POST-WAR TRADE

Auckland Star, Volume LXXV, Issue 308, 29 December 1944, Page 6

POST-WAR TRADE

CONCERN IN BRITAIN

New Zealand Restrictions Discussed N.Z.P.A. Special Correspondent Rec. 2.30 p.m. LONDON, Dec. 2S. Inquiries into prospects of postwar trade between Britain and New Zealand indicate that there is readiness here to start as soon as wartime restrictions are lifted and what is equally important as soon as the New Zealand Government allows orders to be placed. Apart from essential exports which have been continued throughout the war to New Zealand in common with other countries, war needs and the short supply of labour have occupied all the attention of British manufacturers and Will continue to do so until the German war, at least, "lias ended. Britain is well aware of the necessity for regaining and extending her pre-war trade, and to this end 600 firms have already been allowed by the Government to plan for postwar trade, while plans are also being prepared for switching factories which are engaged in wartime production to peacetime work.

Market For Machinery To use a rather monotonous stock cliche, "There is still a war on," and until it is ended, Britain cannot turn individual attention to exporting. Comments received from various exporters on post-war British-New Zealand trade include such remarks as: "There is little to say at present because until the war is won Britain's export trade must take second place," and, "It is impossible to specify the difficulties that may be expected as these are entirely dependent on the attitude of New Zealanders towards their secondary and primary industries. If the latter are extended there will be a potential market for all types of machinery, most types of which would no doubt be available from this country. If New Zealand decides to assist the United Kingdom by maintaining the system of preference for imports from this country this will help considerably. We do not anticipate there being substantial difficulty in exporting from here. We must export, and as we shall require large supplies of food it is sincerely hoped that we shall be able to establish substantial reciprocal trade." It is re-empha-sised that the immediate prospects are not yet clear and cannot improve until the German war is ended. Concern Over Prohibitions There is, it must be admitted, as previously reported, some concern by British exporters at New Zealand's 1945 list of the complete prohibition of certain imports. The views on this subject of the Australian and New Zealand Merchant Shippers' Association, representing every class of merchant trading with Australia and New Zealand, were expressed by its chairman, Mr. D. Vernon Tomson. He said: "The association is very hesitant of complaining at New Zealand's attitude, particularly in view of its excellent war record, but we do view with apprehension this continual prohibiting of imports, which began before the war and has continued throughout it. It is particularly puzzling in view of the recent trade agreement whereby Britain is increasing her payments to New Zealand for primary produce." Mr. Tomson added that members of the association could increase exports to New Zealand considerably to-morrow if orders came from New Zealand and permission to export was given by the Board of Trade. There was no lack of shipping and no lack of manufacturing ability in Britain. But the present tendency of New Zealand apparently was, instead of increasing orders to apply further prohibitions. "We understand," Mr. Tomson added, "that Mr. Nash has been asked how long he intends to continue the restrictions, but that he has given no answer." New Zealanders in Reply The reply given to this view by New Zealand circles here is that the United Kingdom has raised its payments to New Zealand because, inter alia, the Dominion's costs in buying goods in England and elsewhere have increased. As regards the prohibition of goods, this is stated to be not so severe as might at first appear because a proportion is now being bought by the Government. For instance, .certain hardware is being purchased by it in conjunction with Consolidated Importeis, Ltd. It is remarked that it is true that there is no shipping shortage at present, but it could easily become a bottleneck'. It is also true that manufacturers in Britain could supply orders from New Zealand to-day —but so could they supply orders from all over Britain and from many other countries, but they are prohibited from doing so in order that the war effort may not be weakened by diverting short-supply labour to unessential work.