BRITISH EXPORTS

Evening Post, Volume CXXX, Issue 98, 22 October 1940, Page 15

BRITISH EXPORTS

WISH FOR EXPANSION

EFFECT OF RESTRICTIONS

NEW ZEALAND NEEDS

Mr. E. A. Christie, president of . the United Kingdom Manufacturers' and New Zealand Representatives' Association, comments as follows on the reply by the Minister of Customs, Mr. Nash, to the cable received from the Birmingham Chamber of Commerce:— "I have not seen any communication from the United Kingdom Government that New Zealand is helping the United Kingdom war effort by confining imports to only essential commodities or by restricting imports so severely, but I have seen a recent statement by the Chancellor of the Exchequer to the effect that 'by restricting United Kingdom home trade we shall enable manufacturers to maintain and where possible extend the export trade which is a vital part of our war effort.' Also the cable from the Birmingham Chamber of Commerce, which can be taken as representative of United Kingdom manufacturers, wherein they say 'United Kingdom manufacturers are able and anxious to export to New Zealand.' . "In any case, what are essential commodities? I suggest that boots and shoes are essential and yet we find that imports of these into New Zealand are prohibited now and for all 1941, and it was authoritatively stated only last Thursday that there would be a shortage of from one and a half million to two million pairs of footwear in New Zealand at the end of this year. ESSENTIAL COMMODITIES. "The United Kingdom can supply these particular 'essential commodities/ but the import restrictions prohibit them from coming into New Zealand. As proof of the ability of United Kingdom manufacturers to supply this market with what to the United Kingdom must be essential commodities we find it reported on October 17 that the New Zealand Government has placed order's to the value during September of £100,000 worth of electricity and railway material. Surely if the United Kingdom can supply such goods which must be in1 urgent demand for her own requirements, then she can also supply some of the many classes of goods not so essential to her own requirements but which have a 100 per cent, embargo on them under the New Zealand import restrictions. "It is not possible at present to reconcile a request from the United Kingdom Government to confine our imports to essential commodities with this statement by the Chancellor of the Exchequer. "Was Australia told the same thing by the United Kingdom Government? Evidently not, because the Australian import restrictions, introduced after the war, not one year before as was the case in New Zealand, do not apply to United Kingdom goods. It will be remembered that one of the reasons given for the severe scale of New Zealand petrol rations, was that the United Kingdom Government had asked New Zealand to do so, but our rationing was made much earlier, and on a much more stringent scale, than in Australia. "It is difficult to understand why in the case of all general imports as well as petrol, New Zealand should 'be asked to adopt a more severe scale than Australia. I suggest that a very useful purpose would be served, and perhaps some misunderstanding by United Kingdom exporters, including the Birmingham Chamber of Com-: merce, cleared up, if the Minister would explain more fully the nature of the request by the United Kingdom Government. STERLING FUNDS. "In regard to the availability of sterling funds I can only emphasise that industrialists and exporters in the Old Country cannot realise the necessity, or justice, for the restrictions and prohibitions on their goods when the. following figures are considered:— £ Seven months to 31/7/40, . N.Z. sold to U.K 43,994,256 Seven months to 31/7/40 U.K. sold to N.Z 14,234,326 Balance £29,759,930 "More than 80 per cent, of our exports are sold to the United Kingdom. Less than 50 per cent, of our imports are bought from the United Kingdom. Even after allowing for debt charges, etc., it appears New Zealand will by the end of 1940 have sold to the United Kingdom considerably more than she bought, and yet we are faced for all 1941 with restrictions ar.d prohibitions just as severe as for 1939 and 1940. We may well ask how long a road we have to travel before some relaxation is made. "My association appreciates that instructions have been given that where possible imports must come from the United Kingdom, but this does not get over the fact that what we can now import is strictly limited i:i value and quantity by the import restrictions and will be well below 1938 figures. This will mean dangerous shortages in many lines, and in any case there are few overseas sources of supply remaining besides the United Kingdom. With ti~e inevitable rise in overseas prices, not only is the amount which we can spend in the United Kingdom much less than in 1938, but every pound spent means less in quantity. To get the equivalent quantity we should actually be spending more. "This association has indisputable evidence, from publications, letters, and cables as to the desire and ability of British exporters tc supply this market as a vital part of the United Kingdom war effort, and this must be apparent when it is realised that almost the whole of the great market in Europe is now closed and goods normally destined there are now available to the Dominions, including New Zealand. In the event of any serious interruption preventing the imports that are allowed from reaching these shores, New Zealand is likely to be in a parlous position with the stocks becoming more and more depleted as the result of nearly two years of stringent restrictions. "EXPORT OR EXPIRE." "I say emphatically on behalf of my association that United Kingdom manu. facturers, whose slogan today is 'Export or Expire—Britain delivers the. goods'—are asking for more exports to the Dominion and yet the New Zealand import restrictions for 1941 prohibit th- importation from the United Kingdom of 320 out of 630 items and subitems in the schedules recently issued. Instead of these restrictions on United Kingdom export trade New Zealand should be glad to take goods a s and when available at the present time, and I make the suggestion tuat it vouid be better to fill our warehouses to the roofs rather than that the goods should be left Home to be destroyed by air raids. "Instead of ships coming out here with sand as ballast to load produce,would it not be better that they should bring to our shores much-needed commodities which otherwise may only go up in smoke and flames. I make this

suggestion realising the practical diffi-i culties in the way, but it seems to me it would be of mere benefit to New Zealand and the United Kingdom to do this rather than continue right through 1941 with ever-diminishing [stocks of all kinds of goods. "I feel that the .cable from the Birmingham Chamber of Commerce, the opening words of which I repeat, 'United Kingdom manufacturers are ! able and anxious to export to New | Zealand,' provides strong evidence for | a revision of the import ■ restriction i policy in "its application to United Kingdom goods and I suggest that the . ,ewz Zealand Government might also I explore my suggestion that it may be i possible to fill our warehouses with I goods which may only otherwise be [destroyed. "I close with a quotation from a letter received by this association from a prominent manufacturer in the United Kingdom: 'Britain delivers the goods—if your New Zealand import restrictions will allow.'"