The only Australian suggestion we have had until now for the type of agreement the Prime Ministers might reach in March has been the notion, from the Australian Treasury, of an agreed set of principles (our 3194 para 4).
- Flood of STR, stressing he was indulging in personal speculation, has now suggested that it should not be too difficult to agree on some practical 'intermediate' steps. These might be undertakings to harmonise various policies or activities. Some might be relatively easy-perhaps the common application of by-laws against third countries, or an agreed practice on Government purchasing (our 050 related to Wran's visit). A decision to work to harmonise export incentives could be considered. These were examples, not specific proposals, and the idea will no doubt be spelt out a bit more by Anderson next week.
- It occurs to us some thought might be given by the NZ side to the best institutional or machinery arrangements to sustain this exercise, also in time for decisions at the Prime Minister's meeting.
- Overall Flood was most optimistic about the prospects for the Prime Ministers' meeting-'We are in a cooperative not confrontational situation and there is every reason to believe it will be most successful.'
[ABHS 950/Boxes1221-1226, 40/4/1 Part 24 Archives New Zealand/Te Whare Tohu Tuhituhinga 0 Aotearoa, Head Office, Wellington]