FIRST CHANCE TO BRITAIN

Southland Times, Issue 22896, 22 May 1936, Page 6

FIRST CHANCE TO BRITAIN

Future Reciprocal Agreements EXCHANGE OF GOODS NECESSARY PROMOTION OF HOME INDUSTRIES

(United Press Association.) Wellington, May 21. Some indication of the Government’s attitude towards British imports was sought by a deputation from the United Kingdom manufacturers and their New Zealand representatives which waited on the Prime Minister (the Rt. Hon. M. J. Savage). The Minister of Customs (the Hon. W. Nash) and the Minister of Industries and Commerce (the Hon. D. G. Sullivan) were also present. It was stated by the deputation that merchants were afraid to operate in the absence of some clarification of the Government’s intentions, and that, because of the high landing charges here and the consequent handicaps, the feeling of goodwill between New Zealand and United Kingdom industrialists was somewhat strained.

One speaker claimed that New Zealand could take at least another 30 per cent, of its goods from Britain. Mr Nash emphasized the necessity for developing the secondary industries of the Dominion and for arranging bilateral agreements. He indicated that it was New Zealand’s intention to give Britain the first chance when it came to entering reciprocal agreements. Trade Extension. Mr Savage said that he agreed that trade between the Dominion ana Britain must be extended, and he hoped that he would be able to count on cooperation from members of the association and the interests they represented in assisting Mr Nash to put his case to the British Government. Mr Savage repeated his assertion mat the rate of exchange had to come down, and that the sales tax must come oil, and assured the deputation that the Government would not do anything to its detriment. “We are going to ensure that to tne extent Britain will take goods from us, we will take goods from Britain, said Mr Nash. “What goods may lead to some discussion. After we have made the necessary provision to meet the service of our debt by way of interest or gradual redemption of the principal, there will be no credit available tor other people, unless they take goods from us. If we cannot organize bilateral agreements with Britain, trade with Britain must decline. We say to Britain that we will give Britain the maximum facilities, provided it does not disorganize completely goods that can be here. There is no wizardry about it.’ A Balanced Economy. Mr Nash added that there was no way in which New Zealand could piogress along the lines that the Government was trying to make it progress, except by extending the manufacture of goods in the Dominion. W hen New Zealand gave Britain first chance—up to the present New Zealand had said that it would not make any new agreement with any country until it had first made an agreement with Britain that would give Britain a marvellous preference. New Zealand s first aim was to extend its manufactures to give a balanced economy. Its second aim was to do all that it could to ensure the maximum trade, both in exports and imports, with Britain, and its third aim was to give what remained of the surplus goods to someone else—the only way of being paid for those was to take goods from someone else. Mr Sullivan said that there was very little difference between the point of view of the deputation and that ot the Government. The Government would do its best, consistent with its duty to its own people, to help the Motherland to extend its trade with the Dominion and secure the share it was justly entitled to. . , Referring to goods coming from the East, the Prime Minister said that not only were there great quantities of these goods, but they were of better quality. Some people said that they should be prohibited from coming in, but that was not as easy as it seemed, and the cure might be worse than the disease. Empire Conferenece. Mr Savage said that New Zealand must have trade agreements, and the time was long overdue when it would be necessary to have men representing the units of the British Commonwealth of Nations assembled round a table in Britain with authority to act for the respective Governments. He had unbounded confidence in Mr Nashs trustworthiness and knowledge of fundamental principles, and he was glad that it was possible to send a man oi such calibre to meet the representatives of the British people. They were prepared to stand or fall by the British Pe “That means more than words,” said the Prime Minister. “If we are going to stand together, we must trade, with each other on commonsense lines. Referring to the’ rate of exchange, Mr Savage said that it was a legacy from the previous Government, and it was easier to get it up than it was to get it down, but the Government had to get the exchange down, and at the same time provide a living standard for the New Zealand farmer. He thought that the Government could do both, if given a reasonable time. “The rate of exchange has got to come down,” he continued. “It is the most senseless thing ever put into operation by any Government. (Hear. Hear!) The rate of exchange would have to be taken off in a way that would have the least effect on New Zealand s tomers overseas, said Mr Savage. The sales tax also had to come off, but if it were removed overnight there might be serious effects, and it had to be taken off gradually. The Prime Minister assured the deputation that the Government would not do anything to its detriment. Before many months went by, he hoped that New Zealand’s representative, or representatives, would be meeting representatives of other nations in the British Commonwealth and hammering out a solution of the difficulties that had been discussed by the deputation.