TRADE AFTER THE WAR

Dominion, Volume 9, Issue 2695, 15 February 1916, Page 7

TRADE AFTER THE WAR

ANTI-GERMAN MEASURES REPRESENTATIONS TO THE GOVERNMENT

A deputation representing the executive of the Association of the New Zealand Chambers of Commerce, and consisting of Messrs. J. Macintosh, C. il. Luke, ifiia H. D. 'Pickery, yesterday interviewed the P,rime Minister (the ltight Hon. W. I'. Mnssey), the Minister of Finance (the Right Hon. Sir Joseph Ward), aud the Minister of Customs (the Hon. A. M. Myers) with respect to questions connected with or.emy trading.

Mr. Macintosh said that the things they d&sired to lay before tho Ministers were really tho recommendations of tho Conference of the Chambers of Commerce on this matter. It was particularly enemy trade on the cessation of the war that they wished to bring before the notice of the Ministers. The matter of companies with foreign shareholders registered in tho British Empire had come into prominence since war broke out, and, it had been shown that many companies registered in Great Britain and in British Dominions, whoso capital was owned -by foreigners, were trading as British companies, and in some cases had adopted names apparently with tho design of indicating that they were, in fact British-controlled companies. It appeared to, bo the position that under British company law and under company law ill Now Zealand, thero was no restriction on foreigners forming themselves into a company and trading as a British concern. It was suggested that the Companies Act' Ixs amended to meet this contingency by stipulating thit bel'oro a company could be registered in New Zealand, tho buli_of its shares must be held by British subjects, and the transfer of shares to other than British subjects restricted. It was also suggested that gcois imported should be marked with the namo of the country of production.

Mr. Luke referred to the Gorman endeavours to get their goods into British [ possessions through devious channels. : What was wanted was a detective system to make this impossible. .He himself was not able to put his finger upon any company in which was invested German capital excopt the rubber company; but it was possiblo tho Germans would circumvent us by investing capital in the Dominions in companies registered in British names and having a portion, of British captal. They wanted this to be made impossible. Mr. Luke also referred to the success wliich had attended our exhibit at tho San Francisco Exhibition, and pointed out that it was feared tho benefits won. from that advertisement might be lost to us unless we had a trade representative in America. Mr. Vickery (secretary of the Wellington Chamber of Commerce) further supported what had been said. He, also stated that there was a feeling that gifts for patriotic purposes should be exempted from the income iax return?.

| Prime Minister's Reply. The Prime Minister said they were at all events agreed upon most of tho coints raisod, especially, as to the prevention of the enemy gaining a footing again in this country. A great difference .existed to-day in this respect to a year or two ago. In the year prior to tho war we took Irow Germany nearly three-quarters of a million sterling worth of goods; and that importation bad now ceased. Ho pointed out the serious offence it was to trade with the enemy and the effect of this. In regard to importations from neutral countries, no document or guarantee was required in the case of America, as in the case of other neutral countries, and this" matter had recently been taken up by the I American representative here. He was be- | ing asked if ho would see that proper 6teps were taken to prevent the importation of enemy goods from tho tl nited States. "I believe," said' Mr. Massey, "that that will have the desired effect." As to.enemy trade after the waT, there was_ a section in the Finance Act of last session providing that a 50 per cent, duty over and above the existing duties could he imposed upon-the goods of our present enemies. He thought he might predict that after tho war there would be no difficulty in bringing this section into operation. Personally, 'lie thought, y;e shouldnever again bo in the position wc were in before the war—getting in German goods, as we did, because they were a little cheaper. With' regard to tho question of enemy shareholders in New Zealand companies, he did not think there was auy trouble in that respcct now. As to reciprocal trade with Australia, this matter could be fully gone into after the war, when thore would be'important trade rearrangements. lie recognised the necessity for a . New Zealand trade representative in America to follovc up the good advertisement wc had received at the San Francisco Exhibition, and *he matter would be attended to in the future. At present, however, wo were sending all the produce we could export to Britain and our, All ict-. Minister of Finance.

Sir Joseph Ward expressed his sympathy with the viewo iff Uie deputation. Ho emphasised what Mr. iltissey had said in regard to the powers they already had unuer tue Jnnaace .Act to bring into operation a 50 per cent, additional duty 011 enemy goods alter tho war euded. The section of the Ant was so framed that the imposition could be made between the eitssmiis of Parliament. He also showed that there wrs much more to be done 111 this matter of enemy trade than New iealand' alone could do. The British Government and the overseas Governments would have to actively cooperate. This Government would stop at nothing to ensuro that in the future everything would be done to combat the trade of «. country that aimed at and fought for supremacy 011 land and sea. But unless Uio itritisli Government helped also in the matter ol imported raw materials, which were manufactured and sent out here, our efforts would i>e nullified, lie would inaKe it impossible for the enemy -lie would like to see America como in wih us in this—to coal their steamers in any British possession—either at Colombo, l''iji, Samoa, Australia, New Zealand, or Aden. Then tho German and Austrian empires would iind they were up against a problem indeed when they strove for supremacy on land and sea. He was sure lie was Speaking also for Mr. Massey when he said that there was nothing they would not do to co-operate with Britain and other portions of the Empire to brine about what was desired in this direction. He was sorry to hear any proposal in the diroction of an exemption from income' tax on patriotic gifts. Ho pointed out (hat it would be impossible trom Ike financial point of view to let such incomes escape .taxation where certain gifts had been made, and eaid it would have been better to have stopped the patriotic wave that swept over .New Zealand and placed additional taxation on the people than to do this. As onp responsible for the finance of the country, he was opposed to it. The National Government had 'very wide responsibilities oivits 6houlders in connection with our men at the front, and they wero not raising any matters concerning taxation which at normal times might be raised 'Chey were doing this for the good of tho country. / He was at one with the deputation in seeing that the enemy were precluded from gaining any footing in this country in the future, in the direction suggested. Minister of Customs. Tho Hon. A. M. Myers associated himself entirely with the remarks of his colleagues. He urged that anyone having any suspicions in regard to seeds from abroad should put themselves in touch with the authorities. The time to prepare for what would lake placo after the war waa now, and the Chambers of Commerce would have a great responsibility upon their shoulders in this matter. He was going to see that the Chambers took this important question up. Information should be obtained now as to how to reduce former trade with enemy countries, and the Chambers could form themselves inlo a Board of Trade and endeavour to find out—(a) what goods could l)c manufactnrcd hero; (b) what was possible to be manufactured in other countries. Science in this matter, said Mr. Myers, should bo harnessed to ndustrialisin, to supply the needs of tho Empilt.