PROPOSALS BY U.S.

Press, Volume LXXXI, Issue 24745, 10 December 1945, Page 4

PROPOSALS BY U.S.

“IMPORTANT STEP TO COLLABORATION ”

COMMENT BY MR NASH (P.A.) WELLINGTON, December 8. - “The New Zealand Government regards the publication of proposals put forward by the United States Government as. a basis for discussion at the International Conference on Trade and Employment as an important step towards economic collaboration among the nations,” said the Minister of Finance (the Hon. W. Nash) to-day. Mr Nash said the - nations realised that their responsibility extends to removing economic and social causes of war. This was recognised in the Atlantic Charter, the economic objectives of which found practical expression in Article 7 of the Mutual Aid Agreement between the United Kingdom and the United States, to which the New Zealand Government has subscribed. “Discussions between United Kingdom and United States officials as tc the best method of giving effect to the provisions of Article 7 have been in progress over a considerable period, and New Zealand,, in common with other Dominions, has been kept fully informed concerning these discus--sions,”. continued Mr Nash. “Thfe New Zealand Government notes with particular satisfaction that the importance of the policy of full employment in each country finds a prominent nlace in the United States draft. * * ‘!Full employment and the stimulation of international trade are complementary. One cannot be achieved without the other.” Mr Nash said New Zealand, as a country with the highest per capita trade in the world, fully appreciated the importance of international trade as a means to her own and world prosperity. • * Discussion Welcomed “It is, therefore,” he said, “hardly necessary to say the New Zealand Government welcomes the opportunity' created by the United States to discuss means of improving world trade.” Mr Nash said it was too early for detailed comment on the United States draft. He was arranging for publication in full of the text as soon as it was received to enable jts study by everybody. While New Zealand could subscribe to the broad objectives outr lined in the draft, it was clear that New Zealand’s economic circumstances differed in many respects from those of the great industrial countries. Methods to attain objectives for highly industrialised countries might adversely affect N6w Zealand and other countries similarly placed. ' New Zealand was relatively undeveloped industrially and had not the same capacity to modify or eliminate protective measures as did fully industrialised countries such as the United Kingdom and the United States. This would have been taken into account in determining New Zealand's attitude to the United States proposals and in endeavouring to formulate a set of principles and rules which would be equitable to large and small countries alike. “Regarding tariffs and preferences, it should be observed that although all margins of preference are to be legarded as open to negotiation,” said Mr Nash, “the procedure proposed allows for the fact that the reduction or elimination of preference can be considered only in relation to, and in return for, a compensatory reduction in tariffs and other barriers to world trade in general. Position Safeguarded “The position of the United Kingdom and the Dominions is therefore adequately safeguarded, and there is no question of unilateral surrender of the system of Imperial preferences. “Any modification would be linked to tariff reductions by other countries, particularly the United States, which it is hoped will result from negotiations next year. Nevertheless any modification of the system of preference which may possibly have adverse effects on the stability of the New Zealand export trade is a matter of serious concern. The importance of this subject to New Zealand is associated with the fact that the greater part of our national income is derived from the export of a narrow range of farm products, sold predominantly m the United Kingdom. “On the import side, preferences granted by New Zealand are also'important. . They limit to some extent competition from outside sources, thus protecting our industries. There is also a strong sentiment among all New Zealanders 'that everything should be done to maintain British exports in New Zealand, ‘(There is also a practical reason'because in the last analysis it is the export of commodities from 'Britain which enables her people to sustain the demand for New Zealand's exports.” In any future discussions on Imperial preferences, said Mr Nash, full weight would be given these considerations. The Government was anxious to foster and expand the flow of mutual trade between New Zealand and the United Kingdom, but this did not mean that New. Zealand desired to establish exclusive channels of trade.. Expansion of Trade “On the contrary, we are anxious to expand the volume of our trade with other countries, notably the United States. Sueh trade must, of course, be two-way trade, and New Zealand will welcome any arrangements to expand world trade. "As Mr Attlee has stated, the Dominions are not in any way committed by the discussions between the United Kingdom and the United States. New Zealand will have complete freedom of action in the international discussions and opportunity to present our case in the light of the particular effects on our own economy,” said Mr Nash. ‘ Meantime the fullest attention would be given the principles and details of each proposal as it affected New Zealand both in respect to its external trade and in respect to the Government’s intention to create conditions fostering full employment within the Dominion. 7 =