GERMAN TREATY

New Zealand Herald, Volume LXXIV, Issue 22860, 15 October 1937, Page 14

GERMAN TREATY

BRITISH INTERESTS VIEWS OF ASSOCIATION CONCESSIONS SUGGESTED In commenting on the recentlyconeluded trade treaty with Germany, the council of the United Kingdom Manufacturers and New Zealand Representatives' Association suggests that the treaty might well be followed in tlio near future by a reduction in the duties 011 some lines of United Kingdom goods as a gesture of goodwill. The council would also like to see more specific safeguards to United Kingdom manufacturers in the event of a diversion of trade under the treaty. The views of the association are expressed in the following resolution, parsed tin's week: — " The council of the United Kingdom Manufacturers and New Zealand Representatives' Association realises the desirability of an increase in international trade, subject to the remarks below, as being more beneficial to all concerned than a policy of intense economic nationalism, which has been in evidence in various countries of the world. Safeguarding a Market " Wo. compliment the Minister of Customs on his efforts to find new markets for New produce, and appreciate his consultation of the British authorities before the agreement under review was entered into. This association probably takes a closer view of such an agreement than would the British Government, and accordingly the council considered it advisable to mako a close scrutiny insofar as tho interests of United Kingdom manufacturers are concerned. " Wo affirm our view, which is, we believe, shared by the New Zealand Government, that the United Kingdom is and must remain the main market for New Zealand produce. " While trade agreements with other countries fere desirable, wo emphasise that most effort should be concentrated on the safeguarding of the English market, because with reciprocal trade between New Zealand and the United Kingdom carried to its fullest extent wo believe that market will, in future, as in tho past, consume all the exports we choose to send.

A Goodwill Gesture " To this end we feel that a gesture to the United Kingdom in, the near future by a reduction of tariff on, some of the dutiable lines would repay New Zealand handsomely, especially since, as will be seen below, 15 other countries, not including the United Kingdom, benefit under this treaty. A British worker in a job can give the prices we want for our primary produce. " As far as the New Zealand-German trade treaty is concerned, we would like to see a more specific safeguard to United Kingdom manufacturers in the event of a diversion of trade taking place than is provided at present. Further, we point out that under the most favoured nations treaties, 15 other foreign countries automatically obtain the reductions in duties, and tne possibilities of diversion of United Kingdom trade to some of the other countries cannot be overlooked. This would emphasise the definite necessity of some specific and adequate safeguard in future trade agreements, to prevent a diversion from the United Kingdom."