RESTRICTION PLAN

Otago Daily Times, Issue 23685, 17 December 1938, Page 16

RESTRICTION PLAN

NEW ZEALAND IMPORTS REACTION IN BRITAIN APPREHENSION EXPRESSED "BREACH OF OTTAWA PACT" LONDON, Dec. 15. "If New Zealand carries out her import restrictions plan we shall go baldheaded for the denouncement of Ottawa. I think we can make it very difficult for the Government to refuse." declared Mr Moir Mackenzie. Director of the British Industries Federation, commenting on a letter from the federation's president (Mr Peter Bennett) to the Board of Trade, in which grave apprehension was expressed over the results of the policy on Anglo-New Zealand trade. The letter declared: "If the fears are substantiated the position will be a breach of the Ottawa Pact, in which case the federation will have no option but to press for Britain to abrogate Ottawa and substitute by negotiation an agreement in which the advantages of New Zealand on the British market shall be more commensurate with the treatment accorded United Kingdom exports." The letter continues: "While objection to the reasonable development of secondary industries is not raised, and this should occur in consonance with Ottawa, recent instances, particularly where the projects are sponsored by the Government, show that the policy is preference to local industries even to the extent of the exclusion of United Kingdom manufacturers." The letter urges that the United Kingdom producer is not given an opportunity of reasonable competition provided under Ottawa, and adds: " New Zealand apparently has ample funds to meet commitments and to pay for the existing volume of exports from the United Kingdom." It appreciates Mr Savage's desire to buy as much as possible from Britain, but is unable to disguise the fact that secondary industries established and projected may damage trade previously carried on. Mr Mackenzie adds: " Exports to New Zealand are bound to dwindle. We are expected to continue buying 85 per cent, of New Zealand's produce. There can Be Socialistic experiments, but not at the expense of Britain."

FEDERATION'S ATTITUDE SCATHING PRESS COMMENT ''*""'. '"■' LONDON, Dec. 1&. (Received Dec. 17, at 1 a.m.) The. News Chronicle, in a leader, ■ays:— "The federation's attack on New Zealand's policy is both improper and unconstitutional. It is monstrous! that, because New Zealand happens to have a Labour • Government which is initiating certain experiments, British big business should threaten to force the Government to reprisals. Such action both menaces constitutional government and the Dominion's independence. Mr MacDonald recently spoke on nationalism, by which some dominions were bitten, and we can imagine nothing so likely to break up the Empire as the federation's economic nationalism." GRANTING OF LICENCES GOODS ALREADY ORDERED SYDNEY, Dec. 16. (Received Dec. 16, at 1j..35.p.m.) The New Zealand Trade Commissioner, Mr W. Taylor, has been officially advised that the New Zealand Government is granting licences for.the importation of any goods for which firm offers were placed overseas on or before December 5, provided the quantities are not abnormal and importers furnish forthwith at the port of intended importation copies of all orders for such goods. New Zealand importers must apply for a licence and nonresident traders must appoint attorneys in New Zealand to make application on their behalf. PRIME MINISTER'S REPLY IMPROVED TRADE WITH BRITAIN "HOPE TO INCREASE OUR PURCHASES" (Per United Press Association) WELLINGTON, Dec. 16. The desire of the Government to increase purchases by New Zealand from Great Britain was referred to bv the Prime Minister (Mr M. J. Savage) when invited this evening to comment on the London cable message containing criticism by a British industrialist of the Import Control Regulations as a breach of the Ottawa agreement. He said everything possible would be done to safeguard Britain. " We have already told the British people that we are prepared to spend every shilling we get from them in the purchase of goods and services provided by Britain," said Mr Savage. "We can't do more than that. The policy of the Government today is not necessarily bad, even from the point of view of those who do not like the look of exchange control. It is the use made of any nolicy that decides whether it is good or bad in form. We have stated definitely that we hope to increase our purchases from Britain, and, whatever happens, we cannot do less than take British goods in return for the goods Britain takes from us. Anything that looks indefinite in that respect will be placed beyond doubt. The Government will make any sort of agreement that will, safeguard Britain.

"A VIGILANT ATTITUDE" FEAR OF DISCRIMINATION PROTEST BY IMPORTERS PRIME MINISTER'S REMARK RESENTED <Per United Press Association! AUCKLAND, Dec. 16. The sequestered township of Urutude to protect the interests of importers under the import licensing system was reached bv the Bureau of Importers, and, in addition, the meeting carried a number of resolutions dealing with the recent trade developments. Because it was considered that unfair personal discrimination could result from the ii~~>ort regulations, it was decided to use the organisation's utmost powers "to maintain their right to continue to serve the interests of the consuming public." The bureau also decided to ask the Government to provide the importing section of the community with the same facilities for radio broadcasts as had been made to local manufacturers. Members expressed resentment at the statement of the Prime Minister that "if the Government set out to draft a Bill providing for increases in Customs tariff, there would be the same squealing from the importing sections of the community as we have heard in the past week." It was decided to draw Mr Savages attention to the bureau's opinion that, when carefully analysed, the voice of the importers would be found to be the voice of the people, and that, therefore, his indictment, while directed against the imoorting section of the community, was equally applicable to many loyal Government supporters. The bureau also decided to point out that, had the Government amended the Customs tariff, the importers would, at least, have known where they stood. It was stated that, as a result of the inability of the Government satisfactorily to administer the regulations at the present time, importers had been compelled to take measures which could have been avoided had the regulations been more efficiently introduced. The meeting stated that it considered the Prime Minister's remarks to be out of place and against the best interests of the people. Appreciation was expressed of the assistance given by the ComDtroller of Customs at Wellington and the Auckland Collector of Customs to the importers in their efforts to give effect to the new regulations. THREAT OF RETALIATION BRITISH ACTION RUMOURED SOUTHLAND FARMERS CONCERNED (From Our Own Correspondent) INVERCARGILL, Dec. 16. , Reports from what were believed to be reliable sources that the action of the' Government in restricting imports would be followed by quantitative, restrictions, of exports to the British market were received with concern by the Southland Provincial Executive of the Farmers' Union today, and a motion viewing the possibility with alarm was carried unanimously. Mr Ronald Sim said that rumours were current that as a direct result of the Government's action in licensing and restricting imports, British authorities would take action to restrict the importation of New Zealand's primary products. This would spell disaster to the farming community of New Zealand and emphatically stop any opportunities which might occur within the Dominion for the expansion of production. Retaliatory action was quite logical because the British manufacturers looked to New Zealand to take their surplus products. If the New Zealand market was partially closed to them, they would be entitled to say that they could not buy all New Zealand's surplus primary products. The president (Mr A. R. Johnston) emphasised that the position was very serious. The reports of contemplated action by British authorities had been received too late to allow inquiries to be made before the meeting, but he was assured that the source of the statement was one in which a good deal of reliance could be placed.