U.S. MUST KEEP UP EXPORTS

Grey River Argus, 31 August 1948, Page 5

U.S. MUST KEEP UP EXPORTS

Or Slump Will Gome Mr. Nash on World Trade Situation P.A. WELLINGTON, Aug. 31. “Unless the United States continues to export the goods which they give away, there will be a collapse off world trade,” daid the Minister of Finance, the Rt. Hon. W. Nash, during question time, after giving an address on the Havana Charter to the Wellington Branch of the New Zealand Institute of Secretaries tonight. “The United States is 12,000,000,000 dollars on the right side of her annual trade. In excess of that, she gave away 8,000,000,000 , dollars worth of goods last year. If z she tried to import goods from other countries to that value, she would have internal chaos. “They are an emotional people. Once they realise, as they did in 1929 that they are not likely to be paid for their excess "oods, they may stop exporting them, and they will be in the soup, and so-will the rest of the world. So will we.. But I think we have "nt more to put' in our soup than others.” Mr Nash exnlained the provisions of the Charter, and their implications for the British Empire and in New Zealand. The purposes of the Havana Conference were fnagnificent,. he 'said, but,, whether they would be achieved he did not know. PREFERENCES QUESTION .

Though the original policy of the United States at the Geneva Conference on world trade had been toward the abolition of all trade preferences, including those within the Empire, a different position had been established. Preferences were retained, and they could be used as matters for barter in obtaining concessions with other nations. By using them as barter, concessions for the exportation of New Zealand butter to the United States had been obtained and also a more favourable position for the entry or -Empire wools of the finer sorts. Import licensing, such as New Zealand practised, he said, was anathema to the United States’ whole theory of multi-lateral trade. They could be continued under the Charter, in certain circumstances, but they must be non-discriminatory' against any nation, unless the country using them had a' currency difficulty.. ■ “I think that we and the' United Kingdom will not be free of currency difficulties for a longtime,” said Mr Nash, amid amusement. Though New Zealand was within the International Trade Organisation she had not yet joined the International Monetary Fund (Bretton Woods). There was provision in the Charter for this, providing that such a country -must enter 1 into an agreement with the International Trade Organisation not to enter into exchange practices which would nullify the provision of the Charter. Mr- Nash expressed his personal opinion that it would be an tage to New Zealand and to tlrtT world if New Zealand did adhere to the Bretton-Woods Agreement. If she had previously adhered to the Bretton Wood Agreement, New Zealand could not have reduced her exchange to parity with sterling in one act. She could have appreciated it by 10 per c'/nt to £ll2 10s, and, at the same time, have made application to the Fund for a further 10 per cent, to £lOl 10s, to which the Fund would have had to reply within 72 hours. There was, however, no general bar to the appreciation of currencies. It was depreciations that were disliked and also differential exchange rates for different countries being used as trade deterrents.