N.Z. AND U.S. CLASHED

Chronicle (Levin), 27 June 1947, Page 5

N.Z. AND U.S. CLASHED

, Press Assn.

Dominion's Import And Export Licence System

By Telegraph

-Copyright

Received Friday, 11.1-5 a.m. GENEVA, June 26. New Zealand and the United States clashed during the preparation of the charter ©f the. International Trade Organisation over the interpretation of "restrictive business practices" applying to certain features of state trading. The charter calls on members to prohibit business practices in restraint of competition or limiting access to markets. The United States contended that the system of import and export licenses New Zealand employed constituted both discrimination and a restrictive practice^and demanded that it should "cease. New Zealand replied that the system was not opposed to the charter and insisted on the retention of the system because its goal was full employment and trade expansion, and was preferable to blind increases of tariff rates after the American manner. The United States delegation replied that the way which New Zealand operated the system might be beneficial to international trade, but the possibility of it being wrongly applied by less scrupulous nations was sufficient reason for opposing its ineorporation in the charter. 'America suggested that the charter should provide safeguards since it became necessary to limit imports because of the dimipishing reserve of foreign exchange. New Zealand could apply for permission to act. New Zealand said she disliked the idea of cumbersome international procedure when rapid act'ion might be needed,. The United Kingdom, Australia a'nd South Africa supported New Zealand. Canada sided with the United States. The matter is to be referred to a sub-committee for solution.