RECIPROCITY.

Auckland Star, Volume LXVII, Issue 184, 5 August 1936, Page 10

RECIPROCITY.

WITH UNITED KINGDOM.

AIM OF GOVERNMENT. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday.

Discussing tile general question of trade between tlie United Kingdom and Xew Zealand, the Minister of Finance, Mr. Nasli, said the Dominion fully realised the right of Great Britain to safeguard the interests of her own producers and to increase her output of farm produce. New Zealand, too, faced the same necessity, and farming played an important part in her economy. "We fully realise the economic grounds and the reasons of national security in time of war, which British policy must take into account," said the Minister. He added that such a policy vitally affected the whole fabric upon which reciprocal trade between the two countries was based. In New Zealand natural advantages favoured agricultural industry, and if the Dominion's producers were deprived of an overseas market the efficient British marketing industry would lose its market and trade between the two countries would suffer. The more the country could sell abroad at an economic price the more it could buy. The efforts of the Government would, therefore, be directed to making reciprocal trade agreements. .The proceeds from the sale of a considerable volume ol exports would be used to meet New Zealand's debt commitments, and, secondly, for imports. There was no doubt that trade between the United Kingdom and New Zealand could be materially expanded, and it would be the aim of the Government to stabilise the existing trade relations and to ex- ( pand them. "Reciprocal trade agreements with the United Kingdom and other countries must not conflict with the natural development of the Dominion and the ncrht of its youth to creative work," added Mr. Nash. "We must extend our ' manufacturing and other industries. The Government realises the difficulty ; of the task in establishing new indus- j: tries, but sees no immediate way of ex-': tending the production of commodities that could improve the living standardsji of the people."