IN JEOPARDY

Otago Daily Times, Issue 25851, 23 May 1945, Page 4

IN JEOPARDY

NEW ZEALAND'S GOOD NAME

BRITAIN RESENTFUL OF EMBARGOES

(N.Z.P.A. Special Correspondent)

LONDON, May 21. The high reputation enjoyed by New Zealand in Great Britain, but also the strongest object.on, even resentment, to the Dominion’s decision to lock out a wide variety of British goods—these are two of the deepest impressions gained by Mr S. G. Holland during his visit to the United Kingdom. “ There is no doubt that the name of New Zealand stands very high in Britain,” said Mr Holland. “ This is due, first of all, to the splendid record of our fighting men in both the last war and this war. Everywhere New Zealand servicemen have hade a good impression and have been first-class ambassadors. The second reason is the enthusiasm New Zealand has always shown for the British Empire. The people everywhere are highly appreciative of the way in which New Zealand without a moment’s hesitation sprang to the side of the Home Land whenever she was endangered. New Zealand’s name stands extraordinarily high, and we must exercise the greatest care to ensure that we retain that position. “ During my visit I met a great many people interested in trade between Britain and New Zealand from both the export and import angles. Great concern has been expressed to me at what the people here describe as a ‘lockout’ of many classes of British goods under the present system of import restrictions. Nobody questions New Zealand’s constitutional right as a self-governing dominion to determine her own fixed policy or develop her own manufacturing industries. On the contrary, they are only too ready to agree it is desirable that the dominions should develop their own manufacturing resources in industries where such development is justified. No Obligation to Tariffs

“There is no objection to tariff protection in addition to the indirect protection of the existing exchange rate and the high cost of freight, shipping, and insurance charges. But there is the strongest and a widespread objection, amounting to resentment in many cases, against the decision to lock out a wide variety of British goods, and thus deny the British manufacturers the right to compete with the high tariff protection plus the high exchange and shipping charges. “ while the people here dislike tariffs against British goods, they can understand them, but they cannot understand embargoes and lock-outs. “If the good name which New Zealand undoubtedly enjoys is not to be endangered, the present lock-out policy must be urgently reviewed. Britain is bur only market for an overwhelming portion of our exports, and the greatest possible care must be taken to cultivate the strongest friendliness with those who purchase our goods, most often at prices higher than they could obtain them from other countries. I have spoken to many factory workers, who expressed themselves strongly at the lock-out of things they used to make for the New Zealand trade. ■ In some cases the restrictions and embargoes have been applied to goods made from wool actually produced in New Zealand at the very moment when a delegation from the Dominion is here endeavouring to negotiate an agreement for the future disposal of our wool.

“On many occasions my attention has been directed to the agreement between Britain and New Zealand, in which Mr Nash, on behalf of the Government, gave a solemn assurance to Britain that it was not -the intention to employ the import licensing system to give still further protection to local industries on a scale that would prevent the United Kingdom from full opportunities of reasonable competition. It is felt here that the present system by which many classes of goods are totally prohibited is a distinct breach of what was thought to be a binding agreement, and which was issued in the form of a White Paper. Concern Over Monopolies

“ Two other matters causing concern are, first, the growing practice in New Zealand of granting selected manufacturers monopolies to produce certain classes of goods without giving others the right either to begin operations in New Zealand or to ship goods from Britain. The result is that there are two unpleasant words on the lips of many people here—lockout and monopoly. Secondly, there is the keenest disappointment in industrial circles at the awarding of large contracts for electrical machinery to Canada and America. Britain, virtually the only country to buy our exports, was most anxious to secure this business. “ It is true that deliveries were not so prompt as from other countries, and in some cases the prices were higher. But as these delays and prices are the direct result of the war, in which factories were heavily bombed, it is felt that Britain is being further penalised by these much-desired orders being given to other countries at the very time when Britain is struggling so hard to recover her lost export trade, which, in turn, is so vital to her recovery as a strong trading country—a penalty particularly hard for a country that purchased 10 times as much New Zealand produce as the rest of the world put together. “ It will be tragic if the present lockout policy is presevered with, and New Zealand’s good name is lost. “An attempt to answer British criticisms is made by saying that New Zealand will purchase capital goods. But Britain takes no comfort from a procedure which she regards as merely tending to aggravate the present unsatisfactory situation. Competitive Aspect

“ I should like to make it plain here—as I have to 'British manufacturers—that I am very keen to see New Zealand industry developed too, but I also maintain that those industries must be prepared to stand up to reasonable competition from Great Britain, otherwise our industrial growth will become uneconomic. I am also in favour of reasonable tariffs, but I am against embargoes. “I should also like to repeat with emphasis five points: First, neither the United Kingdom Government nor the British manufacturers oppose reasonable protection of New Zealand manufacturing industries. On the contrary, they recognise that their development is both right and proper: secondly, they do resent being locked out from the New Zealand market and denied the right even to compete against the high tariff protection, high exchange, and high shipping charges; thirdly, there is the strongest objection to granting monopolies to certain favoured interests; fourthly, Britain’s trade recovery is vital to peace, and New Zealand must assist that recovery; fifthly, it is suicidal to offend the very people who buy our exports.”