MARKET IN AMERICA

Greymouth Evening Star, 21 March 1946, Page 7

MARKET IN AMERICA

NEW ZEALAND EXPLORING POSSIBILITY FACTOR IN EMPIRE TALKS (N.Z.P.A. Special Correspondent.) LONDON, March 20. Indications are that when the Imperial talks announced by the Prime Minister (Mr Attlee) in the House of Commons take place next month, Britain will make it clear to the Dominion representatives that she will agree to no reduction of Imperial preferential tariffs unless corresponding reductions are made by other foreign countries. Should foreign countries, particularly America, agree to a mutual lowering of tariffs, New Zealand will be directly interested. It is possible that there would be in the United States a market for her primary produce. This year will see a discussion between representatives of New Zealand and the United Kingdom on the Dominion’s four-year bulk nurchasing contract with Britain. An extent sion in the period may possibly be suggested in the terms of that agreement, which began in 1944 and is due lor review shortly. In this connection it is interesting that the British Ministry of Agriculture recently announced minimum guaranteed prices for home producers extending up to and including the year 1950. If the suggestion is made during the forthcoming London talks that the term of the New Zealand contract, covering the whole of her exportable surplus, should be extended, it is probable the Dominion may exercise some reserve, in view of the possibility of markets opening up in America.

On the other hand there is no certainty that America will agree, during the trade talks now postponed to next year, to a mutual reduction in tariffs. The postponement of these talks may therefore face New Zealand with the necessity of making a difficult decision: whether to press for or agree to an extension of her bulk purchasing agreement with Britain or whether to delay such a move until after the talks in America next year. . One of the reasons influencing New Zealand in her desire to secure American markets is the possibility that, once the world food position is normal again, New Zealand may be faced with sharp competition from other primary producing countries in the British market. The possibility of exploring other markets against this likelihood is therefore something of an insurance policy.