TRADE WITH ARGENTINA

New Zealand Herald, Volume LXIX, Issue 21332, 5 November 1932, Page 15

TRADE WITH ARGENTINA

gj,. In your sub-leader of October 27 dealing with results to be expected from Ottawa you make a reference to oneway trade" and continue as follows: " Argentina, for instance, has been selling goods worth well over £50,000,000 each year in the United Kingdom, but taking in return merchandise to only half the value in the best of times." Considering that Britain has £600.000,000 of capital invested in the Argentine, on winch the people of Argentina have to pay interest amounting approximately to £30.000.000 a year in normal limes, and that tins enormous amount can only be sent to the British creditors in the form of meat, wheat or other commodities, and that any British merchandise taken by the Argentine people must also lie paid for by them by the export of still more meat and grain, is it any wonder that the position is as stated by you? How could it be otherwise? As long as the relationship of debtor and creditor exi't. between Argentina and Britain, what,, you term "one-way trade" must exist. The ci editor nation, Britain, must import in excess of her exports and the debtor nation, Argentina, must export in excess of her imports. An absolute balance of trade between the two countries could not bo brought about by Argentina increasing her purchases from Britain, as she. could only pav for such purchases by further exports Nothing short of the complete wiping out of British investments in the Argentine would bring about an cnual balance of trade between the two countries. J- E - Stevens.