No Guarantee On S.A. Trade Losses

Press, Volume C, Issue 29513, 13 May 1961, Page 12

No Guarantee On S.A. Trade Losses

The South African Government was no longer prepared to guarantee importers and South African exporters that it would meet in full increased customs duties made necessary through elimination of preferences, said Mr I. G. Fleming, leader of the South African trade mission, speaking last evening at a reception held by the Canterbury Chamber of Commerce.

At the time he made his statement that the Government would be meeting the charge, he had emphasised that that statement stood until the Government made a further statement. Mr Fleming said. At the time he made the statement there were cables on the wav from the Minister of Economic Affairs (Dr. N. Diederichs) cancelling the statement.

“As from May 31. New Zealand will lose an extremely useful supplier of goods which have gained a considerable market in this country,’’ Mr Fleming said. “With the additional duties that will become operative they may not be quite so attractive or profitable. ’’ The mission was planned m October, well before the decision to withdraw from the

Commonwealth, Mr Fleming said. “We thought it could be only a matter of formality for our remaining in the Commonwealth. But it is not our function to discuss the consequences of the new situation.”

In the other countries the mission had visited and in Australia, which it was to visit on the way home, the new situation made no difference to trading, as there had been no preferential arrangement, he said. New Zealand and South Afriqg had been operating a two-way agreement for certain items, and that would be unaltered. The countries also traded on the most-favoured-nation basis, with New Zealand extending, in addition, British preferences to South Africa. The latter would end on May 31 “Nothing can be done from our side, although we would be delighted to resume the part of trading relationship which was developing so nicely,” Mr, Fleming continued. “We will be glad to hear what the New Zealand people will do.” South Africa was building up industrially and becoming more independent of overseas sources of supply. It had great natural resources and an export income of about £6oom. Last year it had exported £2B4m worth of gold. £4om to £6om worth of diamonds, £3om or £4om of uranium, and £4om to £som worth of wool. "So we had £4oom as a start in our export income before we did anything about secondary products.” N.Z. Exports Trade to South Africa would not be affected by what had taken place. New Zealand would continue to sell under guarantees and mostfavoured nation arrangements. South Africa was

becoming an increasingly bigger market for selective items. As the standard of living rose so did its demands for both consumer and capital goods. Mr Fleming said the mission had achieved a lot of what it had set out to do. and had obtained "an excellent view of the New Zealand picture” He and his colleagues. Messrs E. D. Andrews and F W. Waring, expressed appreciation of what the New Zealand Government had done for them, and he said the Minister of Industries and Commerce and Overseas Trade (Mr Marshall) had impressed them with his “grip of things.” The Department of Industries and Commerce and its district officers had been extremely helpful. The mission will leave Christchurch for Auckland ♦odav and go to Australia on Sunday. After a tour of Australia it will return home, calling at Mauritius. It has already visited Thailand. Hong kong. Japan, and Vietnam.