TRADE CONTROL

Wairarapa Times-Age, 18 January 1939, Page 7

TRADE CONTROL

OUTLINE OF GOVERNMENT POLICY FINANCE MINISTER STATES MAIN OBJECTIVES. UTILISATION OF NATIONAL RESOURCES. WELLINGTON, This Day. (By Telegraph—Press Association.) The general policy of the Government in regard to the control of imports is set out by the Minister of Customs, Mr Nash, in a letter to the Associated Chambers of Commerce of New Zealand. In the letter, written in response to inquiries forwarded to the Minister after the announcement of the regulations in December, Mr Nash states that it is not' possible to indicate the period during which the regulations will remain in operation. “The drain on sterling funds occasioned by over importation, and the export’ of capital rendered it necessary for the Government to assume control of external exchange,” the Minister writes.

“Control of exchange to enable the Government to meet its commitments and to safeguard the credit of the Dominion inevitably means the regulation of imports. Regulation of imports will alter the normal run of trade as it is imperative to ensure that after providing- for debt commitments funds are first available for essential commodities.

“It is difficult absolutely to define essential commodities, but among the classes for which funds would be specially allocated would be the raw ma ; terials necessary to stimulate primary production and extend our manufacturing industries. To provide the security and continuity of demand to manufacturers who are entering into the production of commodities at present imported, they will be given the maximum measure of protection so long as they supply commodities at reasonably economic prices.

“It is not possible to state any period during which the regulation will continue—but accepting the overriding necessity of regulation on account of the emergency the main objectives of the Government will be: — 1. To ensure availability of funds to meet its overseas debt commitments. 2. To allocate funds for the importation of commodities essential to the trade and development of the Dominion.

3. To maintain the standard of living in the Dominion by the extension of production and manufacture to those commodities which can be produced in the Dominion, and which were previously imported. 4. To safeguard the market in the Dominion for manufacturers who engage in the production of commodities which can be sold at reasonably economic prices.

“The major Government objective is to utilise the resources of the Dominion in maintaining and extending the standard of living of all our people. To do this we must extend production primary and secondary within the Dominion to its fullest extent, while at the same time giving the maximum trade preference to our best customer, the United Kingdom. This preference to the United Kingdom will not retard our efforts to extend trade with other countries where a market can be obtained for our primary production, and where commodities can be purchased that are not produced in, or will not unduly ill-effect our trade with the Mother Country.

“From this statement you will realise that the policy has a large degree of permanency —but that instead of reducing it can, by linking up regulation with expansion, lead to a greater exchange of commodities between the Dominion, the United Kingdom, and other countries.”