WIRE CONTRACT

Gisborne Herald, Volume LXVI, Issue 20003, 31 July 1939, Page 13

WIRE CONTRACT

DANGEROUS PRECEDENT LONDON, June 12. Mr. A. T. Johnson, of Richard Johnson and Nephew, Limited, speaking at the annual meeting of the firm, said: — “A few days agp we received intimation from our agents in New Zealand that for the first time in history the New Zealand Government had decided to place their general wire co tract past this country. The successful tenderers, the Australians, were aided by the exchange position, which has the effect of giving them a 25 per cent advantage. “This has been in existence for some years, but, hitherto, the New Zealand Government has, no doubt, been influenced by the fact that New Zealand’s sales to Great Britain are two and a-half times as large as her purchases from this country, whereas New Zealand enjoys an unfavourable balance of trade with Australia.

"The loss of this important section of the trade involves not only a considerable tonnage of wire, but also a considerable tonnage of British steel, and establishes a very dangerous precedent as regards the general purchasing of British goods in the Dominion. It has been quite clear that we have been threatened in this direction for a long time, and 1 cannot help feeling that this calamity could, and should have been avoided. “Ever since I returned from New Zealand three years ngo 1 have spared no pains to bring about an arrangement; which would support the effort which your company has for man} years made as an individual,’’