Britain Agrees to Nine Millions Credit for New Zealand

Northern Advocate, 21 July 1939, Page 5

Britain Agrees to Nine Millions Credit for New Zealand

—Mr Nash's Good Report Received 1.30 p.rn.) LONDON. July 20, 'pHE NEW ZEALAND MINISTER OF FINANCE, ME W. NASH, STATED THAT BRITAIN HAS AGREED TG A £5,008,000 CREDIT FOR NEW ZEALAND GOVERNMENT PURCHASES FOR DEFENCE AND OTHER PURPOSES, AND £4,CGO,O»C HAD BEEN ALLOTTED TO FINANCE PRIVATE IMPORTS.

The conversion negotiations were proceeding satisfactorily.

IMPORT RESTRICTION PRINCIPLE APPROVED

A While Paper issued today stales that the United Kingdom Ministers recognised that in the circumstances some measure for reducing the total imports under the recent abnormal level was inevitable.

They do not object in principle to the method New Zealand has adopted, though they are conscious of the difficulties in individual cases, which Mr Nash has undertaken to examine and do his best to meet.

The Government welcomes these assurances, and appreciates also Now Zealand’s intention to administer the policy as favourably as possible in relation to Ignited Kingdom interests.

The Minister informed Mr Nash, however, that they were apprehensive of the permanent effect on the United Kingdom export trade of a policy designed to meet a temporary New Zealand difficulty.

Mr Nash undertook, as circumstances permit, to do his utmost, by a relaxation of restrictions, to ensure the maximum expansion of United Kingdom-New Zealand trade, consistently with the maintenance of sound economic conditions in New Zealand, and with the Government’s obligation to existing industries.

. Mr Nash assured Ministers that New Zealand did not intend to employ licenses to protect New Zealand industry against reasonable British competition, but he 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. ’ Limited Protection. Mr Nash was to investigate the point on his return to New Zealand, and meanwhile he had promised that similar protection would not be extended to other industries. He has also agreed that licensing would not be used to foster uneconomic industries. The New Zealand Government would invite the views of United Kingdom industries to assist in determining what goods could be produced economically in JNew Zealand, and also would give United Kingdom interests an opportunity of undertaking to manufacture particular kinds of goods where it was proposed to grant a limited number of licenses. The Ministers gladly noted the above assurances.