Addressing the media during a joint press conference with Prime Minister Lawrence Gonzi at Castille, Ms Clark said that New Zealand was proud of the relations it had with Malta, adding that Malta is now part of the strong relationship her country has with other European Union Member States.

She said the contact between New Zealanders dates back to World War I and some have also been buried in Malta. New Zealand is also proud of being a member of the Commonwealth with Malta.

Prime Minister Lawrence Gonzi said both parties discussed various issues, including the finalisation of talks between the two countries on the social security arrangement.

This will make it possible for New Zealanders and Maltese to retire in New Zealand and Malta without having problems for pensions and other social benefits. He said these talks are nearing the end, adding that the remaining technical meetings are scheduled for the next few weeks.

Dr Gonzi said the two sides also discussed the Commonwealth Heads of State meeting being held in Malta between 25 and 27 November 2005 and how the residents of the two countries can avoid double taxation.

Following their official talks, Dr Gonzi and Ms Clark presided over the signing of an arrangement between the two countries. This arrangement, dubbed the Working Holiday Scheme, provides for an annual quota of up to 50 young travellers from each country to visit and undertake short-term employment. Participants will be issued with a visa valid for 12 months and visitors will be able to take up casual employment for a maximum period of three months.

This arrangement with Malta takes the number of Working Holiday Schemes with European countries to 11. Others have already been signed and implemented with the United Kingdom, Ireland, the Netherlands, France, Germany, Italy, Sweden, Finland, Denmark and Belgium.

Ms Clark said New Zealand has the lowest unemployment rate in the Organisation for Economic Cooperation and Development. However, she said, the country sometimes has labour shortages at different times of the year, especially for fruit picking.

Ms Clark, who leaves this morning, yesterday had meetings with President Dr Edward Fenech Adami, the Leader of the Opposition, Dr Alfred Sant and businessmen and industrialists. She also visited the Pietà Military Cemetery and in the evening attended an official dinner at Castille.