"TIES WHICH BIND."

Bay of Plenty Beacon, Volume 3, Issue 267, 5 February 1941, Page 2

"TIES WHICH BIND."

TRADE WITH BRITAIN THi: KKASON WHY il is the des ire of the Government Hint tlu> maximum*- of our requirements should be obtained from the United Kingdom and every endeavour will lie made to achieve that purpose. This statement, which he made recently when announcing the basis on which licenses were to be granted in respect of imports into New Zealand in 19! (. indicated clearly the policy being adopted- by NeW Zealand regarding trade with the United Kingdom (wrote the NewZealand Minister of Customs, Mr Nash, in the London Chamber of Commerce Journal).

"Evidence of the efforts being made to give effect to this policy, 5 ' he said, "is contained in the import licensing schedule which provides for the granting of licences, for the importation from the United Kingdom only, of such important commodities as cotton, linen, and artificial silk piece-goods, woollen piece goods, woollen yarns, sewing cotton and silks, table china and earthenware and rubber tyres for motor vehicles. Long-standing Preference. "New Zealand has for many years granted tariff preferences to 'the United Kingdom ancl Empire countries with a view to extending trade with the Empire, and is justifiably proud of her record in that regard.

"In 1939 the Dominion obtained 50.7 per cent of the total value of her imports from the United Kingdom, 2.3.5 per cent from other Empire countries, and 25.8 per cent from other countries. In considering the extent to which the policy of giving a greater proportion of the trade to the United Kingdom can be achieved, regard must be hiid to the fact that the Dominion requires to import from other countries certain classes of goods which cannot at present be supplied by the United Kingdom. Among the more important of these, the following are mentioned: Motor spirit and petroleum products, tractors of certain classes, manures, sulphur, leaf tobacco, tea, raw sugar and newsprint. Conserving Dollars. "In common with the United Kingdom, the Dominion is endeavouring to avoid ail unnecessary expenditure of dollar funds in order that such funds might be available to the fullest extent for use in the prosecution of the war. Similarly, the Dominion has also found it necessary to restrict imports of nonessential goods.

"Curtailment of such imports had been made und-u* the imports selection scheme put into effect at the end of 1938 with a view to adjusting the balance between exports and imports to a level which would provide for sufficient sterling funds to be available f o cover essential imports after making due allowance foj* the considerable amounts payable in the United Kingdom fo T / debt services and other charges.

War and Restrictions. "•'Circumstances arising from the war have rendered such restrictions on imports all the more necessary, for, apart from added commitments in connection with the equipment ami maintenance .of New Zealand forces, the increased costs of imported goods have naturally limited the scope for expenditure, aLthough, to some extent, this has been offset by higher prices obtained for export, the major portion of which has been purchased by the United Kingdom.

"lii so far, however, us the funds available permit of imports being made ahd British manufacturers are in a position to supply the goods required the United Kingdom can be assured of obtaining a -maximum share of New Zealand's trade.

"Apart from the aeLion being talcen by the Government directly to that end, the ties which bind this Dominion to the Motherland leave no room for doubt on that score."