BRITISH TRADE

Grey River Argus, 5 August 1940, Page 9

BRITISH TRADE

IMPORTANCE OF DOMINIONS; WELLINGTON, August 2. In an address on the reorganisation of public and pi’ivate affairs in Britain to meet conditions of war, during which he referred to the economic relations of the United Kingdom and New Zealand, Mr W. A. Simpson, who recently returned from a 17 months’ visit to the United Kingdom, told fellow-members of the United Kingdom Manufacturers’ and Representatives' Association to-day that it was necessary for reciprocal trade to be maintained between the two countries. Quoting a Cabinet Minister as saying, “Britain’s war effort would be seriously affected if hex' export trade was not maintained at the highest possible pitch,” Mr Simpson said it was therefore up to the Dominions and the people of the Dominions to place their orders with Great Britain and the Dominions, irrespective o T buyers’ whims and preferences.

•It was Britain’s intention to pay for imports with exports of manufactured goods, and it was those countries which bought from her which would receive her orders. An exception to that rule was the purchase of munitions in the United States of America, for which credit facilities were not granted, and which had to be paid for in cash oi’ American securities, by' Britain. .An embargo had been placed on the importation of tobacco froffi America. At the same time, Great Britain had granted a loan of £15,000,000 to Turkey for the development of trade, one of the conditions being that Turkey would not pay interest in money, but in goods. The tobacco interests in Great Britain had been requireu to use 40 pei’ cent, of Turkish tobacco with the Virginian tobacco. It appeared that Britain was going to continue her bargaining with the Dominions. Great Britain could not pay cash for imports and they must be paid for with exports, and that had become more necessary since the introduction of the last Budget.

Mr Simpson reminded his hearers that New Zealand was in competition with other countries. Great Britain had agreed to purchase the output of the Dominion to prevent it falling into enemy hands, and to feed her own people. He believed that Gyeat Britain had endeavoured to give the Dominions economic prices, and the people of England expected a fair return. If the people of New Zealand wanted to maintain good conditions, they must expect the people of other countries to do the same. If they bought in cheaper foreign markets where labour conditions were lower, how could English people give good prices for New Zealand’s produce?

Discussing the system by which

British shipping was .controlled "by the Navy, Mr Simpson said that p:robably one of the reasons why tffiere was a shortage of shipping in N.ew Zealand was that the controller would not send ships empty to /New Zealand when they could carry cargoes both ways on a voyage to another country. While he was in Australia on his return to New Zealand, two ships on the New Zealand, run unloaded in Australia and lo,aded again for the United Kingdom. “An appropriate question to ask is what New Zealand has done in following the most practical lead given it?” Mr Simpson asked. “A satisfactory answer becomes more obvious when one recognises that New Zealand’s fate is inseparably tied to that of Great Britain. The defeat of Great Britain must have serious repercussions in this Dominion.”

Mr T. Sadler said the Minister for Finance had several times stated that to help the Mother Country New Zealand should export more and import less, and asked what was Mr Nash’s authority for the statement. Mr Simpson replied that he could not answer the question, but quoted a press clipping announcing a decline in Britain’s oversea trade during June. At the commencement of his address the speaker said that though he might refer to matters some might consider political and controversial, he was not concerned with the politics of the issue.