BRITISH EXPORTS

Wanganui Chronicle, Volume 84, Issue 180, 2 August 1940, Page 6

BRITISH EXPORTS

IMPORTANCE IN WAR EFFORT DOMINIONS’ OBLIGATIONS TRADE MIST BE BOTH WAYS [ i'cr Press Ahsoclalicn.) WELLINGTON, Aug. 1. tu an address on the reorganisation of public and private affairs in Britain to meet the conditions of the war, during which he referred to the economic relations of the United Kingdom and New Zealand, Mr. W. A. Simpson, who recently returned from a 17-montlis’ visit to the United Kingdom, told fellow members of the United Kingdom Manufacturers’ and Representatives’ Association yesterday that it was necessary for reciprocal trade to be maintained between the two countries. Quoting a Cabinet Minister as saying “Britain’s war effort will be seriously affected if her export trade is not maintained at the highest possible pitch.” Mr. Simpson said it therefore was up to the Dominions and people of the Dominions to place their orders with Great Britain and the Dominions irrespective of buyers’ whims and preferences. it was Britain’s intention to pay for imports with exports of manufactured goods and it was those countries which bought from her which would receive her orders. Exception to that rule was the purchase of munitions in the United States of America, for which credit facilities were not granted and which had to be paid for in cash or American securities by Britain. An embargo had been placed on the importation of tobacco from America. At the same time Great Britain had granted a loan of £15,000.000 to Turkey for the development of trade, one of the conditions being that Turkey would not pay interest in money but in goods. The tobacco interests in Great Britain had been required to use 40 per cent. Turkish tobacco with the Virginian tobacco. It appeared that Britain was going to continue that bargaining with the Dominions. Great Britain could not pay cash for imports and they mftst be paid for with exports and that becomes more necessary since the introduction of the last Budget. Fair Return Expected. Mr. Simpson reminded his hearers that New Zealand was in competition with other countries. Great Britain had agreed to purchase the output of the Dominion to prevent it falling into enemy hands and to feed her own people. He believed that Great Britain had endeavoured to give -he Dominions economic prices and the people of England expected a fair return. If the people of New Zealand wanted to maintain good conditions they must expect the people of other countries to do the same. If they bought in cheaper foreign markets where labour conditions were lower, how could the English people give good prices for New Zealand produce? Discussing the system by which British shipping was controlled by the Navy, Mr. Simpson said that prooably one of the reasons why there was a shortage of shipping in New Zealand was that the Controller would not send ships empty to New Zealand when they could carry cargoes both ways on a voyage to another country. While he was in Australia on his return to New Zealand, two ships on the New Zealand run unloaded in Australia and loaded again for the United Kingdom. “An appropriate question to ask is, what has New Zealand done in following the most practical lead given it?” Mr. Simpson asked. “A satisfactory answer becomes more obvious when one recognises that New Zealand’s fate is inseparably tied to that of Great Britain. A defeat of Great Britain must have serious repercussions on this Dominion. Mr. T. Sadler said that the Minister of Finance had several times stated that to help the Mother Country’ New Zealand should export more and import less, and he asked what was Mr. Nash’s authority for the statement. Mr. Simpson replied that he could not answer the question, but quoted a Press clipping announcing the decline in Britain’s overseas trade during June. At the commencement of his address the speaker said that though he might refer to matters some might consider political and controversial, he was not concerned with the politics of the issue.