DOLLARS FOR TRACTORS

Press, Volume LXXXIV, Issue 25554, 23 July 1948, Page 8

DOLLARS FOR TRACTORS

FEDERATED FARMERS’ SCHEME REPLY TO “ THE PRESS *’ EDITORIAL In a reply to a leading article in “The Press” on July 15 about the Federated Farmers’ scheme for importing American tractors to New Zealand, the chairman of the Action Committee of the Federated Farmers of New Zealand (Mr R. G. Buckleton) states that he is unable to understand how “The Press” has “manag ed to confuse the scheme, which Federated Farmers have submitted to the Government, with the present dollar deficit which exists in trade between the United States of America and the sterling area.” „ “You stated in your editorial, writes Mr Buckleton, “that Federated Farmers’ scheme for purchasing tractors from the United Stales or America ‘was one isolated trade transaction on special terms, the utility of which could only be decided by studying its relation to trade transactions as a whole.’ “May I point out that Federated Farmers is in no way endeavouring to solve the dollar deficit as this is a matter for Governments to solve, not organisations like Federated Farmers. “What Federated Farmers is . endeavouring to do in its scheme is to purchase those tractors from the U.S.A., which are not manufactured in the United Kingdom, without in any way increasing or decreasing the dollar deficit which already exists in current trade between the U.S.A, and New Zealand, and between the U.S.A. and the sterling area. In other words, Federated Farmers does not desire m any w r ay to interfere with existing trade between the U.S.A, and New Zealand, or between the U.S.A, and the sterling area. “In the first instance the 10,000,000 dollars worth of tractors will be financed by a loan from the Bank of America. The credit from the bank will be repaid over a period of four years, by exports from New Zealand to the U.S.A., each year, of 1000 tons of butter and 1000 tons of meat. These transactions will in no way take dollars out of the dollar pool of the sterling area, as at the present time the United Kingdom is not importing either butter or meat from the U.S.A. “The major objectives of the scheme suggested by Federated Farmers is to put in the hands of the farmer in New Zealand the implements which he must have in order to increase the exportable surplus of food to the United Kingdom without increasing the financial difficulties which exist in trade between the U.S.A, and the sterling area, t “Surely you will agree that, judged on its own merits, a scheme with such lofty motives has great utility to New Zealand and to the United Kingdom. “You must also agree that the scheme of Federated Farmers deserves to be considered on its own merits and should not be confused with another major problem which it in no way accentuates or relieves. If the scheme had envisaged the importation into New Zealand of luxury commodities such as tobacco, clothing, footwear, drapery, motion pictures, and silk goods, which are being imported from the U.S.A, in current trade transactions, then I might have been able to understand the confused analogies which you drew in your editorial of July 15. I trust that you will be good enough to publish this letter.”

TRACTORS FROM BRITAIN

MACHINES AVAILABLE

ORDERS PLACED FOR 1949 There was apparently some misconception as to the ability of Britain to supply tractors of the high horsepower type, said Mr W. N. Satterthwaite. mercantile manager of the National Mortgage and Agency Company of New Zealand, Ltd., who is at present in Christchurch, yesterday. Mr Satterthwaite’s fl rm is the South Island distributor for a British crawler and wheel tractor.

One British firm alone had already shipped 70 four-furrow wheel tractors to the South Island and all were in work, Mr Satterthwaite said. A further 100 would arrive in the South Island before the end of the year, and orders had been placed for a larger quantity in 1949. The first British crawler tractor, a six-speed 40 horsepower machine, had already arrived in New Zealand, and further shipments would start in August. Both types were Diesel machines, and called for 'neither the expenditure of dollar funds nor the use of petrol, Mr Satterthwaite concluded.