POST-WAR TRADE

Evening Post, Volume CXXXVIII, Issue 69, 19 September 1944, Page 6

POST-WAR TRADE

IMPORTS FROM BRITAIN

POLICY STATEMENT DESIRED

A request for an early statement of the "Government's policy with respect to trade with Great Britain after the war was made by a deputation, from vie United Kingdom Manufacturers and New Zealand Representatives Association, which waited on the Minister of Finance and Customs (the Hon. W. Nash) on Monday.

The members of the deputation were Messrs. W. A. Simpson (president), J. Matthews (past president), and E. A. Hollins (a member of the council of the association).

"Our problem," said Mr. Simpson, "is procurement of goods, services, and materials vital to New Zealand in the post-war period. Stocks of an essen- | tial nature are at a low level throughout the world." To facilitate a practical resumption of trade, many sections of (industry in the United Kingdom were' making arrangements with the United Kingdom Government similar to the arrangement, now in existence between the Machine Tool Trade Association and the Machine Tool Control, which, h\ fact, enabled all importing countries to place orders on priority for supply as soon as conditions permitted. It was possible that orders would be executed in strict rotation. The United Kingdom manufacturers believed that their Government, in order to direct the activities of industry in the production of essentials, certain broad priorities would be enforced for a time by the issue of licences, raw materials would be allocated, and labour and staffs would be controlled. Already orders were being received from various markets throughout the world for post-war delivery, and it was hoped the New Zealand Government would give some indication to im--porters as to its post-war ideas and so facilitate the forward placing of orders. /Our association is naturally concerned lest any. delay in formulating a policy here should result in orders being placed at the bottom of the manufacturers' list of tentative orders," Mr. Simpson continued. I EARLY INDICATION SOUGHT. "It isr considered that some control by the Government may be necessary for post-war requirements, and therefore its consent and co-operation will be required before the individual im-j porters will be able to take advantage of the opportunities now presentingthemselves in Great Britain. An ■'■ early indication of the Government's policy will place the importers on an equal footing with their counterparts in other countries. At the same time it will enable those industries at present tooled up for- war requirements to plan their peacetime production." The association held the view that it was the wish and desire of the Government to rehabilitate returned servicemen arid industry, and in order to assist in this laudable objective, :\vas making the proposals now submitted.

Mr. • Matthews said the association recognised that due consideration must be given to bUateral and multi-lateral or mutual aid agreements which the New Zealand Government might wish to implement and consolidate with other countries.

"We, as representatives in New Zealand for United Kingdom manufacturers, with diverse interests in trade with the Dominion, sincerely believe the time is opportune for the Government io define ■ its policy in respect to the .procurement of goods and materials which 'will be vital to New Zealand's internal economy during the txansitional and post-war• period, with, the view to securing stability after the war," T^i-. Matthews said. "It is imperative that we, as far as practicable, place the United Kingdom manufacturers in the positoin whei'e they may plan their production, which has a direct bearing on the rehabilitation of industry snd commerce of this Dominion and which is inter-related with the rehabilitation of reciprocal trade; Britain is now a debtor nation, and to quote the words of the Chancellor of the Exchequer, ?It is essential if Britain is to live after the war, not only must she regain the export trade enjoyed in 1939, but also to expand it considerably.' However, during the transition period there will be v shortage of many essential goods, while ! there is already ample evidence to support the claim that Great Britain will be compelled to adopt as a temporary expedient the principle of export 'quotas and priorities."

BRITAIN'S GENEROUS TREATMENT.

It was realised that the needs of the afflicted and liberated nations for essential consumer goods would superimpose a demand on the United Kingdom's production facilities.

It was also recognised that Great Britain had always treated New Zealand most generously and there was reason to believe she would continue to do sq, but to ensure that Great Britain was. not-placed in an embarrassing position regarding the allocation of quotas an^ priorities for this market, New Zealand should as far as practicable determine and make known its requiremeuts of essential consumer goods an<# services.

1 In, support of the case for long-term planning--the association seriously believed I#at an early indication of the policy of the New Zealand Government was desirable, otherwise New Zealand might/be obliged to accept a smaller quota from Great Britain. If this proy,ed to be the case, would it not have a very serious effect on our own lmyhediate problems? .^lt is acknowledged that we must preserve a balanced internal economy, therefore reasonable supplies of'essential consumer goods should be available, with the. quality in direct proportion to price," Mr. Matthews continued. "Members of this association, with long and: old-established c.onnec- : tions, not only have an intimate 'knowledge of the Dominion's requirements, but have at all times rendered valuable expert service, and they are anxious to continue to render that service by making forward arrangements for essential goods. In order to do this | full knowledge >of the Government's ! policy in respect to such procurement lis desirable."

I It was the association's considered opinion that the most important factor was recognition of the basic principle that reciprocal "trade between New Zealand and Great Britain was a measure of our prosperity. - The necessity of assisting Great Britain—our best customer—to develop post-war export trade, must be recognised. To that end the procurement of essential imports for Dominion needs required the assistance and cooperation of the Government. ASSOCIATION'S SUGGESTIONS. Mr. Hollins said it was suggested that the Government and its advisers should (1) secure estimates from various groups of importers of units and value of post-war requirements;' j (2) set aside a certain amount of sterling in London for post-war goods; (3) | set aside a certain amount of sterling credit in the International Bank; (4) if these estimates of goods required were approximately the same value as the sums reserved under clauses (2) and (3), then importers should be told to order goods for post-war delivery I (5) if the value of goods required amounted to more than sterling available, then consideration must be given to the following, points:—(a) Prepara- ; tion of a schedule of permitted imports I according to the degrees of essentialjity; (1) those required for reconstruction and rehabilitation; (2) those required for the development of industry within New Zealand, (3) those required for primary production; (4) necessary civilian requirements, (b) Preparation of schedules of goods not so essential: (6) allow import licences to be issued against the value of sterling available for use in the immediate post-war period.

Mr. Nash said, that before any reply could be. given to the proposals submitted it would be necessary to communicate with the British Government to find out .its policy in connection with post-war export trade. When this was received, the matter would be considered by the, Government and a reply given to the representations.

However, the deputation could understand that the feeling: of the -Government with regard to Britain remained today as in the past.