TWO-WAY TRADE.

Auckland Star, Volume LXV, Issue 149, 26 June 1934, Page 11

TWO-WAY TRADE.

CRISIS LESSONS. PAYMENT FOR EXPORTS. RECIPROCITY THE NEED. One of the economic needs of the moment is the establishment of twoway trade between New Zealand and the United Kingdom, according to a statement issued to-day by Mr. J. Hislop, vice-president of the Auckland branch of the Reciprocal Trade Federation, and president of the United Kingdom Manufacturers and New Zealand Representatives' Association. "Our political leaders are obseseed with the idea that the exchange of Auckland potatoes for Dunedin cheese is altogether different from the exchange of New Zealand butter for British boots," said Mr. Hislop. "The fact that the goods come 1000 miles from Dunedin to Auckland, instead of 12,000 miles from Great Britain to New Zealand, has no significance, and makes no difference in the advantages that the free exchange of these commodities has for both the buyer and seller. Therefore it is a fallacy to claim that when a nation's exporting figures are a great deal higher than those of ite importing trade, such a nation ie in a, better position than her trading- neighbour. In fact, the reverse is more correct.

America's Recognition. "The crisis has surely taught all countries that the impoverishment of their neighbours by restricting their trade has an injurious 'boomerang , effect. If we have learned any lesson, it is that; and evidence ie surely outstanding 'in the United States of America —tho greatest offender against international trade —which hae at last recognised that she cannot progrese herself unless she helpe the progrese and development of other countries. Power has now been vested in her President to negotiate reciprocal trade agreements with all countries of the world.

"It is to be hoped that thie will be the beginning of similar action by all other nations, because immediately these reciprocal agreements make themeelves felt, the gradual pulling down of the tariff walls between all countries to pave the way for the rc-establishment of two-way trade will start.

Lead to Recovery. "Duo to the apathy, selfishness and ignorance on tho part of the delegates who attended the Ottawa Conference, the British Empire has been superseded by the United States of America in giving thie lead to international trade recovery. Ottawa gave to the British Empire a wonderful opportunity to eet an example, and thereby lead the world out of its morass of trouble. The great appeal of His Majesty the King in his opening address may with profit be recalled: 'The British Empire is based on the principle of co-operation, and it is now your common purpose to give the fullest possible effect to that principle in the economic sphere. By eo doing you will set in motion beneficial forces within the British Comonmwealth. which may well extend their impulse also to the world at large. ... I pray that you may be given clear insight and strength of purpose for these ends.' "Accordingly," Mr. Hislop added, "it is of the utmost importance that we should establish between Great Britain and New Zealand a two-way trade. If thie is not done, people should realise that they do not get paid for the exports—the fruits of their own labour."