MORE FLEXIBLE.

Auckland Star, Volume LXXI, Issue 90, 16 April 1940, Page 4

MORE FLEXIBLE.

CONTROL OP IMPORTS. WEAKNESSES OF SYSTEM. PROPOSAI>S FOR CONFERENCE. Importing problems arising from the effects of war conditions on New Zealand and the tightening of Government control in the Dominion will be examined from a variety of angles at the conference of importing and business interests to open in Wellington next Tuesday. It is expected that, in view of the complexity of problems affecting trade, the conference may occupy two days. More flexibility in the system of control is regarded as essential, according to representative Auckland importers. Among the proposals which will be put forward will be one aimed to enable merchants to transfer licenses from one country to another in cases where unforeseen developments, such as a spread of the war areas, cut off existing sources of supply, and another proposal will be the extension of the term of import licenses. Experience of six-monthly periods has proved irksome in many ways, and on each occasion some extension of the term lias been necessary. Licenses for the third period have been extended to a currency of twelve months, and it is known that the Reserve Bank authorities prefer an annual basis for the allocation of funds. Seasonal factors enter so largely into the Dominion's trade that any period of less than 12 months would be considered unsatisfactory, even in normal times, and is described as quite unworkable in war. European sources of supply have been greatly reduced in the past few months, and particularly since the spread of the war to Scandinavia and the increased tension in the Netherlands and the Balkans. Therefore, merchants are compelled to seek alternative sources for various cla«ses of goods. It is felt anyfurther contraction of trade should be anticipated by allowing freedom to transfer foreign orders in the first instance to Britain, next to other British countries, and finally to alternative foreign countries, and that more time should be allowed to obtain the delivery of orders. Importance of New Markets. Linked with the question of imports is that of exports. It was suggested recently that increased effort® should be made to find new markets to replace those which have been lost, and the Minister of Marketing, the Hon. W. Nash, was urged by the Bureau of Importers to explore the possibilities of a reciprocal trade agreement with the United States, under which the exchange of goods between there and New Zealand would be increased. Point is made of the desire of America to maintain her commerce at a time when a large proportion of the dollar purchasing power of Britain and her allies is being diverted to war materials, and the favourable attitude of the United States Secretary of State, Mr. Cordell Hull, where reciprocal trade ajrreements are proposed is also pointed out. Prominence is likely to be given at the conference to the need of maintaining the Dominion's trade with Britain at the maximum level, and considerable comment is anticipated on the restrictions imposed on various British goods ill the latest Customs schedule. The trend towards the socialisation of business in New Zealand, as distinct from the measures made necessary by the war, will be considered, and the effects of the curtailment of trade upon employment, through the closing down of numerous firms, and the contraction of others, will be discussed.