Bush hints at trade deal

By AUDREY YOUNG

United States President George W. Bush implied yesterday that a free-trade agreement with New Zealand was a matter not of "if" but "when".

Asked why negotiations had begun with Australia and not New Zealand, he told a reporter: "The people of New Zealand shouldn't read anything into it other than we haven't gotten started and I respect the people of New Zealand and I respect that great country."

He also said, though equivocally, that New Zealand's nuclear policy was not linked to the issue.

Reporter: "Why does Australia have negotiations on an FTA and New Zealand doesn't? Is it to do with their nuclear policy?"

Mr Bush: "No, not really. I mean I just think we haven't gotten started with New Zealand. The nuclear policy obviously makes it difficult for us to have a military alliance but we are friends with the New Zealands [sic].

"We respect the New Zealand people but Australia is farther along the road when it comes to trade discussions."

He said he and Australian Prime Minister John Howard had discussed trade when Mr Howard had visited his ranch in Crawford, Texas, in May and "we hope to get it done by the end of this year".

Mr Bush was being questioned before the Apec summit in Bangkok by Washington-based reporter Malcolm Brown, who asked the question for One News at the end of an interview for another broadcaster.

The President's comments are similarly effusive to those of US Secretary of State Colin Powell, who in March last year described New Zealand as "very, very, very close friends" when Prime Minister Helen Clark visited Washington.

But the tone is in marked contrast to a blunt speech on the US-New Zealand relationship by US Ambassador Charles Swindells.

Calling for a review of the policy banning nuclear-propelled and armed ships from New Zealand, he said it impeded the relationship and the US would not just "get over it".

Mr Swindells also said the US Government "is not prepared to schedule bilateral trade negotiations at this time" and cautioned against optimism.

'I think it is important to note that it is not helpful to unduly raise expectations about an FTA."

Helen Clark, who is scheduled to meet Mr Bush on Monday at Apec, described the President's comments as "generous-spirited".

Trade Negotiations Minister Jim Sutton said the comments were "not inconsistent" with information the Government had "but it was nice for the President to say so".