PLAN TO MEET DOLLARCRISIS

Chronicle (Levin), 15 June 1948, Page 5

PLAN TO MEET DOLLARCRISIS

(N.Z.P.A.-

-Reuter,

N.Z, Wants Larger Share Of Australia's Trade

Copyright)

Received Monday, Midnight. CANBERRA, June 14. The foundations for a joint plaij to mept the possible exhaustion of the Empire dollar pool next year were laid at talks over tjie weekend between t]ie New Zealand and Australian Ministers, says ' the Australian United Pr.ess correspondent. The basis of the plan will be that Australia and New Zealand will become more and more reliant upon one another for goods now received from dqllar arejs. •One coiielusion of the talks w.as that because of the hnge v.olume of American goods expected to be poured into ISurope nnder the Marshall Plan next year not only must Australia and New Zealand expect to face a shortage of dollars but also an acute . shortage of some essential goods now readily availabie =and listed \ as high prjority imports. A considerable time of the conference was s] ent examining ! th.e field of American goods which .are expected to be in short supply to Empire eountries. The correspondent adds that New Zealand Ministers informed the Australian representatives that New Zealand desired a larger share of Aystralia's trade. Mr. Nash indieated that within a fgw years New Zealand hoped to be in a position to supply Austrajia with considerable quantities of newsprint. Preliminary negotiations for the erection of a newsprint plant in New Zealand were now under way. Mr. Nash asked that Australia should aceept greater imports of New Zealand timber in order to balance the trade position between, the two eountries as quiekly as possible. Last year Ntew Zealand purehased about £14,000,000 worth of Australian exports but Australia took only about £3,00,0,000 to £4,000,000 worth of New Zealand goods. Both Mr. Chifley and Mr. Nash are reported to have agreed that the position faeing Empire eountries would make an even more stringent restriction on dollar spending inevitable next year. Both agreed to take all possible steps in cooperation to etfeet dollar savings. It is understood Mr. Nasji told Mr- Chifley it was proposed in New Zealand to re-licence all proposed imports from dollar sour.ces in Ihe hope of being able to effeet savings on less essential imports.