The Wanganui Chronicle TUESDAY, FEBRUARY 21, 1939 TRADE WITH THE UNITED KINGDOM

Wanganui Chronicle, Volume 83, Issue 43, 21 February 1939, Page 6

The Wanganui Chronicle TUESDAY, FEBRUARY 21, 1939 TRADE WITH THE UNITED KINGDOM

decision of the United Kingdom to restrict meat imports raises the whole question of inter-imperial trade. Viewed from the immediate angle of exchange of goods, the United Kingdom has been very lenient, indeed, with New Zealand, and has witnessed the restraints put upon her imports into this country with remarkable patience.

During last year the United Kingdom received merchandise, practically wholly comprised of foodstuffs and wool from New Zealand to the extent of £48,899,000, which represented 83 per eent. of New Zealand’s exports, but the United Kingdom sold to New Zealand only £26/541,000, representing but 47.9 per cent, of New Zealand’s imports.

The United Kingdom is, therefore, in ;t position to dictate terms to New Zealand and it appears that in the future she will do so to a much greater extent than she has done in the past. On balance, it would appear that there is a balanec-of-trade in favour of New Zealand to the extent of some £28,899,000 and if this were so then it would probably cause the United Kingdom Government to take steps to secure for her merchants a larger measure of New Zealand’s purchasing.

The position is, however, subject to some qualification which affects it materially. In the first place there has to be provided an excess of exports to pay for the interest on debts, dividends on investments in New Zealand, the payment of banking and shipping and insurance charges, and these invisible items,-as they are termed, absorb in round figures some £12,000,000 in N?w Zealand currency.

The United Kingdom is also a great clearing market for raw materials and, consequently, the wool which goes to London is not by any means all purchased by English manufacturers. Americans, Germans. French, and Belgians buy in London and, by so doing, reduce, the total of retained imports from New Zealand. Notwithstanding the, foregoing qualifications, however, it is still true that the United Kingdom is New Zealand’s most important customer and, in respect *o foodstuffs, practically the only customer, for the United Kingdom is practically the only international importer of meat-foods. It is essential for New Zealand’s welfare that this United Kingdom market shall be preserved as free and as unrestricted as it is possible to maintain it. Not a few politicians in the past and some of the present day do not appear to realise the fundamental nature of that elementary fact of policy.