The Press TUESDAY, JULY 2, 1963. New Zealand Trade With Russia

Press, Volume CII, Issue 30172, 2 July 1963, Page 12

The Press TUESDAY, JULY 2, 1963. New Zealand Trade With Russia

A good deal of interest will be aroused by the forth-

coming trade negotiations between New Zealand and Russia; but much of ft will derive from political considerations rather than from the likelihood of economic benefits to the Dominion. Russia holds itself aloof from most international trading arrangements; and the Communist system creates special problems for ordinary commerce. Recently there have been signs that the Russians want to trade more with non - Communist countries. This was noted particularly last month when the leader of the British Labour Party (Mr Wilson) visited Moscow. Hitherto exchanges between New Zealand and Russia have been sporadic and heavily weighted in favour of New Zealand exporters. If Russia now wants greater reciprocity as a condition of more regular custom, it is difficult to suggest what Russian goods would appeal to New Zealand importers and to see how they could compete against commodities from the non-Communist world. Presumably, because of their concentration of effort upon heavy industry, the Russians have no surplus of consumer goods suitable for the New Zealand market. It seems improbable, also, that New Zealand will import Russian oil.

Statistics of trade between New Zealand and Russia are meagre. During the 11 years ended in 1960 the percentage of total New

Zealand exports taken by Russia ranged from nothing (in 1952 and 1953) to 1.21 (in 1954). Purchases from Russia in the same period were apparently too insignificant to justify a special listing in a corresponding imports table of the New Zealand Year Book. The uncertainties of trade are illustrated by the fact that since June, 1961, no New Zealand wool has been entered in official statistics as being for export to Russia, although in the previous year 24,000 bales (approximately U per cent, of the Dominion’s clip) were purchased. In 1960-61 Russia took only 22 tons of New Zealand meat; in 196162 the total was 13,780 tons. However, if this meat trade could be stabilised it would be a useful outlet for the cheaper and less attractive grades of mutton, shipments of which have apparently been well received in Russia.

Throughout Western countries economic relationships with Russia always cause fear of the political effects. New Zealand has not escaped the attentions of Russian spies purporting to be commercial representatives. Similar considerations of national security apply wherever the Russians seek to trade. Nevertheless, the need today is to reduce antagonism between East and West and to increase normal peaceful contacts. There seems no valid reason why New Zealand should rebuff any genuine attempt to improve commercial relations, provided the terms are reasonable.