MR NASH’S PROMISES

Evening Star, Issue 23324, 21 July 1939, Page 10

MR NASH’S PROMISES

NO UNECONOMIC INDUSTRIES MAXIMUM EXPANSION OF TRADE WITH BRITAIN reasonable competition allowed Press Association— By Telegraph-Copyrig/n LONDON, July 20. (Received July 21, at 11.45 a.m.) A White Paper states that United Kingdom Ministers recognise that in the circumstances some measure for reducing the total imports under the recent abnormal levels is inevitable. They do not object in principle to the method New Zealand has adopted, though conscious of the difficulties in in- ' dividual cases, which Mr Nash has undertaken to examine and will do his best to meet. The Government welcomes this assurance and appreciates also New Zealand’s intention to administer hexpolicy as favourably as possible in relation to United Kingdom interests. Ministers informed Mr Nash, however, that they were apprehensive of the permanent effects on the United Kingdom export trade of a policy designed to meet a temporary New Zealand, difficulty. Mr Nash undertook, as circumstances permit, to do his utmost by relaxation of restrictions to ensure maximum expansion of United King-dom-New Zealand trade consistently with the maintenance of sound economic conditions in New Zealand and the Government’s obligation to existing industries, Mr Nash assured Ministers that New Zealand did not intend to employ licenses to protect New Zealand industry against reasonable British competition, but explained that difficulties arose where New Zealand had already incurred obligations by encouraging the establishment of industries requiring some measure of import restrictions in order to operate efficiently. Mr Nash is investigating the point on his return to New Zealand. Meanwhile he promised that similar protection will not be extended to oilier industries. He also agreed that licensing will rot be used to foster uneconomic industries. The New Zealand Government will invite the views of United Kingdom industries to assist’ it in determining what goods can be economically produced in New Zealand. He also. gave United Kingdom interests the opportunity of undertaking the manufacture of particular kinds of goods where it is proposed to grant a limited number of licensee. Ministers gladly noted the above askurances. PRESS COMMENT. The city editor of ‘ The Times ’ says the agreement implies that New Zealand will take steps to curtail oversea expenditure, thus relieving the pressure on available exchange from the long-term viewpoint.

The city editor of the ‘ Daily Mail ’ says Mr Nash seemed tired and by no means confident that credits would see New Zealand out of the wood', but credits would avert the risk of commercial default. The ‘ News Chronicle ’ city editor says Mr Nash’s acceptance must promise the genuine intention of New Zealand to cut her coat according to her cloth. The city editor of the ‘ Daily Herald ’ says final conversion is likely to be a short-term public issue, repayable 1941-5, with obligatory interim repayments. The ‘ Herald ' also considers that the agreement is not unreasonable. British manufacturers should not complain, as the credits will be spent in Britain. New Zealand stocks are certain to rise, as the Dominion fully honours her obligations to investors. BOARD OF TRADE WARNING. Mr R. S. Hudson, secretary of the Board of Trade, speaking at the Chambers of Commerce dinner, warned the Dominion that any curtailment of United Kingdom exports on its part would reduce Britain’s capacity and willingness to go on buying, and would impair England’s economic strength at a time when it was vital that it should b emaintained in order to defend the Empire. THE OTTAWA AGREEMENT, It is understood that the Dominions Office does not agree that New Zealand’s policy is consistent with the Ottawa Agreement.