£9-MILLION CREDIT GRANT

Manawatu Times, Volume 64, Issue 171, 22 July 1939, Page 5

£9-MILLION CREDIT GRANT

British Advance to Dominion

£5-Million for Government Purchases £4-Million for Private Imports

Mr Nash Promises Trade Safeguards

United Press Assn. —By Electric Telegraph.—Copyright

LONDON, July 20.

The New Zealand Minister of Finance, Mr. Nash, stated that Britain had agreed to the grant of £5-million credit for Government purchases for defence and other purposes, and £4-million to be allotted to private imports.

The conversion negotiations, Mr. Nash added, were proceeding satisfactorily.

A "White Paper issued by the British Government states: “United Kingdom Ministers recognise that, in the circumstances, some measure for reducing the total imports under the recent abnormal levels was inevitable. They do not object in principle to the method New Zealand adopted, though conscious of the difficulties caused in individual cases, which Mr Nash has undertaken to examine and do his best to meet. The Government welcomes this assurance, and appreciates also New Zealand’s intention to administer the policy as favourably as possible in relation to United Kingdom interests.

“The Ministers informed Mr Nash, however, that they were apprehensive of the permanent effects on the United Kingdom’s export trade of a policy designed to meet the temporary New Zealand difficulty. . “Mr Nash undertook, as circumstances permit, to do his utmost, by relaxation of the restrictions, to ensure the maximum expansion of United Kingdom-New Zealand trade consistently with the maintenance of Gound economic conditions in New Zealand and the Government’s obligation to existing industries. “Ho assured the Ministers that New Zealand did not intend to employ licences to protect New Zealand industry against reasonable British competition, but explained that difficulties arose where New Zealand had already incurred obligations by encouraging the establishment of industries requiring some measure of import restriction in order to operate efficiently.’’

The White Paper proceeds: "Mr. Nash is to investigate the point on his return to New Zealand. Meanwhile, he has promised that similar protection will not be extended to other industries. He has also agreed that licensing will not be used to foster uneconomic industries. The New Zealand Government will invite the views of United Kingdom industries to assist it in determining what goods can economically be produced in New Zealand. He also gave United Kingdom interests the opportunity of undertaking the manufacture of particular kinds of goods where it is proposed to grant a limited number of licenses. “Ministers gladly noted the above assurances.”