Mr Macmillan On N.Z. Trade With Britain

Press, Volume XCVII, Issue 28493, 24 January 1958, Page 10

Mr Macmillan On N.Z. Trade With Britain

(From Our Own Reporter)' WELLINGTON, January 23. New Zealand could probably make out a strong case for the British Government to use its new “dumping laws” to protect the Dominion’s interests in the United Kingdom agricultural market, said the British Prime Minister (Mr Macmillan) during a 20-minute press conference in Wellington this afternoon. The new laws made it quite possible -for the British Government to deal with any foreign dumping, said Mr Macmillan. “I think New Zealand could well make a sound case as to why these should be used.”

Mr Macmillan said he would meet the Prime Minister (Mr Nash) and his Cabinet again tomorrow, and one of the questions to be discussed was the sale of New Zealand agricultural produce in Britain. After these talks, he thought that some of New Zealand’s experts , would be going to Britain tor still more talks. As far as he could see, the trouble at present was a fall in world prices for agricultural products. It was not so much a fall in demand. “I am absolutely confident that the United Kingdom is a growing market,” said Mr Macmillan. He continued that people in Britain were not eating as much meat as they did before the war. This was probably a result of war rationing, when the people filled in with various substitutes. In his opinion, however, there was good ground for New Zealand to carry out a wide publicity campaign in Britain to encourage people to eat more meat. Without a doubt, New Zealand meat was among the best in the world. Asked about the re-introduction of bulk purchase contracts for the sale of New Zealand primary produce to Britain, Mr Macmillan replied that it would mean the “re-establishment of a whole system which we have virtually destroyed.” There were other technical difficulties to consider, not to mention such agreements as G.A.T.T. and other international obligations which would have to be studied. Because Britain had refused to give up her agricultural interests, and because of the Commonwealth, she was not a member of the European Common Market plan, said Mr Macmillan. But in conjunction with other European nations she would be joining in a free market for manufactured goods. x It was of great, importance that European countries should be prosperous, he said. It was being learned that by raising a country’s living standards the market

for trade was- increased. This was borne out by looking at the new members of the Commonwealth, and even if Britain got only half or less of the new trade it was better than none. The sharing of new markets also helped other European countries. Financial Help Mr Macmillan was asked if the British Government would “temporarily financially accommodate” the New Zealand Government over any possible difficulties with balance of payments if they occurred about the middle of the year.

Certainly the British Government would look at things sympathetically, replied Mr Macmillan In the last five years, the British Government had invested heavily in New Zealand—£64 million. On top of this figure, there had also been private investment, and the total was about £75 million, possibly £lOO. million.

In contrast, he said, foreign investment in the same period was about £2l million. New. Zealand and Australia were playing their part in the defence of South-east Asia, Mr Macmillan continued. The New Zealand Battalion in Malaya was a very welcome addition to the armed forces of the area.

Parity of Strength Mr Macmillan said he did not think peace depended on the benevolence of the, Russians. As long as there was parity of strength, and as long as the opposition was sure that if it started something it would also suffer heavily, he was sure there would be no conflict.

Anyone who knew Britain or America knew they would not start a war of aggression. It was an extremely difficult thing to do in a democratic country, anyway.

Mr Macmillan said that he considered that the big conferences were a waste of time. They, were two hours of work and the rest of thfe day was spent in banqueting. What was wanted was full preparatory work behind the scenes, with the final big summit conference for the completion of agreements.