EXPORT CREDITS.

Auckland Star, Volume LXXI, Issue 226, 23 September 1940, Page 8

EXPORT CREDITS.

BRITAIN'S WAR NEED. ~ — —~— ~~ REPLY TO MR. NASH'S VIEWS. Criticism of the statement of the Minister of Finance, the Hon. W. Xash, •that "Britain does not want credits in Xew Zealand, but wants them in countries where the credits will do more good," was voiced to-day by the president of the Bureau of Importers, Mr. Gainor Jackson.

"The Minister's statement does not accord with the constant appeals for increased orders being received from Britain by importers throughout Xew Zealand," Mr. Jackson said. He added that an export council was recently set up by the British Board of Trade to develop exports, and some 200 export groups had been formed in Britain with the sole object of building up exports to the Dominions and foreign countries. Mr. Arthur Greenwood. Minister without portfolio, speaking in the House of Commons at the end of July, stated: "The burden of the war is falling increasingly upon the people's shoulders. The knowledge that the great mercantile and commercial reserves of the country are being effectively mobilised to lighten it would prove an agreeable stimulus.

"Britain is endeavouring by every means in her power to increase her exports so that her war effort may be sustained by the economic arm," Mr. Jackson continued. "In the light of Xew Zealand's trade balances with the United Kingdom in recent years, Mr. Xash's policy of import restrictions would appear to be anything but helpful to the United Kingdom at the present time. Xew Zealand's exports and imports to Britain in recent -years have been:— 1938: Exports, £48,898,865; imports, £26.894.499; excess of exports. £22,004.366. 1939: Exports, £46,727,692; imports, £23.271,429; excess of exports. £23.456,263. 1940: (seven months, January-July): Exports, £43,994,256; imports, £14.234,326; excess of exports. £29.759,930.

"This large and increasing- disparity in trade between New Zealand and the United Kingdom sneaks for itself. The least this country can do is to enable Britain to pay for the goods she buys from us by creating credits in Xew Zealand with goods which Britain ships to us.

"It matters little to the United Kingdom where her overseas credits are established so long, as they are created by exporte. She can assign her rights to credits in the Dominions for purchase of various supplies for war purposes. If Xew Zealand took more imports from Britain our demand for foreign currency to pay for our excessive imports from U.S.A. and other countries, with which Xew Zealand has adverse trade balances would be lessened. 7 '