MUTUAL TRADE

Evening Post, Issue 20, 23 July 1935, Page 10

MUTUAL TRADE

N.Z. AND AUSTRALIA

ADVERSE BALANCE

ECONOMIC ASPECT

Mr. R. H. Nesbitt, Australian Trade Commissioner, returned to Wellington today from Australia, where he spent a few weeks partly on furlough and partly on official business. He was engaged for some time in Melbourne and Sydney, inquiring into the latest situation of certain contentious matters between the two countries.

To a "Post'1 reporter lie said that he discovered a genuine desire on the governmental side as well as amongst the commercial community for freer trade relationships with New Zealand. "An analysis of the articles which New Zealand could sell Australia disclosed that a very large percentage of these were also productions of Australia," he said. "Activities, therefore, would be mainly confined to goods which were not of kindred production. "In Australia there is increased activity in the building trade, which will call for larger requirements of soft woods, these being drawn to a great extent from New Zealand. It is pleasing also to find that Australia is much more interested in fish from New Zealand, and that there is a justified prospect of greater quantities being taken in the future. "The question of the trade agreement between the two countries of course was one which was prominent in all the discussions; and the fact that the agreement has approximately only twelve months to run makes more important the projected discussion between members of the Ministry of both countries which it is anticipated will take place some time in the spring. ADJUSTMENT OF TRADE. "The fact that there is a heavy adverse balance in trade values as far as New Zealand is concerned is one which has to be faced; but it must be recognised that it is an impossibility to balance trade, at least in exports and imports, as far as every individual country with which another trades is concerned.! All countries find that in respect to their trading operations, there are some creditor and some debtor States. The problem, therefore, becomes one of a more equitable adjustment rather than an absolute balancing of trade figures. The fact will always remain that countries must trade where it" is of most economic advantage. "Australia presents such an opportunity to New Zealand, and it is for this reason that New Zealand has been a big buyer from Australia in past years. The people of the Commonwealth, however, are very desirous that every facility should be given to New Zealand as far as the disposal of its goods in Australia is concerned. It is hoped, therefore, that the conversations which will ensure after the return of the Prime Minister and Mr. Coates may be instrumental in bringing about such a state of .affairs."