LONDON OPINION

Nelson Evening Mail, Volume LXXII, 9 December 1938, Page 5

LONDON OPINION

NEW ZEALAND TRADE AND CURRENCY MEASURES FEARS FOR COMMERCIAL OUTLOOK BRITISH EXPORTERS PUZZLED 1C P.A.—Bv Electric Telegraph —Copyrichtl LONDON, 7th December. City opinion, specially among the banks, regarding the New Zealand Government’s trade and currency regulations. is that New Zealand is now taking the right measures, but that they would have been better taken month! ago. There is no fear that New Zealand will fall into default or be unable tc put her house in order, but there ore fears for the trade outlook betwe/n Britain and New Zealand. British exporters want to know more clearly what New Zealand intends regarding luxury imports. such as motors, whisky, fancy leather goods, and domestic comforts. These circles are puzzled by what has been announced here, because it does not make clear what will happen to the orders of New Zealand importers for*periodical delivery of goods running into next year. Traders in Britain fear that they may be the victims, specially those concerned in luxury exports. PRESS COMMENT “The Times” (Conservative), in • leading article to-day, says that New Zealand has become the first British country to abandon the traditional British system of open markets and to experiment with regulated or selective t-ade methods characteristic of the totalitarian countries.

“Because of the trend of trade, these measures have not surprised either London or Wellington, though it is regretted that the Government’s policy of lavish expenditure should have produced so quickly its inevitable effect in financial and currency embarrassments, whatever the motives inspiring the Government were.

“No one can regard the new development without grave uneasiness rffio has seen how such restrictions, once introduced, tfend to increase in their severity and complexity. It is more to be regretted because it is a move away from the policy of the Anglo-American agreement, which aims at extending the volume and area of open marketing.” The "Manchester Guardian” (Liberal ) says that other Governments have discovered that simple initial measures need progressive and complex support before private foreign dealings can be effectively controlled, and New Zeeland thus provides students of economiee with another experiment that is worth watching.