NASH-STANLEY AGREEMENT

Press, Volume LXXXV, Issue 25765, 29 March 1949, Page 4

NASH-STANLEY AGREEMENT

1939 BRITISH WHITE PAPER

ASSURANCES TO BRITISH INDUSTRY

“In the discussions a clear distinction was made between the temporary dislocation of trade caused by the drastic restrictions necessary to meet New Zealand’s immediate financial difficulties and the possible future effects of the New Zealand policy after those difficulties are past,” said the summary made by “The Times” of the British White Paper giving the Nash-Stanley agreement of 1939. The memorandum signed by Mr Nash and Mr Stanley said United Kingdom Ministers recognised that in the circumstances that existed in New Zealand in December, 1938, and that still existed, some effective measure for reducing total imports into New Zealand below their recent high level was inevitable and they did not raise objection in principle to the New Zealand method, though they were conscious of difficulties in individual cases. Mr Nash undertook that the New Zealand Government would do its best to meet the representations of United Kingdom industries in such cases. United Kingdom Ministers welcomed this assurance and also the New Zealand Government’s intention to administer the policy as favourably as possible in United Kingdom interests. They informed Mr Nash that they were apprehensive as to the permanent effects on United Kingdom export trade of a policy designed to meet a temporary difficulty in New Zealand.

Recognising that the then scale of restrictions was abnormal, Mr Nash undertook that the New Zealand Government would, as circumstances permitted, do its utmost to ensure the maximum expansion of trade between the United Kingdom and New Zealand consistent with the New Zealand Government’s obligations to existing industries.

Mr Nash assured United Kingdom Ministers that it Was not the intention of the New Zealand Government to employ import licensing to protect New Zealand industry against imports of United Kingdom goods on a scale which prevented full opportunity of reasonable competition. He explained that the New Zealand Government had already incurred obligations to encourage the establishment of industries. He undertook to investigate this fully and gave an assurance that, pending this investigation, such protection would not be extended to other industries.

Mr Nash agreed that the policy would not be used to foster uneconomic industries, on which the views of United Kingdom industries would be invited.

Mr Nash agreed that where it was proposed to grant licences to manufacture particular kinds of goods the New Zealand Government would give United Kingdom interests the opportunity to put forward proposals for undertaking such manufacture. . “The Times,” commenting in a leading article on the agreement, said the assurances given by Mr Nash had been given beforefit said: “Their incorporation in the joint memorandum may be regarded as an attempt to save the spirit of the Ottawa Agreement while not protesting against its violation in the letter.”