FRENCH BOYCOTT

Bay of Plenty Beacon, Volume 1, Issue 3, 26 April 1939, Page 5

FRENCH BOYCOTT

EFFECT OF IMPORT CONTROL. WHAT ACTION WOULD MEAN (Special to Beacon) AUCKLAND, Tuesday The first definite retaliation by an overseas country to New "Zealand's import control regulations has been made by the French Government which has threatened to boycott New Zealand wool. A foretaste of suet* action has been felt owing to the inactivity of the French wool buyers at the last Christchurch sale. France hag always been a keen bidder at our wool sales and her partial with— drawal from the bidding at Christchurch resulted in .some very disappointing prices says a statement issued bv the Bureau of Importers. The French Government has now threatened to boycott New Zealand wool as from May 31 and it is well that we, as a Dominion should look ahead and see if retaliation may Le expected from other quarters. France accuses Mr Nash of stating that NewZealand would spend with any country an amount equal to that parti_.' cular country's purchases from New Zealand. Our trade with France during the past three years is very interesting. Imports Exports 1936 £215,115 &1646.168 1937'.. .. £232,450 £1,014,94 i 1938 .. .. £235 274 £1.011,987 Total .. £682 839 S-3.i673.09ti i These figures reveal that during the past three years France has purchased from New Zealand £2.990,2f»7 more than we have bought from her- . —an average of per *n„ num. As a result of the import licensing it is possible that our purchases from France will be reduced from £220,000 to less than £100,U0'>ier annum. On the surf'cp thereforeit would appear that there will a resultant saving of sterling funds to the extent of just over £100 fOOO- - annum. keen bidding at our avool sales has undoubtedly maintained' orices and h"r withdrawal would nean a reduction in wool prices of" at least 10 per cent, equal to £1,700 000 per annum. In other words, Mr Nash is preparer] to prejudice a nossible reduction of nearly £2,000,— >00 iri our exnort valuer for the salte if s»-vint p IOO.OOI sterling funds. E1.700,060 is surelv too big « price to pav. to s«v<» £100,000. for obvioiisjv n boycott by France would represent a depletion of sterling funds of £1.. 600.000 '■'■annually. It is difficult to imagine. a similarreaction from the United Kingdom whose favourable trade balance with New Zealand during the past threeyear's has aggregated £68,856,489.