POSSIBILITY OF GREATER TRADE WITH GERMANY

Press, Volume XCVIII, Issue 28833, 2 March 1959, Page 15

POSSIBILITY OF GREATER TRADE WITH GERMANY

The possibility of .future expansion in trade between New Zealand and Germany with particular emphasis on the wool trade was discussed by a German wool importer who has been spending the last few days in Christchurch. He is Mr L« Strauch, the proprietor of a wool importing firm whose headquarters are in Bremen. He is spending a fortnight in the Dominion to buy wool and to hold discussions with suppliers on the problem of shipping difficulties. Relations between New Zea** land and Germany in the wool trade were excellent and Germany was the fourth largest importer of wool from the Dominion, said Mr Strauch.

On arrival in Germany the wool purchased by his firm was scoured and about 80 per cent of it went into German mills for spinning and carding, he said. The remaining 20 per cent, was exported to various European countries such as Austria, Belgium, Holland and England. Unlimited At present the import quota In Germany for all overseas wool was practically unlimited with the exception of that from South America.

Unfortunately there were shipment difficulties in New .Zealand and sometimes the wool arrived in Germany late because of insufficient shipping space, a problem which he intended to investigate. said Mr Strauch. When asked to comment on the possibility of German tourists visiting New Zealand, he said that if they came they would be disappointed with.the number of oldfashioned hotels with their lack of adequate bathroom and toilet facilities, but that they would be very surprised by the beautiful country and the friendly people. On the Berlin problem, Mr St&ueh «aid he thought era Powers and the Soviet would ultimately find a solution. “The Grennan people wish to be united and it is an untenable circumstance that It is not so. U I feel the Russians are hesitant to allow a free vote on German reunification as proposed by the West because they fear the result of a swing to the Western system of political democracy. "If unification succeeded the people would be free to express their opinions without fear of repression or action by the secret police.” said Mr Strauch. Economic Situation Although the economic boom period of two years ago had settled down the country’s financial position was very healthy. Many private companies still had a difficult time. "Nearly all such

companies need credit from the, banks because of high taxation and high rates of credit Interest “Even if one has a profitable year lhe taxes are so high that it is hard to reserve sufficient capital so necessary to meet emergencies,’’ be said. Mr Strauch, who left Christchurch last evening, will visit Invercargill and Auckland before flying to America on his way home.