UNDERTAKINGS BY MR NASH

Press, Volume LXXV, Issue 22769, 22 July 1939, Page 16

UNDERTAKINGS BY MR NASH

White Paper Issued In London BRITISH VIEW OF N.Z. POLICY No Objection In Principle (UNITED PRESS ASSOCIATION — COPTEIGHT.) (Received July 21, 0.50 a.m.) LONDON, July 20. The New Zealand Minister for Finance (the Hon. W. Nash) stated today that Britain had agreed to grant the Dominion a credit of £5,000,000 for for defence and other purposes. A sum of £4,000,000 had been allotted to private imports. The conversion negotiations were proceeding satisfactorily. A White Paper sta.tes:—“The United Kingdom Ministers recognise, in the circumstances, that some measure for reducing' the total imports under the recent abnormal levels is inevitable. They do not bbject in principle to the method which New Zealand has adopted, though they are conscious of the difficulties in individual cases which Mr Nash has undertaken to examine and do his best to meet. “The Government welcomes this assurance. It appreciates also New Zealand’s, intention to administer its policy as favourably as possible in relation to United Kingdom interests. “The Ministers have informed Mr Nash, however, that they are apprehensive of the permanent effects on the United Kingdom export trade of the policy designed to meet the temporary New Zealand difficulty. “Mr Nash undertook, as circumstances permit, to do his utmost by a relaxation of restrictions, to ensure the maximum expansion of United Kingdom-New Zealand trade, consistent with the maintenance of sound economic conditions in New Zealand and the Government’s obligation to existing industries. “He assured the Ministers that New Zealand did not intend to employ licences to protect New Zealand industry against reasonable British competition, but explained that difficulties arose where New Zealand had already incurred obligations by encouraging the establishment of industries requiring some measure of Import restriction in order to operate efficiently. “Mr Nash Is investigating the point on his return to New Zealand. Meanwhile, he has promised that similar protection will not be extended to other industries. He Has also agreed that licensing wilknot be used to foster uneconomic industries, “The New Zealand Government will invite the views of United Kingdom industries to assist it in determining what goods can be economically produced in New Zealand. “Mr Nash also gave United Kingdom interests the opportunity of undertaking the manufacture of particular kinds of goods where it is proposed to grant a limited number of licences. “The Ministers gladly noted the above assurances."

“SUM INADEQUATE” CREDIT FOR COMMERCIAL IMPORTS AUCKLAND, July 21. "There is no indication as to the period over which the £4,000,000 for commercial importing is to be spread,' said Mr W. A, Boucher, president of the Bureau of Importers, in a statement to-night. , . , He considered the sum to be inadequate, even for the period from July to December, and that it would be preposterous if it was intended to extend the money further, Mr Boucher said thgj; the assurance that licensing would not be used to foster uneconomic industries would be welcomed. . •’