MINISTER OF FINANCE

Manawatu Standard, Volume LVII, Issue 218, 14 August 1937, Page 9

MINISTER OF FINANCE

RETURN FROM ABROAD REPORT ON INVESTIGATIONS AUCKLAND, Aug. 14. The Minister of Finance and Marketing (Hon. W. Nash) returned to the Dominion from his trip abroad to-day, arriving at Auckland. _ In the course of an interview Mr Nash traversed his investigations into the marketing of New Zealand produce overseas, stressing the fact of the high quality of the Dominion’s products being recognised by London merchants. Air Nash also referred to the numerous other matters to which attention had been devoted, both in Britain and other countries.

GOODWILL TO DOMINION. The first thing mentioned by the Minister was the extraordinary extent of goodwill shown in every parfc of the world to himself and the members of his staff in the United Kingdom, in Germany, in the U.S.S.R., in Denmark, in the Netherlands, in France, in Canada, the United States, and Panama. The fact that the delegation came from New Zealand seemed to open up avenues of information and goodwill that seemed quite extraordinary.

The Minister said lie felt that in the United Kingdom this was to a certain extent due to the sportsmanship of the New Zealand cricket and football teams and also largely to the high reputation of the New Zealand soldiers In the United Kingdom and in other countries during the War period. The Minister, emphasising this goodwill, pointed out that it was partly due to the fact that, wherever New Zealand’s name was behind a product, that product had been good. It was unquestionable that the best lamb imported into the Urited Kingdom was from New Zealand and that our butter was recognised as of the highest quality, except by those who had been used to Danish butter. On innumberable occasions traders had mentioned that there was no need in the main to specify any particular type in that the grading procedure followed in New Zealand and the careful guards that are maintained to ensure first-class quality enable them to be certain that if the butter, cheese, or lamb is from New Zealand then it will be of the quality desired. The Minister said that during his period overseas he had investigated the marketing procedure in connection with our beef, mutton, lamb, pig products, butter, cheese, fruit, honey, wool, hides, and skins. Visits were paid to the Smithfield meat market, to Covent Garden, and to the Spitalfields fruit market, and several days were spent by the Minister in Tooley Street investigating the procedure followed in the marketing of dairy produce. Separate reports on these subjects will be submitted to Cabinet and some are referred to elsewhere. TRADE DISCUSSIONS.

Negotiations in connection with trade agreements were conducted with the Governments of the United Kingdom, Germany, the Netherlands, Canada, the United States, Panama, France, and Brazil, and discussions were also carried on with the U.S.S.R., Southern Rhodesia, Palestine, Denmark, the Irish Free Slate ; and Yugoslavia Governments. During the Imperial Conference, in company with the Prime Minister, the questions of defence, foreign affairs, shipping in general, Pacific shipping and Tasman shipping, air communications in general, and particularly in the Pacific and the Tasman, were all thoroughly discussed. The Minister mentioned that the lbad on the New Zealand delegation was particularly heavy in that they had a' smaller number of Ministers in London than had any other country, which meant that he personally had to he a member of many committees. “As chairman of the general shipping committee, and of the special coinmitee dealing with Pacific shipping, and as a member of the committee considering civil air communications and trans-Tasman airways, and in addition ns New Zealand representative on the special meetings on defence, I naturally was occupied every minute of my time, from the opening day of the conference to the departure of the Prime Minister for New Zealand,” Mr Nash said. The Minister emphasised that New Zealand really required more Minister;! in London on occasions such as the Imperial Conference. The investigations made into the marketing of dairy produce. meat, fruit, honey, and wool were very full. One member of the staff spent u« all two or three weeks in following the butter and cheese from the arrival of the produce till it reached the actual consumer. These investigations were made at Liverpool, Manchester, Bristol, Glasgow, and Tooley Street,’London. Separate reports are being prepared on each procedure. The Minister said that lie felt that these reports and the time given to the investigations had built uu data in excess of anything known before that would be invaluable in enabling the Government to determine its policy in connection with marketing in general.

In addition to tlie investigations referred to, the Minister said he had had conferences with the Bank of England, the bankers engaged in New. Zealand business, the national health insurance officials, and Sir John Orr with regard to nutrition, and also had had some discussions with Dr. Gunson, who was visiting England at the same time as the Minister. A full investigation had also been mado into the publicity procedure associated with the Dominion with its tourist attractions and marketing. Visits to the industrial establishments associated with the making of Vauxhall and Austin cars had coincided with lengthy discussions with the representatives of the motor trade as to the' future policy of the Government in connection with the importation of motor cars. Deports are being prepared on the film industry and on the investigations into housing in Liverpool, Manchester, Glasgow, Birmingham, and London.

QUARANTINE REGULATIONS. In addition to attending the coronation ceremonies, the Imperial Conference. and conducting trade negotiations, tlie Minister fully investigated tiie circumstances in the United Kingdom with regard to the prevention of foot and mouth disease and the quarantine procedure followed to ensure the health of the stock exported from Britain. He interviewed quite a number of interested persons relative to the live stock emboTgo. fliul a lull report will be submitted to Cabinet. The Minister bad in Ins hand a for midable list of tlie subjects that had been dealt with and persons who baa waited upon him in connection with New Zealand trade and commerce during his stay overseas. In addition to the investigations already Air Nash attended with Mr VV. J. Jordan the session of the Council of the I.on"ue of Nations in January last. The Minister stated that, on every’ occasion where an opportunity had occurred he had, by invitation, address-

ed meetings on the policy of the Government, the attractions of New Zealand, and the determination of the Government to make its products as good as those marketed by any country. In addition to over 100 meetings in connection with the Imperial Conference and the trade negotiations, the Minister said he had delivered addresses on the Government and its policy in the major towns of the United Kingdom. He had met the respective Ministers of Finance in the United Kingdom, the United States. Canada. Australia, South Africa, the U.S.S.R., Germany, Denmark, the Netherlands, and also M. Blum, of France, the Prime Ministers of Denfnark and Holland, and of the nations of the British Commonwealth, the President of the United States, and the President of Panama.

A HEAVY TASK. In conclusion, the Minister paid a tribute to the work carried out by the members of his staff. The load had been particularly heavy, and it was doubtful whether he could have found a better personnel who would have worked so willingly under such exceptional circumstances. His staff had devoted their time day and night to working oil the problems that had to be examined to enable the policy of the Government to be fully understood and to achieve the trade agreements desired. In particular, he referred to the help that he had received from the High Commissioner (Mr W. J. Jordan), Mr R. M. Campbell, economic adviser to the High Commissioner; Mr G. W. Clinkard, New Zealand Trade Commisisoner in Europe, and .the members of the High Commissioner’s staff. In addition, valuable assistance, whenever required, was rendered by Mr R. S. Forsyth, London manager of the New Zealand Meat Producers’ Board; Mr H. E. Davis, manager of the Dairy Sales Division of the Marketing Department; and Mr H. Turner, London manager of the New Zealand Fruit Board. OFFERS TO BRITAIN.

Referring to the negotiations with the United Kingdom, Mr Nash said that his departure from New Zealand was . hastened at the request of the United Kingdom Government, who in September last urged that he should leave New Zealand in time to permit of his arrival in London not later than November. This had interfered with the Government’s arrangements, as it was planned for Mr Nash to leave early in December and to reach the United Kingdom early in January. Following the rearrangement of duties, the Secretary of State for Dominion Affairs was advised by the Prime Minister that Mr Nash, on his arrival in London, would submit for the consideration of the United Kingdom Government the New Zealand Government’s policy as follows; — (1) The United Kingdom, with minor qualifications, would be ottered a full market in New Zealand for its manufactures and raw material, equal in value to the balance oi credits from the sale of New Zealand products in the United Kingdom after providing for (a) shipping charges, (b) invisible items, (c) debt services, and (d) a proportionate sum for the reduction of New Zealand loans in the United Kingdom. (2) If an agreement could be reached the United Kingdom in certain cases would he given the complete market in New Zealand for special manufactures of a type that were not produced in New Zealand. In special cases New Zealand would give preference to United Kingdom manufacturers or producers desiring to instal and operate plants in New Zealand for the production of commodities at present imported. (3) New Zealand’s secondary industries to be extended, but not bv reducing the total volume of United Kingdom export trade to New Zealand.

The purpose of the offer was set out to be the extension of trade between the United Kingdom and New Zealand to the maximum.

In return, for tho concessions to the United Kingdom, the Government asked the right for the expansion of the market in the United Kingdom for its primary products, particularly butter and cheese, meat, fruit, honey, etc.

The negotiations that had taken place in London, sakl Mr Nash, had centred round the points detailed above as submitted by cable. Tlie first discussions of urgency were those associated with beet, mu"tton, and Jambj which are referred to elsewhere. The main difficulty in . connection with the negotiations, which are still continuing, is the reluctance of the United Kingdom Government to admit expanding quantities of the Dominion’j primary products. The Minister said, however, that his answer to this, on behalf of the New Zealand Government, was that it recognised the difficulties that came to the nrimary producers when a market was Slutted, but it felt that it could not figree in general to the restriction or reduction of the production of any product that was necessary to human welfare.