WHITE PAPER ISSUED IN LONDON

Wairarapa Times-Age, 21 July 1939, Page 6

WHITE PAPER ISSUED IN LONDON

Reported Undertaking by Mr Nash UNECONOMIC AND OTHER INDUSTRIES ; COMMENTS BY ENGLISH NEWSPAPERS ('Ey Telegraph.—Press Association. —Copyright.) (Received This Day. 12.30 p.m.) LONDON. July 20. Following on the announcement that Britain has agreed to a credit of £5,000.000 to New Zealand for defence and other Government purposes and that a credit of £4,000,000 been allotted for private imports, a White Paper states that United Kingdom Ministers recognise that in the circumstances some measure for reducing New Zealand’s total imports from their recent abnormal levels was inevitable and do not object in principle to the method New Zealand adopted, though they are conscious of the difficulties in individual eases which Mr Nash has undertaken to examine and do his best to meet. The Government welcomes this assurance and appreciates also New Zealand’s intention to administer the policy as favourably as possible in relation to United Kingdom interests. Ministers informed Mr Nash, however, that they were apprehensive of the permanent effects on United Kingdom export trade of a policy designed to meet a temporary New Zealand difficulty.

Mr Nash undertook, as circumstances permit, to do his utmost by a relaxation of restrictions to ensure a maximum expansion of the United Kingdom-New Zealand trade, consistently with the maintenance of sound economic conditions in New Zealand and the Government’s obligation to existing industries. He assured Ministers that New Zealand did not intend to employ licences to protect New Zealand industry against reasonable British competition, but explained that difficulties arose where New Zealand had already incurred obligations by encouraging the establishment of industries requiring some measure of import restriction in order to operate efficiently.

Mr Nash is Investigating this point on his return to Now Zealand. Meanwhile he has promised that similar protection will not be extended to other industries and has also agreed that licensing will not be used to foster uneconomic industries. The New Zealand Government will invite the views of United Kingdom industries to assist it in determining what goods can economically be produced in New Zealand. Mr Nash also gave United Kingdom interests an opportunity of undertaking to manufacture particular kinds of goods where it is proposed to grant a limited number of licences. Ministers have gladly noted the above assurances. The City editor of “The Times” says the agreement implies that New Zealand will take steps to curtail oversea expenditure and thus relieve pressure on available exchange from a long term viewpoint. The City editor of the “Daily Mail” says Mr Nash seemed tired and by no means confident that the credits would see New Zealand out of the wood, but the credits will avert the risk of commercial default. The “News Chronicle’s” City editor says Mr Nash’s acceptance must premise a genuine intention on New Zealand’s part to cut her coat according to her cloth. The City editor of the “Daily Herald” says the loan conversion is likely to be a short-term' public issue, repayable in 1941-5 with obligatory interim repayments. The “Herald” also considers that the agreement is not unreasonable, British manufacturers should not complain, as the credits will be spent in Britain. New Zealand stocks are certain to rise as the Dominion fully honour's its obligations to investors. Mr R. S. Hudson, Secretary to the Board of Trade, speaking at a Chambers of Commerce dinner, warned the Dominions that any curtailment of United Kingdom exports, on their part would reduce Britain’s capacity and willingness to go- ou buying, ami impair England’s economic strength at a lime when it was vital that it should be maintained in order to defend the Empire. ft is understood that the Dominions Office does not agree that New Zealand’s policy is consistent with the Ottawa Agreement.