EXPORT MARKETS

Hokitika Guardian, 13 July 1935, Page 6

EXPORT MARKETS

DIFFICULTIES INVOLVED. POLICY OF UNITED STATES. AUCKLAND, July H The view that New Zealand’s high exchange rate and preferential tariff in favour of British manufacturers constituted an obstacle in the search for other overseas markets was expressed by several members .at a meeting ot the council of the Auckland Chamber of Commerce yesterday. In reply to a letter from the chamber pointing out the need for more export markets, the Hon. R. Masters, Minister of Industries and Commerce, wrote that little substantia] progress had been achieved in negotiations with the United States for a reciprocal trade treaty. Semi-official conversations were being carried on, and it was his constant endeavour to bring the matter to a point of definite negotiation .

“The difficulty in the whole position is exchange,” said Mr o . Jicsiop. “Until that matter is rectified it is no use going in for trade treaties.”

Mr W. A. Bouchers said New Zealand’s high tariffs, as well as the exchange rate ,reacted unfavpiitahly. The Dominion had depreciated its currency and, in effect, was dumping its goods wherever it could. Until the currency was readjusted nothing could he done, but the Government had not the courage to admit that fact, “Practically every country in the world has depreciated its currency,” said Mr J. A. C. Allum. “If our Government said .straight out that we should trade .with foreign countries we should probably be the first to protest. We are content to trade with them privately, hut not on a national basis. The policy of the Government is to trade with Great Britain, and no fault could be found with that policy if only other countries in the Empire followed it as well. The fact is that we are trying to sell to a dwindling population in Britain an expanding production from our own country. Trade with foreign countries en,n only be achieved by a reduction of the margin of preference enjoyed by British manufacturers.”

Mr Harvey Turner said the United States and Australia welcomed, only one-way trade. They were the worst offenders in that respect. America was prepared to sell, but was not prepared to buy. It was decided to refer the matter back to the executive of the chamber for the preparation of a considered statement on the whole subject, and it was suggested that an approach should be made to American chambers of commerce regarding the possibility of improved trade relations with the United States.