BARTERING WITH GERMANY

Press, Volume LXXI, Issue 21580, 17 September 1935, Page 10

BARTERING WITH GERMANY

Preliminary Enquiries In Auckland i ECONOMIST'S VISIT I I.THE PRESS Special Service. 1 I AUCKLAND, September 16. A preliminary investigation which may eventually lead to arrangements being made among Australia, New Zealand, and Germany for the exchange of goods and raw materials by the principle of barter is i being conducted by a German [economist, Dr. Franz Isphording, who arrived by the Monowai from [Sydney. Dr. Isphording is the representative of a number of German manufacturers in heavy in'dustries. He was formerly manager of the Bushire branch of the National Bank of Persia.

Although Dr. Isphording will continue his journey to-morrow, as he is anxious to return to Germany as soon as possible, he said he would be fully occupied during his short stay in Auckland discussing the possibilities that existed in New Zealand for barter trade with his own country. "The policy of the Minister for Economics and president of the Reichsbank, Dr. H. Schacht, is that Germany should not buy anything from foreign countries that she would not be able to pay for immediately," said Dr. Isphording. ' As we have no foreign exchange, and no gold left after all those reparation payments, almost the only way for us to do our foreign trade is on a barter basis. We are particularly anxious to increase our trade with Australia and New Zealand, and are quite willing to take the products of these countries in return for our goods. "The goods we have to offer include iron and steel, Diesel trucks, aeroplanes, electrical equipment, and machinery of all descriptions. We are prepared to equip complete factories in return for these goods. We are ready to take your raw materials, principally wool. "The buyers of German goods in Australia and New Zealand would pay their money into the banks, and with this credit the wool buyers would purchase wool for the German market. "We have no idea of going into competition with the industries of Australia or New Zealand, and will compete as little as possible with British goods which, after all, are protected by the Ottawa agreement." continued Dr. Isphording. "There are many things used in Australia and New Zealand that, are produced neither locally nor in Britain. There should be a way of making a good arrangement."