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Bay of Plenty Beacon, Volume 2, Issue 193, 31 July 1940, Page 4

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FOR a period of nearly two years this Dominion has been affected by the Government policy of import restrictions. Under some headings these restrictions were deemed to be indeed harsh, and this fact was made known to the Minister of Finance who. however, remained firm in his contention that on account of the state of the sterling- funds in London our importations had to be greatly curtailed. There was danger of imports exceeding exports in value, which would mean that the people were living beyond the means of the country. Period by period the restrictions continued to be limposed, and indeed became still more harsh as shown by the fact that in the fourth term, that for July Ist to December 31st, 1940,, a total ban was imposed on many lines that for the past quarter of a century were leading and regular lines of trade. To a certain extent the feeling of disappointment was somewhat lessened on the outbreak of war eleven months ago. It was fully acknowledged that many manufacturers -in Great Britain would be unable to manufacture their usual quantities of merchandise, this applying more particularly to those in the iron and steel trade. But :it is a long lane that has no turning and that a change Is now coming over the scene is revealed by certain correspondence recently received by New Zealand merchants from manufacturers in England* The following reference may be taken as a case in point as denoting that manufacturing works in England are now prepared to supply New Zealand requirements in full, and it will be interesting to note whether the Minister of Finance will decide to do his part in assisting to reinstate the normal trade of the Dominion, and in so doing assist the country's revenue in respect to Customs Duties, Sales Tax, etc. Indicating Britain's confidence in the face of the crisis, Auckland merchants have received from manufacturers of cycles and parts m the Mother Country a cable soliciting immediate co-operat-ion by the placing of orders for export in maximum quantifies, for six months ahead. The cable states "that the British Government is pressing strongly for export development and is making allocations for delivery of materials which will be supplied on a basis of immediate forecasts of future trade." A further communication states: "We will guarantee to supply at existing prices all machines despatched from Britain before December 31st." The position therefore is that the New Zealand Government is adhering to its policy of import restrictions, notwithstanding the fact that the state of the London funds has very materially improved, while the British Government is pressing strongly for export development. The reaction in this part of the Empire will be awaited with more than usual interest.