BRITISH TRADE WITH N.Z.

Press, Volume LXXXIV, Issue 25448, 20 March 1948, Page 7

BRITISH TRADE WITH N.Z.

EXPORTS WILL BE MAINTAINED

“SUPPLIES TO LIMIT OF IMPORT LICENCES”

„ LONDON, March 18. The President oi the Board ot Trade (Mr J. Harold Wilson), in reply to questions submitted to him to-day by the special correspondents of the New Zealand Press Association, E. G. Webber and A. W. Mitchell, said: “Britain does not intend or desire to reduce her exports to New Zealand except in certain marginal cases. She is already doing her best to give priority to New Zealand s essential requirements, and subject to the limitations of her capacity and the need to sell to certain hard currency areas, she is allowing British exporters to supply New Zealand orders to the limit of the import licences available.”

Questions and his answers, asked of Mr Wilson, follow. In view of the dollar shortage, and the necessity for Britain to increase her exports to the hard currency areas, does the Board of Trade desire to reduce the volume of British • exports to New Zealand and the other sterling Dominions?—As you know, we are having discussions with the New Zealand supply mission in London at the present time on this question. We are trying to see how far. over and above what we are already doing, we can help New Zealand to switch from dollar suppliers to get the things she wants here. Does Britain want to reduce the volume of her exports to New Zealand?— No. We do not intend or desire to reduce our exports to New Zealand, except in certain marginal .cases where there are particular goods which could be earning dollars to-day, but which may not be essential to the economies of the countries in question. Priority for Essentials If the Board of Trade does not desire to reduce British exports to New Zealand, is it giving priority to essential New’ Zealand requirements which cannot be obtained elsewhere?—We are doing our best in every single case, and the New Zealand Government has hot been backward in bringing forward individual cases in which it wants help. For instance, we have had a number of discussions about heavy electrical plant, and supplies of this equipment ordered by New Zealand have not been cut in order to suit our bilateral agreements with other countries. Nor, indeed, do we intend that they should be. We have been very careful, in making our agreements with Russia and Argentina, for instance to see that they do not interfere with our supplies to the Dominions.

What general priority is the Board of Trade giving United Kingdom exports to New Zealand and other sterling Dominions, as opposed to exports to the hard currency arfcas?—We do not work in this way. We have no Teague table’ for priorities. We do' have to allow special treatment for such hard currency countries as Canade, the United States, and Argentina, and to a certain extent South Africa, but it does not amount to absolute priority in every case. As a matter of fact, there is a considerable temptation for our manufacturers to send their goods to the Dominions, which they regard as their traditional markets, in preference to, say, the United States. New Zealand is one of these traditional markets.

N.Z. Import Restrictions Is the Board of Trade allowing British exporters with long standing markets in New Zealand to supply them to the limit of the import licences available?—Yes, subject to the limitations of our capacity and to the requirements of the four hard currency countries mentioned. For instance, we could not allow Imperial Chemical Industries to meet New Zealand’s requirements for soda ash to the full extent to which Nev/ Zealand was prepared to issue import licences. Thesame thing is true of textiles. The general textile requirements of overseas countries are so great that we could not meet New Zealand’s needs in particular. Commenting generally, Mr Wilson said it was the general aim that New Zealand and the other Dominions should as far as possible live within their current income in the matter of imports. By and large, however, there should be ho limitation upon the extent to which British exporters should meet orders from New Zealand within the bounds»laid down by New Zealand’s own import restrictions. Asked whether Britain “Would consider extending the bulk food contracts beyond the present term of two to four years, Mr Wilson said: ‘‘We have indicated our willingness to make longer term agreements with anyone who can fill our requirements. That does not mean, however, that we could fix longer contracts at the prices ruling to-day.” Mr Wilson said that, the suggestion that Dominion primary produce such as butter, which would earn dollars, might be sold to America to assist the general sterling area dollar pool, had been raised at the recent Commonwealth financial talks, but had not been proceeded with. Swiss-Soviet Trade.-—lt is officially announced that Russia and Switzerland have concluded a three-year trade pact—Berne, March 18,