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Chronicle (Levin), 21 August 1948, Page 5

Received- Friday, 10.35 p.m. • ' 'BYBNEY,- August 20, The New Zealand Trade Commissioner's* Oflice in Sydnev has been hesxegect . by people trading witn Xew Zeaiand wanting to iearn how they stand.'hihder the new- values," _ /• Coinmentihg 011 the mo've..the Director oi' the ; Associated,- Cliambers of Manufacturers (M'r. Withall) said ih, Canberra: ' ' Wliile directly' there should be no noticeable impact upon trade between Australia and New Zealand as a resulf of the linking of the New Zealand pound with -the pound sterling it shbuld itbfid to increase our exports to that Dbiniinion and will, of course, correspondingly increase the supplies o: Xeiv Zealand produets imported by Australia. "However, there is one .extremely significant point that mayv easily be o.verlooked. That is that the Xew Zealand action is in direct conflict with a breach of tlie exchange sections ' ot* the Charters of the Internationat Trade. Agreenient 1 to which New Zeaand, like Australia, has subscribed." The first conntry to breach' that agrcement in connection with exchange varialion was France and the second is Xew Zealand. This throws -into bold relief the necessitv for Australia to hold her hand before going any further with her commitments in cunnection vvith the agreement. " The Xew Zealand High Commissioner (Mr. J. G. Barclay) said: • ' There will have to be a readjustment in the priee of food contracts between Xew Zeaiand and Britain. This- anses from, a clause in the agreements between the two countries. " The acting lhanager 'of the New Zealand Government Trade and'Tourish Burea.u (Mr. X. F. Gouft'e) ■ said: "Many people will be affected, partieularly those who have booked. p.assages to Xew Zealand and paid deposits. " . Professor T. Hytten, the weUknown economist, said becanse of existing circumstances 110 change' in trade relationships between Australia and Xew Zealand could be looked for. (1 111 noriual circumstances such a drastic cliangu niiglit liave rather wide* repercussions, iiut witli regulations ahd controls governing most of tlie economie activity the circumstances are not now normal. Xorinally Australian as well as United Kingdom produets would be nmde more attraetive to Xew I Zealand, resulting in an increased demand, but as Xew Zealand has very strict import controls oue cannot look forward to a change in trade relationships with Australia." Mr. P. (r. Connollv, Xew Zealand delegate to tlie Hmpire Parliamentar.v , Gonfere.nce. in London, who is now^Tn iSydney, said the move was one 111 tlie right direct ion. * - A Bank of Xew vSouth Wales spokesman said that altliougk Mr. Chifle.v said there would lie 110 change in the j Australian pound the Xew Zealand j niovev would for some time cause presI sure for a readjustment of tlie Aus- | tralian pound in terms of sterling. "1 j think appreciation of tlie Austrafaa11 ■ pound to parity with sterling has now - been brought nearer. The Xew Zealand move means that. we are now at a disadvantage in trade and out of line." :