New Zealand's Import Trade

Press, Volume LXXVI, Issue 22910, 5 January 1940, Page 6

New Zealand's Import Trade

-.When the import regulations were first imposed they were partly justified by the Hon. ,W. Nash on the grounds that such restrictions would greatly ease the task of import selection. As a result of the regulations, he said—- . they aimed at reducing the total volume of imports by the elimination of non-necessary lines—not less, but more would be purchased . from Great Britain because of the remaining f trade a greater proportion would be diverted ; jto her from other countries. _. These expecta- ' tions have not been fulfilled. " Not only has the total volume of imports "dropped only hesitatingly, but as between the sources of New S* Zealand's import trade there has been no redistribution in Great Britain's favour. Figures, for tlie last six months for which statistics are available are given in the following table:— i Great Aus-

! During last October, imports from Great Britain [- actually fell as a percentage of all imports from | 47.3 to 38, while those from Canada and the .United States rose respectively from 7.3 to 8.9 and 11.0 to 14.3. This would be a sufficiently f serious development in time of peace, spelling „ gs it does a miscarriage of the Government's ' ferlous because the failure to divert import " trade to British outlets means that the drain

on dollar exchange Is unchecked. At a time when the purchase of supplies :n the United States has become all-important and it is impossible for the Allied Governments to raise loans in American money'the conservation of dollar exchange has become a prime necessity. Under present arrangements, New Zealand has no dollar exchange of her own and to purchase her imports in America and elsewhere, New Zealand must draw from the supplies of foreign exchange the British Government has built up and is carefully husbanding. The. need for the New Zealand Government to reduce imports from countries other than Great Britain is urgent if the intention is to co-operate to the fullest extent in the Allied war effort.

\ 1939. Britain. trajda. Canada. U.S.A May • .. 47.4 . 13.4 5.6 14.0 June .. 48.4 12.6 10.6 10.8 July .. 47.7 13.1 8.1 10.5 , August .. 53.4 12.7 6.5 11.2 / September .. 47.3 11.3 7.3 11.0 October .. 38.0 17.0 8.9 14.3