Restriction on importing

Press, 1 July 1978, Page 12

Restriction on importing

Sir, — After reading your editorial article, "Surcharge on Overseas Funds,” as one of the floating voters, I would give points to Mr Tizard rather than Mr Brill. The purpose of exports is to pay for imports, or should be, certainly not to build up huge credits as West Germany, Japan and oil-producing nations have done. Until these countries import to the value of their exports there is no chance of reducing world recession. If these countries imported to the limit of their exports they would allow other countries to clear their debts and world trade could be limitless. The International Monetary Fund at present penalise countries which over-import instead of penalising the real 'culprits, the countries which over-export. It might be an idea to get back to basics in economics as well as in the classroom. — Yours, etc., J. SHARP, June 29, 1978. [Our correspondent surely misses the argument in our leading article: if a small country, such as New Zealand, contrives to exclude more imports by special financial measures, it can hardlv expect to improve the reception of its exports by countries which have the resources to choose where they put their business. —Editor]