VIOLATION OF OTTAWA

Dominion, Volume 32, Issue 72, 17 December 1938, Page 11

VIOLATION OF OTTAWA

British Business Men’s Retort To N.Z.

FEARS OF NEW IMPORT RESTRICTIONS

May Urge Government Tc Abrogate Agreement

By Telegraph.—Press Assn.—Copyright. LONDON, December 15.

“If New Zealand carries out her import restrictions on January 1 we will go baldheaded for denouncement of the Ottaw'a Agreement, and I think we will make it very difficult for the Government to refuse.”

This statement was made today by Mr. Moir Mackenzie, a director of the British Industries Federation, commenting on a letter from the president of the federation, Mr. Peter Bennett, to the Board of Trade, in which grave apprehension is expressed as to the results of the policy on trade between Britain and New Zealand.

The letter declared that, if fears were substantiated, the position would be a breach of the Ottawa Pact, and the federation would have no option but to press Britain to abrogate the Ottawa Agreement and substitute by negotiation an agreement in which the advantages to New Zealand on the British market would be more commensurate with the treatment she accorded the exports from the United Kingdom.

The letter continued that,, while objection to reasonable development of secondary industries could not be raised, it should occur in consonance with the Ottawa Agreement. Reasonable Competition. • It claimed that recent instances particularly where projects had been sponsored by the Government, showed that the policy was one of preference for local industries, even to the extent of the exclusion of manufacturers in the United Kingdom, and urged that the United Kingdom producer is not given an opportunity for reasonable competition as provided under the Ottawa Agreement. The letter adds that New Zealand apparently has ample funds to meet her commitments and pay for the existing volume of exports from the United Kingdom. The writer appreciates Mr. Savage’s desire to buy as much as possible from Britain, but is tinable to disguise the fact that secondary industries, established and projected, may damage the trade previously carried on.

Mr." Mackenzie added: “Exports to New Zealand are bound to dwindle. We are expected to continue buying 85 per cent, of New Zealand’s produce. There can be Socialist experiments, but not at the expense of Britain.”

TWO-WAY TRADE

Desire Of New Zealand Government Tlie desire of the Government to increase purchases by New Zealand from Great Britain was referred to by th e Prime Minister, Mr. Savage, when invited last evening to comment on the above cable message. He said that everything possible would be done to safeguard Britain. “We have already told the British people that we are prepared to spend every shilling we get from them in the purchase of goods and services provided by Britain,” said Mr. Savage. “We can’t do more than that.

“The policy of the Government today is not necessarily bad, even from the point of view of those who don’t like the look of exchange control. It is the use made of any policy that decides whether it is good or bad in form.

“We have stated quite definitely that we hope to increase our purchases from Britain, and whatever happens we cannot do less than take British goods in return for the goods Britain takes from us. Anything that, looks indefinite in that respect will be placed beyond doubt.

“The Government will make any sort of agreement that will safeguard Britain. We want to give preference to Britain, and we want to spend with Britain to the same extent that she buys from us.” , IMPORTS TO N.Z. Licences For Goods Ordered Before December 5 (Received December 16, 11:30 p.m.) SYDNEY, December 16. The New Zealand Trade Commissioner. Mr. W. Taylor has been officially advised that the New Zealand Government, is granting licences for the importation of any goods for which firm offers were placed overseas on or before December 5, provided the qualities are not abnormal and importers furnish forthwith at the port of intended importation copies of all orders for such goods. New Zealand importers must apply for a licence and non-resident traders must appoint attorneys in New Zealand to make application on their behalf.