UNITED STATES TRADE

New Zealand Herald, Volume LXXVI, Issue 23482, 20 October 1939, Page 8

UNITED STATES TRADE

Evidence that the United States does not wish to sacrifice the whole of its lucrative export trade with British countries by virtue of its isolationist policy is contained in the suggestion that a number of Democratic senators on the Foreign Relations Committee favour the relaxation of the "cash and carry" proposals to enable American ships to carry all goods except arms to belligerent countries outside the European zone. The desirability of some such action has been emphasised almost simultaneously by the Prime Minister of South Africa, General Smuts, who argues that the supply of American machinery might be most important for purposes of industrial development. If existing trade is blocked, he says, the United States will suffer as well as the Dominions. Statistics certainly bear, out this contention, as is shown by the value of American exports to the British Dominions and India in 1937. The figures are: —

Dollars Australia . . . . .. 73,517,000 New Zealand .. . . 23,881,000 South Africa . . . . 88,372,000 British India . . .. 43,747,000 Total . . . . . 220,517,000 Admittedly, the combined figure represents only about a sixth of the United States' export trade to Europe, but it is a substantial sum and the prospect of its loss can hardly be accepted with equanimity by American industrialists." -With Great Britain requiring all the primary production of which the Dominions are capable, there will naturally be a fairly considerable demand for agricultural and mining machinery, which British factories may be una'ble to supply. Furthermore, under war conditions, British j merchant ships will be primarily ! engaged in carrying foodstuffs and : other- essential supplies to the .Mother Country and only the use of American shipping can the , maintenance of trade between the | JUnited States and the Dominions.