Trade With Britain

Dominion, Volume 28, Issue 208, 31 May 1935, Page 13

Trade With Britain

,Sir, —The speech by the Hon. E. A. Ransom, delivered at a luncheon given in honour of Col. Lea, D.'S.O., 0.8. E., as reported in your issue of May 23, is not the first which this gentleman has made in the same tone when welcoming a visitor from England. On this as on the former occasion, that of the reception of Mr. Malcolm MacDonald, he shows lamentable lack of knowledge of the subject he discusses. , •Mr. Ransom's claim, that a considerable proportion of Britain’s imports of primary produce should be supplied by the Dominions, is answered on page 9, where the British representatives at the meat conference stated that imports of foreign meat had fallen by 9 per cent, since 1932, while the imports from the Dominions had increased, by 25 per cent. Surely Mr. Ransom will give Col. Lea credit for knowing that New Zealand has £22,000.000 sterling funds in London which should have 'been spent hi Britain ! Mr. Ransom refers to the tariff revision, as New Zealand’s effort to assist the United Kingdom, but failed to mention the 25 per cent, exchange which neutralises the tariff concessions. The net value of New Zealand’s efforts is shown in the trade returns for the first three months of this year. These -ive exports to the United Kingdom to March 31 at £13.267,664, equal to a rate of £53.830,000 per annum, an increase over 1932. the year of the Ottawa Conference, of £23,485,715, or 74 per cent. Imports from the United Kingdom for the same period were £4,456,640, being a rate of £17,946,000 per annum, an increase over 1932 of £5,040,000, or only 39 per cent. In plain language, the increase of exports to Britain were practically double the increase of imports from there. In the face of these figures Mr Ransom’s threats look rather foolish, and if Britain refuses to be bullied any longer by the Dominions, New Zealand at any rate has no cause for complaint. I suggest that Mr. Ransom missed the subtle import of Mr. J. H, Thomas s remark to Mr. Lyons re the sale of wool. It was a hint that Australia and New Zealand only sell to foreign countries those products which can be manufactured into goods which compete . with Britain’s industries, while Britain is expected to buy all our finished products. Britain would mu.ch prefer to buy less of our dairy produce and more of our wool if she could sell the manufactured goods. While on this topic, I would like to be allowed to comment on your recent leader on buying where we sell. In tins leader you were right up to a. point. You spoiled the effect when you said that New Zealand is the best customer, of a.l the Dominions, to Britain. This is not true. The List customer is the one which returns the greatest amount nt trade relative to exports, and m this New Zealand is the worst, in the . Empire. There are several Etapire countries which Hve Britain- 600 per cent, return of trade and more. New Zealand's ratio this yeai. 1935, so far, is only 30 per cent. —I am, ctc ” J. E. HORSFIEW Hawera. May 26.