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advance
news
in the wake of today's WORLD EVENTS
e
NATO- Caught in a Shift
to the Left
Within the last few months NATO has virtually lost
two strategic island bases.
Malta, the island fortress of the Mediterranean, was the
.6rst casualty. In June of this year, Dominic Mintoff, a
Socialist, became Prime Minister of the strategic island.
Mintoff, who ran on a pledge to make Malta a neutral
country, immediately demanded and got the resignation of the
British Governor-General, Sir Maurice Dorman. Next he sent
NATO's Mediterranean Commander packing back to Italy,
and barred visits from ships of America's 6th Fleet.
The new Prime Minister also threatened to end the ten–
year agreement with Britain, unless he got more money for
British use of the base.
Malta has historically been the guardian of Europe's soft
underbelly. Malta helped stave off 16th-Century Islamic in–
vadees from Europe and served as a stepping-stone for the
Allied forces to liberate Sicily and Italy during World War 11.
Called Britain's "stationary aircraft cacrier," the island, with
its bases and brave populace, withstood merciless attacks
from Hitler's
Lttftwaffe.
The Soviet Union, always quick to grasp a política!
advantage, has promised aid for Malta's ailing economy in
return for a harbor facility for its formidable Mediterranean
Fleet.
Me.
Mintoff has so far been reluctant to deal with the
Russians.
The second casualty for NATO occurred when a left–
wing coalition gained power in Iceland. The new government,
headed by Premier Olafur Johannesson, notified the United
States that it wants NATO's 3,700 man, American-ron base
phased out over the next four years.
NATO's base in Iceland is important in the surveillance
and defense of the North Atlantic Shipping lanes. NATO's
Iceland facility keeps watch over Soviet submarines, surface
and other activities in the North Atlantic.
The loss of these two bases could prove to be strategi–
cally and psychologically crippling to the Western Alliance.
•
Shift in Australasian Trade
"Time to go our separate ways" headlined a leading
Australian newspaper on July
l.
The artide beneath the
headline stressed that "we are now at a dedsive moment in
the history of both Britain and Australia."
The "decisive moment," of course, refers to pending
British membership in the European Common Market.
If
Britain goes in it will mean the virtual end of the Common–
wealth as a viable economic structure.
Bonds tying the 32-member Commonwealth are not
what they used to be, anyway. Trade among Commonwealth
countries has been falling fast in recent years. Britain herself
has nearly halved her exports to the Commonwealth in the
last decade. Her imports from Commonwealth nations have
dedined by a third over the same period.
Today, Australia worries far less about loss of British
trade than she did ten years ago, when Britain fust began
negotiating with the EEC. In 1961, Britain took 25% of
Australia's exports. Now the figure is less than
12%.
For New Zealand, however, still heavily tied to the
British market, any cutting of trade preferences will be more
drastic. Dairy exports to Britain, if she gets in the EEC,
will scale down to 71% of their current leve! by 1978.
During this time New Zealand will be forced to look for
other trade outlets and to diversify her economy.
Japan may well provide such a trade outlet for both
Australia and New Zealand. Government officials in Tokyo
have already announced their nation will attempt to provide
a new market for agricultura! goods from Australia and New
Zealand when, and if, Britain enters. Up till now trade
between the three nations has been largely in mineral resources
and finished manufactured goods.
Japan's food tastes are changing dramatically - becom–
ing more Western- and her food imports are trebling every
five years. All it may take is a determined decision in Australia
and New Zealand to fully exploit the emerging market.
Many New Zealand experts are anxious to expand trade
with Japan as quickly and energetically as possible. The
newspaper
Auck/and Star
urged recently: "Wbatever happens
to our trade with the United Kingdom, surely that with Japan
should be developed with all the energy of which we are
capable."
For both Australia and New Zealand, the wave of the
future is Asia - an Asia increasingly dominated by the
omnipresence of Japan.
•
Jopan: Key to Canada
1
s Prosperity
Canada is looking across the North Padfic to Japan as a
key for continuing her economic prosperity. For some time
now Canada has been providing raw materials to resource–
hungry Japan. Trade with Japan has brought new prosperity