IMPORT CONTROL

Otago Daily Times, Issue 23859, 13 July 1939, Page 6

IMPORT CONTROL

CONCERN IN BRITAIN INFLUENCE ON LOAN BUSINESS MEN’S BELIEF The belief that the British Government is opposed to New Zealand's import restrictions as a long-term policy, and will not dissociate- the question from that of a loan, is expressed by the Association of British Chambers of Commerce in a footnote to a summary of a brief report of the meeting between its representatives and the Minister of Finance. (Mr W, Nash) in London ori June 16. “The deputation spoke very frankly and forcibly.” the report states. “ They demanded an Indication of the ultimate intentions of the New Zealand Government and whether the present policy of restriction wan temporary or " permanent. They pointed to conflicting statements from members of the New Zealand Government on this point. The deputation jJso ddalt forcibly with the uneconomic development of secondary industries and surveyed the whole field of Amdo-New Zealand trade relations. Ottawa Breach Admitted “Mr Nash in his reply was equally frank. He described the circumstances leading up to the import restrictions, and outlined his general intentions. It Is a perfectly clear,conclusion to draw from what he said that, at least while the present New Zealand Government remains in power, the system of regulation will be maintained, or only modified in unessential directions., " Mr Nash said quite frankly that the present regulations are a breach not only of the spirit, but of the letter of the Ottawa agreement. He explained that he himself had made in 1937 certain; proposals for a revision of the Ottawa agreement, but these proposals had not found favour with the British Government. He appreciates that if the New Zealand: Government maintains its present policy the commercial community in this country will themaelves insist upon a revision of the Ottawa agreement.” British Government’s View The following footnote is attached to the report: “It is believed that the British Government is taking up a strong attitude. It is prepared to acquiesce in the present policy as a shortterm policy if it is going to help New Zealand recover from her financial difficulties, but it would be opposed to any attempt to make the present policy a long-term policy: nor will it dissociate the question of a loan from the question of restriction.” In a further memorandum issued last month the Association of British Chambers of Commerce draws attention to conflicting statements by four members of the New Zealand Government upon the import control policy, and states that it is not unreasonable for British manufacturers to ask for clarification. “If there is some certainty that the import regulations are in fact temporary.” the memorandum continues, “firms may be prepared to nurse the marked for. a time. If the restrictions are permanent, firms will know how to proceed, and many of them, although they like trading with the New Zealand market, will look elsewhere for purchasers. It should be borne in mind that very few firms depend to any large extent on the New Zealand market for their major prosperity, “Cake and Halfpenny.” "If the restriction is maintained—and it Is difficult to see why it should be, in view of the fact that the United Kingdom buys as much as two and a-half times the value of goods from New Zealand as New Zealand buys from the United Kingdom—it should not be a matter of surprise to the New Zealand Government if ~ the British Government is pressed to seek revision of the Ottawa agreement between tb® two ■ countries. ■ v ...,

"At the present time British export trade is not having an easy time, and the view is growing in strength that the United Kingdom should buy from those who buy from it. It is not reasonable to eicpect the United Kingdom to continue to absorb a larger proportion: of New Zealand exports than is .required to meet debt services if New Zealand imports of British goods are' restricted. New Zealand cannot, expect, indeed, to have the cake and the halfpenny.”