BRITISH EXPORT TRADE

New Zealand Herald, Volume 81, Issue 25055, 20 November 1944, Page 4

BRITISH EXPORT TRADE

New Zealand should not hear unmoved the note of concern struck in London at the news of the lump sum payments of £28,000,000 to the Dominion under the recent trade agreements. The amount is still another addition to British obligations incurred in fighting the war. It may seem small by comparison with the total of blocked sterling balances, now stated at £3,000,000,000, but it is a large sum to the Dominion and large, too, when regarded as an ex gratia payment. Britain will emerge from the war heavily burdened. Apart from the overseas debt already noted, her overseas trade has shrunk to three-tenths its pre-war volume, she has liquidated most of the international investments that used to bring in a handsome income, and for a time she must expect lower receipts from shipping. Her great hope is to rebuild her export trade to its former dimensions and then increase it by half. New Zealand should do all she can to second that effort. First the Government should pledge the country to spend every penny of the lump sums in Britain. Next it should not try to negotiate the sterling earnings of New Zealand produce for foreign currencies, but devote them instead to purchases within the sterling area. By following this trade policy we shall be helping ourselves by helping our best cus-* tomer. That is sound business and it combines with sentiment and justice for, as Sir Harry Batterbee told Dunedin Rotarians the other day: "It would be extremely unfortunate if England were to lose her markets abroad after she has put all her efforts into the war."