N.Z.-CHINA TRADE

Press, Volume XCVII, Issue 28537, 17 March 1958, Page 11

N.Z.-CHINA TRADE

Prospects Of Increase (Special Correspondent N.Z.P.A.) (Rec. 7 p.m.) HONG KONG, March 16. Prospects of greater New Zealand trade with Communist China looked “reasonably bright.” the Prime Minister (Mr Nash) said today after trade talks. He believed "that exports to Hong Kong might also increase, “with shipping a major problem.’’ The Prime Minister believed that China might buy New Zealand wood pulp, newsprint, and more dairy produce and wool. In his talks, he said, he had examined the possibilities of extended trade with China, “without necessarily involving recognition of the Peking Government.’’ At the same time, both here and in Manila he had learnt much which would help the Government decide its policy on the recognition of Communist China —action which it sought while in Opposition, he said.

All the ramifications would have to be debated before such a step was taken. Mr Nash said. Even trade agreements-hvith Hong Kong or Peking or both would need careful consideration and drafting, he said. But he believed that there was clear scope for expansion of New Zealand exports to both areas. This possibility had been well discussed with British trade sources in Hong Kong. They had expressed concern over New Zealand’s iiriport cuts.

“I explained the effects which Hong Kong imports had in New Zealand, both from the industrial and the economic point of view, and noted their submissions without giving any undertakings,” the Prime Minister said later. Tomorrow Mr Nash leaves at 9 *a.m., local time, for New Delhi on the first stage of his tour of India, Pakistan, Ceylon, and Thailand.