Trade With Britain

Dominion, Volume 28, Issue 109, 1 February 1935, Page 13

Trade With Britain

Sir, —lu your issue of December 21 the Hon. Mr. Masters replied to Mr. Budd on the question of goods from England. Mr. Masters’s manner of placing the figures and statement may be useful as an appeal to electors in New Zealand, butdoes not. serve the useful purpose of appeals made by Mr. Budd and others interested in extension of goodwill and expansion of reciprocal trade in the United Kingdom, which we are aware is our only' market for primary products. Under to-day’s conditions regarding the values of our products on the Home market, it is necessary we have a greater regard for our customers’ viewpoint of our trading relationships. The statement from the Hon. Mr. Masters and others emanating from our Government authorities go too far in propaganda that is insular in tone. Its effect merely assists overseas criticism of our National policy where the basis is selfish. Mr. Masters takes pains to include interest payments by New Zealand in the figures relating to imports. Those interest payments are given in return for a specific service to New Zealand by English capital. It is therefore quite wrong to confuse the issue by adding these payments. Mr. Masters refers to New Zealand purchases from United Kingdom and quotes the figures in terms of New Zealand currency (that is, plus 25 per cent.). It does not make the position of our customer (U.K.) any less difficult or benefit the New Zealand producer to use £13.550,000 as the value of purchases from U.K. when the actual purchase price in London as understood by the U.K, manufacturer is only £9,545,048 as shown in the London Board of Trade returns. New .Zealand’s trade figures cannot be excused away or camouflaged from the eyes of Great Britain’s industrialists. Board of Trade returns issued in London give the figures in sterling of purchases and sales with the countries on England’s trading list. In most cases there are re-exports, but placing all on the same basis and making no deductions from the Board of Trade returns, the figures given below show the picture that meets the eyes of our customers for dairy and other produce in England. Very naturally they, being industrialists, are influenced by such a record. It is quite natural they should buy from those who give them the largest measure of reciprocal trade. It was my personal experience in July last to be greeted in an English office with the phrase of “Good Morning-, Mr. Fivebob,” the trade returns at that date revealing the fact that New Zealand was purchasing in sterling, five shillings value in return for each twenty shillings value of our products purchased by the United Kingdom. Undoubtedly we are trying to eat our cake and have it, too, and are quite wrong in the belief that we are as valuable to the United Kingdom in the matter of reciprocal trade as all or any of the nations we class as foreigners, for the reverse is the case. ' . The statement below will show conclusively where we stand in this respect, and reveals a most serious state of trade between New Zealand and the United Kingdom, the statement showing that New Zealand is almost at the bottom of a list of twenty nations. The Minister's statement, considered in the light of these figures, will not improve pur goodwill in the United Kingdom, sell an ex'tra pound of our products, or assist in overcoming the adverse effect of New Zealand legislation in connection with imports from the United Kingdom, but merely seeks to explain away or justify our selfish and illbalanced trading position, the causes and effects of which are- even better understood in the United Kingdom than in New Zealand, and lead to our being labelled “Weighed in the balance and found wanting.”—l am, etc., G. H. SCOTT. Wellington, January 30. Year Ending December 31, 1933.

The third column shows the percentage of United Kingdom exports to, as compared with the imports from, the various countries. Values calculated in sterling.

Imports Exports Country. into United Kingdom from from United Kingdom to Per cent. S. Africa Union 14,531,878 23,346,233 160.7 China 5,131,140 6,301,036 122.8 Italy 0,208,717 9,016,860 98.2 France 19,084,864 11159,121 95.1 British India .. 37.302,395 6'951.834 33,396,674 89.3 Norway ....... 5,551,940 79.8 Switzerland 5,218,176 3,946,760 Belgium 12,914.0(8) S,S36,<H<i 08.4 Netherlands IS,‘589,857 12,4.9,978 67.1 *7 r - .**-.' 1 4,ISO,435 4> 4 .9 Germany ..... 29,818.4.62 15,955",520 14,711,966 49.3 Sweden 7.171,783 214321,737 44.9 Australia ..... 48.605,682 43.9 Spain 11,275,341 4,493,606 39.8 Canada 46.218,073 17,510.369 37.8 Argentina .... 41,691.133 13,082.602 31.5 Czechoslovakia 2,896,169 860,025 29.7 New Zealand .. 37,183,160 9,545,048 23. * United States .. 75.790.252 19,052,234 2v>. 1 Soviet Union .. 3,283,643 1S.S