GERMAN TRADE PENETRATION.

Hokitika Guardian, 8 July 1924, Page 1

GERMAN TRADE PENETRATION.

POLICY RKSUAI.EI). CORRESPONDENCE PRODUCED RY AIR ..MASSEY. WELLINGTON, July (i. Speaking at a social gathering al the Wellington winter show on Saturday, evening, the Prime .Minister read the following extracts from correspondence between English manufacturers and Hermans regarding the introduction of Herman goods to New Zealand: ‘-However, if goods can he landed at economic figures, and all marks which are likely to offend the susceptibilities of buyers are effaced, there can he no doubt that we shall he able, to handle a very large volume of business. Everything that can he done by Herman manufacturers to enable indent agents, wholesale merchants and retailers to market goods siu-cesslally must lie done in the first instance, as otherwise a political campaign might easily he provoked which would do Herman trade possibilities in this country infinite harm. When questions lesultiug from the wars are satisfactorily dealt with, and. the policy of ‘peaceful penetration’ has done Ms work silently hut clleetively, it will then lie time enough for manulactui-ers to talk about the super-excellence of the essentially Herman-made article. Direct trade with Utopia is at present impossible. Entcrprii\jiig Dunedin merchants took the risk of importing direct, and are now rneing their temerity. as the Minister has imposed the full punitive duties, which brings the cost no to 2.1 per cent more than the landed cost of similar ilriti-h goods. To put this bluntly, the case in a nutshell is this: Can you'arrange to reexport goods bought in the most advantageous market, taking lull advantage of depreciated eurrieiioies, and let us enjoy the full advantage ni the Empire preference tarili ? Aon could rover yourself only with voui usual buying commission, and likewise ourselves by onr overriding commission. and consign to us at bedrock prices. We can then come to* some agreement as to a division of profits on special articles which might come under this category."

Air Alassev said he knew the case, and the firm in question was doing its best to swindle tlie Dominion out of the preference given to llritish goods, lie was obliged, to the people who had given him the iniorJiintion. lio h*u the original correspondence, about which there could be lio mistake. He would mention no names at present, although that might lie done later, for the matter might end in a Court ol I.aw. As a Government they had got to stop* that sort of thing and secure fair play for manufacturers in >e\v Zealand and in Great Britain. Air Massey .added that the Hoard ot Trade returns for Jf>22 showed that the balance of trade against Britain to America, Argentina and Denmark exceeded £205,000,000 and uo country could be prosperous while that was going on. It made him sick and sorry

to see such things, especially with 1 .L’nil.tltlt) unemployed. There must he a change if New Zealand was to retain her prosperity and rssi.sk the Mother Country to regain ii-' prosperity, for where Britain used to scud her goods to every country in the world, every country was now pouring its goods into Britain. Mr Masey's statement made a profound impression on the audience, which comprised the leading industrialits and principals engaged into the mo-tor-ear industry.