TRADE RELATIONS

New Zealand Herald, Volume LXXIV, Issue 22917, 21 December 1937, Page 15

TRADE RELATIONS

AUSTRALIAN VISIT HON. W. NASH'S HOPES ADDRESSES AT LUNCHEON \ —- COMMON OBJECTIVES [bt TELEGRAPH —OWN correspondent] WELLINGTON, Monday The view that New Zealand,, in its present trade negotiations with the Australian trade delegation at present in Wellington, would succeed far in advance of its original objective was expressed by the Minister of Customs, the Hon. W. Nash, at a State luncheon to the delegation, which is headed by the Hon. T. W. White, at Parliament Buildings to-day. The negotiations, which occupied the last week, have not yet concluded. The Prime Minister, the Rt. Hon. M. J. Savage, presided at the luncheon and members of the Cabinet and State officials were present. In proposing the toast of "The Guests," Mr. Nash said that they had come at the invitation of the New Zealand Government to discuss the question of trade between the two countries and to try to find out what New Zealand could take from Australia that would not be harmful to New Zealand industries.

Referring to the disparity between New Zealand and Australian trade in favour of Australia, Mr. Nash pointed out that about one-third of the goods that came from Australia to New Zealand could not be economically made here, but at the same time there was a very large quantity of goods coming from Australia that could be made in New Zealand. Eemoval ol Trade Barriers The Minister referred to the desire of the Government to develop secondary industries as well as primary industries, and said that immediate steps in that direction were the present negotiations. " I believe we can succeed," said Mr. Nash. He emphasised the importance of removing tariff barriers between Eng-lish-speaking countries and referred to the present steps being taken in the United States and the United Kingdom in that direction. " We want so to organise our country that certain commodities will be made by our people to the maximum extent, and so entail fewer commodities coming from Australia to compete with what we are making here," said Mr. Nash, who mentioned the possibility of a diversion of part of the Australian trade to the United Kingdom. Australians were not too happy about it, but something might have to be done in that direction. He emphasised that nothing would be done that would result in the diversion of New Zealand trade from Australia to countries outside the United Kingdom. "Tough Proposition"

The Hon. T. W. White said the visit was not a trade visit only, but one of pleasure and friendship. New Zealand and Australia should get closer together in trade and other problems. They knew when they were coming to New Zealand that they would be up against a pretty tough proposition (laughter), but he did not suppose there were any two other parts of the world like New Zealand and Australia, where the inhabitants were of the same racial family and where they were all part of one great Empire. There were differences, of course, but then there were differences in a family and a family would unite against the world. "And when you realise that," he said, "what are potatoes and oranges in comparison?" (Loud laughter.) Mr. White said that all Governments were trying to give the greatest happiness to their people. He had heard, although he had not found it, that there was an antipathy to Australia in New Zealand. There was certainly none against New Zealaud in Australia. Mr. White referred to national defence, and said that nobody would believe that New Zealand was free from attack these days. That alone was one reason for greater co-operation between New Zealand and Australia, aud it might be that Australia and New Zealand would bo left a great deal together in that respect.

Australian Development Mr. White said he was glad to see that New Zealand would increase secondary industries. Australia had realised long ago that if the country was to be only agricultural it could not maintain its population. At present 535,000 people were working in the factories of Australia. Continuing Mr. White said he was glad to observe from Mr. Nash that there would be no discrimination. He suggested that thero should be greater collaboration between the two countries in an industrial and economic survey. For instance, it might not be wise for New Zealand to develop some industry if that industry could be developed in some other Dominion to much better advantage, and it might pay Australia for some of New Zealand's resources and potential industries to be developed. By this means both countries would be made strong economically. Australia absorbed 60 per cent of her primary products because secondary industries had been built up. After all, the greater the volume of trade the better.