THE GERMAN TRADE PACT

Evening Star, Issue 22774, 8 October 1937, Page 16

THE GERMAN TRADE PACT

BAD EFFECT ON BRITISH EXPORTER [Per United Press Association.] WELLINGTON, October 7. “ It is all nonsense to suggest that this trade treaty with Germany will not have a detrimental effect on British manufacturers exporting goods to New Zealand,” said Mr C. W. Budd, president of the United Kingdom Manufacturers and New Zealand Representatives’ Association, to-day. The more manufactured goods purchased from Germany the less money there would be to buy British-made articles, he said. Referring to the disparity between New Zealand’s exports to Great Britain and imports therefrom, Mr Budd said that Britain would be very happy to enter into an agreement similar to the one with Germany on a £1 for £1 basis. When it was remembered that out of Now Zealand's total exports to all countries of £56,751,940 for the 12 months ended December 31, 1936, £45,492,989 went to Great Britain, and that the. imports from the Homeland for the same period totalled £22,079,877, it was obvious there was no prospect of a balance of trade. Yet Germany, which last year bought from New Zealand only £272,484 •worth of goods, was receiving a concession which in the circumstances was unfair to the,British manufacturers.

, “ All goods exported from Germany, we haye very good grounds to believe, are heavily subsidised by the German Government,” Mr Budd added. “ This gives Germany a very decided advantage over other countries. Furthermore, we have no information about the conditions in Germany, hours of work, and the relative wages paid under the Nazi regime. Fifteen other nations benefit under 'the favoured nations’ clause, which means that all reductions given to Germany must now also apply to Japan, Italy, Belgium,; Norway, Sweden,, and the other nations on the list. We have to purchase from Germany before she buys from us. What would be the position, if Germany declared war on any other country, or for any reason refused to complete her part of the bargain? Germany has broken faith before, and there is always the disturbing possibility of history repeating itself.” 'One of the items on the schedule for export was apples, continued Mr Budd, but it was surely absurd to suggest that the British market had reached saturation point for that commodity. The possibilities in the apple market in England were almost unlimited, and increased sales in Britain ought to be made a first consideration. Wool was a commodity which Germany had to buy in ariv case, so the advantage to New Zealand there was more imaginary than real. DEBATE IN UPPER HOUSE [Per United Press Association.] WELLINGTON, October 7. The Legislative Council inet at 2.30 p.m. to consider the Trade Agreement (New Zealand and Germany) Ratification Bill.. Moving the second reading the Leader of the Council (the Hon. M. Fagan) said it was his opinion that apart from the benefits which it was anticipated would accrue from the extension of trade, the agreement -would do much to extend the feeling of friendship and foster amity between the nations. Agreements such as the one before the Council would bring the people irito closer contact and enable them to get a better understanding of one another. Mr Fagan expressed the hope that, the agreement would be the forerunner of others. Hon. F. Waite said the agreement was an experiment, and he hoped it would succeed, because anything that could break down the barriers between the nations was of value. Hon. W. H. M’lntyre said the agreement proved that the tour of the Minister of Finance abroad was well worth while. : Hon. V. Ward said he was sure all were agreed that international trade was needed, and he believed the agreement would help the cause of peace. Hon. B. Martin said that trading between the nations must _ lead to a better understanding, and it would be interesting to see the result of the experiment in bulk trading. Hon. D. Wilson, making hia maiden speech, said the world was recovering from the depression and trade was expanding. The agreement would help New Zealand to get a share of that expansion. Hon. W; Perry referred to the statement made elsewhere that they should not trade with Germany because it was a Fascist State, and- said such an argument was ridiculous. Every country was entitled to manage its own politics. Hon. T. Brindle said he believed the agreement would be a lasting and beneficial one.

Mr Fagan said the agreement had already brought about a better understanding between New Zealand and Germany. He paid a tribute to Dr W. Hallenthal, the German Consul, for the way he had helped to arrange tho agreement. During the committee, stages the Rev. J. K. Archer, who was also speaking for the first time as a councillor, expressed regret at the inclusion of wine in the schedule of reduced tariffs. “ So far as I am concerned,” he said, “ I would not exchange one pound of New Zealand butter for one ton of the best wine produced in Germany.” . There was too much wine in New Zealand already, he added, and hundreds of young people were drinking it, sometimes in place of afternoon tea.

The Bill was passed, and the Council rose until October 19.