DETRIMENTAL EFFECT

Hawke's Bay Herald-Tribune, Volume 81, Issue 13, 8 October 1937, Page 7

DETRIMENTAL EFFECT

-Press Aisooiation.)

British Viewpoint on the German Trade Pact DOMINION & HOMELAND

(By Telegr&ph-

•WELLINGTON, Last Night, "It is all nonsense to suggeat that this trade treaty with GeTmany will »pt have a detrimental effeet on British manufacturers exporting goods 'to New Zealand," aaid Mr C. W. Rudd, president of the United Kingdom Manufacturers' and New Zealand Representatives' Association to-day. '"Jhe more manufactured goods purchased from Germany the less money there would be to buy British-made articles," he said. Referring to the disparity between N"ew Zealand 's exports to Great Britakr ind her imports from the Mother Country, Mr Budd said Britain would be very happy to enter into an agreement similar to the one with Germany on a £ for £ basis, When it was reoiembered that out 0f New Zealand's • total of exports to all countrles of E56,751,940 for the 12 months ended December 31, 3036, £45,492,989 went to Great Britain, and that the imports from thp Homeland for the same period iQtalled £22,079,877, it was obvious there was no prospect .of a balance of trade. Yet Germany, wbo last year bought from New Zealand only £272,484 Worth of goods, was receiving a coneeseion which under the circumgtances was unfair to British manufacturers. "All goods exported from Germany, we have very good grounds to believe, are heavily subsidised by the German Governmen^," Mr Budd added. "This gives Germany a very decidod advantage over other countries. Purthermore, we have no information. about the conditions in Germany, the hours of work and the relative wages paid under the Nazi regime. Eifteen other nations benefit under the favoured-nationg clause, which means that all the reductions given to Germany must now also apply to Japan, Italy, Belgium, Norway, Sweden and other nations on the iist. We have to purchase from Germany before she buys from. us. "What would be the position if Germany declared war on any other country or for any reason refused to complete her part of the bargainJ ■Germany has broken faith before and there is always the disturbing possibility of history repeating itself, "One of the items on the schedule for export was apples," continued Mr Budd, "but it was surely absurd to suggesfc that the British market has reached saturation point for that commodity. The possibilities in the apple market in England are almost unlimited atid increased saies to Britain ought to be made the first consideration. Wool is a commodity which Germany has to buy in any. case, so the advantage to New Zealand there is more imaginary than real. £»