USE OF LONDON CREDITS

Dominion, Volume 39, Issue 27, 26 October 1945, Page 6

USE OF LONDON CREDITS

Maximum Purchases From Britain

EFFECT ON ECONOMY OF N.Z.

A statement that New Zealand must in her own interest spend the maximum amount of her London, credits ■in the nurchase of United Kingdom manufactures was made by Mr. J. T. Martin, managing-director Wright, Stephenson awl Co. Ltd., speaking at he annual meetiii" of the United Kingdom Manufacturers’ and N’ ew Zealand Representatives’ Association yesterday afternoon. Mr. Martin said that it was of vital importance to retain the goodwill ot Britain which was our farmers only market 'and which, if we did not buy from her to the maximum, might be obliged to reduce her purchases from. us. Mr Martin said that though there was a long-term contract for the sale ot New Zealand produce to Britain, in 1J46 the prices for that produce would have to be reviewed It did not necessarily follow that the new Government iu Britain was '■oin’ to treat New Zealand m the same fatherly manner as had other Governments. „ , , He believed that New Zealand should -ive a practical demonstration of its appreciation of the way it had been sheltered by Britain, lie repeated his proposal, made some weeks ago, that as a gesture of goodwill New Zealand should send to Britain a gift ot £-0,000,090 worth of produce over a two-year period. The Minister ot Finance, Mr. Nash, had said that New Zealand credits would be used largely for imports from Britain, but Mr. Nash did not say that he was "oing to use funds through Britain for buying in the United States, Canada, and Australia. Mr Martin said he was inclined to believe that Britain might be obliged to tell New Zealand that if we did not buy from her to the full extent of our credits, she would have to curtail her imports from us. New Zealand farmers, and with them the whole community, would soon feel the effect of such a decision.

He believed that a time might come when quotas would be imposed on countries selling to Britain, and if so, how was New Zealand going to be able to continue making all the concessions to the rank aud file that we were now doing? Further, if British imports of New Zealand produce were cut down, where would New Zealand send her produce? There was only one market, and that was the United Kingdom. Everything possible should therefore be done to conserve that market.

In answer to a z question, Mr, Martin said he did not believe Europe would take as long as had been expected to recover her food position. There was evidence already of recovery. He added that in the world market for cheese the Argentine was now becoming an important competitor.

Mr. Martin was speaking in discussion on the presidential address given by Mr. W. A. Simpson, in which Mr. Simpson had emphasized that development of reciprocal trade between New Zealand and the United Kingdom was essential to the Dominion's welfare. The association appreciated, Mr. Simpson said, that the Dominion must trade with other countries than Britain, but that trade should be complementary and supplementary to our trade with the United Kingdom. It must not be contingent upon funds being made available by Great Britain from the proceeds of Great Britain’s trade in those currencies she herself had created; . A major problem facing Great Britain today was the re-establishment of her export trade, and upon a substantially increased basis. Britain did not seek domination and subjugation of our local industry, but on the contrary she was anxious to encourage and co-operate witn the economic secondary industries, at the same time seeking permission to participate in and enjoy the privilege of competing on a fair and equitable basis tor a reasonable share of the Dominions requirements. . “Basically our economy is interlinked.” Mr. Simpson said. In fact, it is definitely inter-related, to the economy of all nations, but we may court disaster bv persisting in the belief tnat we can maintain a closed economy. Isolation of you like. We might be permitted to place reiinuce on this assumption, it we persist with a policy of. blind adherence to the principle of import selection against consumer goods produced in the factories and workshops of our best customer, the United Kingdom, v.liile simultaneously enjoying free entry into Great Britain of our primary produce.