TRADE AFTER WAR

Nelson Evening Mail, Volume 80, 6 April 1945, Page 4

TRADE AFTER WAR

UNITED KINGDOM AND N.Z. MINISTER’S REPLY TO DEPUTATION Wellington, This Day. An indication of the Government’s post-war trade policy, to facilitate the forward placing of orders by importers, was sought by a deputation representing the United Kingdom Manufacturers’ and New Zealand Representatives’ Association which waited on the Minister of Finance and Customs, Mr Nash. In his reply the Minister said that the beneficial contribution of reciprocal trade to the United Kingdom and New Zealand was recognised. The president of the assodifitiOn, Mr W. A. Simpson said that the association was naturally concerned lest any delay in formulating a policy here should result in orders being placed at the bottom of the manufacturers’ list of tentative orders. For the purpose of establishing a policy and a scheme whereby this could be put into effect, Mr E. A. Hollins suggested on behalf of the association that the Government and its advisers should give careful thought to the following suggestions:— (1) Secure estimates from various groups of importers of units and value of post-war requirements. (2) Set aside a certain amount of sterling in London for post-war goods. 13) Set aside a certain amount of sterling credit in the International Bank. (4) If the estimates of goods required are approximately the same value as the sums reserved under clauses (2) and'(s), then inform importers to order goods for post-war delivery. (5) If the value of goods required amounts to more than the sterling available, then consideration must be given to the following points: (a) Preparation of a schedule of permitted imports according to the degrees of essentiality: (1) Those required for reconstruction and rehabilitation; (2) those required for the development of industry within New Zealand; (3) those required for .primary production; (4) necessary civilian requirements. (b> Preparation of schedules of goods not so essential (6) Allow import licenses to be issued against the value of sterling avail- ; able for use in the immediate post-war •period. REPLY BY MINISTER The Minister stated that before any could be given to the proposals submitted, it would be necessary to communicate with the British Government to find out its policy in connection with post-war export trade, and that when this was to hand, the matter would be considered by the members of .the Government and a reply given to the representations. However, the deputation eould understand that the .feeling of the Government with regard to Britain remained to-day as in the past. Later the Minister wrote as follows: “Information on this question has now come to hand. It is clear that the United Kingdom places much importance on the recovery and development of her export .trade-and that she values highly her trade with the Dominion. To that end we are assured that every endeavour will be made to meet New Zealand's requirements as soon as circumstances permit. The difficulties associated with conversion from wartime to peacetime production will, however, be recognised, and the time when such change-over can be made will naturally be conditional on the progress of the war and commitments in connection therewith.

“The beneficial contribution of reciprocal trade to the United Kingdom and New Zealand is recognised. Subject to the principles of the Atlantic Charter and the mutual kid agreements to which both the United Kingdom and New Zealand subscribe, it is proposed to continue the policy operating between the Dominion and the United Kingdom before the war.

"With the exception of essential machinery for which licenses to import within the requirements of the Dominion may be issued upon consideration of individual cases it will not be practicable before the close of the war with Japan to determine a policy of expanding licenses for imports. The position is governed by funds available overseas. After meeting loan and other commitments the balance of funds available will determine the extent to which import licenses may be issued. Import licenses will first be granted (a) to meet the demands for maintenance and modernising of machinery and other equipment necessary for the production of essential goods in New Zealand, and (b) for the importation of other essential goods not available from the production of the Dominion.

“The course outlined by Mr Hollins for determining the extent to which imports might be permitted has been examined and while there are certain difficulties ha adopting such procedure in its entirety it nevertheless follows closely that at present employed in that an estimate is made of funds available for imports, and licenses are related thereto. It will be recognised, however, that if adequate control is to be exercised over the use of such funds the licenses must cover a limited period and that the ‘post-war’ period would be too indefinite for that purpose. It is considered also that in general the amounts for which licenses should be granted to meet demands, consistent with funds available, can be estimated from data available, though in certain cases it may be found necessary, as at present where programmes of forward requirements for particular items are requested by the United Kingdom, to approach importers for information in that connection. The Government appreciates the helpful approach of your association toward the question, and you may be assured that the position will be kept under review to ensure that all essential import requirements are provided for. “You could at any time you wish approach the Government with regard to imports of particular classes of goods or on any subject which you consider would be helpful to the trade of the United Kingdom or the Dominion.”