U.S. investment in N.Z. heavy

Press, Volume CXII, Issue 32860, 8 March 1972, Page 1

U.S. investment in N.Z. heavy

New Zealand companies had licence or agency arrangements with nearly 4000 American firms, said Mr D. C. Holton, Commercial Attache of the American Embassy at Wellington, in an interview in Christchurch yesterday.

“About 140 American companies have an-esti-mated slsom invested in New Zealand affiliates,” Mr Holton said.

“But these figures are not as significant, I believe, as the total potential connections possible between American and New Zealand firms.” Referred to the recent comment by the Minister of Finance (Mr Muldoon) that American companies in New Zealand should invest more of their profits in this country, Mr Holton said: “The United States policy is. to encourage American companies to invest in the country of operation, and there is a great deal of this in New Zealand. We think that current figures would show that American companies compare very favourably

with other foreign companies in this respect.” j Mr Holton was in Christchurch to meet representatives of firms interested in doing business with American companies. For the first time, he said, he had sought publicity on his visit and had announced that he would be in an office to receive representatives. “I find that Christchurch firms are alert and interested. There is more interest, perhaps, amongst Christchurch manufacturers in seeking American agencies than elsewhere in New Zealand. The Canterbury Manufacturers’ Association and Canterbury Chamber of Commerce are most co-operative.” It had been the United States policy for several years to seek overseas markets for its products. President Nixon’s new economic programme and the recent devaluation of the dollar had given a boost to that drive. In the same way, the entry of Britain to the E.E.C. had given New Zealand’s drive for new overseas markets an impetus, Mr Holton said. New markets

“The American market in New Zealand has grown steadily. As the British preferential tariff is reduced and your import restrictions phased out, American goods will be able to compete more freely on your market. “You are looking across the Pacific for new markets. Sb is America. We see our interests going together at this time and in the future," Mr Holton said. He pointed out that New Zealand’s foreign exchange surplus in trade with the United States was far more than with any other country. Reserve Bank statistics for 1971 showed that New Zealand’s total receipts from exports to the United States amounted to $234m, more than twice the slo6m paid for imports from the United States. After other transactions the New Zealand current account with the United States showed a sll6m surplus.

Mr Holton said that the traditionally stable Government in New Zealand and economic stability ("you have inflation, but so have many other countries, at present”) were attractive to American investors.