RECIPROCAL TRADE.

Evening Star, Issue 21631, 29 January 1934, Page 14

RECIPROCAL TRADE.

TO THE EDITOR. Sir, —New Zealand is often blamed for not obtaining a larger proportion of her imports from Great Britain. The common and very misleading statement of the position is that our exports to Britain (excluding specie) amounted in 1932 to £31,344,000, while our imports from Britain amounted to only £ll,442,000. To appreciate the true position we must take into account also the following facts:— (1) Included in our exports to Britain arc considerable quantities of produce which are shipped to London merely as a convenient depot for subsequent rcsbipment to the Continent or to America. In 1931 (the last year for which figures are available) the amount was £4.119.000. Assuming the same, iigurc for 1932, this reduces our exports to Britain herself to £27,225,000. (Sec Year Book, page 212.) (2) In the official figures quoted exports are given in New, Zealand cur-

rency and imports in sterling. To make a comparison wo must express both in terms of the same currency (sterling). This gives us for 1932; Exports to Britain, £24,502,000 sterling; imports from Britain, £11,442,000 sterling. (3) We have also to pay in London the interest, etc., on Government and local body debt, amounting to £8,250,000 sterling. (See Year Book, page 202.) (4) Another item consists of outward shipping freights, insurance, and interest and dividends on overseas capital invested iu the dominion, together with a number of minor payments, but subject to certain offsets. (See Year Boo!;, page 203.) The net payments to Britain under these heads may be estimated at £3,500,000 sterling. (5) Our “reciprocal trade” account with Britain therefore stands at something like this (all in sterling):—Exports to Britain herself, £24,502,000; imports, £11,412,000; interest, £8,250,000; freights, etc., £3,500,000; total, £23.192,000. (6) In 1932 our imports from foreign countries amounted to £6,486,000 sterling. But our exports to foreign conn-’ tries were £2,508,000 direct, plus £4,119,000 shipped via Great Britain, making a total of £6,627,000 (New Zealand) or £5,965,000 sterling. (7) New Zealand manufacturers desire to see an increase in the proportion of our necessary imports obtained from Great Britain. But nothing is to be gained, and much may be lost, by making our existing reciprocal trade appear less than it really is. The foregoing figures (paragraph 5) show that we arc already doing very well.—l am, etc,, A. E. Mandeb, General Secretary N.Z. Manufacturers’ Federation. Wellington, January 26.