S. Africa To Protect Status Quo In Trading

Press, Volume C, Issue 29510, 11 May 1961, Page 16

S. Africa To Protect Status Quo In Trading

(New Zealand Press Association)

WELLINGTON, May 10. Apart from any action by individual countries, guarantees by the South African Government aim to protect the practical effect of the status quo in trading after May 31 when South Africa ceases to be a member of the Commonwealth.

This was said today by the leader of the South African Trade Mission (Mr I. G. Fleming), a former president of the South African Federated Chamber of Industries, a director of the Reserve Bank, director of the South African Iron and Steel Corporation, and several other companies and a member of a Natural Resources and Development Council. The two other members of the mission are Mr E. D. Andrews (Director of Export Promotion in the Department of Industries and Commerce) and Mr F. W. Waring, a former Springbok Rugby player, former member of Parliament, and managing director of F. R. Waring (Pty.), Ltd., grain and pro-

duce brokers and import and export agents.

Trade With N.Z.

South African trade with New Zealand normally includes some 80 to 100 items, ranging from iron and steel —a leading item last year—to asbestos, wattle bark for tanning, canned fish, canned and dried fruits, wines, insecticides, and electric cables. Mr Fleming said an unequivocal assurance of compensation had been given which, in practice, would mean that for an indefinite period importers would receive South African goods at present prices, notwithstanding any shifts in rates of duty after loss of the present preferential rates.

Mr Fleming said the South African Minister of Economic Affairs (Dr. N. Diederichs) had said that the Government of South Africa “wished to issue an unambiguous guarantee to importers in the countries concerned and to South African exporters that any increased customs duties that may be payable as a resuit of elimination of preferences on any exports shipped (and. henceforth, till a further statement is issued by the Government) to the countries concerned, will be compensated in full by the Union Government. Union exporters may therefore convey the same guarantee to their customers.” That meant, said Mr Fleming. that in any instance where no steps were taken to extend the status quo—as had already been done in Britain—the South African Government had given a guarantee that anv goods previously exported from the country under a system of preferences would be the

subject of compensatory pay. ments for an interim period after the removal of any preferences. “This will prevent the disruption of trade by the large cancellation of orders we might otherwise encounter,” said Mr Fleming. Time Given “Rising from this, time will be given for all countries to decide what they will do. It is not our function as a trade mission to say what can be done. We are enabled by the guarantee, however, .to go right on with our function of stimulating trade as if no change of duty rates were in prospect.” In terms of strict law, from the time South Africa left the Commonwealth it would have gone back to “most favoured nation” duties. “That is not going to be the ease,” he said. “Britain has put through some standstill legislation to hold the status quo for a year, I think, to give time for all parties to study the situation and see what can be done about it.

“We don’t know of any legislation in other countries, but in New Zealand the contractual arrangements are to stand in the meantime, in the terms of your Prime Minister’s statement on April 27.” “Stimulate Trade” Mr Fleming said the mission’s aim was to stimulate trade on the basis that existed before South Africa Announced its withdrawal from the Commonwealth. That had rested on the triple foundation of guaranteed preferences between the two countries. Commonwealth preferences, and most favoured nation under G.A.T.T.

“It is important to be aware that we left South Africa before the membership of Commonwealth issue ever blew up,” he said. “The mission was arranged in October last year.

“We are not here to repair the damage. Some people would think that the chronology was such that this is an attempt to see what we can do about tariffs. We’re not here to sell any products, to buy any products, or push any cause except the stimula. tion of trade.”