N.Z.-U.K. EXPORTIMPORT TRADE POSITION

Gisborne Herald, Volume LXXVI, Issue 23024, 15 August 1949, Page 6

N.Z.-U.K. EXPORTIMPORT TRADE POSITION

Contrary to a fairly widespread impression, New Zealand has not found it easy in recent years, even given the high level of demand for her food and raw materials, to keep a satisfactory export-import payment position, says the Financial Times in a comment of the discussions on sterling balances between Mr. Nash and Whitehall. British exports to New Zealand have been limited even in the comparatively recent past by the import restrictions imposed by the New Zealand Government itself as well as by such other factors as the non-availability in Britain of the goods New Zealand is most anxious to buy, says the Financial Times. The principal aim of the Dominion Government's restrictions on imports from Britain has been to secure a reasonably close approach to equilibrium in the country's external payments. Overall Payments Position

Mr. Nash's desire to make arrangements for a higher level of imports from the United Kingdom suggests that the overall payments position of the Dominion may have become somewhat easier during the past few months, mainly, perhaps, as a result of last year's decision to raise the value of the New Zealand currency in terms of sterling and other currencies, says the Financial Times. The Dominion's own published export-import statistics are not sufficient up to date to permit a clear picture of recent trends to be obtained. but United Kingdom figures reveal that in the first five months cf this year the value of British imports from New Zealand at £5(1.7 millions showed a rise of £5.7 millions on the amount for the corresponding period of 1948.

As exports were only £2 millions higher at £23.3 millions, the balance in favour of New Zealand increased by £3.6 millions to £33.4 millions. A cut in New Zealand’s drawings on the sterling area dollar pool would tend, of course, to add to the amount of sterling she would have available for purchases in other sterling area countries. The dollar-saving decision and the previous swing in the trade balance with Britain in favour of the Dominion may, taken together, have created a fair amount of room for larger imports from this country, concludes the newspaper.