GERMAN TRADE

New Zealand Herald, Volume LXXIV, Issue 22853, 7 October 1937, Page 13

GERMAN TRADE

THE NEW AGREEMENT MUTUAL BENEFITS DISCUSSION ON THE BILL EXPLANATION BY MINISTER [ ItV TELEGRAPH —SPECIAL REPORTER] WE LLI NO TON, Wed nesda y The view that the trade agreement with Germany could not be other than beneficial to both Germany and New Zealand without being in any way to the disadvantage of the United Kingdom was expressed by the Minister of Customs, the Hon. \\. Nash, in moving the second reading of the bill giving effect to the agreement in the House of Representatives to-day. When the Minister was explaining the provision with respect to the extension of most favoured nation treatment the lit. Hon. J. G. C'oates (Opposition—Kaipara) asked whether it meant that without legislation the Government could extend items on the schedule to other countries. Mr. Nash: They are automatically extended to all countries with most favoured nation agreements. Mr. C'oates: Only to those countries? Mr. Nafch: Yes Record of Transactions

Dealing with the method of assessing the amount of exchange available for the purchase of goods by Germany from New Zealand the Minister said that German exporters would notify the Central Exchange Control Board in Germany of orders they had icceived from Nc-.v Zealand and from the records built up in that way each quarter there would be determined the amount of money to be spent on New Zealand goods. If there was any discrepancy between the figures assessed in Germany and New Zealand an adjustment could be sought, Mr. Nash continued. It was possible that at certain times of the year an adjustment would be necessary. It would also be possible to ask for redress if it was found that a large amount of German goods were coming to New Zealand via London. A Safeguarding Clause There was a safeguarding clause, Mr. Nash added, and this provided for termination of the agreement or readjustment if it was found that circumstances' arose, which gave an undue advantage to either party. "To my mind this agreement cannot do other than extend the trade between the two countries," the Minister concluded, "and thero is no evidence that it will be to the disadvantage of the United Kingdom. Trade tends to promote better relations and the more we are linked up in this way the sooner will we have peace, tn spite of what might have been said 1 am ol the opinion tliat the closer the nations set together as nations the farther away will be thq possibility of war."

POINTS CLARIFIED

DEALING WITH CREDITS EXCHANGE VALUE OF THE MARK [BV TELEGRAPH —SPECIAL REPORTER] W ELLIXG TOX, "Wednesday Various points concerning the operation of the new trade agreement between New Zealand and Germany were clarified in an interview this evening bv the Minister of Finance, the Hon. W. Nash. The Minister was asked to indicate hojv credits would be dealt with during the interval between the operation of the new customs duties this week and the coming into force of the payments agreement on January 1 next year. His reply was that arrangements had been made whereby credits would not pile up during the next three months, as the exporting procedure to be followed in Germany would enable a complete check to be kept on the whole position. United Kingdom imports into New Zealand were already free from surtax, said the Minister, in response to another inquiry, and the removal of surtax from German imports accordingly had no prejudicial effect on British imports. It was also provided that when the preference to the United Kingdom goods fell below a certain margin those goods were to be exempt from primage duty. "It will not be possible for Germany to sell to lis and then before buying alter the exchange value of the mark to our disadvantage," said Mr. Nash, replying to a further query. "Under the new agreement we have the right to fix the rate of exchange." The Minister also stated that the other countries, approximately 22, with which New Zealand had most-favoured-nation agreements, would automatically be entitled to the same benefits as those extended to Germany. However, none of these countries exported to any extent goods of the type covered in the agreement.