TRADE WITH AUSTRIA.

Auckland Star, Volume LXIX, Issue 180, 2 August 1938, Page 18

TRADE WITH AUSTRIA.

EFFECT OF NEW STATUS. NEW ZEALAND'S PROSPECTS. Possible effects upon New Zealand trade with Germany and Austria of the change in status resulting from Austria's absorption by Germany are discussed by Mr. G. W. Clinkard, New Zealand trade commissioner in Europe in a report to the Department of Industries and Commerce.

'"In view of the efforts which have already been made in Austria to encourage the production of meat and dairy produce," says Mr. Clinkard; "it does not seem probaliTe that the amalgamation of Austria and Germany will, in these commodities, provide the German Reich with important new sources of supply within her own boundaries. In dairy produce also improvements in production have been achieved, probably due-to the granting of direct and indirect linancia] aid from the Government, and in recent years Austria "ias been an exporter of both butter and cheese, largely to Germany.' ,

To satisfy Germany's demand for fats he thinks the whole' of the butter produced in Austria in the future will be retained for home use.

Austria's main purchases from New Zen hi m<l have been, he states, wool, hides and'skins, and apples, with minor quantities of kauri »um and a few other p-oduets, the total value being small. Now Zealand imports from Austria have included apparel, paper and cardboard. Prior in I!t3(i the balance of trade was favourable to Austria, but the increase in Austrian purchases of Dominion wool reversed the position in New Zealand's favour in 193« and 193". Mentioning; that Austria, with an area a little less than one third the size of New Zealand, has a population of (i."(l(l,(MKl, Mr. Clinkard says that only one quarter of the total area can be used for crop raising.