TRADE AGREEMENT

Manawatu Standard, Volume LXI, Issue 177, 28 June 1941, Page 6

TRADE AGREEMENT

fair and equitable. SPEED UP SHIPPING. (Press Assn) WELLINGTON, June 27. “Tnis is not a business bargain made in terms ot commercial advantage on either side. It is just what we might expect from the uid Country —a uur and equitable deal in which business prudence is mellowed by her regard tor our difficulties and our regaru tor Britain’s, its nature, its fairness, its essential common sense and equity compel this country, all ot us alike, to uo our best to implement it to the lull,” said the Acting-Prime Minister ill an address tonight in which lie reviewed the agreement reached witn the United Kingdom lor the disposal oi exportable surplus products lor the war period.

Amplitying the first provision, that “the United Kingdom agrees to purchase all New Zealand produce that can be shipped,” Mr Nash stressed that the Dominion's primary industries must make every effort to adapt their products for easier shipping uy cunning, de-boning, or processing. "1 want to drive one profound fact home, and that is, to the extent that wo can more quickly turn round our ships so will we get more produce away,” said Mr Nash. He had been astonished in conversation with experts to learn of the additional quantities of produce that could be shipped by a quicker j turn-round ol ships The Government-! was, therefore, looking to all associated with shipping and transport to, assist to achieve this object. RESERVE STOCKS. ‘‘Tile next vital point in the agree-} ment is that reserve stocks of storable foodstuffs to be held in this country: are to be on a quantitative basis to, be agreed upon between'the two Governments, and are to be related to the' probable demands during and. alter the war and to the importance ot primary industries to New Zealand. Tin's provision plainly implies that it is not the wish ot the United Kingdom Government that unlimited quantities of produce should be accumulated in New Zealand tor an- indefinite pc noil. “When the war is over,” said Mr| Nash, “it will be necessary to rush j supplies of food to those countries ini the greatest need. Conversations are j now taking place to ensure that out-! side the present agreement- the food i Now Zealand can store will be made available wherever necessary.

“Determining the probable demands during and after the war is largely one for exports, but the importance of New Zealand’s primary industries is a vital concern for us and the strongest representations have been made hv the New Zealand Government to the United Kingdom Government on this matter,” said Mr Nash. “The final main essential to this agreement provides that the financial burden of acquiring and holding these reserve stocks shall he shared equally between these two Governments. We in New Zealand must agree that this is a fair proposal, and though it will entail'a very heavy financial burden on such a small country the New Zealand Government is prepared to face this possibility and at the same time reiterate the basis of its policy, namely, that such a burden will lie spread as equitably as possible over the community as a whole.

“In general terms it must now be related to the following factors :_.(]) The extent to which the United Kingdom can provide shipping facilities in anv given season ; (2) the extent to which cool storage facilities should and can be provided ; (3) the extent to which the net exportable surplus can be reduced by processing in every possible way within the Dominion : (4) the extent to which we can develop and maintain alternative markets; (5; tho extent to which further supplies of meat can lie healthily consumed within the Dominion. “Within these physical limitations we must endeavour to keep the primary industries in the highest state of efficiency, and the Government recognises willingly that the financial, position of the individual farmer is an essential factor to the successful solution of this problem.”