LOST INVESTMENT INCOME

Evening Star, Issue 25301, 9 October 1944, Page 6

LOST INVESTMENT INCOME

THE OLD COUNTRY MUST INCREASE EXPORTS IMPRESSIONS OF AMERICA AND BRITAIN (P..A.) AUCKLAND, October 9. " Business people in the United Kingdom, and especially in the United States, are greatly concerned at the increasing cost of government and the war-time extension of bureaucratic control, because they realise that expenses and taxes after the war must be reduced substantially if trade is to be put on a sound basis. Indeed, this is the real objection to the Roosevelt Administration, which is accused of dissipating the nation's wealth." This was the impression gained by Mr William Goodfellow on a recent visit to Britain and) America. Many people were anticipating a very difficult adjustment period in the United States when the present huge lend-lease exports ceased. v In Britain the preliminary steps had already been taken to provide for a gradual relinquishment of the control of distribution by the Ministry of Food, but financial control would be necessary for a long time, owing to the liquidation of Britain's great overseas investment income, and the necessity for greatly increased! export business. The United Kingdom had now to export goods far in excess • of pre-war days in order to pay for her normal imports of food and raw materials. " Our New Zealand economy is so interlocked with that of Britain that we should make every effort to assist her during the post-war years by encouraging the import of British goods, and by the removal of all unnecessary trade restrictions against her. The Old Country will have a long, hard struggle to regain her position as the world's greatest trader, banker, shipper, and insurer, but will come out of this terrible world with enhanced prestige and enormously increased goodwill in Europe. The United States war effort does not feel nearly as tense as in Britain. The shops are well stocked, and there appeal's to be no shortage of anything. Indeed the cities are experiencing boomtime conditions. Nevertheless, the huge mass of production plants are turning out an amazing volume of materials. A regrettable feature, however, is the almost total absence in the United States Press of any war news other than that relating to the American forces." Much had been expected of the Atlantic Charter, but it now appeared unlikely that the United States would be able to make many worthwhile tariff reductions, and he could see no prospect of either Canada or the United States important foods from either New Zealand or Australia.