Markets For N.Z. Butter And Meat May Open In U.S.A.

Wanganui Chronicle, 16 October 1947, Page 6

Markets For N.Z. Butter And Meat May Open In U.S.A.

FORECAST OF THE PENDING NEW GENEVA TRADE AGREEMENT

(From E. G. Webber)

(Special N.Z.P.A. Correspondent) Reed. 6 p.m. London, Oct. 15 The agreement on the Geneva trade talks, which, it is reliably learned, will be announced within two or three days, is expected to open up markets for New Zealand butter and meat in the United States.

Butter will be admitted on a quota basis, and there will be a substantial scaling down of meat tariffs. This raises an issue exhaustively discussed at the recent Commonwealth iinancial talks in London, whether ultimately the British Government may ask the Dominions not only to reduce their dollar expenditure, but also to increase their dollar earnings for general support of the sterling bloc. Until tariff concessions are agreed upon hy the United States this is difficult, but if new markets are opened up as the result of agreement under the International Trade Organisation Charter the way may be open for the Dominions to increase the nett dollar earnings of the Commonwealth by increasing sales of goods and raw materials to America.

If this is done extra exports required must either be secured by increasing production in the Dominions, or by reducing the Dominion’s exports to Britain.

It is suggested in London that the possibility of an agreement between Britain and the Dominions, under which Britain would reduce her Empire imports in order to permit the Dominions to earn more dollars may toe explored. Much will depend upon whether or not the United Kingdom can substantially increase its mar-

kets in hard currency areas, particularly in the United States. An opinion is growing that this may prove difficult, and in that event the British Government may once again have to make a difficult choice between increased austerity and more dollars.

Althpugh the Commonwealth financial talks have concluded so far as New Zealand, Australia and South Africa are concerned, they are still continuing between the United Kingdom. Eire and the two Indion Dominions. The difficulty in this case is the desire of Eire, Pakistan and India to secure industrial equipment which Britain finds it difficult to supply, and which these three States would like to obtain from the United States. The British Government is anxious to obtain increased food supplies from Eire but. cannot at present supply the quantities of coal and heavy equipment the Eire Government wants in exchange. The position of two Indian Dominions is complicated by political uncertainties in India, and the anxiety of the two States to proceed rapidly with plans for industrial development.