TRADE DISCUSSIONS

Manawatu Standard, Volume LVII, Issue 219, 16 August 1937, Page 5

TRADE DISCUSSIONS

WITH OVERSEAS COUNTRIES. FINANCE MINISTER’S INQUIRIES. A resume of his trade negotiations in many countries, apart from Britain, was given by the Minister of Finance and Marketing (Hon. W. Nash) on his return to Auckland from his trade mission abroad: “Following the difficulty expressed by the United Kingdom in determining its agricultural policy and the possibility of not being able to conclude the negotiations prior to the necessity for my return to New'Zealand.” said Mr Nash, “I discussed the matter with the United Kingdom Ministers as to the opening of negotiations with overseas countries and then, with their goodwill, subsequently visited Germany, Russia, Denmark, the Netherlands, and France, while, on the return voyage to New Zealand, trade discussions also took place with Canada. the United States and Panama.” GERMANY. On an approach bv German officials, who emphasised the possibility of trade between the two countries being extended. Mr Nash had, toward the end of April, visited Berlin and engaged in trade discussions with the German Foreign Office, which had led to a tentative agreement which, after submission to Cabinet and Parliament, would he published.

The agreement covered both the procedure to determine the trade as between the two countries and also a payments agreement which provides that the whole of tho credits available from New Zealand purchases from Germany shall be expended by Germany on the purchase of New Zealand products. The negotiations at Berlin were continued in London and finalised the day prior to Mr Nash’s departure for Canada. As a result of the arrangements it should he possible to find a market in Germany for considerable quantities of New Zealand butter and fruit. In considering the goods to be imported from Germany care has been taken not to in any way prejudice New Zealand industries nor*'to reduce the preferential margins to the detriment of the United Kingdom. FRANCE. During a visit to Paris on June 30, said Mr Nash, he had exchanged views with French officials which should provide a basis for a trade agreement between France and the Dominion. France is already a very good customer of New Zealand in respect of wool, and it seems probable that a market can ho found in that country for other products, particularly fruit. The position is further to he explored with a view to the possible conclusion of a trade arrangement which will provide a mutual expansion of trade. DENMARK. “The necessity to visit the Continent for the purposes of trade discussion with Holland, to which commitments had been made, gave the opportunity to make a week-end visit to Copenhagen, where inquiries were made into conditions in the Danish dairy industry, and more especially into the exchange and import control procedure in operation in Denmark. “Following our arrival at the Copenhagen airport on the afternoon of Sunday, June 27, a visit was paid to a largo dairy farm devoted to the supply of fresh milk to Copenhagen, we were accompanied on the visit by Mr Molteson, of the Danish Agricultural Council, from whom much valuable ana interesting information was obtained respecting the conditions under which dairying in Denmark is conuucted. “A feature which attracted attention was the sight of some 20 cows, tho best milkers, in stalls in a barn where they are fed and milked four times a day. This was said to be the practice for the first month or so of milking. All milking is done by hand. Vigorous efforts are being made to eradicate tuberculosis from cattle m Denmark. A visit was also paid to a large dairy factory, a small dairy factory, and ‘a large bacon-curing fac“The discussions with the director and secretary of the National Bank in regard to tlie procedure m connection with exchange control were most helpful and much useful data has been supplied in connection with the matter which is the subject of a special report to the Government: ‘ RUSSIA.

“The discussions which took place in Moscow with the Commissar of l’oieign Trade, and also with officials of that department, indicated that, while the possibilities of extending the sale ot New Zealand products in that market were limited by the fact that Russia is herself an important producer of goods of the class generally exported bv New Zealand, nevertheless it seems probable that a market may be found for a number of New Zealand products, of which may be mentioned wool hides, sheepskins, rablntskins, and stud sheep. An investigation into the possibilities of this trade is being made by the Russian Foreign Trade Department. . , During the visit certain aspects ot internal trade were also inquired into, including the planning of industrial undertakings and price fixing. Information was also obtained respecting import and export procedure.” IRISH FREE STATE.

The question of the negotiation of a trade agreement with the Irish Free State has been under consideration for some years. New Zealand enjoys quite a fair direct trade with the Irish Free State, while a considerable quantity, of apples is supplied ex United Kingdom shipments. Imports into New Zealand from the Irish Free State are small and the balance of trade is largely m the Dominion’s favour. A discussion on the question of trade between the two countries took place in London between Mr Nash and Mr Dulanty, High Commissioner in London for the Irish Free State. The latter country is anxious that certain products should bo admitted on the same basis as similar products imported into New Zealand from the United Kingdom. A promise was given that the whole matter ivould be looked into after Mr Nash’s return to New Zealand. * PANAMA.

The three days spent in Panama awaiting the arrival of the Mataroa were fully occupied in exploring the possibilities of increasing the sale ot New Zealand goods, both in the Panama Republic and in the Canal Zone. Discussions were held with Panama Ministers concerned with trade and also with the principal traders interested m the purchase of New Zealand goods. Interviews were also l had with the Governor of the Canal Zone and the Commissary officials. These contacts proved most valuable and, as a result of the information exchanged, it seems probable that an outlet can be found tor increased quantities of New Zealand products ill those territories. the items which commanded most attention were butter, fruit and powdered milk, but there are other items ot minor importance which also offer some possibilities of trade. It was particularly pleasing to note the high reputation enjoyed by New Zealand products.

A further question which qame under consideration and which will be further explored is the possibility of using Panama as a base for the shipment of New Zealand produce to Costa Rica, Honduras, Trinidad and other countries with which trade is restricted through lack of direct shipping facilities. SOUTHERN RHODESIA. The possibility of developing trade between New Zealand and Southern Rhodesia was gone into very closely with the Controller of Customs for Southern Rhodesia, who was -visiting London as a delegate to the Imperial Conference. New Zealand already enjoys a small trade with Rhodesia in a number of items, the chief of which are Glaxo, hops, seeds and dairy appliances. There is little scope, however, for the development of any material volume of trade with that country. BRAZIL.

Last year, 1936, the Government of Brazil, in conformity with its decision to denounce all commercial treaties and to replace them by new treaties, gave notice of its intention to denounce the agreement with New Zealand, which had been concluded by an exchange of notes in 1932 and guaranteeing mutual most favoured nation treatment. As a result of' negotiations conducted from London through His Majesty’s Ambassador at Rio de Janeiro, Mr Nash had arranged for a continuation of the existing position. New Zealand enjoys a fair trade with Brazil in apples, the free entry of which is thus assured. PALESTINE.

While in London Mr N as h discussed with Dr. Z. Brodetzky. representing the Jewish Agency for Palestine, the question of reciprocal trade between New Zealand and Palestine, with particular reference to the possibility of establishing in Palestine a market for New Zealand batter. At the same time consideration was given to the possibility of shipping citrus fruits from Palestine to New Zealand. On the evidence available it would seem in the meantime there is little prospect of developing this trade. On the one ' hand it is difficult for the high quality New Zeala.nd butter to compete with cheaper butter imported from other countries, principally Baltic countries, and on the other hand there is difficulty in arranging for shipment of fruits from Palestine to New Zealand owing, it is stated, not only to high freight rates but also to the problem of securing space on outbound steamers through this having already been fully taken up by loadings at United Kingdom ports. UNITED STATES OF AMERICA. Mr Nash’s visit to the United States was made with the primary object of discussing with the Government of that country tlie question of trade between New Zealand and the United States, although opportunity was also taken to make contact with traders in New York handling New Zealand products. The trade discussions were held at Washington, and occupied the major portion of three days, during which time-'Mr Nash bad interviews with Mr Roosevelt, the President, and Mr Cordell Hull, Secretary of State, as well as with the head of tlie Commerce Department.

The whole position of trade between New Zealand and the United States was thoroughly explored, and it is hoped that in due course it lna.y he possible to enter into negotiations which will result in the conclusion of a trade agreement between tlie two countries that will expand trade both ways. “There is,” said Mr Nash, “a potential market in the United States for New Zealand primary products.” CANADA. Following upon the discussions which Mr Nash had at Ottawa with Hon. W. D. Euler, Canadian Minister of Trade and Commerce, while en route to England in November last, arrangements were made by him to return via Canada in order that further discussion could take place on the subject of trade agreement between New Zealand and Canada. Mr Mackenzie King, Prime Minister of Canada, and Mr C. Dunning, Canadian Minister of Finance and Customs, were passengers with Mr Nash in the Empress of Britain, and this presented an opportunity for useful talks on the subject. Tho two full days which Mr Nash stayed at Ottawa were fully taken up with discussions between Mr Nash, Mr Euler and officials. Mr Nash said that, although lie was not at the moment in a position to give details, he considered the results of the negotiations satisfactory, and an announcement in connection with them will be made at a later date. NETHERLANDS.

The question of the negotiation of a trade agreement with the Netherlands 'has been under consideration. The balance of trade has been in favour of that country, figures of direct trade for 193 G being Exports to the Netherlands, £111,000; imports from the Netherlands, £210,000. In addition, imports, mainly oil, from the Dutch East Indies, amounted to £l,721,000. New Zealand’s exports to the Netherlands comprise largely wool and hides and skin 3, but a useful trade is also enjoyed in apples, Holland being also a distributing point for a number of Continental countries. Up to the present, New Zealand apples, to a limited quantity, have been admitted into Holland on the most favourable terms, including remission of a portion of the monopoly tax. As a result of a visit to The Hague and negotiations with Dutch Ministers, the negotiations will, it is hoped, secure in due course a continuation and expansion of this treatment, as well as favourable treatment for other products.

The negotiations have reached a stage where the conclusion of an agreement can be proceeded with, subject to the clarification of one or two minor points. “During the negotiations with the various countries,” said Mr Nash,

“the importance of providing for an extended market for New Zealand fruit was kept well in -mind. When finalised, the agreement with Germany should open up a market for apples in that country. It is hoped to secure also the entry of increased quantities of fruit into the Netherlands. France also appears to offer a potential market. In addition, the investigations carried out at Panama indicated definite possibilities for the placing of larger quantities of New Zealand apples in that area.”