The Press MONDAY, NOVEMBER 8, 1954. Mr Holland and Trade Policy

Press, Volume XC, Issue 27501, 8 November 1954, Page 10

The Press MONDAY, NOVEMBER 8, 1954. Mr Holland and Trade Policy

Candidates have been chary about discussing some important policy issues during the General Election campaign. This is not unusual; politicians are inclined to avoid at such times issues they believe to be unlikely to win votes; and they are reluctant to commit themselves on issues that might cost votes. It is refreshing, therefore, to notice the Prime Minister’s forthright declaration in a speech at Wanganui'favouring trading with the former enemy nations. Labour Party speakers have sniped persistently during the campaign at the Government for admitting to New Zealand a restricted quota of Japanese goods; dire consequences to New Zealand manufacturing industries have been freely predicted. Such thoughts come strangely, of course, from members of a party whose leader never tires of talking about lifting the underprivileged peoples to the economic level of the more favoured countries —of which New Zealand is one. How the under-developed countries are to improve their living standards without trading with the more advanced countries is a secret Mr Nash has seemingly not confided to his supporters. The Prime Minister has no doubts about the advantages of trading with “ former enemies who “ are now our friends Germany’s industrial revival and the striking expansion of German exports have caused concern in Britain and prompted a good deal of examination. Authoritative opinion concedes that German competition will remain formidable and, in some markets, must be expected to increase; but provided costs in Britain can be kept within reasonable bounds and world demands rc-nain strong, there is confidence that the efficient British producer can accept the German challenge without dismay. Japan’s expansion of exports has also caused concern in Britain, particularly in the textile trades. But objective opinion acknowledges the wisdom of the British decisiqn, taken six months ago, to provide the Japanese with an opportunity to remedy their payments difficulties by selling more exports for sterling. For the Western nations there is everything to be gained and nothing to be Jost from a sensible approach to the question of trading with Germany and Japan. A viable Japan is an economic and political necessity to the Commonwealth and the free world, and particularly to the well-being of South-east Asia as a whole. New Zealand’s particular interest in the Japanese economy was mentioned by Mr Holland when he said that New Zealand likes Japanese buyers to come here “to buy our wool and “ bloodstock ”. With other countries, particularly countries in the South Pacific, New Zealand shares interest in Japan’s political future. That interest has been expressed recently by the attention given to Japan’s economic well-being by members of two international organisations—the Colombo Plan countries and the adherents to the General Agreement on Tariffs and Trade. A serious economic crisis in Japan might open the way to an anti-Western government, which would radically alter the balance of power in the Pacific, because Japanese factories and industrial skill would supply deficiencies in the military potential of the Communist countries in this area. Mr Holland is right when he says that New Zealand must see to it that she enlarges the circle of her friends, arid that Germany and Japan should be among them. The expression of such sensible views at this time should lose Mr Holland neither friends nor votes.