N.Z. AND AUSTRALIA

Grey River Argus, 3 December 1943, Page 6

N.Z. AND AUSTRALIA

FUTURE OF TRADE - Views of Mr S. G. Holland IMPRESSIONS OF AUSTRALIA, [Per Press Association] AUCKLAND, Dec. 2. Mr. S. G. Holland, the Leader of the Opposition, in an interview pn his return from Australia, where he has been on tour for the last month with Mr. F. W. Doidge, M.P., said that were it not for nevrousness over conditions here, a number of large industrial firms in Australia would be prepared to establish manufacturing - branches in New Zealand. Theie had been amazing developments in industry in the Commonwealth. He knew of at least five major. firms desirous of opening- up factories m the Dominion. They embraced, chemical, iron and steel, and light aircraft industries. Australian industrialists were willing to establish works here, provided that conditions were attractive enough. But at present thev were nervous that their freedom and liberty might be undmy restricted. Mr. Holland said a belief was held bv many people in New Zealand that the Dominion was going to be busy and prosperous in providing stuffs, for Europe after the war. Ihe prospect was not attractive however, if it became necessary to _ produce goods for export at low prices. He ; pointed out that in trade with Aus- , tralia New Zealand had an adverse | balance. He felt confident _ difficul- i ties at present associated with the export of potatoes to Australia could be overcome. A big trade could also be developed in the export of forest products, and another field was export of small seeds. Two important questions in Australia to-day, and thev also vitally affected New Zealand, were post-war markets for the products of both countries, and the post-war pricelevel for those products, said Mr. Holland. There had been an amazing development in manufacturing industries in Australia, and it had recently been increased by the Government’s decision to make giant Lancaster bombers. In one Australian aircraft factory he had visited the employees numbered more than 8000, and already many hundreds of modern types of bombers had been produced. If New Zealand was faced with an emergency, those machines could come to the aid of the Dominion, which consequently should' have the greatest interest in this new manufacturing industry. “If the development of these industries continues after the war, which appears to be the prospect, then the effect on Australia’s overseas trade will be considerable . “What I have been saying for the past 12 months, that New Zealand cannot possibly mantain her present military commitments and increase production as requested at one time, is now generally accepted, and the position will have to be cleared one wav or the other,” said Mr. Holland. Australia found herself in precisely the same position as was New Zealand to-day, and the Government there had alreadv given instructions for the' release of a very substantia, number of men from the forces. Io my view, the manpower policy totlowed in New Zealand has such _vi .a. consequences that I am convinced that manv members of Parliament, especially new members, are await in°- a verv earlv opportunity of dis* cussing it in Parliament. . Anv suggestion of undue delay in calling Parliament together is unthinkable. “if I have learnt anything from the trip it is the absolute necessity for the closest collaboration and studv or our mutual problems,” said‘Mr.. Holland “Such exchanges of opinions should not be limited merely to representatives of the governments as the questions are of such immense moment to all People that they transcend party politics. From Prime Minister down, everybody Australia showed the keenest, interest in New Zealand, and a desire to know more about this country, said Mr. Holland. Discussions with the highest authorities, which had opened virtually as courtesy talks, had expanded into long exchanges of opinions, when the Australians were anxious to obtain

his views cn certain major issues. Discussions had taken place with tne Prime Minister, Mr. Curtin two former Prime Ministers, Mr. Menzies and Mr Fadden, the Premiers of New South Wales, Victoria, and South Australia, the former Labour Premier of Queensland, Mr. Forgan Smith, and with Mr. Beasley, Minister of Supply and Shipping, and Mr. Makin, Minister of Munitions and trie Navv. i ... “The part that commercial aviation will play in the future world, and the extent to which British interests will be represented in that field, are questions of first importance to Australia and New Zealand to-dav.” said Mr. Holland, ‘There is intense interest in the future of the Pacific, for the advent of modern aviation has brought many important islands within one-flight distance of Australia and New Zealand. The Prime question is not only that of freedom of the air the territory of anv country, but that of the use, in the post-war period, of landing grounds constructed for war purposes. It is a question which calls for the closest attention.” His two trips by aii' across the Tasman had demonstrated to him the possibilities of future air communications between Australia and New Zealand, said Mr. Holland. “I can envisage a two-trip service each day.- with the latest giant types of machines, as a verv earlv development in the postwar period.”