HIGHER WOOL PRICE

Auckland Star, Volume LXXIII, Issue 123, 27 May 1942, Page 3

HIGHER WOOL PRICE

CHANCE TO RECIPROCATE

TRADING WITH BRITAIN "It will be good news to the people of New Zealand that the United Kingdom Government has agreed to pay an extra 15 per cent for New Zealand's 1942-43 wool clip," says a statement issued by the United Kingdom Manufacturers and New Zealand Representatives' Association. "The extra money accruing to New Zealand as a result of this will be of great benefit to our wool producers and through them to all sections of the community. This generous action on behalf of the Unilted Kingdom Government, and, of course, the extra price paid for our wool, will | in effect be paid by the manufacturers and work people of the United Kingdom and raises the question as to whether the present time is not most opportune to reciprocate by abolishing the import embargo system at present operating on imports from the United Kingdom," continues the statement. "It will be remembered this system was brought in in peace-time to restore New Zealand's overseas finances, but has been continued ever since. The system is now really superfluous for two reasons: (1) The shipping position controls to a large extent the volume of goods which can be imported; and (2) the United Kingdom system of export control takes care that only goods needful in New Zealand's war effort are sent here. "On the same day as the 15 per cent increased wool price was announcd, Mr. J. M. Keynes, noted economist, said, in referring to post-war problems: ' The future of Britain essentially depends on the great expansion of the export trade. With that assured, the rest is comparatively easy. Without it our hopes for the future are sunk. It simply must happen. There can be no ifs about it. We must increase the volume of our exports by at least 50 per cant compared with 1938.*

"This association suggests that New Zealand can now make one real contribution to reciprocal trade between the United Kingdom and New Zealand by abolishing the irksome and unnecessary import restrictions on United Kingdom goods."