N.Z. TRADE WITH AUSTRALIA

Press, Volume LXXXII, Issue 24982, 17 September 1946, Page 8

N.Z. TRADE WITH AUSTRALIA

HIGH COMMISSIONER’S VIEWS ON PROSPECTS Some of the materials Australia wanted from New* Zealand were nam§d by Mr A. R. Cutler. High Commissioner for Australia, in speaking on further trade prospects between the two countries at the annual meeting of the Canterbury Employers’ Association yesterday. . Australia, he said, would want softwood timbers. lactose, seeds, whale oil, and paper pulp. All these were needed rather badly, and probably would be needed badly for a good many years. Australian forest acreage in proportion to the size of the country was'the poorest in the world, and New Zealand. with her forests, was the natural source.

New Zealand’s tendency to balance her economy by delving into the industrial field would also be an avenue for more raw material trade between the two countries. A further means of trade was provided by the exchange of capital and the formation of subsidiary companies in the respective countries.

New Zealand was aiso one of the world’s most blessed countries for diversified tourist attractions. In the past Australia had contributed a high percentage of the tourist traffic to New Zealand and would probably be one of the main countries sending tourists for some time yet Mr Cutler spoke earlier on the economic basis and trade history of the two countries and of industrial expansion <reported recently in “The Press”?

He emphasised that both countries depended on a small number of goods for their main export trade—wool, gold, butter and cheese, meat fruit, and hides and skins, with another, wheat, in Australia’s case. The six main items for New Zealand and seven for Australia constituted about 90 and 70 per cent, of the respective totals. Some commodities—timber, wooL animals, and seeds—were both exported and imported by the two countries. Australia again was the main buy*»r of another-range of commodities (though only a small part of New Zealand’s export economy), including whale oil. export fish, horses pumice stone, glycerine, and timbers. The proportion of overseas exports to national income (approximate figures) was rather amazing, Mr Cutler eaid. New Zealand depended more on overseas exports than any other country. the proportion to national income in her case being 34.7 per cent., against 20.9 per cent for Canada, 16.6 per cent, for Australia (1938-39 figures). 14 per cent, for Japan, and 10.3 per cent, for the United Kingdom. It was more significant that with Australia three commodities and with New Zealand two commodities accounted for more than 50 per cent of the income, their economies being easily thrown 6ut of balance by overseas fluctuations. Their trade dependence on Britain also meant a quick reflection of any changes in UnMed Kingdom conditions. Mr Cutler also spoke briefly on aspects of industrial expansion.