TRADE CONTROL

New Zealand Herald, Volume LXXV, Issue 23224, 19 December 1938, Page 13

TRADE CONTROL

OTTAWA AGREEMENT DOMINION'S OBLIGATIONS RESTRICTION ON IMPORTS VIEWS ON BRITISH COMMENT [BY TELEGRAm —PRESS ASSOCIATION] WELLINGTON, Saturdny The declaration of Mr. Moir Mackenzie, a director of the Federation of British Industries, in a cable message fronu London, that "if New Zealand carries out her import restrictions on January 1 wo will go bald-headed for denouncement of the Ottawa agreement and I think we will make it very difficult for the Government to refuse." was the subject of comment by a number of Wellington business men to-day. The Dominion secretary of the New Zealand Farmers' Union, Mr. A. P. O'Sliea, said there could be no question of New Zealand not having lived up to the spirit and the letter of the Ottawa agreement. Last year the Dominion had actually imported more from the United Kingdom than its income justified. The president of the United Kingdom Manufacturers' and New Zealand Representatives' Association, Mr. D. Hogg, expressed the opinion that the British industrialists had come to a perfectly logical conclusion. New Zealand was not self-supporting. Its existence depended on the British Navy, British markets, British finance, and British goodwill. Therefore, any development of trade relations should be based on close co-operation with Britain.

The president of the New Zealand Importers' Federation, Mr. G. W. Guthrie, said the present regulations bristled with troubles, both known and unknown, and ho considered the Government would be well advised to reconsider the whole matter. A statement issued by the New Zealand Manufacturers' Federation says the United Kingdom has always acknowledged that New Zealand from the earliest days has acted in the spirit of the Ottawa agreement long before the Ottawa conference was thought of. Since the Ottawa conference New Zealand has carried out the agreement in the spirit as well as in the letter, and the Government's recent policy statements declare as close an adherence in the future.

LICENSING SYSTEM REASON FOR ACTION MR. MACKENZIE'S CRITICISM REPLY BY MR. JORDAN LONDON, Dec. 16 The High Commissioner for New Zealand, Mr. W. J. Jordan, in a statement published in the News Chronicle, replies to the statement of Mr. Moir Mackenzie, director of the British Industries Federation, regarding New Zealand import restrictions. The High Commissioner characterised the statement as mischievous, misleading and of a kind that was likely to antagonise buyers of English goods, as well as to affront political feeling in New Zealand. The import licences system was not designed primarily to curtail British goods in order to bolster up New Zealand industries, but to enable New Zealand to buy the maximum amount of goods from Britain in order to pay loan charges. "We refuse to be stampeded by Mr. Mackenzie into a position in which we would spend so much in England that there would not be sufficient balance to meet our obligations," said Mr. Jordan. "We appreciate Mr. Mackenzie's pica that New Zealand should bo allowed to carry out her Socialist experiment. He may be assured it will be carried out to the advantage of the people of New Zealand and the satisfaction of the London investor, also to the satisfaction of tho Federation of British Industries unless he prevents it by his own actions." THE ISSUE OF PERMITS STATEMENT BY MINISTER The statement that every effort will be made to permit the issue of licences covering the first six months period as early as possible is contained in a telegram received by the president of the Auckland Chamber of Commerce, Mr. A. Ely, from the Minister of Customs, the Hon. W. Nash. The advice from Mr. Nash was in reply to a communication from Mr. Ely. Mr. Ely has now sent a further telegram to Mr. Nash as follows: —"I fully appreciate the urgent efforts for facilitating licensing. Your telegrams are, however, all silent on the question of what classes of goods, if any, are to be restricted, together with the extent thereof and from what countries."