HELP BRITAIN.

Auckland Star, Volume LXIX, Issue 296, 15 December 1938, Page 12

HELP BRITAIN.

DOMINION TRADE.

CHANGES EXPECTED. WII4L RIVALS SUFFER? AUSTRALIA AND U.S.A. Will Australia, Camilla and the United States suffer a heavy cut in their trade with New Zealand as a result of Govern- ✓ merit control ot trader Thin question is being asked by Auckland importers who have important trade connections with these three countries. Australia and the United States rank ■next to Britain in the Xew Zealand market, and Canada in in fourth place; but, unlike Britain, they buy only small quantities of New Zealand produce. The latest figures show the following position (the values being in Xew Zealand currency) : — Nine Months Ended September, 10;>8. Balance Imports from Exports to airainst N.Z. X. Z. .N.Z. K £ £ I niteil States !W4."so r..rti 17 Australia .. 1.."(!1L'.514 ."i.-lsi.-VH.' ::.S!i2,o - J.S Canada .. S*tl,«77 I'.siM.rr/T During tlie same perintl Xew Zealand's exports tn the I'nited Kiudom amounted to £40.-101,20.'!. ami imports from the L nited Kingdom Jl'l9,7'iS.;Wt>, giving a visible commodity balance in the Dominion's favour of How Trade Has Changed. This extraordinary contrast has been a teature of "New Zealand'* trade for many years. Jll ISWT. 'the proportion of exports sold to the United Kingdom wa« 70.3 per cent of the total, in K»3(i 80.2 per cent, iu 103."), 83.0 per cent, and in 1934 81.0 per cent. A considerable quantity of the produce, however, ultimately reaches European countries. Xew Zealand's imports from Britain during the past four years have varied 49.4 per cent and 51.3 per cent. In the same period the United States, "Australia ;jnd Canada have rapidly gained ground a*> suppliers of goods to New Zealand. These facts are expected to receive much attention from the Government, in view of the assurance eiven to the British Government that Xew Zealand fully recognises ite obligation to buy as much as possible from Britain. Statements made by the Prime Minister, the Right Hon. Si. J. Savage, have also created a feeling among importers that some change in the direction of the Dominion's trade is contemplated under the new licensing system, and that this aspect is prominent in the investigation which is -being carried out by the Government- before beginning the general issue of licenses. Issuing of Licenses. Applications for import licenses in Auckland now run into thousands and are mounting with such rapidity that it appears the Customs Department will be confronted with a huge task-if detailed consideration is to be given to each application. What if; thought to be more likely is that applications to import jftoin Britiiin will be quickly disposed of. "ana 1 that any restriction regarded-'as necessary will be almost entirely confined to non-British goods.

"The United' Kingdom market is our principal market, which builds up our 1 exchange funds," r=aid the Minister of Finance and Customs, the Hon. Walter Nash, last Friday, "and we shall do everything powible to develop that market. ■ There should be no danger of the United Kinjrdom being adversely J affected in any way." , Reciprocal Trade. ' Reciprocal trade Is Known to Tie one of the leading aims of the Government. It has been stated quite definitely that New Zealand's polirv will be to spend all the money obtained from export* to Britain, after meeting interest and otjier commitments, in the purchase of British j goods. As thiri will involve adjustments with other countries. to Britain's advantage, the opinion is growing that j the plans which are being formulated by the Government will give United Kingdom manufacturers a greater share in New Zealand orders. A possible effect of licensing is that, where an importer seeks a permit to buy from some other country goods which could be supplied by Britain, on satisfactory terms, his permit may be amended to assist British industry. This is regarded as one method by which import selection may be operated, without restricting the total volume of imports. Why Delay Licenses" for Britain? If preference ie to be given to Britain in the selection of <roods to be imported, why not.commence the issue-of licenses immediately and' so reduce to a minimum the dislocation in trade :that is being experienced at the present time? This is another of the questions which importers are asking. They point out that the lodging of orders to supply New Zealand requirements several months ahead is urgent. Among its other effects, a postponement until January may, in numerous instances, affect the delivery of essential materials from overseas, and seriously inconvenience local manufacturers. "Ahuge quantity of materials for ;New Zealand factories is imported from England and elsewhere," said an Auckland manufacturer this morning. "Last year imports of piece-goods, cotton, wool and silks alone amounted to over £4,000,000, and the bulk of this is processed in Dominion factories. It is essential to maintain our stocks of materials." . Soft poods and other manufactures obtained from overseas, explained a leading importer, were frequently made up according to specifications, and delivery could not be obtained until several months after the placing of orders. at this time would have j "a cumulative effect'." {