T'he Middle East is extremely rich in, oil besides

being a s trs,tE)gically important posi tion. Now that U, S.

control over Iran has been ov e r thr-cwn , it is seeking n.ew ways to enforce its interests.

It has a permanent naval presence in the region besides

mili tary force send hardvvare in Saudi Arabia, Egypt 9 Israel etc. This new "peace-koepingn force gives it a stepped v-P

permanent military presence with which to dictate its policies~ Right at the rnoment there is sabre-rattling over an alleged

Libyan "hit-squad .. ,. Provocative military exercises are

going on.

Visitors to Europe speak of -uhedeep-fel t fear of world war in that region, One friend of the writer's was 'in Europe when Egypt's $aelat was rnu r-de r-ed . He said that people were visibly in terror on the streets - the holocaust could have been about to begin.

The Middle East is truly a powder keg. The U.S: is

certainly building its forces up for war. The last thing

New Zealcilld wan t s - or DeC is to get involved in such

adv en tures . 1'hos e pe o p Le wi th this country I s +ru e interests

at heart will st~ongly oppose the sending of troops to the Sinai.

CAFCINZ believes that such f'e e Li.rig s must be translated into ac t.Lon , and is movinet to ini tiate s orae form of pub Lfic

opposition in the Christchurch rEgion. The government of this

country must not be al10vvecl to involve our people in the possibility of Worlel War Three without protest.

NO N.Z. TROOPS TO THE MIDDLE EAST

WITHDRAW ]i'ROr.[ INVOLVEMENT WITH THEU. S . MILITARY.

9.

4 )CAFCINZ TOURS WESTLAND MINING SITES

The bus trip took place on Show Weekend which was a long

weekend in Canterbury. We left on the morning of Friday

November 13 in two mini busses driven by CAFCINZ comnut te e members.

Our route took us over the Le wi.s Pass through Reef ton an d on to Westport on the first day. Our first stop'- at a point of interest was at Le nkcya Creek about 5km from Reef ton. This was the site of a quartz mine which was worked from 1883-1940.

As we were to discover, the West Coast is dotted with the remains of old mining operations which as Lonkeys Creek. We continued on to Reef ton and westport through areas where New Zeala~d and foreign owne d Multinationals have. taken out prospecting licences over huge areas of state Forest and f arral.and , Some of these companies are Gold Mines of N.Z., Ott,er Exploration, C.R.A., .Amoco and B.P. As we passed through Reef ton we were given some of the history of the miners' union. Reef ton miners joined with Grey Valley and'Buller miners to form the N.Z. Federation of Miners, a forerunner of the "Red" Federation of Labour.

Day two of the trip saw us heading for Denniston. The town of Denniston is now a ghost tovvn GIld only one small. underground operates there today. However the remains of the famous Denniston Incline down which came 13 million tons of coal. C2Jl still be seen clearly from the road. Some of the coal from the operational mine has been shipped along with stockton coal to Japan. We had hoped to be able to visit the Stockton open cast mine but as the- miners seemed determined to keep us out and. as we were not looking for a confrontation we on1Jy went as far as Sto ckton township. V'/e did however pay a visit to the Coal tovvn Museum in Westport which has excellent displays although its slideshow is heavily in favour of ooal exports.

Rather surprisingly for CAFCINZ we were most welcomed 011 the coast by the tradi tionally Tory farming comnun i ty. Bru.ce Hamilton who is cha.l r-man of Buller Federated Farmers an d his wife Joan made us very weloome and Bruoe talked about the incursions made by mining oompanies into farmland. He felt that C. R. A. had been chosen by the cornpan ics as the one the farmers should negotiate with. So far their negotiations have met with little suocess.

Our next stop was also with farmers: Murray Lee & Jenny Norton and Peter and Paula Reedy who farm at Charlestown. Here we were shown the remains of old gold claims - holes up to 20 feet deep

with tunnels lending off underground. These are very

dangerous for lives took which break legs and kill themselves by falling in. We were also shown a small private open cast coal mine. The seam extends deep into Murray & Jenny's

f ar-m l.and and is subje c t to a prospecting lioence by FletcherChallenge. On the way to Greymouth we stopped off briefJly

to talk to the Chairman of the anti-mining Coast Guard organisation at Barrytown. The whole of the fertile Barrytown flats are threatened with dredging.

After staying the night in Greymouth day 3 found us on the propo?ed Grey Valley dredging site on the Grey River. It is proposed to shift the KDniere Dredge from the Taramakau to the

Grey River in about two years. We were spoken to by some of the farmers whose land will be affected by the dredging. The Grey is a river which floods unpredictably and farmers fear that with the dredge partially blocking the river, flood damage to their land could be extensive. They fear that the dredge owne rs will simply claim that it was 8.<'1 act

of God for which they were in no way responsible and therefore refuse to pay any compensation. One farmer had already lost a large fertile paddock. The foundations of the dredge are there now. He told us that the COmp811Y jus t told him he had to sell or they would take it anyway.

Our last stop was in a way the most significant. Denied a chance to 8ee Stockton the sight of the Kaniere Dredge in the Taramakau and the immense damagei t has caused to the environment was all the more impressing. Here we met Passmore Ste,wart a farmer who has been waging a lone war against the·

Dredge for 12years. He has spent $15,000 fighting to save

his land through the courts end has yet to have a judgement in his favour. Once he owne d va fertile 30 acre paddock by the river, h i ; wife showed us photos of it. He also owned the mineral ria;hts to it. The Governor General had to sign a document to take those rights away and he did. The Dredge went straight through hisl'and and now the Taramakau flows where his paddock was. Alone in his struggle for meny years, Paasmo.re Stewart is now a member of CAFCINZ and will continue to fight the Dredging Oompany for compensation.

That Was our last stop before heading home to Ohristchurch .

.AI though we d.i dn I t get as many people as we had hoped for, most of us found ita trip well worth wh i Le , It was a chance to see what the multinationals were up to and a chance to make contacts 2~d extend support to people who are· directly threatened by them. Let's hope we C~~ do something like this again in the not too distant future.

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i n,

5 ) Exch!J,.,.'1ge of Insu1 t s wi th Mine rs I Uni on

_ When preparations for the Westland bus trip were underway, a BuJ.ler CAFCINZ member suggested i.t would be wbrth our while

to write to the stockton Miners' Union and the Mines Department. The idea was to tell them of aur intention to visit the

stockton open cast mine (from which the bulk of, 2nd the best, coal exports e,re ccrm.ng ) ,,::nd to explain our motives in advance so thpJ~t no confrontation would o o curv when we arrived.

We putlish below our exchange of letters. A similar letter to our first one was e.en t to·the Mines Denartment in Westport, who did not even give us the courtesy ;f a reply. Our West Co,:wt branch in Greymouth also sent a letter in reply to the miners pointing out that there were plenty of dinkum

West Coasters opposed to coal exports, and making similar points to the second CAPCINZ letter published below.

In the event, we decided not to attempt to see the

stockton mine: our argument is not with the miners ond a

confrontation would simply have given the media an excuse to misrepresent our case.

LETTER 1

Mr D. Jennens t Secretary, Mine rs I Uni on, Stockton.

30 September, 1981

Dear Mr Jennens?

Our. organisation is .p Lann.i.ng a coach tour of nn.n i ng si tes and

proposed mining sites in Westland in November. I am writing to

you to inform yot. C'illd your members of our proposed visi t to Stockton Open Cast.

You may be aware t;ha1; the Campaign Against Foreign Control irr New Zealand is interested in this particular mine because of our opposition to lar;G 3C e exports of unprocessed raw materials from New ZealaJid, Our opposi tion'to coal exports is first and foremost Fen e corionn c one: ·we see the bs s t use of this resource in using it withLn New Zealal1cl~ either for further processing (to sueh pr-o du c ts as carbon anodes 7 rne t a'l I'ur-g i.ca.l. coke or activated c ar bor \ or to repla')o oil as a fuel for indus trial boilers.

Such uses wou Lr' p t-ov i.d e furtf:J:r employment (in addition to miners) within New Zea~f1n~ ~nd do mor; to relieve the foreign· exchange

shortage than F xpo.r-t s of unpr o ce s s e d coal. They would also

provide long t;cr.m security fo; the mining operation - a security that is Lacka.nr from the bo om- and-bust nature of an export scheme that is relicilli on the h:Lghly competi ti ve international coal

market. The present situati~n, we feel, is a politically

e xped Len t r-e su Lt of years of!overnment neglect of coal as a resource? 811.d can only lead. to past problems be Lng repeated.

As you and. y01 n mcmbe rs will <}(. well aware, the coal indus try (c?nd the West; Coast) have bee:. sacrificed to the mul tinational-, controlled oi L I ndus t ry . If coal were recognised as a valuable - and strategtc - na tu r-a.I resource and used accordingly, regular

threats to j 0 os coal minil1~ simply would not occur.

12".

Our argument is therefore neither with the mining operation itself, nor is our argument with your members. Our visit is certainly not an q,ttempt to seek confrontation with your members. Hather, the pur pcae of our visi t is to familiarise ourselves and our supporters wi th the mining operation at Stockton and if possible meet the people who do the mining.

CAFCINZ would welcome hearing the views of your union 2J1d its mombe r-s , We would also like the opportuni ty of talking to you. I am sur-e we have more in common than exchanges of press statements would suggest.

Our visit is planned to take place on the morning of Saturday, Nove.mber 14. I have also written to Mr Lunden of the Mines Division, asking for the Department's cooperation.

We would appreciate hearing from you your union's attitude towards our visit.

Yours sincerely, Bill Rosenberg, Ohairmrm.

REPLY TO LETTER 1

Mr Bill Ro s enberg, 10 October, 1981.

Chairman,

Cam.paign .Against Foreign Oontrol in New Zealand.

Your letter was received and disoussed at our reoent Union meeting and the members have directed me to convey their Views to you.

Along with the majority of people living on the West Coast, we have been concerned, with what has appeared at times

b'La aan t interference from people cu t s l de this area, in what should be done with the resources of this region.

. For the last 10 to 15 years a c ampa l gn against the saw

milling industry has been carried out, from one end of the ooas t

to the other, and by the number of sawmills closed, this has been

a successful one. Members in our indUstry do not intend to find themselves in a similar s i tuation. 'I'he coal industry, for those employed in it, due to the laok of demand and sales, a working life of insecurity and no positive hope for the future. The export

of coal has changed this. While no New Zealander wishes to see coal sold overseas, and then have to buy it back in processed fornt for ten times the original value, the alternatives you offer have no chance of becoming a reality for [3, considerable time.

Self appointed experts havE:.: been telling the Mines Department for many years what should be done :with coal. Those working in the industry have been awar-e that the DEpartment has been endeavouring. to find new ma.rke+s , an d that the Ooal Research Association has been experimenting Hith coal. Ooal in its natural form is unattractive an d bulky to h md.I,e (3)1d in short nobody in this country is interested oOlnmerci~·J.ly. Po r' do merrtd c use, the

13"

Clean Air Society has decided its future.

Metallurlical Coke: Prod.uction of this is being investigated by the Christchurch Gas Company w1.th a plant on the Coast.

This 1.S a project many years away. -

Activated Garbon: Coal has been sent to Japan over a period of years, and the Mines Deprirtment have co-operated in all ways to

assist with the establishment of a p l.an t here. Japanese

technology would 'be involved, making ita joint venture on New Zealand soil which your people would then oppose.

Garb on Anodes~ This is the most adv an ce d , but at least four

years away. Once again we have a product f.nvo Lve d ih a joint

venture 011 New Zealand soil, opposed by your people, as has been shown by your opposition to the Aromoana Smelter.

The arnoun t of coal exported from Stockton over the next

five years would be no more than 1,500,000 tnnnes from a resource here in excess of 25,000,000 tonnes. The social implications to this District if the export of coal ceases wi +hou t an alternative, will mean the majority of miners? railway workers and people

engaged in the servi ce indus, tries would be unemployed.. Schools,

Medical Services' etc would be run down.

At no time have we noticed LUlY word of conoern for the people mentioned above by your organisation, but we have noted your picketing an d demonstrations against shipments last year, and your published support for the seamen, not on the grounds of their lack of envolvement, but as another opportunity of

promoting your views no doubt hoping that the seamens stand would further jeopodise the export of coal.

There is very little support for your campaign in the Buller, apart from the anti-anything brigade, the main support is among the alternative lifestyles or others on the fringe. An abundance of jobs if coal was processed here would no doubt create greater problems for them in the way of constant employment instead of varioUS benefits.

In 'oonclusion our lVIembers are totally opposed to your proposed visi t to our ar'e a , and ar-e not prepared to meet your

members. Manageme n t has been informed of our opposi tion along

with a request that ~rmi8sion to visit stockton be refused.

(Published as received.) LETTER NO.2

Mr D. Jennens, Seoretary,

Miners I Union 9 Stockton.

D. Jennens, Seoretary,

Ngakawau Miners Union

25 October, 1981

Dear Mr Jennens,

Thankyou for your reply to our letter.

Our organisation is made up of people from a wide r-ange of backgrounds. But I can, say fron:. my own experience that our commi ttee members are, unan i n.ous Ly , strong supporters of the

Trade Union movement. And a nong our members are people from

many different Unions, including several holding official positions in their Unions.

We therefore fully un de r-e t and that your union must look after the short-term interests of its members: to protect their jobs.

But what '-Ive find aston:i.shing is the shortsigntedness of your vision.

As well as active trade unionists, our membership includes people who through no fault of thefr own var-o either unemployed or on temporary work. The policies you are advocating -

the I Think Bigi (Think .Multinational) policies of the Aramoana Smelter an.d large scale raw material exports - will ensure that those people an d tens of thousands of others will remain unemployed for years to come.

Over ,,32,500 million is to be spent on the AramOa.Xla smaJlter .. About ;51,500 million of this will be provided by your members and .01.11' members and other taxpayers and ele ctrici ty consumers. It will be used to build power 'stations to provide below-cost electriCity to the smelter. Out of this huge expenditure wilL come less than 1,000 jobs directly,perhaps another 5,000 jobs indirectly.

If sums like that - and the ,31,500 million could be used by the government as it wished - were spent instead on twenty or more schemes like the suggested carbon ano de plant, the me t.a.l Lu.rg i.ca'L coke p.l an t or the activated carbon plant, then many times as many jobs would be provided. They would be provided in places throughout New Zealand - in these cases, the West Coast- and they would provide long term employment.

The carbon anode plant could be set up regardless of the

e xt s t.enne of a s ecorid aluminium smelter - for use by the Comalco smelter. A requirement that Comalco use locally produced al1ades

.would be the least New Zealanders should get in return for giving away cheap power to it. Exports are also a possibility.

Activated carbon is already being made from Stockton coal, and

it appears that the Mines Division or gov e rnmen t is being taken for a ride. The coal has been exported for this purpose for at least five years - at first for so called 'trial' shipments, with vague promises' of factories in New Zealand. Why do e sn ' t the

New Zealand government call Mitsubishi's bluff arid itself set

up a plant in New Zealand. There is no reason why lVIi tsubishi would give up this profitable set-up otherwise.

New markets for co al would also be opened if no new oil-fired indus trial boilers were permi tted in New Ze a.l end . A long-term market in New Zealand would be guara:..'1tet?d if boilers were converted to coal-firing (as Addington Railway Workshnp did recently in Christchurch). The saving in fuel oil imports woulld be considerable. Multinational oil companies would be the losers.

We do not pretend to be experts on the co a'I industry. We do know that the Coal Research ASSOCiation, thE3 .Mines Division and the DSIR together have quite sufficient expertise to set up virtually any COal-based industry that New Zealanders need. New Zealanders do not have to re]y on lVIitsubishis, Alusuisses

or Comalcos to develop New Zealrilld. If we want jobs and a decent standard of living for 811, we cannot, rely on them. The laCk

is not expertise, but the pOlitical guts to confront big business and make the right decisions. Wi.th its fighting history, we would have expected the Miners' Un'ion to have been trying to force governments into such decisions, rather than meekly going along with them, as your letter suggests.

Six years ago, when Mt Davy coal exports were the Great Hope of the West Coast, the cry in favour of exporting was 'no

uS(~ in New Zealand for the co a.I r. Any use, we were told, was

four or five years in the future. Four or five years are

up, and the S8JIl.e story is being put across. A s t and must be made somewhere, or New Zealand in 20 Or 30 years time will

be a land of unemployed with a handful of businessmen in Japan, Australia, Great Bri tain, the USA and New Zealand made immensely richer at our expense.

We ask your union to reconsider its decision to oppose our visit to the Stbckton mines.

Yours sincerely,

Bill Rosenberg.

6) C'.A:B'GINZ' .AT PEAGE C ON~ERENCEg

Ovor 90 delogates from allover NCH Zealand ropresenting over 40 different poace groups attondod a throo-day LabourWookond conforence at Living Springs near Christohuroho 11 vddo range of workshops ranging from AN.ZUS and neutrali ty +hr-cugh to racism and sexism wore organised.

GAFCINZ was to have lod a workshop on the .US Black Birch oTh:sorvatory which provod unneccssary since tho tochnical background was

fullyprosontod. by anoth~r aponkor , Howcvcr , we took the opportunity

to float tho idea of action against thc ohservatory in tho form of activitios in Blenhoim in tho Nov; Yoaro

A workshop also (described olsowhero who would be ablo to was shown liy

around" 0

providod an opportunity to prosent tho US documents in this IlWatchdog") to a sympathetic; aud.Loric e ,

usc their contents to good effeot.Intorest

participants in getting copios to IIsprcad

16.

7) RECEIVED IN THE IllAILg

a) Corso Ca10ndnrg

Corso ."11'0 publishing a ca Lond ar- for 1982. It contains

"Phot ogr-apha and quotes on underclovolopment and peoples! struggles;H. Excellently produced, it is all idoal Now Year present for someono - available from your local Corso offico or from

National Offico COr80$ PoG.Box 9716, WELLINGTON.

¢'5eOO pius 50c post ago 0 Special trado and bulk rates.

b) Uni'todNations Publications om 'I'r-anen at Lona.Lee

UN Contre on Transnational Corporations~ Un i t od Nations, New Yor-k , h avc sont us copios of two of their pub Li.c at.Lona , Noither (;J;!('o'in anysonso radioal documents, but arc packed full of useful facts, figures and us'of'u l Lnf'orrn at Lon , Thoir main' failing in this regard is that their figur~s aro out of elatc, dospi t o their 1981 publia:ation datol their most rocont figurosaro 1978 or 19791 and many arc oven o.l dcr-,

"Transnational Corp-orations in tho Bawd to/Aluminium Industry" covors tho industry from bauxite through alumina to aluminium? with due regard to

facto~s snch as transport on the way~ It also surveys tho industry country

by country and. in torms of corporations and developing c ount.r-Loa! p-oliciosa

A list of c ompan i.cs and smelters is t ab'Lod , 88 pages.$US 9.000

II Tr?J1snat ional B anks s Operat ions 9 Stratogies and their offects in' Devoloping C"ountrios" ou+Li.noe the struoture of Lrrt or-n a't Lon a'l banks, tho

wa:y they work and somo of tho implioations for developing countries. It

100Ics at s omc of tho banks' strategies and rower. Tablos on tho si~o and

lending of 84 banks is given, along with many other statistical tablos~

some c oun+ry by country. 140 pagos. ~US 9.00.

c) Rosorvo BanlS,: Bookl ot on Foreign Lnvos tmorrt s

"Foreign Invostmcmt in New Zealand" is a. supplement to tho

R(lsorvo Bailk of Now Zo a l and Bu'l.l.o+i.m, Novombor , 1981. This supplement

last appear-ed in 1979. As long as you ignore the mindless acccpt anc e of tho goodness and greatness of foreign invostment expressed by the Roserve

Bank itself, this free 47 page booklet is extremely worthwhile. If you

can road statistical tables.

Tho tables give figures on approved foreign invostments ovor tho yoars~ comparisons of rates of roturn1 shareholders' funds, etc. with New Z'oaland-ownod companies? countries of origin of investment? as well as: summarised s t at i e t i c s on Now Zealand-owned cempan i cs ,

17.

You can Lcarn , for cxamp Lo , that of 2111 applications for Over-seas Takoovors of New Zealand companies betweon 1965 and 19809 1941 wore

approved. The number rejocted in ovary yoar was virtually nogligiblo9

the highest rejection: rates baing in 1912 (National Government) 1916

(N at i onal, Govornmc; t), 1913 (Labour) ~ -1216 of tho 1941 approvod takoovors lod to between 15 per cont and 100 per cont for::;ign ownorship of tho company.

You Can also loarnthat though oversoas companios in 1917/78 made up only 1.8 per cont of all' compan.i ca , and only 22.1 per cont of all shareholders' funds 9 they mada a mamoth 59.4 per cont of not profits - but paid

only 35~ 3 per cont of tho company t axes. They employod 11.8 per can t of

the workforce employed by all t.ho c ompan ics eurveyod ,

41 pages. Froe frorm Economic Department? Ro sovvo Bank of Now Zo a.l and ,

Po O. Box 24989, Wellington.

d) Raw Materials Roportg

VoL.l No.l9'! 1i: Quarterly Magazino. This is a beautifully produced:

maga.zine printed in SwaG.on. CAFCINZ is listed as one of the groups

oxchang ing information with it. It has an international list of correspondents- from Angola, Burundi 9 England9 Mozambiq.uc9 Now ZlJaland, Solomon Islandff'9 Swo6.on and USA.

This issuo containsg

Wf;ili tary - data on tho usc of raw matorials for the MX-missilo system.

Rosources and tho World EcoIiomy~ uses tho Jape..ncse Sogo Shoshas as a caao study of monopoly capitalism since \-lW IX.

C;ompany Report - on Mitsui and Co.

Area Report - on tho "minerals boom" in Australia. Commodi ty Report - on irom or-e,

Spocial Repor-t - orr iron are mining Lm Swoden" Ex.ccrpts from a novol on the origins of iron

oro mining in Swed~n"

Rat cas (snnd equivalent in ~US)

(Individuals) Surface Airmail

Regular

130 Swedish crowns

150 II 11

I~troduction (1981

85 S onb:)

• crowns

95" "

Introductory single cop~ frooa

Send to~ Raw MatoriE'"ls Group, Po O.Box 5195~

S. - 10244 Stockholm9 SWEDEN.

0) Nul tinational Stratogies to I'I1aintaim Power:

]h the fronotic yct organised world of tho Multinationals meetings

are frequent and technically oriented. Howovcr , 11 r-oc cn t orio hold at the

Hya.tt Regency Hotel in Washington D.C. (May 6-7) has very .particular imp:iicr;ations for developing countries.

This "First Intornational Political Risk Sominar"? sponsorod by tho Wharton School of Business of tho University of Pennsylvania,. vIas organised

to help MNGs Learn ways to manage pnli tical risks and increaso their oontrol of business and prlfifits. Of apoc i al, concern to tho Ml'FCs ar-c thoso Third World governmonts which ar-c prone to interfere with their bUsiness Lm all' manner of ways9 from crude oxor-cd ao of soveroignty -to exchange rate regulation or laws on pollution controls.

Wharton Scrhool advisors focused on the person and role of tho prosidonO"j' of TW countries as .'1011 as their govornmen t s , posing questions liko: Is tho President a patriot'? Ilo oe he understand oc on.om i.c ef- Docs tho country havo

aninstt tutionalisodsystc:m in wh i.ch technocrej;ts como to tho top? Whore are

the tca:hnocrats tre-ined? They suggested that tho companies make thomsolv($ indispensable to the governments 9 for such a situation giv~s them bargaining Lover-ago im tho ovont of adverso government aotions to their von-tur-es , SpocificallY9 they noted that local vontures should be made depondonton inflows from tho paront companies 9 that tho lattor should control the local groupslaca:css to foreign markets and that tho MNCs should produce only a:

part of tho finished product in anyone coun t r-y , FinallY9 control'ovor

technology and marketing should remain in tho hands of thoMNCs.

It was acknowledged at the seminar that mo.st,Third World governments tmnt to achieve independence. Tho MUGs rosponse to this should be to promote it but at tho sarne time o th or- stratc:gios should be ol11ployad to Sostor the oppos L to.

The Workshop loaders also noted 'bho importance of roliable information from nationals of a ccunt ry who can, suppil.y corporato ho adquar-t or-s with information that will contri1mte - to tho formation .of appropriate strategies for

maintaining MNCs I pmwer. In this way nationals bco omo unwi-tting intelligence

agonts for oppos Lt.Lom to thoir own. independence. Rqwovor9 ovon hero o ar-e must he oxor-c i.aod , for it was rcgrood thnt locals arc not willing to supply informl'ltion reg si +uat Lons that might rosul t in closing down or faotorios'

staffs· being r-educ cd , Thorofore1 one partioipant who recontly had done

political risk evaluations of the Philippines for tho World Bank suggested that corporations got some "schizophronic par-ancd ao s who road only -tho _ purple prose to make radical foX'oc:asts".

At this seminar govornments of Third. World nations were spoken of only

as enti tics to be mand.pu lat od , The pcop'l,o of thoso oountrios wore soon

merely as obsrt ac Lea to tho bottom-line goals of thorliNCs? andthoir desire for national indepcmdonco and global intordependence as tho main source of political risk against which tho MNCs woro advised to guard themselves.

(No to e tho chief sour-co for this arliclcwas thG Bombay, India' publi®-

ation, "Economic end Poli-~ical Hcokly" p August 1 1981. Reprinted by kind

permission of Contre for tho Pr:)gross of Puoples9 Hong Kong.)

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