EXCHANGE OF GOODS

Otago Daily Times, Issue 23370, 9 December 1937, Page 10

EXCHANGE OF GOODS

DOMINION AND GREAT BRITAIN FURTHER EXPANSION ADVOCATED RESTRICTIONS UNWARRANTED (Per Uniter Press Association) WELLINGTON, Dec. 8. A review of trade and trade relations between Britain and New Zealand, as well as suggestions for a further expansion, were contained in remarks made by Mr C. W. Budd. president of the United, Kingdom Manufacturers and . New Zealand Representatives’ Association, at the annual meeting of that organisation., to-day. “ We have heard it repeatedly stated by the Dominion Government that it is prepared to spend every penny above interest commitments in exchange of goods with Britain,” Mr Budd , said. “ I venture to suggest, however, that after the above interest charges are met this year there will be a credit balance in favour of the Dominion of from £7.000,000 to £9.000.000. and if this is spent on goods from Britain, the necessary goodwill will be maintained. We cannot see what is to stop the Dominion from spending this .surplus in Britain, instead of proceeding to make trade agreements with foreign countries whose policy is so definitely towards economic nationalism. Any action such as a quota on English goods entering this market will surely bring a quota on our primary produce entering the United Kingdom market. How could we object to this if we start it? I sincerely hope that no more will be heard of such drastic, unwarranted action being taken by New Zealand. “ We have been informed continually about new markets (foreign) that are available to Dominion traders, but in practice this prospective trade never seems to materialise,” Mr Budd continued. “Time after time this Dominion is reminded that the United Kingdom is our only stable market and, since trading is the major industry of Britain, everything possible should be done to facilitate a freer exchange of goods between these two countries, and the other dominions of the Empire.

“It has even been said that the duties placed on goods entering the Dominion are necessary on account of cheap labour in the United Kingdom.” Mr Budd said. “ Not only has this been convincingly disproved, but we find to our shame that women and children in New Zealand are being driven back to the milking sheds to provide labour for increased production, so that they may be able to purchase the goods necessary to them. The farmer cannot be blamed for this state of affairs, which is a direct result of the artificial restrictions being continually placed on trade. Should any world event cause the value of the produce exported from the Dominion to fall in the markets of the United Kingdom, the effect would be disastrous to this Dominion and everything possible should be done at this end to see that actions designed to promote trade with the United Kingdom are such that the resulting prosperity will be mutual.”