POST-WAR TRADE

Auckland Star, Volume LXXVI, Issue 27, 1 February 1945, Page 6

POST-WAR TRADE

BRITAIN'S PART

DOMINION QUOTAS SUGGESTED Post-war exports from Britain to New Zealand were the subject of voluminous correspondence read at this morning's meeting of the Auckland Chamber of Commerce. A copy of a letter dated October 19, 1944, and written to Mr. Hugh Dalton, president of the Board of Trade by the Federation of the Chambers of Commerce of the British Empire, stated that Mr. A. O. Heany, secretary of the Associated Chambers of Commerce of New Zealand had returned to New Zealand and reported that he had been informed in Australia on good authority that the United Kingdom was likely to quota Dominion markets for four or five years after the war.

This impression, which undoubtedly existed both in New Zealand and Australia, was extremely detrimental to Britain's prospects of recovering its trade to those countries, said the federation's letter. The impression was leading to the establishment of industries in New Zealand which would never be set up if it were thought that Britain could supply New Zealand's needs within a reasonable time after the war.

The letter said the failure of the British Government to make any pronouncement as to its policy left the associated chambers in a weak position to resist the establishment in New Zealand of unecomonic industries. An example was that the New Zealand Government was calling for tenders to manufacture builders' hardware for the State housing programme on the ground that Britain was unable fully to meet their sponsored orders. The Associated Chambers of Commerce of New Zealand had asked the federation to attempt to obtain promptly a statement of British Government policy with respect to exports of manufactured goods to New Zealand in the post-war period. In the absence of any pronouncement it was apparently being stated in New Zealand and Australia that Britain would be unable to supply the export needs of those countries for five years. The federation was convinced that to continue the policy of official silence was laying Britain open to damaging rumours by competitors and others.

United Kingdom Policy

In reply, the federation received an official communication from the Board of Trade dated November 8, 1944, stating that during the war the needs of the war had had first claim on men, materials and machinery, and exports had of necessity been restricted to the minimum essential requirements of Empire and Allied countries. The question of wartime exports must, however, be clearly distinguished from the question of exports after the war. The shortage of builders' hardware was instanced, the letter stating that restrictions had been applied as stringenly to requirements for home use as to export requirements and were now being relaxed.

It was the policy of the British Government to relax all restrictions on export as rapidly and extensively as her supply position of each commodity made possible. The board could not forecast the exact time when supplies of various commodities would improve and make possible the relaxation or abolition of the restrictions because that depended on a large number of factors at present unknown, which would vary according to the commodity. In virtually all cases, however, it was expected to be a much shorter period than the four or five years mentioned by the secretary of the Associated Chambers of Commerce of New Zealand. That period did not represent an official forecast of the British Government and had no official authority whatever. Placing of Orders It seemed reasonably certain, continued the letter, that the supply position for some kinds of semimanufactured raw materials and for many consumer goods and engineering products would improve fairly rapidly, and that it would, therefore, be possible either to remove restrictions on their export entirely or to administer such restrictions with much greater flexibility. In the circumstances there was every advantage in Australian and New Zealand importers placing post-war orders in the United Kingdom for delivery as soon as the supply position permitted. It was hoped that importers would not be deterred by wild rumours that the United Kingdom would not be able to meet the export needs of the Dominions for five years. During the period of the Japanese war there would, of necessity, continue to be a shortage of certain kinds of really essential goods, and for such goods—textiles— it would be necessary to maintain supply and export controls. At the end of the war the potential productive capacity of the United Kingdom would be considerably greater than it was in 1939, and Britain's need to export would be greater.

New Zealand Policy

In acknowledging letters from the Associated Chambers of Commerce of New Zealand, the Minister of Finance, Mr. Nash, said the policy of the New Zealand Government with regard to imports from the United Kingdom was well known, and that that policy would continue unless and until conditions warranted a change. At present the Government intended to co-operate with the United Kingdom Government in every way that would be beneficial to the United Kingdom, the British Commonwealth and New Zealand. The correspondence was received and it was decided to ask the Minister of Finance to assist by way of relaxing the present policy of import licensing.