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THE NEW ZEALAND GAZETTE

No. 39

of the two countries by political rather than by military measures.
In respect of Laos he urged that, as a means of preventing the rivalry
of the great powers in the area, Laos should assume a genuinely
unaligned international position.

In accordance with the desire of the Samoan people expressed in
the recent plebiscite, you will be asked to consider legislation to abrogate
New Zealand's legislative and administrative authority in Western
Samoa at the end of this year. My Ministers will work to establish
a new and equal partnership between the two countries and, if the
Government of independent Western Samoa so desires, will assist the
new State in the early years of its independence.

I wish to extend to the Samoan people all good wishes for the future.
I look forward to my visit later this year to the Trust Territory and
to other Island Territories, including some at which I was unable to
call on my previous visit.

Governments participating in the South Pacific Commission will be
invited to attend a meeting in Wellington in 1962 to consider ways
of making the Commission more responsive to the changing needs and
aspirations of the peoples of the South Pacific. In the Cook Islands,
Niue, and the Tokelau Islands my Ministers will energetically encourage
the greater participation by the people in their own affairs. You will
be asked to consider a Bill to amend the Cook Islands Act. The problems
of the Chatham Islands are being examined with a view to
improving, as a first step, the system of administration.

In its endeavours to promote the welfare and progress of the Maori
people my Government attaches particular importance to better
housing and education. It has taken steps to increase the number of
houses available to the Maori people and will establish a Maori
Education Foundation, to be financed by an initial Government grant
of £125,000 in inscribed stock and by private contributions. The object
is to increase substantially the number of scholarships for post-primary
and university education and to provide more vocational training. My
Ministers are convinced also that the administration of Maori affairs
will be improved if the Maori people can speak with a unified voice.
You will accordingly be asked to consider legislation to establish a
Dominion Council of Maori Tribal Committees, as well as the Bill
dealing with the Education Foundation.

A full review has been made of the New Zealand Defence Forces.
The conclusions reached, and proposals for the development and
re-equipment of the Services, will be presented to you. It is my
Government's aim to ensure that, within the limits of financial
resources, the three Services are able to meet any anticipated threat
to New Zealand and to fulfil the country's obligations to its allies and
to the United Nations.

The arrival of HMNZS Otago and the commissioning of HMNZS
Taranaki will greatly strengthen the Royal New Zealand Navy. The
new Battalion for service in Malaya is now in training. The recent
purchase of three DC-6 aircraft has more than doubled the airlift
capacity of the Royal New Zealand Air Force.

My Government is deeply concerned over the serious implications
of the current proposals for the association of the United Kingdom
with the European Economic Community. This question was discussed
by my Prime Minister while he was in London. Both then and
subsequently the nature of the New Zealand interests involved has been
brought clearly and unmistakably to the notice of the United Kingdom
Government. Firm assurances have been received that there will be
prior consultations with New Zealand and other Commonwealth
countries before any definitive decisions are made.

Since assuming office my Ministers have also given continuous
attention to the acute economic problems posed by a resurgence of
domestic inflation and balance-of-payments difficulties. The deficit in
New Zealand's external exchange transactions for the year ended
March 1961 totalled £47·5 million, the largest ever recorded in a single
financial year. Due to the continuing high level of expenditure on