For the next few years, he worked for a stock and station agents' company, and then gained a position as assistant editor of a farming newspaper.

During the Third National Government he negotiated New Zealand's continued product access to the United Kingdom when it joined the European Economic Community.

He was also involved in creating the Closer Economic Relations agreement with Australia to improve trans-Tasman trading cooperation.

This dissatisfaction culminated in the so-called "Colonels' Coup", an attempt by certain members of the party to depose Muldoon and install Talboys as leader instead.

A number of people were considered as possible replacements, including George Gair and the three "colonels" themselves, but it was eventually decided that Talboys was the only credible challenger, each of the others having been deemed unacceptable by at least one faction of the party.

Despite Talboys's reluctance, his backers managed to gain a slim majority in caucus in favour of a leadership change.

[13] When Muldoon returned to New Zealand, however, he quickly launched a counter-attack, and managed to tip the balance of caucus opinion back towards himself.

When the possibility for a leadership vote arrived, Talboys refused to challenge, believing that an open dispute would do huge damage to the party as a whole.

[14] Former National leader Jack Marshall, who was also critical of Muldoon's leadership style, thought Talboys would have been a good Prime Minister if he "had a little more steel in his backbone.