EMPIRE TRADE

Nelson Evening Mail, Volume LXXIII, 9 December 1940, Page 2

EMPIRE TRADE

NEW ZEALAND'S IMPORT POLICY I TELEGRAM STATES LONDON'S VIEWS BRITISH REQUESTS [United Press Association J WELLINGTON, This Day. New Zealand’s import policy is referred to in a telegram received from the United Kingdom Government for publication. This dispatch, which was released by the New Zealand Government on Saturday, states that in view of the misunderstandings which have arisen both in New Zealand and in the United Kingdom in connection with New Zealand’s import restrictions, and of doubt as to the policies of the New Zealand Government and the United Kingdom Government in this matter, it is suggested ' that publicity might be given in New Zealand to the following statement of its views. “The effective prosecution of the war, which is the principal immediate aim of both our Governments, calls for the most careful conservation of financial resources and of productive capacity in order that they may be devoted as fully as possible to the war effort,” says the telegram. “On the financial side the heavy and increasing demand which the war is making on gold and dollar resources of the Empire necessitates the greatest economy not only in direct dollar purchases by Empire countries but in the import of goods the manufacture of which is based on raw materials that have to be purchased in dollars. RESOURCES OF EMPIRE “In addition to the question of finance, there is also the need for adapting the productive capacity as fully as possible to the requirements of the war effort. Generally speaking, the resources of Empire countries are becoming fully employed, and the extension of the war effort demands the diversion of labour, plant and productive capacity from activities which do not directly increase their strength for war. “Thus the increasing claims which the war is making on the financial and productive resources of the Empire call for a policy which, while avoiding undue dislocation and hardship, will secure the necessary restriction of production and consumption of non-essential goods. Steps have already been taken in the United Kingdom to this end, more especially by the limitation and reduction of sales and consumption of many classes of consumer goods. “It might at first sight appear inconsistent with the object of the United Kingdom’s ‘export drive’ that New Zealand should restrict imports from this country. But it must be recognised that developments of the war situation necessitate a more selective policy in regard to export trade. WHAT BRITAIN ASKS “Subject to the above considerations we would ask that New Zealand should continue to meet her essential requirements as far as possible from the United Kingdom when they can be most economically supplied from that source; that restriction of nonessential imports from the United Kingdom should be accompanied by equivalent economies in New Zealand’s consumption; that undue dislocation should not be caused to United Kingdom industry which depends to an important extent on the New Zealand market; and that the long-term position of the United Kingdom as a supplier of manufactured goods to New Zealand should be safeguarded. “We appreciate the steps which the New Zealand Government has taken and is taking to direct purchases as far as possible to the United Kingdom and are still anxious to supply New Zealand with her necessary requirements of goods which can be manufactured in the United Kingdom without detriment to the common war effort. “It is easier to lay down broad lines of policy than to determine their practical application to individual cases. The working of New Zealand’s comprehensive system of import regulations must necessarily give rise from time to time to some difficult question affecting United Kingdom trade interests. We hope such questions can be settled satisfactorily in consultation between the two Governments.”