to carry on the reforming tradition: capital pun-
ishment was abolished; an ombudsman was
appointed who could adjudicate where aggrieved
citizens had complaints against government de-
partments; compensation for accidents and equal
pay for men and women were introduced.
Another Labour administration in 1972 had to
cope with the worry about New Zealand’s future
exports now that Britain was joining the European
Economic Community, though transitional ar-
rangements cushioned the blow. Meat and butter
were still the major exports. Diversification of
markets and the development of non-primary
products became ever more urgent. By the mid-
1970s markets had diversified and the Japanese
imported from New Zealand almost as much in
value as Britain. While only a minority of the work-
force was needed for farming, and industry had
greatly expanded in petroleum products, paper,
wood, plastics, chemicals, iron and steel and
machinery, New Zealand was still dependent on
exports of meat and dairy products to pay for its
imports. Therefore, it relied on its earnings from
farming and on the low cost of imports. But the
former dropped and the latter rose, plunging New
Zealand into severe economic difficulties in the
1970s, especially after the rise in the cost of oil.
The golden years of affluence were over.
The electorate was fairly evenly divided between
National and Labour during the unsettled 1970s.
In 1975 Robert Muldoon became prime minister
when the National Party won the general election
and he and his party just managed to gain more
seats in parliament for him to retain the premier-
ship after elections in 1978 and 1981. Elections
were decided by the state of the economy and by
promises to lead New Zealand back to prosperity.
Muldoon was a robust political leader, inclined to
berate the opposition. But in the one area of gov-
ernment dear to all New Zealanders, social welfare,
he legislated the most generous retirement provi-
sions in his country’s history. The economic con-
dition of New Zealand was grim in the 1980s, with
unemployment and inflation rising.
New Zealand is divided from Australia by 1,300
miles of sea, but by the 1990s relations between
the two former British dependencies had become
increasingly close. No other Western developed
country may be reached after a few hours’ air
travel. In their white pioneering phase, both
countries had faced similar problems. Yet their
development has been distinctive in the twentieth
century, and the New Zealander takes pride in the
differences.
Economically New Zealand’s mineral and
petroleum resources were of limited significance.
Unlike Australia, it was overwhelmingly depend-
ent on agriculture for exports. But in one respect
the two countries confronted a common concern
in the twentieth century. They were countries
with small populations in relation to the millions
of Asians to the north. To safeguard their secu-
rity both countries felt the need for a powerful
ally. As part of the empire and Commonwealth it
was Britain on whom they could rely. As long as
Britain still ruled the waves, they would be safe.
Reciprocal feeling of kinship and support played
a part, and New Zealanders (no less than
Australians) fought with Britain in both world
wars in Europe and in the Middle East.
After the fall of Singapore in 1942, New
Zealand did not bring the bulk of its troops home
from Europe and the Middle East. The threat of
Japan now loomed large, but Britain could spare
no forces. It was a portent for the future when a
US marine division of 20,000 men was stationed in
New Zealand. The US was seen to be protecting
the Dominion.
In 1944, New Zealand and Australia formed
their own regional mutual security alliance, the
Canberra Pact, since they could no longer rely on
the defence link provided by Britain before the
war. When the war was over, the US became New
Zealand’s principal ally, as it was Australia’s. But
the Americans had been willing to extend their
commitment to the South Pacific only after the
Cold War had broken out in Asia. The US
resolved to rebuild Japan and concluded the tri-
partite ANZUS defence treaty in September 1951
to allay Australian and New Zealand fears of a
Japanese resurgence and of Asian communism.
Excluded from ANZUS, Britain – with New
Zealand – joined SEATO. New Zealand sent
forces to defend Malaysia in the confrontation
with Indonesia, and a token force in the 1960s to
Vietnam. New Zealand was showing loyalty to