RECIPROCAL TRADE

Evening Post, Volume CXVII, Issue 23, 27 January 1934, Page 10

RECIPROCAL TRADE

(To the Editor.) *

Sir,—New Zealand is often blamed for not obtaining a larger proportion of her imports from Great Britain. The common —and very misleading—statement of the position is that our exports to Britain (excluding specie) amounted in 1932 to £31,344,000, while our imports from Britain amounted to only £11,442,000.

To appreciate the true position, we must take into account also the following facts: (1) Included in our exports to Britain are considerable quantities of produce which are shipped to London merely.as a convenient depot for subsequent re-ship-m£nt to the Continent or to America. In 1931 (the last year for which figures are available) the amount, was £4,119,000. Assuming .the same figure for 1932, this reduces our exports to, Britain herself-to £27,225,000. (See Year Book, page 212). (2) In the official figures quoted, exports are given in New Zealand .currency and imports in sterling. To make a compurison we must express botl^in terms of tlic same currency (sterling). This gives us, foil 1932:— Exports to Britain, £24,002,000 sterling. Imports horn Britain, £11,442,000 staling. (3) We have also to pay in London the interest, etc., on Government and local body debt, amounting to £8,250,000 sterling. (See Year Book, page 202). (4) Another item consists of outward shipping freights, insurance, and interest and dividends on overseas capital invested in the Dominion, together with a number of-minor payments, but subject to certain offsets. (Sec Year Book, page 203). The net payments,to Britain under these-heads may be estimated at £3,500,000 sterling,' (5) Our "reciprocal trade" account with Britain therefore stands at something like this (all in sterling):— £ - £ Imports to Britain / ■ ~,„,„.. herself • J4,oOi,UOtf Imports 11,442,000 . Interest 8,250,000 Freights, etc 3,500,000 £23,192,000 (6) In 1932 our imports from foreign countries amounted to £6,486,000 sterling, but our exports to foreign countries were £2,508,000 direct, plus £4,119,000 shipped via Great Britain, nlaking a total of £6,627,000 (N.Z.), or £5 { 960,000 sterling. (7) New Zealand manufacturers desire to see an increase in the proportion of. our necessary imports obtained from Great Britain. But nothing is to be gained and much may be lost, by making our existing reciprocal trade appear less than it really is. The foregoing figures (paragraph 5) show that we are already doing very well.—l am, etc., A. E. MANDEK, General Secerary, Xcw Zealand Manufacturers' Federation.