TRADE WITH THE UNITED KINGDOM

Auckland Star, Volume LXXVI, Issue 120, 23 May 1945, Page 4

TRADE WITH THE UNITED KINGDOM

AS a result of the dissipation of many of her overseas assets to pay the ri >: ..' price of victory Britain will have to rely as never before on her ic/i' ex P° rt trade-to meet the cost; of the foodstuffs she must import. Her ~ wi *~ returns from shipping freights, because of lost tonnage and America's <?o"f greatly increased mercantile marine, will not provide the compensating aru balance which they did in pre-war days, and consequently she will require still further expanded markets for her manufactured goods. New Zealand finds its greatest market for butter, cheese, meat and wool in Britain, and her capacity to pay is therefore of special interest to us. We nave ATV.. embarked upon a policy of local manufacture, which necessarily reduces him, Britain's export possibilities. That policy must continue because we '^ '. . cann °t provide employment for our population without it, and British r,' r ' nr : manufacturers have .no quarrel with us on that point. What they do - resent, according to their representations to Mr. Holland on the spot, is - the usie of the control system to give local manufacturers a complete /.monopoly by the refusal to issue licenses for the import of some lines of goods which are made here. That complaint has justification. A local _-:..,: manufacturer who cannot produce at a price which will compete with overseas goods, which pay very high tariff, charges, freights (which have during the war), and the exchange which must be paid on any profits arising from the sale, does not deserve the added protection of a 12 ■;: -.monopoly, enabling him to make a profit however uneconomic his ~;.L, methods: Some of the prohibitions; no .doubt,' have been put on to enable Z?u '., manufacturers to make a start, but they should not be continued after .•.,,.\; the firm establishment of any industry. : Assurances were given by Mr •;-—Nash that the Ucense system would not be\ used to deprive British " T manufacturers of the right to compete on reasonable terms in, our market There is little to indicate that the Finance Minister is honouring that — - assurance, and unless it is made clear that he will do so unfavourable """,' reactions may result. Further, one-way trade is uneconomic If the :'zz\ ships which carry our produce Homecbme out empty or half-empty - ?- freights wiU.take a still higher turn, for the round voyage must be made :n , 5 to pay, and we may find that,our butter and meat cost too much in ~/., London to sell on an.equality with their competitors: If a reorientation •rj ■ of policy is called for, Mr. Nash should have the courage to make if if S he mtends *> continue on his present course, it is only fair to the overseas o j manufacturer that he should say so.< ' *