VALUE OF TRADE WITH BRITAIN

Southland Times, Issue 23379, 10 December 1937, Page 7

VALUE OF TRADE WITH BRITAIN

Foreign Agreements

Condemned

MARKET FOR GOODS FROM NEW ZEALAND

(United Press Association)

WELLINGTON, December 8. A review of trade and trade relations between Britain and New Zealand and also suggestions for further expansion were contained in the remarks of Mr C. W. Budd, president of the United Kingdom Manufacturers’ and New Zealand Representatives’ Association at the annual meeting today. “We have heard it repeatedly stated by the New Zealand Government that it is prepared to spend every penny above interest commitments in the exchange of goods with Britain,” said Mr Budd. “However, I venture to suggest that, after these interest charges are met this year, there will be a credit balance in favour of this Dominion amounting to from £7,000,000 to £9,000,000. 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 the new markets (foreign) that are available to Dominion traders, but in practice this prospective trade never seems to eventuate,” continued Mr Budd. “Time after time this Dominion is reminded that the United Kingdom is our only stable market and, as trading is the major industry in 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 because of the cheap labour in the United Kingdom. Not only has this been convincingly disproved but we find to our shame that the women and children of 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 artificial restrictions being continually placed on trade. Should any world event cause the value of the produce exported from this 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 the actions designed to promote trade with the United Kingdom are such that the resulting prosperity will be mutual.”