RECIPROCAL TRADE

Waikato Times, Volume 119, Issue 19892, 22 May 1936, Page 8

RECIPROCAL TRADE

GOVERNMENTS DESIRES. SEEKING BALANCED ECONOMY. MINISTERS STATE POLICY. WELLINGTON, Thursday. An assurance that nothing would be done to injure trade relations with the United Kingdom was given by the Prime Minister, the Right Hon. M. J. Savage, to a deputation from the United Kingdom Manufacturers and New Zealand Representatives' Association which ■waited on him to-day. With the Prime Minister were the Minister of Finance and Customs, the Hon. W. Nash and the Minister of Industries and Commerce, the lion. D. G. Sullivan.

Mr D. Hogg said that already merchants were becoming afraid to place orders overseas as they did not know to what extent their imports would be affected. Seasonal trade had to be arranged at least • six months ahead, and clarification of the Government’s intentions would be appreciated. It was felt that the protection at present afforded local industries was too high and that the best check on local costs was - a reasonable landing charge on imports, thus providing reasonable omImports, thus providing reasonable competition. Seoondary Industries. “ This association favours the development of secondary industries in New Zealand on sound lines,” said Mr Hogg, “ but we ask that the United Kingdom be given a fair opportunity to trade here. Restriction will jeopardise the disposal of £40,000,000 worth of New- Zealand produce.” Mr S. Cory-Wright said the association felt that Mr Nash would have a big job in selling New Zealand’s output in England unless the ships coming out were filled in the same way as the ships going to Britain. “We are going to ensure that to the extent that Britain will take goods from us we will take goods from Britain—what goods may lead to some discussion—after we have made the necessary provision to meet the service of our debt by way of interest or the gradual redemption of the principal,” said Mr Nash. "There will be no credit available for other people unless they take goods from us. If we cannot organise bilateral agreements with Britain, trade with Britain must decline. New Zealand's Aim.

“We say to' Britain that we will give Britain the maximum facilities provided it does not disorganise completely goods that can be manufactured here. There is no wizardry about it.”

Mr Nash added that there was no way in which New Zealand could progress along the lines that the Government was trying to make it progress except by extending the manufacture of goods in the Dominion. When New Zealand gave Britain the first chance —up to the present New Zealand had said that it would not make any new agreement with any country until it had first made an greement with Britain—that would give Britain a marvellous preference. New Zealand’s first aim was to extend its manufactures to give balanced economy. Secondly, to do all it could to ensure the maximum trade, both in exports and imports with Britain, and, thirdly to give what remained of the surplus goods to someone else. The only way of being paid for those was to take goods from someone else. “Commonsense Lines.” The Prime Minister said everyone would agree that trade with the United Kingdom could and must be extended. The question of the importation of goods from the East was the concern not only of New Zealand, but of the British Commonwealth as a whole. Some people believe that the problem could be solved by prohibiting the entry of such goods, but it was not as easy as that. Agreements must be arranged in a friendly fashion.

”1 have said before that we in New Zealand are prepared to stand or fall with the British people,” continued Mr Savage. ’’This means more than mere .words. It means that we are prepared to trade on commonsense lines. In the past we have sent Ministers to London to discuss trade problems, but they were back almost before they had gone away.

"I do not think it -is fair to blame them as incompetent, but they did not have their feet on the ground. While problems remain we should have representatives at work together until they are solved, even though it might mean months round the table.”