a supplement to International Commerce JHE UNIVERSITY LIBRARY IE PENNSYLVANIA STATE UNIVERSITY ITY PARK, PENNSYLVANIA 1964 TRADE MISSION REPORT DEPARTMENT OF COMMERCE PUBLICATION A SUPPLEMENT TO International Commerce ... the weekly news magazine for world traders published by the Bureau of International Commerce and sold by the Superintendent of Documents, U.S. Government Printing Office, Washing- ton, D.C. 20402, and by Department of Commerce Field Offices for $16 a year. Cover photo: A thermal power plant harnesses subterranean steam to produce electricity. Report of the 1964 Trade Mission to New Zealand A U OF COMMERCE U.S. DEPARTMENT OF COMMERCE Luther H. Hodges Secretary Franklin D. Roosevelt, Jr. Under Secretary Jack N. Behrman Assistant Secretary for Domestic and International Business Thomas G. Wyman Deputy Assistant Secretary for Domestic and International Business BUREAU OF INTERNATIONAL COMMERCE Eugene M. Braderman Director For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402 Price 25 cents. Members of U.S. Trade Mission to New Zealand PAUL A. LINGER, Mission Director Consultant to the Secretary of Commerce, U.S. Department of Commerce F. Gilbert Lamb President Lamb-Weston, Inc. Portland, Ore. JMfm Rudolph Goldsmith President French Fabrics Export, Inc. New York, N. Y. Eugene M. Lang President Resources and Facilities Corp. New York 17, N. Y. Elmer J. Hankes President Testscor Minneapolis, Minn. A. I. Savin President The Edward Balf Co. Hartford, Conn. r^ ■»" E. W. Klapmeier Former Vice-President, Int'l Operations Blaw-Knox Co. Buffalo, N. Y. Miguel Nistal, Jr. Trade Development Officer Trade Missions Division Bureau of International Commerce Reports by Mission members are reprinted from the April 13, 1 9M issue of INTERNATIONAL COMMERCE. Specific trade and investment opportunities are reprinted from issues of March 30 — April 27. Photos used in this supplement to INTERNATIONAL COMMERCE were furnished by the New Zealand Trade Commissioner and New Zealand Information Services. U.S. Mission to New Zealand finds ready market for U.S. sales, business participation Traditionally close ties with Great Britain loosening; need for more trading partners is emphasized; Government encourages variety of new industry By PAUL A. UNGER Director, U.S. Trade Mission to New Zealand This first U.S. Trade Mission to New Zealand arrived at the psychologically right moment. We found an atmosphere already pointing to increased U.S. sales and business participation in New Zea- land. The traditionally close trade ties with Great Britain are loosening, opening the door to more trade between the United States and New Zealand. New Zealand exports to the United Kingdom have de- clined from a peak of 88% of total N.Z. exports in 1940, through 66% in 1950, to 46% in 1963. New Zealand imports from the U.K. have fallen from 60% of the total in 1950 to 40% in 1963. Government officials and businessmen alike speak of the need to diversify trade. Since the U.K. made application for en- trance to the Common Market, New Zea- landers have feared that their agricultural products would be pushed out of the British market that has taken virtually all of them in years past. Now the United States is taking 85% of New Zealand beef, Britain only 11%. Shipping lanes have moved from the Suez canal route to the Panama Canal route, facilitating stops at U.S. Atlantic and Gulf ports. New trading companies in New Zealand, some operated by Dutch and Canadian immigrants, have acceler- ated the tendency to look for new trad- ing partners. New Zealanders are now questioning the wisdom of having all their eggs in one basket, their trade over- whelmingly directed to a single source and market. There is a growing emotional bond between New Zealanders and Americans. They, like each other and are much alike. Trade between the two countries is al- ready flourishing. The United States ranks third as supplier to New Zealand, and second as a market for New Zealand exports. New Zealand imports from the United States increased 27% in 1963 over the previous year, and totaled $78 million; New Zealand exports to the United States reached $158 million. U.S. products popular New Zealanders, for the most part, are aware of U.S. products, and hold them in high esteem. Many manufacturers regu- larly read U.S. trade journals, attend U.S. trade shows and conventions, travel to the United States to call on suppliers and prospective suppliers. Their rousing wel- come of the Trade Mission not only proved their hospitality and their friendly feeling for Americans — it indicated also a real desire to do business. The New Zealand market for U.S. goods is many times greater than the population figure of 2 l A million might indicate. New Zealanders are well off. They live in an urban industrialized West- ern culture (only 17% are on farms). They are highly educated and highly skilled, with developed tastes and the cash in hand to satisfy them. Private dis- posable income was $1,212 per capita in 1963. There is one auto to every 4 persons and one telephone to every three. Un- employment is nil; the official figure for the country was 436 at one point last year. A stable parliamentary two-party system of government maintains tight controls against inflation. Fast pace I would call the New Zealand economy booming, although they prefer to call it buoyant. Profits, dividends, investments — all are up this year. Christmas spend- ing was at the highest level ever. Ex- ports are at a record high with good prices for New Zealand's special export products. Purchasing power is high be- cause gross national product increased 6.8% in 1963. The population is grow- ing 2'/2 % a year, and it is a young popu- lation — with 40% under age 21 — point- ing to increasing new markets for homes, house furnishings, children's clothing, toys, and the like. The pace of activity is apparent to anyone walking down the streets of Auck- land, population approximately one-half million. Traffic is dense on both street and sidewalk; parking is a major prob- lem and several multistory parking ga- rages recently have been erected. Show windows are attractive. Several glass-front skyscrapers are under construction; and construction of one of 21 stories is sched- uled to start shortly. A large suburban shopping center is built on the American model. Super- markets are increasing in number; frozen- food cabinets are usual in the open- evening dairy stores; an "American Food Plan" selling home freezers is flourish- ing. There are scores of new industrial plants, many with the latest machinery. The older structure, however, still shows through under the new layer of progress. Automobiles — 1930 and 1940 — are still much in evidence (in remark- ably good state of repair); new cars have not been allowed to enter in quantity and are still not available to everyone even at the current high prices. Machinery in many factories is out-of- date, requiring extensive maintenance. Labor turnover is remarkably high; the figure of 250% for certain operations was reported several times. Because of the labor shortage, some plants make it a practice to run overtime, needed or not, so employees can earn extra income and will be impelled to stay on. Potential for U.S. machinery In spite of the labor shortage, immigra- tion is restricted. Productivity is not high, indicating a potential for sales of U.S. machinery and methods. U.S. Machinery, Equipment Mission to New Zealand February-March 1964 A U.S. Machinery and Equipment Mission to New Zealand visited Wellington February 22-28 and Auckland March 2-6. The Mission carried 375 Business Proposals submitted by U.S. firms and referred 273 of these proposals to 229 interested New Zealand firms. Referrals totaled 794. Thir- teen plants were visited. The Mission brought back 252 trade opportunities: For exports, 146; imports, 19; investment and joint venture, 28; and license, 59. SWITCH CARRIERS: Ships from around the world crowd the piers of Wellington's inner harbor. Nearby railway cars wait to carry the ship's cargoes to their final destinations: New Zealand's consumers. A number of large public and private developments are underway, all requiring construction and/or operating equipment. Pan Am has scheduled a $10 million hotel in Auckland for completion at the same time as the new jet airport. Engi- neering investigation has started on a £15 million iron and steel mill. A ply- wood and veneer mill is under construc- tion; a new pulp mill is contemplated for South Island. The first oil refinery has started to pro- duce; exploitation of new natural gas fields is being studied; a new electric power grid is under construction to con- nect the two islands with a submarine cable. A World Bank loan will finance extensive expansion of five harbors. The first $26 million contract for part con- struction of the Manapouri hydro project was let to a U.S.-N.Z. combine. A £20 million expenditure over 3 years will bring meat freezing facilities up to inter- national health and sanitary standards. Highway construction during the next 10 years will run to £150 million. International trade is an accepted part of New Zealand business life. Their level of foreign trade is three times as high per capita as in the United States. Most raw materials and many components for domestic manufacture are imported. Im- ports account for 39% of the total goods entering into use. The Government policy is stimulation of industry, gradually reducing depend- ence on what the New Zealanders call their "grass economy." This compara- tively small country has 50 million sheep and 6 million cattle. Its agriculture is highly advanced, boasting one of the highest outputs per farm worker of any country in the world. Top-dressing — seeding, fertilizing, and insecticiding of the fields by spray from airplanes — has been developed to its highest level here. Up to now 95% of the export income came from livestock products. Elsewhere in the Mission Report is "An Invitation to U.S. Businessmen" by Dr. W. B. Sutch, Permanent Head of the New Zealand Department of Industries and Commerce. As his office has close to the ultimate authority for acting on pro- posals for new business ventures, his in- vitation guarantees an open door to U.S. businessmen with valid propositions to offer. In sending his statement to the Mission Director, Dr. Sutch also indicated "the likely areas in which the Government might encourage new industrial develop- ments." They fall under the following major headings: Basic iron and steel industry; copper products such as tube, sheet, and strip; aluminum smelting; motor vehicle com- ponents; capital goods such as diesel marine engines, small petrol engines, woodworking machines, machine tools, earthmoving and road construction equip- ment, woolen and other textile dyeing plant, agricultural machinery, cranes and air compressors; chemicals such as syn- thetic rubber, solvents, plastics, dissolv- ing pulp and petrochemicals; textiles (rayon yarn, printed cotton fabrics); electrical controls and switchgear, electri- cal motors. In a recent report by the Tariff and Development Board, officially accepted by the Government, criteria have been established for new industries. They give special encouragement to industries with export potential. New Zealand is gearing up for an export drive. Its first trade mis- sion to the United States visited the Pacific Coast states last year. This year a similar mission is being mounted to go to Southeast Asia. A recent Government sponsored Ex- port Development Conference recom- mended in addition to the usual external promotional devices, a series of meas- ures to make exports competitive overseas by raising quality, by meeting health and other standards, by improving design, packaging and presentation. . This export drive points to increased opportunities to sell U.S. machinery, equipment, and know-how. It adds to the New Zealand domestic market, making the larger combined total more interest- ing to American sales managers. New Zealand's efforts to penetrate the sophisticated luxury markets of the world puts a premium on the experience of U.S. businessmen in catering to such a market. New Zealanders need the knowl- edge of consumer tastes, packaging meth- ods, and merchandising and distribution systems which the U.S. entrepreneur has accumulated in his home market. Also, New Zealand's success in world markets will depend on the competitive- ness of its products. If it is to succeed it will need the quality control, the cost controls, the high productivity supplied by U.S. machinery and equipment. All the elements are present for a mu- tually profitable marriage of U.S. ma- chinery and know how with New Zealand enterprise and rich agricultural produce. The result should be new industry and new exports for New Zealand, new profits for U.S. manufacturers. There are in- triguing new possibilities, such as lamb- burgers, and TV dinners with lamb as the entree. A new industry, based on New Zealand's rich but virtually undeveloped fisheries resources, waits to be born. A motel boom — requiring building ma- terials, builder's hardware, construction machinery, restaurant equipment, room furnishings — is in the making to take care of tourists just beginning to come to New Zealand in volume. So many small items are still to be made in New Zealand — for example, book matches or bread-wrapping machinery — and the pro- duction equipment imported from some- where. New Zealand has a three-column tariff which gives preferences to the U.K. and other Commonwealth countries. It is esti- mated that the rate of duty for goods from the United States and other most- favored-nation countries not granted pref- erences is on the average 18% higher than for goods from the Common- wealth; however, for a large proportion of the products now imported from the U.S. this differential exists only on paper. As discussed elsewhere in this report, there are provisions for bringing in U.S. goods at the lower Commonwealth rate if they are shown to be of a type or quality not available in the Common- wealth, or if there is a great disparity in price or delivery terms. And tariffs are rebated on machinery items if they go into New Zealand manufactures which have a sufficiently high proportion of domestic components. Much more significant in its effect on imports is the licensing system. For many years New Zealand has suffered from an unfavorable balance of payments and is permitted under the GATT to require licenses for imports. Each year the Gov- ernment establishes a quota in New Zea- land pounds for imports, a quota designed to keep its payments of foreign exchange at just a bit less than anticipated receipts from exports and other overseas trans- actions. Against this quota the Govern- ment issues licenses to importers. Imports under license increased 31% in the last reporting period over the same period last year. The licensing system, designed to con- serve and allocate foreign exchange, is frankly used to enlarge the number of products manufactured in New Zealand, and to increase the domestic content of these manufactures. Licenses are not issued for import of most finished goods already being manufactured in New Zea- land. A large block of licenses is re- served for import of raw materials and components needed by industries already established in New Zealand. Nonetheless a sizable dollar volume of licenses are available for importation of machinery and equipment to start new ventures. The Government does not announce the items or industries or new ventures for which it will grant licenses. Instead it makes decisions to grant or not to grant on the basis of individual applications for specific products or projects. There is no discrimination for or against any supply- ing country in the granting of licenses. Challenge to salesmanship This system is a challenge to the sales- manship of American businessmen. They An invitation to U.S. businessmen W. B. Sutch, Permanent Head, New Zealand Department of Industries and Commerce Through the U.S. Trade Mission to New Zealand I invite all American businessmen to join with New Zealanders in the development and expansion of industry here. For many years our country has been dependent on the sale of a narrow range of basic primary products for its export earnings. Today we are taking positive steps to diversify the economy and we are looking for many types of new industries including those which would use as their raw materials our fine meats, fish, fruits, vegetables, minerals, and hydroelectric power re- sources. American ingenuity, machinery, equipment, and technical knowledge has a part to play in this development. Although a considerable part of New Zealand's imports is free from licens- ing, for example fertilizers, some chemical raw materials, petroleum products, tobacco leaf, it has been necessary for balance-of-payments reasons to retain import selection for many kinds of goods which are manufactured in New Zealand in sufficient quantities and range or which are of the kind which the country can do without meantime. In general, the issue of import licenses is based on previous import history. Import licenses can be used to purchase goods from any country. This means that all import license holders can use their licenses to import goods from the United States if they so desire. Special license provision is made for plant and raw materials needed for new ventures which will result in the saving and/or earning of foreign ex- change. In deciding whether special import licenses would be granted the Government would take into account criteria which would include the utiliza- tion of indigenous resources, the depth of manufacture, the introduction of new industrial techniques and skills, the export possibilities, and the location. Foreign invetment is welcomed and wherever possible the Government would like to see New Zealand interests participating in developments undertaken jointly with overseas firms. Our rapidly developing economy provides U.S. businessmen with great op- portunities for initiating new trade with and new industrial ventures in our country. I look forward to learning of many new developments in these fields and I would assure you of a warm reception for any proposals made. must convince New Zealand buyers of the virtues of their products to the point that the New Zealanders will excersise their resourcefulness and ingenuity and persistence in seeking licenses. This is not as hard as it sounds. Mission members talked to scores of New Zealand businessmen who came to us with licenses in hand. These business- men are importers who historically are entitled to licenses in value roughly equivalent to what they imported each year since about 1956, plus an increment based on the growth of their businesses to keep pace with increased market de- mand. The recipient of a license is not re- stricted to importing for his own account or to importing a narrowly defined com- modity. The tariff classification for which a license is issued is frequently broad enough to cover different types of com- modities and for some classes of com- modities there exists provision for shift- ing 25% of license entitlement io other commodities. If an importer loses the market for his product to competing local production he does r.ot lose his entitle- ment for licenses which he can then use to his best advantage for other products and from other suppliers. There are credi- ble reports that license holders are amen- able to using their entitlement for the account of importers who do not them- selves have — and cannot obtain — entitle- ment for licenses. Recipients of such licensing entitlement reportedly find it worth a premium of 5 to 10%, or even more. Additional licenses for new ventures are available from the Government for industrial development. The amount of these special licenses is not announced but it is reported to be sizable. Obtaining if ! ' ; , '.& TOP POWER: The Roxburgh Power Station's 320,000 kw. generating capacity is currently New Zealand's largest, but it will be eclipsed by the Benmore Scheme, also located on the nation's South Island. by insuring with the Foreign Credit In- surance Association against loss. New Zealanders generally appreciate the quality and durability of U.S. ma- chinery, and the design and flair of U.S. consumer goods; but increasingly they are being wooed by businessmen from other countries who have found their way to this burgeoning market. A Japa- nese trade mission arrived during our visit, and it was not the first from that country. Therefore, to profit from the sales opportunities in New Zealand, Americans will have to supply quality products at competitive prices, and serv- ice their customers as they do at home. TRADE LISTS AVAILABLE Trade lists of importers and dealers in New Zealand classified by commodity, and similarly classified lists of manufac- turers and exporters, are available for $1 per commodity list from the Commercial Intelligence Division, Bureau of Interna- tional Commerce, U. S. Department of Commerce, Washington, D.C. 20230, or from the Commerce Field Offices. In addition, World Trade Directory Reports on individual firms are available from the same sources for $1 each. these licenses requires a Well-documented carefully presented application. It also requires persistence, for many business- men indicated they were refused upon first application but obtained their licenses after one or more reapplications. Much as they may prote:t against it, New Zealand businessmen have learned to live with the licensing system. The en- terprising ones — and almost all we met fit this description — know the ropes on license applications. For a good proposi- tion they know they can get a license. The American has to sell them on his product or project so they will be stimu- lated to make the effort. Local representation, service The American must also pick a repre- sentative or agent or distributor or co- promotor enterprising and knowledgeable enough to get licenses to admit the U.S. products. Americans must make some hard de- cisions on how to do business with New Zealand. Since New Zealand has less than 3 million people while Australia has more than 10 million, it is not unnatural to plan to serve the two markets with a joint operation headquartered in Aus- tralia. For some capital goods this system may be necessary; but we learned of many instances where it resulted in in- adequate representation in New Zealand, for U.S. firms, bad service and lost sales. It leaves the U.S. firm dependent on an Australian subsidiary or agent who has no outlets or representatives in New Zea- land. Customers in New Zealand, as in the United States, continue to buy from sup- pliers who give them service. We were told of U.S. companies who did not an- swer letters of inquiry; we even heard stories of orders that were never ac- knowledged or shipped. There were com- plaints about slow deliveries, about lack of service facilities and parts. Orders were lost because firms did not arrange to demonstrate their products or even send samples of small items. Catalogs and advertising brochures were not forth- coming, even after persistent entreaties from distributors. Awards went to more painstaking foreign bidders when U.S. suppliers quoted f.o.b. plant instead of delivered in New Zealand. New Zealand companies for the most part are accustomed to foreign trade. They recognize the necessity of main- taining good paying records and credit standings. Therefore, the British, the Germans, the Dutch, the others increas* ingly sell in .New Zealand on open ac- count. American competitors who insist on letters of credit often lose the order; they might have satisfied their customers in New Zealand and protected themselves U.S. Sales to New Zealand Go Up Total Imports Imports from U.S. Share of $000 $000 market 1959 574,213 46,869 8.2% 1960 708,840 74,323 10.5% 1961 807,215 76,065 9.4% Source: Statistical Report on the External Trade of New Zealand, Cjstoms Department, Wellington TIGHT LABOR MARKET Manpower shortages have plagued New Zealand, where unemployment is virtually nonexistent. The total labor force as of April 1, 1963, including the unemployed and members of the Armed Forces, was 938,900 Employment increased to 927,000 from 892,000 in April 1961. Women represent nearly 25% of the total labor force. INDUSTRY COMES OF AGE While agriculture is New Zealand's mainstay, its importance has been de- clining relative to the growth of the secondary industries — from 56.2% of the Dominion's production in 1956-57 to 47% by 1961-62. Meanwhile, output of the secondary industries has risen from 36.8% in 1956-57 to 46.2% in 1961-62. Market in New Zealand for nonwoolen piece goods, some textile machinery U.S. exporters should be able to gain larger share; definite interest in American styled cottons and synthetics By RUDOLPH GOLDSMITH President, French Fabrics Exports, Inc., New York City New Zealand's textile industry is wool- oriented; but there are good and fruit- ful possibilities for the U.S. businessman in export of nonwoolen woven piece goods, as well as certain types of textile machinery. There are additional possi- bilities for entering into licensing ar- rangements for American styling on a royalty basis. New Zealand's wool orientation de- rives from the country's basically "grass- land economy" supporting grazing ani- mals. New Zealand is dependent for for- eign exchange largely on export of live- stock products, including wool. There are approximately 50 million sheep that yield about 600 million pounds of raw or greasy wool. About 550 million pounds are ex- ported; the remainder is used by about 12 woolen and worsted mills and 4 carpet mills to supply local needs. Most of New Zealand's wool is crossbreed. The country has no cotton or synthetic weaving industry, and therefore imports practically all of its needs in the form of woven piece goods at an annual rate of about £.30 million, or $84 million. This import is controlled by a licensing system based on traditional patterns of imports going back to 1956 as a base year. Licenses are issued on a yearly basis, starting in July. This year's allocation, to be announced shortly, is expected to equal last year's allotment of 75% of the base quota. The additional 25% is usually available to any importer or manufac- turer who can prove that he has bona- fide orders and is not going to use them for stockpiling. Licenses are on a global basis and can be used for import from any country outside the Iron Curtain. It is said that license holders transfer the utilization of licenses in individual cases; the premium paid for utilization of a license in the field of textiles is reported to be about IV2 % on the f.o.b. price. Imports of woven piece goods from the United Kingdom are free of duty whereas from other countries, including the United States, the rate for goods weighing less than 6 ounces per square yard is 15%. On heavier goods the rate goes up to 20% from the U.K., and to 40% from other countries, as it is felt that such goods would compete with homemade woolen goods. No licenses are issued for manufactured garments except for token imports, because garments are now manufactured locally. The greater part of woven piece goods traditionally has come from the U.K. In the past few years however, there has been a gradual change. Japan has come aggressively and strongly into this mar- ket. Australia also has entered the market, sometimes as a converter and printer of Japanese gray goods. The U.S. share of this important market in the past few years has been only about $5 million. It is in piece goods principally that the American exporter should be able to obtain a larger share of the market. There is a definite interest in American styled piece goods — particularly for cot- tons and synthetics for casual and street wear since the climate in New Zealand resembles certain parts of the United States, such as our West Coast. More- over, New Zealanders are an outdoor people and love beaches, camping, fish- ing, sailing, and other outdoor activities just as Americans do. Interest in teenage styling Since 40% of the population is under 21, interest is increasing in youthful styl- ing in the teenage group as well as in campers' modes. New Zealanders tend to be somewhat conservative in their tastes, however, and prefer subdued colorings to the latest bright and bold patterns fash- ionable in the United States. Other articles of interest are plain and printed furnishing fabrics, drapery goods, and upholstery fabrics in the low- to medium-price range. Although these fab- rics in many instances will be heavier than 6 ounces per square yard, there is a possibility of obtaining licenses for this merchandise because it does not compete with locally made woolen products. Toweling and percale sheetings also are in demand. They can be imported in bulk and packaged here under license ar- rangements. Buying is done mostly by the estab- lished and well-founded wholesalers and importers who distribute goods to retail- ers and manufacturers. They seem to hold the greater part of the available licenses because of their historic position as importers from the U.K. There is an increasing trend, however, for manufac- turers to establish their own direct con- tacts with U.S. suppliers. The women of New Zealand still do a great amount of home sewing, and about 60% of all piece goods are still sold over the counter in department stores and specialty shops. However, as the women become more style-conscious and with development of the garment manufac- turing industry, this trend should reverse itself in the coming years. Payments are often made through Lon- don or New York confirming houses, or by letter of credit, although as a re- sult of Japanese and other competition, many customers are switching to buying against sight draft or 60-day bank draft. Seasons reversed The seasons, the reverse of ours, re- quire planning similar to that for South Africa or Australia. Garments for the summer (Christmas season) must be ready for showing early in February with August-September deliveries. Garments for winter must be ready in August, with February-March deliveries. This means that buying will start somewhat earlier on the wholesale level. Because of the limited population, a broad and diversified line becomes a necessity for any New Zealand manu- facturer of ladies' garments. Styled and printed patterns should be on an exclu- sive basis, although in most instances the customer will not be able to take up full roller print runs. This problem can be overcome, however, by combining with orders from South African and Aus- tralian customers. The diversification and natural limita- tions of the market make it often un- economical for the local manufacturer to have his own styling department, re- sulting in a definite demand for royalty arrangements with established U.S. con- cerns. These arrangements can be mu- tually profitable. The New Zealand Gov- ernment will not allow minimum guaran- tees or payment of lump sums, but will sanction a percentage royalty on the sell- ing price to the retailers. There is a good potential for any U.S. textile exporter who takes the trouble to establish himself in the New Zealand market through a good agency. We had quite a few inquiries from active and reputable agents looking for additional lines in the United States. The textile business is concentrated in Auckland, al- though there are some important ac- counts in Wellington, as well as in Christ- church and Dunedin in the South Island. It is often difficult for an agent to cover these other markets without having his own sub-agent in these territories. The situation is somewhat different in the knitted goods industry. A number of circular knitters supply the market with ladies' and men's hosiery and knitted outerwear as well as underwear tricots. For this reason, import licenses are closely controlled and only available for a cer- tain amount of printed goods with duty rates of 40% or 3 shillings (42 cents) to the <£ plus 15%. On the other hand, this situation opens up possibilities for U.S. manufacturers of modern knitting machines and equipment to introduce some latest models in this market. Looking for U.S. ideas The same observation would apply to modern wool spinning and roving, as well as modern box looms for manufacture of woolens, worsteds, blankets, and carpets. Here again, Great Britain has been the traditional supplier, but there is also ma- chinery from Germany, Switzerland, Czechoslovakia, and a definite interest in the latest American ideas. Synthetic yarns are imported mostly from Australian subsidiaries of British firms; particularly the nylon of British nylon spinners. At present, the first two nylon plants in New Zealand are under construction: One by the American Van- Kohorn group, the other by Australian- British interests known as Fibre Makers. Both these plants should be in operation within the next 12 months. On the basis of these observations, it should become clear that New Zealand probably has been an underestimated market in the eyes of the American tex- tile export industry. More aggressive sell- ing should gain us a greater share in the export of textiles to New Zealand. FACTORY POWER New Zealand, endowed with a moun- tainous terrain, high-altitude lakes, and swift rivers, generally obtains its power from hydroelectric plants. Power in existing factories is supplied almost 92 percent by electric motors and 8 percent by steam, oil, and gas engines. Industrial use of electric power in 1955 was over three times that of 1938 and between 1955 and 1960 increased by an additional 57 percent. Modern equipment needed if New Zealand is to maintain its present rate of productivity Labor shortage, low productivity, inefficient operation hampers industrial output; market exists for U.S. machine tools, electronic equipment, many other items By ELMER J. HANKES President, Teslscor, Minneapolis The pace of industrialization in New Zealand offers a market for U.S. ma- chine tools, electronic equipment, instru- mentation, as well as small general-pur- pose machinery and components. This industrialization, and the related equipment sales potential, is reflected in many ways. Paper and wood pulp facili- ties are being enlarged to satisfy growing export requirements. A $40-million steel mill, using the country's iron sands, has reached a stage of advanced planning. Aluminum production, based on low- cost electric power is being established. Large deposits of natural gas have been discovered. The first oil refinery is on stream and is expected to stimulate petro- chemical production. Water power is plentiful and a new high tension grid, connecting all power stations, distributes ample reserves of cheap electric power throughout the country. A geothermal power plant has been built in Wairakei. Involved in the drive for industrializa- tion are factors deserving special atten- tion. Unless new equipment is introduced in many areas of industry, productivity gains of recent years will be lost. Many shops are operating with obsolete ma- chinery. Productivity is advancing more slowly than the country's gross national product. The labor shortage is critical. Some New Zealand manufacturers, ac- customed to the shelter of tariff protec- tion and import license restrictions against competition, resist the need for moderni- zation. They prefer to avoid capital ex- penditures as long as possible. From the standpoint of American equipment mak- ers, this obstacle is compounded by a 20% tariff disadvantage. Thus, to take advantage of the machinery market of New Zealand, U.S. suppliers are obliged to use a vigorous and imaginative effort. Factory visits made by Trade Mission members disclosed that, by use of simple equipment — materials handling units, modern secondary operation machines, quality control instruments, feeding and counting devices, costs and labor require- ments of many inefficient processes could be reduced. In some plants, workers are moved from one task to another in order to keep them busy because production runs of each unit are relatively small. New Zealand equipment buyers must cope with the import licensing system by which foreign exchange availability is controlled. Established importers and manufacturers can count on a certain regular exchange allocation, which varies annually, and can be used to purchase equipment from any source. Despite the respect New Zealanders have for U.S. machinery, most buying has been from England and Australia — in 1963, about 7.5% of machine tool imports came from America against about 40% from England and 18% from Australia. Some of the latter imports are shipped to New Zealand by agents, licensees or subsid- iaries of U.S. manufacturers. Active representation needed Equipment exports from the U.S. are limited by a 20% barrier against non- Commonwealth machine sources. Amer- ican tools, delivered in New Zealand duty paid, cost from 50% to 75% more than comparable English or Australian units. In addition, F.O.B. prices of U.S. capi- tal equipment tend to be higher, an obsta- cle that can be overcome if New Zealand buyers are convinced that quality and productivity factors justify the differ- ential. As one prominent New Zealand im- porter-distributor of engineering equip- ment said: "Many well known machine tool makers are not actively represented in this market and some not at all. Thus they cannot expect to sell in this market." He said that local agents frequently do not have proper catalogs and technical data to support an aggressive sales effort and receive little support or encourage- ment from their American clients. An- other importer complained that he is selling U.S. equipment made in England and Australia — but that the equipment usually represented old models and per- haps obsolete designs. He wanted to have equipment of a quality and design that is current in the United States. Aggressive sales efforts can substan- tially reduce the barriers of Common- wealth preference and import license limitations. Thus, New Zealand tariff reg- ulations under Section 1 1 of its Customs Act, specifically provide for waiving pref- erential duty on machines which have distinctive features of demonstratable merit in their design and value to New Zealand industry. In view of the large market developing in New Zealand for special purpose equipment to make spe- cialty items hitherto imported, this Sec- tion 1 1 can be very important as a sales stimulant. Market profile— New Zealand Geography: Area of 103,736 square miles, about equal to the combined States of New York, New Jersey, and Pennsylvania. Located in South Pacific Ocean, 1,400 miles east of Australia. Population: 2,533,419 (including nearly 170,000 Maoris) on March 31, 1963. More than two-fifths are included in the five principal urban areas of Auckland, Christchurch, Wellington, Dunedin, and Hurt. In all, about 75% of the population resides in urban areas (centers with population of 1,000 or more). Unemployment is virtually nil. Income: Gross national product $3,769 million in the year ending March 31, 1962, with annual per capita income of slightly more than $1,200. Agriculture: Third largest wool producer in the world; also one of the leading producers of meat and dairy products. All popular vegetables and fruits are cultivated. Wheat, oats, barley and corn are also grown. Pastoral industries form the broad base of the economy and provide virtually all foreign income. Industry: Manufacturing employs about one-fourth of the work force. Principal industries are food processing, transportation equipment, machinery, metal products, chemicals, wood and paper manufactures, textiles, footwear, and other wearing apparel. Virtually all major household appliances are produced domestically. Transportation: About 3,300 miles of railroad carry 26 million passengers a year. New Zealand is dependent on shipping, the bulk of which is carried in British ships. 145 New Zealand registered vessels are engaged in trading, 42 of which are employed in foreign trade. Tasman Empire Airways Ltd., Government-owned airline, operates principally between New Zealand and Australia. New Zealand is served by 5 other inter- national airlines. About 900,000 motor vehicles are licensed for use on the 57,000 miles of roads. Communication: Radio and television facilities are nationally owned and operated: 2 short-wave radio transmitters, 39 medium-wave broadcasting stations (21 taking advertising), and 4 television stations (all offer advertis- ing). In 1963 there were 617,000 radio receiving licenses and 97,000 television licenses in effect. 802,000 telephones had been installed by March 31, 1962. Exports: For calendar year 1962 exports totaled $804 million. Figures for the first six months of that year show that 49% of New Zealand's exports went to the United Kingdom. The United States was second with 14%. Principal exports are wool, frozen meat, butter, cheese, hides, pelts, skins. Imports: For calendar 1962 imports totaled $684 million. During the first half of 1962, 43% of New Zealand's imports came from the United Kingdom, 21% .from Australia, and 8% from the United States. Chief items of import are machinery and transportation equipment, base metals and metal manufactures, fertilizers, textiles, food products, mineral fuels and lubricants, chemicals, paper and paperboard. Automated machinery This also applies to automated and tape-controlled machinery. Although the Trade Mission found some interest, New Zealand factory owners seemed gener- ally unaware of the present value of such equipment in helping them deal with diverse short-run production needs and for extending the limited availability of skilled labor. An informed selling effort should be able to dispel misconceptions and enable U.S. machine tool builders to open a market which they seem uniquely equipped to satisfy. The list of trade opportunities devel- oped during private interviews dealing with business proposals brought from the U.S. and specific projects brought for- ward by New Zealand business men is revealing. For the proposals submitted from the U.S. for standard machine tools, there were 1 05 direct requests for agency representations by New Zealand firms. This includes lathes, grinders, presses. Business proposals submitted by U.S. producers of specialty equipment such as laundry machines, printing presses, ma- chines for making candy, wire products, cement pipe, aluminum windows, pop- corn and pretzels attracted 58 New Zea- land inquiries. Every U.S. proposal in- volving materials handling drew at least one inquiry, with a total of 44. Added to this were hundreds of miscellaneous in- quiries for chemical processing equip- ment, electrical apparatus and compo- nents, control and measuring instruments. The Mission dealt with requests for machinery and plants to make wire mesh, quilted products, book-matches, embossed and laminated products, paper cups, and sintered materials. Quotations and information were requested for vari- ous types of special-purpose ovens and furnaces, welders for aluminum and plastic applications, automatic presses, grinders for industrial shears and paper cutters, restaurant equipment, calender rollers, scrubber for natural gas, veneer lathes and a large variety of loading, fill- ing, sealing and packaging machinery. Allocate licenses The import license "budget" contains a substantial amount that can be allo- cated to individual items related to in- dustrial diversification, or to improving efficiency of existing operations. Virtu- ally every New Zealand manufacturer and importer stated that if an import license request for any piece of equipment can be justified in relation to industrializa- tion objectives, it would be most unusual if the request were denied. It is possible, in most instances, to purchase import license allocations of others, at a premium. There are certain types of equipment, however, including some designs of power saws and tow- trucks, that are banned from import in order to protect local industry. The list of "precluded products" is set forth in customs regulations and specific infor- mation can be obtained from the Depart- ment of Commerce. There appears to be a market for used and rebuilt machine tools and to a greater extent, for small "packaged plants." A heavy proportion of New Zealand plant is far older than the average machine, (used), sold in the U.S.A. The durability of American machinery and equipment is recognized in New Zealand so that there is no great obstacle to purchase used apparatus if the price is favorable and performance suitably guaranteed and supported by local service responsibility. The Mission received a number of in- quiries from New Zealand importers who are interested in used American ma- chines. American equipment makers should consider advertising in New Zealand's trade press. One of the most valuable means of sales promotion is the success- ful introduction of the first machine into the country, where it can be demon- strated. New Zealander manufacturers are reluctant to commit a substantial capital expense based on a catalog presentation. One case was found where an American supplier had become virtually a single source for his type of machine after hav- ing sold the first model in New Zealand before any competitor from any other country. It is the conclusion of the Trade Mis- sion that the next decade will see a greatly expanded market for industrial equip- ment of all types in New Zealand. The competition can be expected to intensify. However, there is reason to assume that American equipment makers will be able to obtain a major share- of the potential, if they devote the proper selling effort. MUSEUM OF MINERALS The Dominion has often been de- scribed as a museum of minerals. Most minerals are present but in quantities too small to be of commercial value. Only coal and gold have so far been exploited extensively. Total resources pf coal were estimated in 1959 at 1,108 million tons, including 129 million tons of bituminous, 521 mil- lion tons of sub-bftuminous, and 458 million tons of lignite. New Zealand broadens commercial ties; licenses, joint ventures available to vigorous U.S. firms License applicants must demonstrate their products' worth; respect for U.S. technology, common language help U.S. firms By EUGENE M. LANG President, Resources and Facilities Corp. The expanding New Zealand economy and its industrialization objectives offer a very real potential for the utilization of U.S. manufacturing know-how through license and joint venture relationships. In some 400 interviews with New Zea- land businessmen, much of the specific interest that the Trade Mission found for U.S. machinery and equipment was linked with a desire for technical gui- dance and support in some manufactur- ing project. A typical trade opportunity of this va- riety might read: "New Zealand company with ample capital desires to manufacture builders' hardware under license or as joint venture with U.S. producer who can supply know-how and related equipment" — except that the product designation might just as easily be items such as electric motors, packaging machines, vacuum cleaners and small appliances, prepared food products, fish catching and processing, shock absorbers, metal finish- ing, containers, fibre-glass boats. For each of these products, and scores of others, the Mission received collabora- tion proposals from at least one top ranked New Zealand firm. Government policy These opportunities are elements of the New Zealand Government's expressed policy to encourage the use of foreign know-how to diversify industry and in- crease productivity. They reflect the dy- namics of a country that has awakened to the need for broadening the base of its "grass economy" from its traditionally integrated and relatively sheltered posi- tion within the Commonwealth. The influence of these factors on in- vestment climate and related opportuni- ties for U.S. businessmen in New Zealand has been intensified over the past several years. England's moves to adjust its com- merce to European trading patterns have caused many New Zealanders to prepare for the dissolution of their preferential Commonwealth position. New Zealand business is focusing on possibilities of greater ties with the U.S. Businessmen have seen New Zealand's export percentage to England drop from 66% in 1950 to 46% in 1963, while the U.S. share rose from 7.8% to 17.5% and is still growing. New Zealand sold about $80 million more goods to the U.S. than it purchased in 1963. Today, many feel that prospects for expanded sales to the U.S. can best be cultivated by encouraging U.S. indus- try to develop a greater stake in the New Zealand economy. Hopeful view These considerations, added to respect for U.S. technology, the personal bond of a common language and World War II experience, and current business pros- perity and investment capabilities, gave the Mission a hopeful view of the poten- tial for expanded license, joint-venture and investment ties between the U.S. and New Zealand. Against this encouraging background, the U.S. businessman must assess his indi- vidual opportunity of establishing his project on terms offering reasonable in- centives. Although New Zealand industry is "private," it has grown up under a unique and powerful system of Govern- ment tariff protection and import control that has tended to restrict "enterprise." This "system" is essentially an adminis- trative mechanism with its roots in several factors. Most obvious is the critical posi- tion of foreign exchange in the economic life of New Zealand, and the responsibil- ity over it that the Government has as- sumed since 1936. Second, since the New Zealand market is relatively small, many production un- dertakings could be established only through special Government encourage- ment and protective controls. 10 m^ MAKING SMOKE: Aerial view of the Tasman Pulp and Paper Company's newsprint, wood pulp mill at Kawerao, New Zealand. Industrial growth is broadening her largely agricultural and saw- economy. Third are the Commonwealth trade obligations. While they are of diminish- ing significance, there is little near-term likelihood that the Government will re- linquish its economic controls or do any- thing that would unduly jeopardize busi- ness interests that its policies have fostered. See it through To establish a license and joint ven- ture, the U.S. party must be prepared either directly or through his New Zea- land associate, to process all details of the undertaking through the "system" in order to gain official approval. Preliminary informal discussions with officials in the Department of Industries and Commerce, and possibly with the Reserve Bank of New Zealand, are rec- ommended in order to obtain guidance and some sense of the official attitude. Then, a project application would be pre- pared and filed with the Department of Industries and Commerce. There is no specific form for this but the Department will make available a list of 20 topical sections for use in the application. Responsibility for validation seems to be divided among the Department 'of In- dustries and Commerce (who must pass on desirability of the venture to the New Zealand economy), the Reserve Bank of New Zealand (which must pass on for- eign exchange considerations), and the Department of Customs (which must issue requisite import licenses). The Department of Customs also de- cides, perhaps in advisory liaison with the Department of Industries and Com- merce, the possibility of supporting the new venture with higher tariffs, quotas on competing imports, lower tariffs on com- ponents or materials that must be brought in, and possible duty exemptions on re- lated imports of capital equipment. Follow up The application should also be followed up by discussions with not only the De- partment of Industries and Commerce, but with the Reserve Bank and Depart- ment of Customs. Additional facts and discreet argument at the right time in relation to specific aspects of adminis- trative concern can help assure the most favorable official decisions that circum- stances permit. There is no published capital or indus- trial development plan by which the ad- ministrative decision on a new license or joint venture project or its details can be anticipated. Each decision appears to be rendered on an ad hoc basis, placing the burden on the sponsor to establish proj- ect justification. Policy guides for desired projects were comprehensively summed up in a report entitled "Criteria for Industrial Develop- ment" prepared by the specially consti- tuted Tariff and Development Board in June, 1963. The major criterion which determines the Government attitude to- ward a new venture is an assessment of the venture's contribution to the New Zealand economy, with major emphasis on the promotion of export potential or the saving of expenditure on imports. In this regard, the substitution of New Zealand materials and locally-made com- ponents in place of imports (50% local content is the desired minimum) carries much weight. Anticipated royalty payments and divi- dend remittances would also be consid- ered. Other factors Other criteria include the extent to which the venture may aid development of natural resources, amount of protec- tion against imports that may be required, if any; foreign capital requirements and control; locally-made content of product to be produced; cost of production against duty-paid price of comparable imports; basis provided by the venture for develop- ment of associated industries; more effi- cient use of local labor and management skills; contribution to national security. Likely areas in which the Department of Industries and Commerce might en- courage new industrial developments are: k Basic iron and steel industry (now be- ing seriously programmed) to offset present imports of structural steels, plates, tinplate tube, corrugated iron, chain and bars. k Copper products, including tubes, sheets, strip. ~k Motor vehicle components (about 35% of the value of New Zealand's 50,000-plus auto output is local con- tent), including wheels, bumper bars, accessories, electrical items, brakes, drive shafts. it Power units including small gasoline engines, marine diesels, electric mo- tors. ~k Capital equipment including wood- working machinery, machine tools, earthmoving equipment, agricultural equipment, compressors. it Ceramic items including refractories and refractory cements. ~k Synthetic rubber, solvents, resins, petrochemicals based on New Zealand petroleum refining capacity and rayon yarn based on local pulp. •k Electrical controls and switchgear. Ventures which would seriously threaten the competitive position of es- tablished manufacturers are less likely to win official approbation. A good number of these operate outmoded facilities, uti- 11 lizing high-priced labor with relatively low productivity and depend upon tariff and import controls for survival. Policy guides There are several other more specific policy guides that can directly affect the attractiveness of license and joint venture relationships. The Government is reluc- tant to approve any venture in which foreign ownership exceeds 50% . In roy- alty arrangements, 5% is the ceiling rate, and it is permitted only for exceptional situations. While these limitations would not stand in the way of many relationships, they can inhibit the creation of smaller enterprises, where percentages would not produce enough income to pay reasonably for know-how and the costs involved in serving the relationship. The U.S. and New Zealand parties can work out alternative considerations to off- set royalty limitations. These might be steps such as equity, technical service fees, or purchase of product components. Also, the Mission was given reason to believe that the Government may be more < lastic in its decision if the facts justify Miecial consideration. Thus, a few enter- prises involving 100% foreign ownership -English, Australian, U.S. — have been approved in recent years. In preparing an application for a li- cense or joint venture, all criteria by which the project can be justified should be carefully considered. The procedure is not easy and can present its frustrations both in delay and results. However, to U.S. companies experienced in organiz- ing overseas ventures, New Zealand pre- sents no original problems. Numerous conversations with local businessmen and Government officials convinced the Mission that the New Zea- land control system, as applied to new manufacturing projects, works efficiently and reasonably. Ultimate action depends on how the merits and justification of c ach project are initially prepared for administrative consideration, and there- after followed up. However, once favorable decision has been reached, the essential avenues to action are unblocked and one may pro- ceed with confidence that the "system" will present no further obstacles. Quite the contrary, it may provide protective benefits. The security of investment and con- tractual interests in New Zealand is well recognized. Capital can be repatriated. Remittances of royalties and dividends have never been interrupted. Return on capital invested in manufacturing enter- prises tends to range from about 20% to 40% before income taxes. Estimated profit margins on sales are reported to average close to 12% before taxes. Companies in New Zealand are subject to regular income tax and a social secu- rity income tax. The regular tax on com- pany income starts from a basic rate of 12.5% on the first £3,600 .(about $10,- 000) after which additional income is taxed at the rate of 42.5%. The social security income tax is an additional 7.5% . These tax rates also apply to royal- ties, rents and interest paid to U.S. com- panies, although under certain condi- tions exemption from the social security impost may be obtained. Dividends paid by New Zealand to individual U.S. citizens are subject to ordinary income tax. However, dividends paid to U.S. companies are not taxed. A convention between the U.S. and New Zealand provides for the avoidance of double taxation, and income taxes paid in New Zealand may be applied against tax obligations of the corresponding in- come in the U.S. There is no tax or other discrimination against foreign investors or licensors. Well-defined laws Patent and trademark laws of New Zealand are well-defined and are sub- stantially in accordance with British reg- What they want to know This schedule is for the guidance of prospective sponsors of new industrial projects. It covers the type of information most useful to the New Zealand Department of Industries and Commerce when considering whether a new project can be supported. This is not a questionnaire which must be answered fully before a proposal will be considered. It is realized that in some cases particular points will not be applicable, and for the smaller types of development it should not be necessary to go into all this detail. 1. Product(s) to be manufactured. 2. Estimated annual volume and value of the new production — in the first and subsequent years. 3. The proposed site of the manufacturing unit. 4. The values and types of plant and equipment (including tooling, dies, and such items) (a) to be imported (b) to be obtained in New Zealand. 5. Details of other capital costs involved in the new production. 6. The ownership of the manufacturing unit. 7. The method of financing the new project, including sources of capital. 8. The requirements of raw materials and component parts for the first year and for subsequent years of manufacturing operations (specify for each item, the types; quantity required; estimated cost; and sources of supply) and the means of payment for imports (remitting or non-remitting). 9. The estimated production costs and selling prices in New Zealand and comparability with the prices of similar imported products, and any similar existing New Zealand-made products. 10. The estimated New Zealand content of the finished product (as a per- centage of the factory door cost.) 11. The estimated saving in overseas exchange if New Zealand production is commenced. 12. The proposed date of commencing the manufacture of the new product(s). 13. Plans for subsequent expansion of output or increase in the New Zealand content of the product(s). 14. Details of any proposed royalty agreement(s) connected with the new production. 15. Comparison of the quality of the proposed new product(s) with that of similar imported and any existing New Zealand-made products. 16. The estimated number of persons to be employed in manufacture of the new product(s). 17. The arrangements for provision of technical knowledge. 18. The arrangements for distribution of the finished product(s). 19. The nature and degree of any protection required to assist the establishment of the new production. 20. The prospects of establishing an export market for the product(s). 12 ulations. Patent applications are subject to examination. Allowed patents have a life, with the payment of certain annui- ties, of 16 years from date of filing. It is desirable, so far as possible, for U.S. companies who seek license ties in New Zealand to obtain patent and trade- mark protection for their products. Although some well-known "names" occupy prominent positions, U.S. manu- facturers have had a relatively small share in New Zealand industry as investors and licensors. For 1962 and 1963, total U.S. investment in New Zealand is estimated at about $40 million, but much of this was not new risk capital. Likewise, of the 267 manufacturing licenses and joint ventures approved by the New Zealand Government in 1962 and 1963, only 73 involved U.S. parties. Chemical enterprises, with a 32 and 13 ratio provided the broadest U.S. partici- pation. The New Zealand economy has already come a long way out of its Common- wealth cocoon. The country is now open to U.S. know-how and capital on a parity with all other countries of the world. With some qualification this also applies to U.S. equipment and facilities. Unless a new manufacturing project can be justified as exceptionally signifi- cant to the New Zealand economy, licens- ing may offer less attraction to the average U.S. company than the possibility of a joint venture. A soundly conceived proj- ect, in which a reasonable equity stake can be obtained for know-how and facili- ties, could provide the most profitable means for entering the market. Many New Zealand companies prefer this form of business association. Also, the Mission found no objection to bring- ing in used plant and equipment that could do an adequate production job for local requirements. The time is ripe for an intensive U.S. effort to take a greater position in New Zealand's growing economy. The Mission believes that the effort will be welcome and that the New Zealand business com- munity will respond with vigor. WIDE POWER USE The North and South Islands are cov- ered by a network of transmission lines linking all major power stations. Power is so widely distributed that 99 percent of the country's population is able to make extensive use of various kinds of electric home appliances and electrically- operated farm equipment. New Zealand has long history as market for farm machinery Heavy equipment needed for land reclamation program; salesmanship can overcome unfavorable U.S. toriff position By E. W. KLAPMEIER Consultant, Blaw-Knox Co. Buffalo, N.Y. I still see the same positive indications of a profitable New Zealand market for U.S. suppliers of dairy processing and agricultural equipment that I found on my first visit here in 1952. Then as now a change in the produc- tion methods and products of the dairy plants appeared vital to insure the future of the industry. After that visit, U.S. equipment for production of roller process replaced evaporators and spray process dryers. Today most evaporating and drying units in the dairy processing plants can- not be considered modern or efficient. The major equipment has been in use for 12 to 20 years. New and improved designs that greatly reduce the cost of operation are sorely needed. Dairy processing plants now number around 80 compared to over 200 a few years ago, due to mergers of smaller units into more efficient operations. Plant consolidation calls for new equip- ment to increase capacity and reduce op- erating costs and manpower. New equip- ment is also more versatile in the types and quality of the final product, enhanc- ing the possibility for new and expanded markets for dairy products. People in the New Zealand dairy industry recognize this and are in a receptive mood to new equipment. Special requirements To compete effectively in this market U.S. companies should be prepared to meet some special requirements. They should consider the possibility of at least partial fabrication of the larger units in New Zealand manufacturing plants. Good facilities and workmanship are available to combine with U.S. know-how. Under such an arrangement a far greater volume of business would be possible. The mission found several instances of license and manufacturing arrangements being made by competitors from other nations directly with New Zealand fabri- cators. Unless we follow a similar pattern it is conceivable that U.S. products will lose prestige and sales. Grab the chance The opportunity of sales for U.S. de- signed dairy processing equipment should be seized. I would estimate that within the next few years a sales volume of over $1 million is possible. New Zealand farmers are machinery conscious and very efficient. A high pro- portion of farms is electrified and equipped with milking and shearing ma- chines. About 95% of dairy cows are machine-milked, compared with approxi- mately 70% in the U.S. Little opportunity for additional equipment exists in this market. Land reclamation and resettlement has been one of the major programs of the New Zealand Government in recent years through the Land and Survey Depart- ment. It conducts all land surveying and aerial mapping functions for the Govern- ment. It administers the program of land settlement under the provisions of the Land Settlement Act. About 50,000 acres of new land are developed by the Land Survey Depart- ment each year. In addition, 45.000 acres are developed annually by the Depart- ment of Maori Affairs and about 5,000 acres by private enterprise. Since 1952 the use of agricultural tractors has doubled, to a total of about 80,000 units. During the same period harvester combines increased in numbers from 2,000 to over 6,000. Other major farm equipment includes some 12,500 electric motors over V* h.p., 8,000 pick- up hay balers, 24,000 side delivery rakes, and increased numbers of forage harves- ters. In land development programs exten- sive use is made of heavy earthmoving machinery to break the ground, remove stumps, drain swamps and construct roads and irrigation projects. Heavy tracklaying tractors and airplanes have become almost a necessity in large scale land development programs in recent years. The equipment to perform this annual work and to replace existing machinery represents another sizeable sales oppor- tunity. Additional equipment will be re- 13 quired as the land is occupied by individ- ual farmers. Home garden equipment New Zealand is a land of do-it-your- self people. A great deal of the excess energy is expended through the care and cultivation of large vegetable and flower g?-^"- produce an abundant ing at fre- . ^...j-iueru and garden tools such as we are accustomed to in the U.S. are not available here in sufficient num- bers or variety. Good quality lawn mow- ers equal to long-season heavy duty re- quirements should fill a long-felt need. Government controls are a vital factor in the economy of this country. Licenses are required for imports. The preferential tariff rates established for imports from the Commonwealth countries place U.S. and other countries in an unfavorable position. While this obstacle exists, it is not un- surmountable, and can be overcome by effective salesmanship. The U.S. business- man must convince his New Zealand customer that his product is superior, that it will meet requirements better than Commonwealth competitors, and that it will reduce costs with less maintenance. Armed with these facts the New Zea- land purchaser is in a position to request the necessary import licenses and apply for the preferential lower tariff rates. The expanding economy of New Zea- land justifies a greater trade effort on the part of U.S. businessmen. Past absence of aggressive selling by U.S. exporters has allowed competition from other countries to seize the initiative. The future success of U.S. undertak- ings will require a maximum effort and the results will be in proportion to that effort. GNP UP Gross national product and net na- tional income have increased each year since 1947. GNP in 1963 was $4,042.6 million and net national income, $3,473 million. TIMBER GROWING The combination of warm tempera- tures and adequate rainfall and sunshine makes New Zealand one of the richest pastoral areas in the world and particu- larly suited for growing timber. Even in the south, where moderately severe winters occur, farm animals need not be housed. The seasons are the re- verse of those in the United States. 3* NICE BACKYARD: You can't eat the scenery, so these high-country New Zealanders raise sheep which graze right up to the edge of the Tasman Glacier on South Island's Mt. Cook, New Zealand's highest. New Zealand strong on carcasses; needs help on chops, legs of lamb Food processing equipment needed to satisfy sophisticated tastes; medium, small scale suppliers can also sell in expanding market By F. GILBERT LAMB President, Lamb-Weston, Inc. Portland, Oregon New Zealand is an important market for U.S. food processing equipment and know-how, and it seems worth the atten- tion of even the medium size and small- er U.S. suppliers. Farming is the major source of New Zealand's income. Their agricultural production is outstandingly efficient. New Zealand has been able to maintain its high level economy by exporting farm crops predominantly in bulk or semi- processed form. Today, however, the whole trend in the food processing business is toward "convenience foods." The U.S. has led the world in processing food in central plants, so it requires a minimum of work in the kitchen — whether the housewife's kitchen or the chef's. The processing of New Zealand food crops is not nearly as well developed as their farm operations. Although some plants and some parts of processing op- erations are efficient by U.S. standards, many are not. Although the New Zealand meat pack- ing industry handles a large volume, most of it is frozen and exported in carcass form. As the market gets more selective and demands more "leg of lamb" and "lamb chops" the New Zealand meat packers are left with huge quantities of the balance of the carcass. They have developed a limited market for some of these cheaper cuts in the South Pacific islands. I heard of prices as low as 2 and 3 cents per pound and for lamb necks and breasts (without bones, 7 to 9 cents per pound). Another problem is that frozen pre- cut and portion-packaged lamb and mut- ton have less attractive color. Color would 14 not be a problem, however, in canned or frozen or dehydrated heat-and-serve dishes, such as curried lamb or lamb stew. Must package better New Zealand could use American know-how and much U.S. processing and packaging equipment, because to main- tain her economy New Zealand food ex- ports almost certainly will have to be processed and packaged in a more sophis- ticated manner. Besides the export market, the nation's domestic market for better processed foods is significant. New Zealand has al- most no unemployment and one of the highest living standards in the world. Almost 200,000 women are full-time workers. The families represented by these working women are going to de- mand, and can afford, food processed to a greater degree than what they are now eating. These housewives are going to want oven-ready foods, trimmed and peeled and packaged into prepared meals with the modern processing equipment and techniques now available. Stricter standards A £20 million ($56 million) develop- ment program is forecast for New Zea- land's meat freezing companies to bring the meat industry in line with prescribed new methods of meat handling required under health requirements and sanitary regulations in New Zealand's export markets. This will be a big equipment order for some enterprising salesman. In one of the country's largest bakeries the ovens are over 20 years old. They are still using a bread wrapper with a speed of only 20 loaves per minute. Cake mixers are also old and require constant maintenance, except for one new 1963 U.S. machine, treated as a prize possession. New Zealand uses much refrigeration equipment in connection with food proc- essing. However, they are only recently starting to think in terms of package quick freezing in the meat industry. Refrigeration compressors are not be- ing manufactured in quantity in the coun- try, although I was told that one firm did make compressors up to Vi h.p. capacity. Semi-hermetically-sealed compressors, especially in small and medium-sized units, are becoming more popular, but the fully sealed ones are not in use. Dis- tances from the overseas factory make New Zealanders apprehensive about equipment that must be returned for repair. New Zealand does have several facili- ties capable of manufacturing pressure vessels, heat exchangers, evaporators and condensers. However, even here U.S. special application equipment can com- mand attention. Some U.S. manufac- turers might work out favorable licensing arrangements on specialized heat ex- changers with New Zealand manufac- turers. New Zealand safety code specifica- tions are more stringent than the U.S.'s A.S.M.E. code or Britain's. Before ship- ping any pressure vessel to New Zealand, detailed specifications should be sub- mitted to the New Zealand Government's Marine Department in Wellington for approval. New Zealand has a wide variety of water conditions, so easy cleaning of heat exchangers is a desirable feature. A fair range of fans are made in New Zealand. Axial flow and propellor types up to 48" diameter and some centrifugal designs up to 72" are produced. Some of the best of these are under license ar- rangements with U.S. firms. Some fan components such as specialized impellers and bearings are imported. Regarding insulation for the refrigera- tion industry, some expanded solid types are produced locally although fair quan- tities of other types are imported. There was widespread interest in lightweight warehouse walls and ceilings constructed of several layers of aluminium sheets separated by thin (approximately %") wood spacers on 3 to 4 foot centres. The centre sheets would be down to 34 gauge with the outside and inside of heavier gauge to suit the particular condition. Unwrapped bread Most bread is now delivered unwrapped in trucks to groceries, hospitals, restau- rants, homes and other outlets. There is discussion in the Government and news- papers as to whether wrapping should be required. When this happens about 100 bakeries will need packaging equipment. French-fried potatoes are served morn- ing, noon and night in restaurants. Prac- tically all of these are still peeled and cut by hand in the kitchen with scarce labor. Edible fish, ranging from sub-tropical to cold water varieties are plentiful, yet New Zealand imported about $4 million worth of canned fish in 1961. Two gentlemen from the South Island want U.S. know-how and equipment to get a new fish processing operation started. They are confident that £500,- 000 ($1.4 million) of capital from their area would be readily available for the venture. They stated that the fish poten- tial is many times the official catch fig- ures. A National Government Fish Board is scheduled to be set up to study and encourage the development of the fishing and fish processing industry. Businessmen showed much interest in U.S. coin-operated vending equipment for food and other consumer goods. Sev- eral interviews discussed eventual local manufacture of this type of equipment under license or joint venture arrange- ments. More roadbuilding equipment should sell in New Zealand About 80% in use is American; potential for larger units seen By ABRAHAM L. SAVIN President, Edward Balf Co. Hartford, Conn. Visits with members of New Zealand's construction industry, plus field trips to building and housing sites, road projects, harbor and airport jobs, give the impres- sion that about 80% (by dollar value) of the equipment used is U.S. built. Some of these units, however, were assembled in Australia and England under license. Prospects for sales of larger, more effi- cient units in some phases of construction are good. Virtually all tractors appear to be track- mounted. With the exception of a few built in England, most are made in the United States. I did not see rubber-tired dozers; in my opinion the New Zealand market is open to U.S. suppliers. Pneumatic-tired scraper equipment, both single and dual engine, is being used, and there are many makes. Some front- end loaders, both pneumatic and track mounted, are on the market and about 90% are made in the United States. There are few large shovels. Use of small shovels is being discontinued because of the increased efficiency and versatility of the front end loader. I did not see a Gradall or its equivalent. There should be a market for them be- cause of the extensive number of housing sites being graded and drained. A few back-hoes on tracks are at work and some small draglines are used on these sites; few are mounted on rubber. Market for larger crane There are numerous motor cranes but they are small and powered by gas en- gines — again, 80% U.S. design. I believe that there is a market for a larger crane, diesel powered both top and bottom, and 15 TIMBER: Lumberjacks fell tree in 284,000-acre, man-made forest in Rotorua District. New Zealand has 1,000,000 acres of private and state tree-farms. with hydraulic outriggers. In the last li- censing year £425,000 worth of cranes and hoists were imported, of which £300,000 (1 N.Z. £ = US$2.80) came from U.K., £56,000 from Germany, and only £4,200 from the United States. On the other hand, of the £100,000 of winches and capstans imported, £73,000 worth came from the United States and £15,000 from the U.K. Pneumatic-tired scrapers, cat-drawn, are plentiful. Off-the-road hauling equip- ment is small and not very modern. Both the rear and bottom dump units are needed. Rollers of all kinds, pneumatic and steel-wheeled, are available; but most units are not U.S. made. Few vibratory compactors are used. Pile-driving equipment is either auger type or steam and there should be a ready market for our modern diesel-powered hammer. Pump and compressers are used extensively but come mainly from Aus- tralia and the U.K. I have not seen a well- point installation. Readymix concrete plants are becom- ing popular; however, because of the rigid enforcement of the gross weight laws all trucks are of 4-yard or less capa- city. Imported concrete mixers totaled £27,700 last year, £18,000 from Aus- tralia and only £3,450 from the United States. Bituminous concrete seems most popu- lar for highways and small airports. In some instances penetration macadam is used. There are many good bituminous concrete plants, but capacity is small. Bituminous spreaders are modern and are almost entirely of U.S. design. Lack hauling, crushing plant Based on visits to a few quarries, indi- cations are that this is a field which offers a lucrative market for hauling and crush- ing plant. Where about 40-ton hauling units could be employed, 15-ton or smaller units generally are being used. Plant design is of a sprawling nature and I did not see any tunnels for reloading or bins of any appreciable size. Numerous small shovels are stationed at stock piles and could be replaced with half as many larger U.S. built pneumatic- tired loaders. In no case was a drop ball used for secondary breaking. Instead, crews of men drill and blast the oversized rock. Crushing equipment imported totaled £96,964— £57,000 from the U.K., £24,600 from Australia, and only £9,536 from the United States. A new airport is under construction for the city of Auckland. The runway, about 8,000 feet long, is built of 14-inch- thick concrete. Aprons and taxiways vary from 12 to 14 inches. Lanes are paved in 20-foot widths with a longitudal keyway. A central mix plant is equipped with con- veyor feeding and two 4-yard tilt-drum mixers. The average yardage placed daily is about 750; by normal U.S. standards this yardage could be in excess of 1,500 yards. One bottleneck is the use of 3-yard hauling units from the central plant to concrete spreaders. None of the principal equipment — concrete spreader, vibrators, finishing machines — was U.S. made. A spread of American equipment, serviced by our standard 8-yard Dumpcrete trucks, would produce in excess of 2,000 feet of 20'xl4" pavement per shift, or 2,000 cubic yards. Finished pavement looked excellent; riding qualities were excellent. This proj- ect required about 12 million yards of fill — dug and hauled from adjoining areas by prime movers and pneumatic-tired scrapers. On-the-road hauling equipment in my opinion offers a wide open field for sales. A diesel-driven light-weight tractor draw- ing an aluminum frameless trailer should readily find a market in this area. Special- purpose motor trucks and vans (trailers) imported totaled £127,000; £95,000 worth from the U.K., £21,000 from Aus- tralia, and only £10,000 from the United States. A review of the overall situation, as observed, indicates that virtually all the better equipment lines manufactured in the United States that are related to the contracting and automotive industry are represented in New Zealand. Equipment can be bought on a finance plan at a reasonable rate of interest. Sales are being made at 15% down and 2 years to pay the remainder. About half the sales are on a cash basis. Soil and rock conditions in New Zea- land are similar to those in the United States and therefore our standard builts are acceptable and used almost exclu- sively. 16 NEW ZEALAND • • 17 Background: New Zealand's agriculture, industry, trade public of Germany, and Australia are New Zealand produce major export earner £W*ej p r a „S» , f l, N »e Z these three takes as much as 10 percent -wool, meat, dairy products, and hides £^3££*KE8 exports, is becoming increasingly impor- Wide range of manufactured goods and raw materials among imports tant as a market, especially for meat but also for wool, tallow, hides, and skins. External trade is of major importance machinery other than electrical consti- Almost all of the United States im- in New Zealand's economy, both imports tuted the largest group in 1961-63, while Ports from New Zealand are agricultural and exports averaging 23 percent of the textile yarn, fabrics, and related products products, comprised principally of raw gross national product in the past 8 years. were a very close second. The leading wool, frozen beef, and hides and skins^ Per capita value of overseas trade is one raw material imports were mineral fuels United States exports to New Zealand of the highest in the world. Export earn- and base metals. Electrical machinery, mc ? de tra u ctors and ° ther vehicles as ,.,, j ■ , , , / , , . , , u • well as tobacco, rubber, cotton, petro- mgs are still derived largely from sales motor vehicles and accessories, chemi- , , . . ' , . -. « of agricultural products, but trade in cals, and metal manufactures added sub- ^ chemicals, and machinery of all pulp and paper products has become in- stantial amounts to total imports. These "prior to 1959 the United Kingdom creasingly important. Traditional trade eight contributed more than two-thirds supplied more than half of New Zea- ties with the British Commonwealth of New Zealand's imports. land's imports each year However in countries, particularly the United King- , ,. n 1959 the United Kingdom supplied' 47 dom, have been slackening gradually. ,* aeclmmg percent and in 1963, about 40 percent. New Zealand's total foreign trade in- Although the British Commonwealth Most of the difference has been taken creased by two-thirds in the period 1953- countries, and particularly the United up by the United StateS) Australia, Japan, 63. Exports increased steadily to a peak Kingdom, remain the chief trading part- and Canada wh i ch a]ong with Western of $915.6 million in 1963 and imports ners of New Zealand, their share of both Germany are the other large sources for reached a high of $828.8 million in the exports and imports has been declining ^ £W Zealand's imports same year. The major increases in ex- gradually. In 1950, the United Kingdom New 2 ea j and obtains most of its fac- port volume, 1955-63, occurred in wool took 66 percent of New Zealand's ex- tory and farm machinery motorcar parts and dairy produce, whereas imports ports, a decade later, 53 percent, and in for assembly> tex tiles, and chemicals from changed only slightly. The large decline 1963, 46 percent. The decline in the ^ i_j n ; ted Kingdom in total imports in 1959 was spread uni- United Kingdom's share of New Zea- formly over the entire range of imported land's trade has come about largely Trade with United States items. through the diversion of beef supplies to Apart from the United Kingdom, the other markets. The United Kingdom is United States is New Zealand's leading Prewar pattern continues also taking a smaller share of New Zea- export market and after the United King- Except for the growth of trade in pulp land's wool exports but is still the prin- do m and Australia the most important and paper products, which assumed im- cipal market for almost all of New Zea- source of imports. In 1963, United States portance in 1955-63, the composition of land's lamb, cheese, and butter, and a exports to New Zealand were $78 mil- New Zealand's exports varies little from substantial share of her wool. Its share ij n, 27 percent higher than in 1962, that of pre-World War II years. Principal of New Zealand's beef exports has now while United States imports from that exports in order of importance are wool, dropped to 11 percent. country were $154 million, frozen meat, butter, cheese, and hides, The United States is the second largest pelts, and skins. Newsprint, woodpulp, market for New Zealand produce, aver- Commercial policy logs, and timber are also economically aging about 16 percent of the total dur- New Zealand has a moderately high significant. Eighty-six percent of the total ing 1961-63. France, the Federal Re- protective tariff, with slightly less than value of exports is still derived from wool, meat, dairy produce, and hides. In Imports of Agricultural Machinery,* by Country, 1958-61 and First 1961-63, wool accounted for one-third of 6 Months 1962 New Zealand exports, meat for One- [In thousands of New Zealand pounds] fourth to one-third, and butter for one- Jan. -June fifth tO one-Sixth. Exports Of manufac- Country 1958 1959 I960 1961 1962 tured gOOds Other than foodstuffs Were United Kingdom NZ£ 768 NZE 388 NZE 498 NZE 681 NZ£ 106 negligible. Australia 211 111 122 — — xt t i j • a. -j r West Germany 133 106 116 — — New Zealand imports a wide range of United States y _ 338 303 374 426 55 manufactured goods and raw materials, others 197 169 271 717 144 chiefly machinery and transportation Tota | . YfiA7 T077 uFi U!24 305 equipment, base metals and metal manu- Increase over preceding year — -570 304 443 — factures, fertilizers, textiles, food prod- % increase — —34.6% 28.2% 32.1% — ucts, mineral fuels and lubricants, chem- us - snare of market 20.5% 28.1% 27.1% 23.4% 18.0% icals, paper and paperboard. Imports Of * SIC 352 - Includes cultivating, harvesting, threshing, dairying, etc., machinery. 18 one-half of its imported goods free of duty. The tariff policy is based on need for revenue and for protection for the developing New Zealand industry. In its multicolumn tariff, intermediate or most- favored-nations rates, which have been established for a large number of prod- ucts, apply to most foreign countries including the United States. The prefer- ential tariff or lowest rates are applicable to imports from the United Kingdom and other British Commonwealth countries except for certain specified goods from Canada, Australia, and the Union of South Africa. New Zealand has been a member of the General Agreement on Tariffs and Trade (GATT) since its inception in 1947 and has participated in the proceed- ings of all meetings of member countries. In order to ensure that oversea debt services will be met and that sufficient funds will be available for essential im- ports, New Zealand maintains an impor- tant licensing program applicable to most goods imported from any source. Al- though a few imports are exempt from Imports of Construction Equipment Tools,* by Country, 1959-61 and First 6 Months 1962 [In thousands of New Zealand pounds] Jan. -June Country 1959 1960 1961 1962 United Kingdom NZE 1,887 NZE 2,812 NZ£ 3,611 NZE 1,266 Australia 251 363 505 92 United States 1,693 4,672 3,851 697 Others 3]7 442 554 45 Total 4,148 8,289 8,521 2,100 Increase over preceding year — 4,141 232 — % increase — 99.8% 2.8% U.S. share of market 40.8% 56.4% 45.2% 33.2% * SIC 353. Includes derricks, cranes, power shovels, piledrivers, excavators, haulers, industrial tractors, concrete mixers, ditchers, trenchers, industrial trucks, conveyors, pneumatic tools and con- creting machinery. licensing requirements, most items im- ported to fulfill the basic needs of New Zealand's industry are subject to value restrictions for which licenses are allo- cated to regular importers as a percent- age of their previous allotments. Licenses are not isued for some nonbasic goods while for others, licensing applications are considered on the merits of the indi- vidual case. New Zealand's licensing system presents no roadblocks for promising industrial projects Flexibility of Customs Acts occasionally permits lower tariff rates for imports from United States Since 1959 New Zealand has main- tained substantially global quotas for im- ported goods, import licenses being granted on an individual basis without regard to the source of imported ma- terials. A last remaining dollar restriction was removed in 1963, so that the im- porter currently has full freedom to use his import allocations to buy in the coun- try of his choice. In general, New Zealand's licensing system permits considerable flexibility for the businessman who comes forward with promising industrial plant expansions and development projects which the Govern- ment is convinced are desirable for the economy. Some 70 percent of the over-all import allocations for the coming licens- ing year are expected to be issued on the basis of past performance by importers and manufacturers without the need for license holders to lodge import license applications. Increases of import license entitlements for expansion of existing op- erations — to serve a larger market, for instance — are expected to continue to be available to importers and manufacturers upon the submission of convincing evi- dence justifying additional requirements. Licenses necessary for the import re- quirements of new industrial or commer- cial development are made available pro- vided the authorities conclude that this serves the interests of the economy. The door is thus opened to new ventures not now operating in New Zealand, and to new manufacturing entrepreneurs who do not have a historical basis in the li- censing system. Applications for these licenses go through the Customs Depart- ment, but the Department of Industries and Commerce has the major say in the development decision. Their develop- ment experts often call for discussion of applications submitted. Applications should be very carefully prepared, con- siderably detailed, and convincingly justi- fied. Available forms outline the type of information to be included in the initial applications, and there are general broad criteria (outlined in the Tariff and Devel- opment Board's Report on Criteria for Industrial Development) as to the type of projects which will receive most favor- able consideration. Considerable follow- up and negotiation is essential. Enlarging allocations The licensing system presents no road- blocks to the development of business by the importer or manufacturer who effectively presents valid justifications for additional import allocations, and who is prepared to persist should he be ini- tially refused. Even long-term basic im- port allocations can be enlarged if the businessman sets forth valid and forceful argumentation. A principal means used by the pro- gressive businessman to import larger volumes within the limits of his licensing entitlements is to substitute new or addi- tional local content to the products he has been importing in finished or semi- processed form. The extent of such local assembly or partial production operations tends to be accumulative over a period of time. Once a substantial domestic content is achieved, the import licensing system tends to fortify the businessman's position by limiting future imports of competing products, which henceforth tend to become classed as nonessential. Major market area As New Zealand's basic industrial re- sources are limited, however, a major and continuing market exists for indus- trial raw materials and components, and complex machinery and parts not pro- ducible because of labor or technical con- siderations, or not producible at an eco- nomic level. 19 Joint Manufacturing Ventures and Licensing Arrangements Entered Into Between New Zealand and Overseas Countries in 1962 and 1963, by Major Industry Group Electrical Machinery machinery Participating and and country appliances appliances Australia 16 17 France 1 Germany 1 2 Japan 3 Norway 2 Sweden 1 United Kingdom 17 15 United Stales 7 10 Italy 1 Switzerland Hong Kong Holland 1 2 Denmark 1 Canada 1 Total 49 49 Metal Paper and manu- Building allied factures materials products 18 1 6 5 1 2 1 3 1 1 1 1 1 1 30 Chemicals Food Othe r Textiles and and drink (indue ing associated associated and records and products products tobacco sheet music) Total 20 6 2 7 91 2 1 2 8 4 2 8 8 3 7 70 8 1 13 1 1 1 1 28 1 73 2 3 1 7 2 2 40 32 6 43 267 The businessman's import position as regards the licensing system may also be improved by effective representation of his position to the licensing authorities. Successful firms employ full-time Cus- toms expeditors and advisors, whose services usually amply cover the expense. They are tactful and persistent negotia- tors. Rejected applications are resubmit- ted perhaps two, three, or four times if necessary. Another method of working within the licensing system is to use the licensing entitlements of third parties when they may be obtained. When third party li- censes are availed of, the imports must be entered through the Customs Depart- ment in the name of the license holder. Rates for license entitlements are re- ported to vary with market conditions, but tend to range from 5-20 percent of the value of the license entitlement. In general, the manufacturer or his importer/ supplier has more flexibility than the importer/wholesaler in the use of his licensing entitlements. Importers ^m^mfflmsffiB J, ',•/■ MILL: Employe setting up 4-ply fingering wool from spinning yarn at woolen mill near Christ Church, N.Z. generally are rigidly limited to the value of their various allocations for quite spe- cific categories of goods, but the manu- facturer or his supplier can interchange the value of specific allocations within broad commodity groupings. Within cer- tain limitations, and up to approximately 25 percent of the licensing authority, a manufacturer or his supplier can use license entitlements for new but related products, and even initiate new ventures. Many industries, such as TV and radio, receive periodic hearings before licensing authorities; and total allocations and transfer rights between commodity groupings can be altered to meet chang- ing circumstances. Goods denied entry Nonessential imports, or goods avail- able from New Zealand resources and production, are not authorized for im- port. The generally excluded items in- clude clothing, shoes, radios, TV sets, household electrical appliances, light bulbs, furniture, fibreglass products, boats, automobile tires and batteries, paints, and the range of finished goods generally merchandised through retail sale. Items in the industrial field which are not authorized for import include, for example, many pieces of earthmoving machinery, fork-lift trucks, many types of pumps, stranded wire, aluminum fabri- cations, metal structural parts, greases and other solid lubricants, and an ever- increasing number of items being pro- duced from New Zealand plant facilities. The list of items for which licenses are 20 not granted continues to be enlarged as the country's industrial activities expand. For the import licensing year, which began on July 1, 1963, and ends on June 30, 1964, private essential import alloca- tions are expected to be held to about $756 million. For the year beginning July 1, 1964, the import allocations un- doubtedly will be held to an approxi- mately equal level. No-remittance licenses Apart from regular private import license entitlements no-remittance li- censes can be obtained for commercial imports, which would enable importers to enlarge the amount of goods they could bring in under regular remittance license entitlements. Under this arrange- ment, importers who hold overseas funds may obtain from the Reserve Bank cer- tificates of eligibility for using these funds, then apply to the Customs De- partment for no-remittance licenses for their desired commercial imports. The Customs Department is adminis- tratively empowered to issue import li- censes up to 80 percent of the value of the Reserve Bank's certificate of eligi- bility. The importer, however, is ob- ligated to return through the banking system a sum equal to 25 percent of the value of his license, over and above the funds required for the licensed goods. The Customs Department applies the same criterion to commercial no-re- mittance license applications as it does to regular remittance licenses. The ap- plicant for commercial imports normally must have an import history, and the products to be brought in must be de- termined to be necessary by the Customs Department. Many exceptions are made to the import history requirements, but CHURN: Giant stainless steel churns help New Zealand produce more than 200,000 tons of butter a year. in general they are no different from the exceptions allowed for remittance licenses. Effective representation of the importer's case is as important for non- remittance licenses as it is for regular licenses. Tariff exemptions American exporters, particularly of production goods, should not consider themselves precluded from the New Zealand market on the sole basis of published tariff rates, however unfavora- ble, if their products are truly unique U.S. Exports of Construction Machinery and Equipment to New Zealand, 1958-62 [In thousands of dollars] Item 1958 1959 1960 1961 1962 Cranes and shovels 763 188 283 216 Trenchers and ditchers, self-propelled, new 17 18 31 114 7 Loaders, wheel or crawler mounted, self-propelled, new 592 886 1,796 1,400 681 Batching and mixing machinery (bituminous and concrete) 51 97 116 46 59 Scrapers, dig-carry-haul 56 79 98 237 153 Graders, self-propelled 247 124 433 508 449 Compactors, soil, tampers or roller type — 5 10 16 76 Tractors, contractors, wheel type, 70 brake hp and over 183 206 1,377 667 245 Haulage vehicles, off-the-road — — 203 — — Attachments, n.e.c, for mounting on tractors or com- mercial trucks 272 238 757 617 238 Construction and maintenance equipment, n.e.c, and parts, n.e.c. 301 264 647 746 543 Tracklaying tractors, new 1,419 1,684 5,347 3,561 1,649 Tracklaying tractors, used or rebuilt — — — — 2 Parts for track-laying 1,477 1,432 1,646 1,649 1,555 Total 5,378 5,221 12,744 9,777 5,657 in terms of technical considerations, de- livery, and price. Administrative flexibil- ity under Section 1 1 of the New Zealand Customs Acts permits extension of low- er Commonwealth tariff rates to imports from non-Commonwealth sources of supply, including the United States, in special circumstances. For a favorable ruling under Section 11 an individual li- cense application must fully demonstrate, as Customs requires, that imported goods of a suitable character are not available from Commonwealth sources because of specific technical or commercial con- siderations. A number of importers interested in American products have resorted to Sec- tion 1 1 for application of Commonwealth rates to non-Commonwealth imports and have been moderately successful. Where an exception has been made, the average 18-percent tariff advantages enjoyed by Commonwealth over U.S. sources, as the result of the Commonwealth preference in the New Zealand tariff, has been re- moved. A New Zealand machinery importer or producer can secure a complete draw- back of the tariff on imported machinery components if he incorporates a sub- stantial New Zealand content in a pro- duct which he has previously imported. Although the percentage of New Zealand content considered substantial tends to be arrived at by negotiation, a 40-50 percent content may be considered typical. 21 Improved seaports, jet-age facilities pace trade boom Country's first World Bank loan slated for harbor development; Auckland adds new airport New Zealand's busy trade picture is coupled with continuing developments in the country's transportation system. A recent World Bank loan is earmarked for enlarged port facilities; a new inter- national jet airport has been built at Auckland, and improvements continue on the railroads and highways. Shipping is of primary importance to New Zealand, with its high per-capita rate of foreign trade. While the country is far from being self-sufficient in ship- ping, vessels under New Zealand registry carry freight and passengers between New Zealand and Australia, operate be- tween New Zealand and the west coast of North America and in parts of the Far East, and ship along the coast. The country has about 40 ports. Only a few years ago about one-half of total oversea cargo passed through Auckland and Wellington, the two main ports; now these cities handle about two-thirds of the goods entering or leaving the country. Other important ports are Lyttelton (serving Christchurch), Dunedin, and New Plymouth. Good berthage and wharf sheds are available at the major ports. Dockside and mobile cranes, forklift trucks, and other modern mechanical devices are found at most of the larger ports. Auck- land and Wellington have large ware- houses on the docks, and these ports have extensive refrigerated space for meat, AIR FREIGHT: More and more cargo is shipped by air in New Zealand. Automatic loaders speed handling. dairy produce, and fruits. There are also warehouses on the docks of Lyttelton, Dunedin, and Napier. In addition to dock storage, there is a great amount of storage space, mainly for wool and grain, in all of these cities. Continuing program Development of the country's ports is continuous. Wharves are being built and rebuilt, channels are being dredged, and improved facilities for the handling of ships and cargo are being installed. There is, however, a shortage of warehouse capacity, particularly of railway refrig- erated space, and a need for better road and railway access facilities. To assist New Zealand in the im- provement of five of her busy ports, the Imports of Textiles,* by Leading Country, 1958-61 and First 6 Months 1962 [In thousands of New Zealand pounds] Jan. -June Country 1958 1959 1960 1961 1962 United Kingdom NZ£ 11,284 NZ£ 7,479 NZ£ 7,487 NZ£ 8,237 NZ£ 2,756 India 736 930 1,106 745 — Japan 1,594 1,929 3,465 3,786 1,420 United States 702 648 1,242 2,367 615 Total all countries 16,550 13,517 16,693 18,793 6,836 Increase over preceding year — —3,033 3,176 2,100 — % increase — —18.3% 23.5% 12.6% — U.S. share of market 4.2% 4.8% 7.4% 12.6% 9.0% * SIC 220. Includes cotton, rayon, nylon, wool , and silk piece goods. International Bank for Reconstruction and Development (World Bank) in No- vember 1963 made its first loan to the country. The improved efficiency of these ports will enable them to cope with the growing volume of international and coastal trade. New Zealand has no free ports or free zones. Government supervised ware- houses of various kinds are available — wharves approved by the customs for the discharge of oversea cargo, licensed warehouses for the storage and sub- sequent release of dutiable goods, and licensed manufacturing warehouses where products are utilized in the manufacture of perfumery, tobacco, and other goods permitted by customs regulations. Coastal shipping supplements the rail- way system, its function being to dis- tribute oversea cargo from the main ports to the other ports of the country, and to distribute New Zealand produce to the various ports of the country. Coastal traffic has increased notably since 1961 — at a rate of 5 percent annually. There are fast overnight passenger services between Wellington and Lyttel- ton and there is an interisland passenger service connecting Wellington and Pic- ton. Air transport gains Air transport is widely used and gain- ing in popularity each year. First-class, reasonably priced air transportation is 22 Imports of Machine Tools,* by Major Supplier, 1958-61 and First 6 Months 1962 [In thousands of New Zealand pounds] Jan. -June Supplier 1958 1959 1960 1961 1962 United Kingdom NZ£ 766 NZ£ 858 NZ£ 1,199 NZ£ 2,417 NZ£ 854 Australia 375 405 468 534 223 West Germany 132 123 150 173 86 Sweden 30 28 57 76 22 Switzerland 5 11 27 67 17 United States 147 ]89 294 27J 90 Total, all countries __ 1,487 1,677 2,313 3,719 1,403 Increase over preceding year — 190 636 1,406 — % increase — 12.8% 37.9% 60.8% — U.S. share of market __ 9.9% 11.3% 12.7% 7.3% 6.4% * SIC 354. Includes lathes, boring machines, milling machines, drilling and grinding machines. readily available. A network of services provides excellent air connections among the four principal cities and also serves all the larger towns. Nearly all internal scheduled air serv- ices are operated by the Government- owned National Airways Corporation. New Zealand is the terminal for a number of oversea lines, and internation- al air services are provided to Australia, United Kingdom, Europe, North Amer- ica, Union of South Africa, and the is- lands in the South Pacific. Air services between Australia and New Zealand are operated jointly by Tasman Empire Air- ways, Ltd. — TEAL, and Qantas Empire Airways, the Australian airline. Connec- tions may be made in Sydney for the Qantas flights to London. Pan American Airways, Canadian Pacific Lines, and Qantas operate regular services between Auckland and North America with the number of jet flights to be increased under a recent agreement. More modern aircraft are replacing those in use by New Zealand, particularly for passenger traffic. Airport facilities, in general, are constantly being im- proved. Since the present airfields are inadequate for heavier planes, mainly jet airliners, a new international jet air- port has been built at Auckland and longer runways are planned at other New Zealand airports. Extensive rail network Practically all of New Zealand's 3,263 miles of railway are owned and operated by the Government's Railways Depart- ment. All main cities, secondary centers, and tourist resorts are linked by rail and connecting motor services operate on regular and frequent schedules. Most trains are hauled by steam locomotives, but more and more lines are being elec- trified. Because of the difficult hilly terrain, a large part of the system runs roughly parallel to the coasts with feeder lines into the interior. For the same reason, a narrow-gage track of 3 feet 6 inches is used. Terminal facilities are quite satisfac- tory. Excellent terminals serve the two main centers of Auckland and Welling- ton, together with a new facility at Christchurch. Since the Government is convinced that a comprehensive and efficient rail- way system is essential to the country's economy, the railways will be run efficiently and the current program of modernization will be pursued. The railroads annually carry some 26 million passengers and about 1 1 million tons of freight. Freight ton miles total about 1,220 million. PORT: Bird's eye view of Auckland, one of five major New Zealand ports which will be improved with the assistance of a recent $7,800,000 World Bank Loan. 23 Hiahwav traffic risinq rapid deterioration ot the country's Light engineering has made great 9 y principal roads. The Government au- strides, especially in the field of electrical Like most countries, New Zealand is thorities continue to devise plans and goods — lamps, bulbs, batteries, vacuum facing a rapid growth in highway trans- allocate funds for the replacement of cleaners, stoves, and refrigerators — vir- portation. The number of motor vehicles many old timber bridges and for the tually all major household appliances using highways has increased each year, maintenance and improvement of the being produced domestically. Other man- and total motor registration rose from state highways. Highway construction ufactures showing similar growth include 696,913 on June 30, 1956, to 1,047,487 during the next 10 years will run to textiles and leather goods; tires, tubes, on June 30, 1963. £150 million. and rubber goods; plastics; furniture; and The larger volume of freight and The total mileage of roads on March building materials. The most spectacular passenger traffic on the Dominion's main 31, 1961, was 57,135, of which 15,790 recent developments have been in paper- highways seems to be responsible for the were surfaced. pulp and other forestry industries. Most of the industries are controlled «, || || ma i ■ J? ■ ■ I ■■ by local financial interests, principally Small New Zealand factories maKe wide Pr va te c 0mpa n les hose tocks are t available to the public. It is estimated range of products for home consumption LtLtnaf L^V^^wned oi% n^iL s by oversea companies. British and Aus- Notable developments in paperpulp and other forestry industries t / alian companies provide most of this foreign capital in manufacturing. United States and Canada are also well repre- New Zealand's manufacturing indus- Products manufactured sented. Existing oversea investments in tries have increased 60 percent in num- New Zealand produces and processes New Zealand produce rubber tires and ber in the past 25 years. Today a wide nearly all the food it consumes, plus tubes, chemicals, fertilizers, tobacco, tex- range of manufacturing activities provide substantial quantities for export, and tiles, radios, refrigerators, vacuum clean- employment for a fourth of New Zea- manufactures virtually all the clothing ers and other electrical equipment, soap, land's labor force and produce nearly a and footwear and most of the leather and paint. There are also investments in fourth of the national income. goods required. The country is now motor vehicle assembly and meat freez- self-sufficient in cigarettes, paint, nails, ing. The principal American investment Small-scale industry garden tools, kitchenware, and radios, is in automobile assembly, rubber tire Industry is organized on a relatively She has well-established foundries and production, soap manufacture, alumi- small scale. Average employment per engineering works and assembles im- num, chemicals, and some food procass- manufacturing plant is 21 persons. Eighty ported motor vehicles and machines. ing. percent of the plants employ less than |m of Food Processi Qnd Packa j Machinery,* by Country, 21 persons while only 7 percent employ 19 J R » » ^ more than 50. The value of output ot most firms is under £50,000, and in l ,n thousands of New Zealand pounds] 1962 only 90 of the 8,981 plants oper- Jan.-June ating in New Zealand added value of Coon,r * 1959 196 ° ,961 1962 „ *u„ fznnnnrs t„ *k Q ;, ~,-^,wo United Kingdom NZ£ 93 NZE 274 NZE 391 NZE 159 more than £500,000 to their products. . .._ " 7q ._„ ... _. .,,,,, . ■ , Australia 78 172 139 78 One-sixth of all factories are owned by W est Germany 112 90 131 24 individuals or partnerships, two-thirds by United states 135 140 155 58 private companies, and one-tenth by pub- Others 59 40 98 24 lie companies. Total 477 716 914 343 The Dominion's industries are confined Increase over preceding year — 239 198 — to the lighter types of manufacturing. * inc k rease ■ - , ?0.i% 27.7% _ ' , 6 . 1 , • U.S. share of market 28.3% 19.6% 17.0% 16.9% Except for forest products, there is no , . . , . , . , T i , „5IC 355. Includes bakers industrial, canning, confectioners , filling and packing, food changing, heavy industry. Her natural resources and fruit and vegetable pr ep ari n g machinery, do not lend themselves to any extensive development of heavy industry in the f0 Manuflctu U reTs e depend almost entirely ,m P orts of Automatic Controls, Instrumentation* by Country, 1960-61 on imports for their plant equipment and and F,rst 6 M ° n,h s '962 for many of the raw materials. Payments [in thousands of New Zealand pounds] for wages, salaries, and materials have Jan.-June increased as well as the values of out- Countr y 1960 1961 1962 put, land, buildings, machinery, and Uni,ed Kinadom - NZ£ 3 -° 82 NZE 4 - 543 NZE 2 - 059 v . . ~~ e j -it Canada 114 193 115 equipment. The food group is by far Auttralia 422 488 275 the most important, accounting for 32.7 v/est Germany 75 313 66 percent of the total output value. Trans- United states 141 148 88 port equipment accounts for 10 percent ° tners : Id 9 -! L!>*! I 64 of output value and is second in im- Total 5 -° 27 7 - 233 3 <°° 7 portance, followed by WOOd and COrk Increase over preceding year 338 ^ 1,606 products, footwear, and wearing apparel fi.'"^^^^™:"™!!: i'1% ^S 1.8% and textiles. . S!C 3q2 | nc | uc f es motors, generators, magnetos, controllers. 24 Highly mechanized New Zealand farms concentrate on dairy, livestock items Half of wheat consumption home grown; large export trade in seeds New Zealand's agriculture is highly advanced, and output per farm worker is one of the highest in the world. Of 21 million acres of improved land (of a total of 44 million acres of occupied area), 2.5 million consist of field crops, planta- tions, orchards, and gardens. The re- mainder is sown in pasture and is the source of virtually all of the country's livestock products. Only one-third of this pastoral area is reasonably level and of fairly high fertility. Its present high level of productivity is chiefly the result of the extensive use of fertilizers, prin- cipally phosphates. In addition, the es- tablishment of pastures heavily planted with clover, the use of special strains of grasses, and improved grazing meth- ods have contributed to high produc- tivity. Since the country is mainly pastoral, the farms tend to be larger than those in other countries. The high state of farm mechanization and the availability of cheap electricity enable many farms to be run by owners with little additional assistance. The small holdings are gen- erally dairy farms and the large ones, sheep and cattle runs. In 1960 there were slightly more than 1,000 holdings of 5,000 acres and more; 53 of these holdings exceeded 50,000 acres each and were located in the steep hill country that could not be intensively cultivated. Produce exported The principal primary industries are dairy farming and pastoral production. New Zealand depends on the products of her grasslands — principally wool, meat, and dairy produce — to provide 86 percent of her export earnings. Arable farming, with wheat the major crop, is of secondary importance. The temperate climate, well-distributed rainfall, modern grassland farming, agri- cultural techniques, and mechanization have enabled her to become one of the world's biggest exporters of dairy prod- ucts. Her flourishing sheep industry, with the fifth largest flock in the world, ranks second in the wool production and spe- cializes primarily in the production and export of crossbred wool. In addition to the wool clip, New Zea- land sheep farms produce most of the country's meat and such valuable by- products as sausage casings, pelts, ex- tracts, and tallow. The chilled beef trade, suspended during World War II years, has made spectacular growth since 1952 and promises, to become an important export earner. Grain, fruits, vegetables Although the major emphasis is upon grassland farming, other agricultural pro- duction is also important to the economy, particularly in satisfying domestic re- quirements. New Zealand grows nearly one-half of the wheat it consumes. Or- chard production provides the local market with a wide variety of fruits and berries. Apples and pears are grown for export. Market gardens situated near the larger cities supplement the vegetable supplies which most New Zealanders pro- duce in their own gardens.. Sufficient hops are grown to provide a small export surplus. The annual production of to- bacco represents about 40 percent of yearly consumption. Supplementary feed for stock is grown for the winter months and for dry periods. Pasture renewal requires a regular sup- ply of large quantities of seeds, and a WOOL: Buyers from many nations attend New Zealand's big wool sales. Wool is one of the chief items of export for this British Commonwealth country. V *■* 25 SOWING SEED: New Zealand's grassland farmers get high production from their hilly uplands by use of latest farm methods, including sowing seed by air. large export seed trade has been devel- oped. The South Island, particularly the Can- terbury Province, accounts for the greater part of New Zealand's other agri- cultural production. Otago and South- land Provinces are also important pro- ducers of wheat, oats, and grass seed. The Nelson-Marlborough area provides a significant proportion of the production of barley and peas. The North Island, chiefly in the Wellington, Auckland, and Hawke's Bay areas, contributes about a third of the potato crop. Apart from hay, ensilage, and clover crops, most supplementary fodder is grown in the South Island where the climate requires more extensive supplementary feeding of livestock. marketing of these products for local consumption and for export. The Com- mission determines the guaranteed prices for butterfat to local producers and ne- gotiates with oversea buyers on prices and quantities to be exported. The New Zealand Meat Producers Board established a floor price system in the 1955-56 season, to cushion producers against a sudden fall in prices by pro- viding a guaranteed minimum of the average of prices obtained for meats in the preceding three seasons; market trends and prospects, the general level of cost, prices, wages, and other eco- nomic factors are also considered in set- ting the guaranteed minimum price. In contrast with the dairy farmer, the meat producer has, since the 1953-54 season, been free to sell his stock locally or abroad. The stock is generally purchased by meat companies who prepare it for sale locally or for export. Nearly all of the wool is sold at auc- tions held at the country's main centers of production. As 'With meat, a floor price system has been established by a growers organization and the New Zea- land Wool Commission. Since the 1951- 52 season, when this scheme was estab- «■ lished, the Commission has bought only minor quantities of wool as a support measure because market prices have been materially higher than the floor prices. Government authorities supervise in a similar manner the marketing of apples, pears, potatoes, milk, eggs, honey, and citrus fruits. Marketing of produce The major primary industries operate, subject to Government supervision, guar- anteed minimum price schemes for their output. The New Zealand Dairy Products Marketing Commission, comprised of representatives of the dairy industry and of the Government, acquires all butter and cheese produced and regulates the U.S. Made Machinery Sold to New Zealand in 1962 Total U.S. SITC group exports 715 Metalworking machinery $ 456,085,229 722 Electric power machinery 255,076,129 718 Machines for special industries 651,227,391 712 Agricultural machinery 520,945,688 719 Machinery, n.e.s. 1,294,954,008 Source: Bureau of the Census FT Reports U.S. exports to New Zealand $ 225,857 173,155 3,034,704 4,692,319 4,243,946 26 Overseas traders, listed below, want to do business with American firms. Commodities they wish to buy or sell are identified by description and by Standard Industrial Classification (SIC) Manual number. Other symbols used: * — Additional information on the trade opportunity may be obtained by writing Commodity Export Promotion Staff, BDSA-111, Department of Commerce, Washington, D.C., 20230. NCIA — No commercial information available on the overseas firm. WTD — World Trade Directory report available. WTD reports give a de- scription of the firm, its sales territory, size of business, sales volume, trade and financial reputation and other data. Copies can be bought for $1 each from the Commercial Intelligence Division, Bureau of Inter- national Commerce, U.S. Department of Commerce, Washington, D.C., 20230. Numbers following the WTD symbol show the date the report was issued. I.R. — Interview Report, identified by following number, is available on the tracer. These reports are compiled by the Trade Mission. Copies can be obtained from Trade Mission Division, Bureau of International Commerce, U.S. Department of Commerce, Washington, D.C., 20230. Leads for Exporters 195 Small Arms Firm interested in importing a line of sports fire arms — deer rifles, shotguns, pistols. Also sportorized army surplus 303's. Owen Eyre & Co. Ltd., 118 Broadway, Newmarket, Auckland. I.R. 150. 199 Ordnance and Accessories Importer interested in shot guns, rifles of all kinds, starting pistols, ammunition. Brittain Wynyard & Co. Ltd., 76 Parnell Rd., P.O. Box 1438, Auckland. WTD 5/22/64. I.R. 247. 209 Food Preparations Food processors interested in importing nuts in bulk for processing; also chocolate. A. D. Singleton Ltd., P.O. Box 1285, Wellington. I.R. 138. 220 Textile Mill Products Importer either wants to represent U.S. tex- tile producer of furnishing fabrics, white goods, towelling, sheeting, synthetic dress fabrics, da- cron, cotton blends; or wishes to find buying office in U.S. Also buyer of trilobal acetate yarn for knitting plant. Harrisons Crosfield Anz. Ltd., Box 1996, Wellington. WTD 11/ 4/63. I.R. 124. Importer interested in becoming agent for U.S. textiles, furnishing, dress goods. Pacific Import Co., Box 808, Wellington. WTD 5/ 29/61. I.R. 19. Importer interested in direct purchase and/ or agency for upholstery fabrics. T. W. Wil- liams Ltd., 102-104 Wakefield St., Wellington. WTD 10/30/59^ I.R. 4. Importer looking for agencies in dress and furnishing fabrics- Cheyne Owen Ltd., 23 El- liott St., Auckland. I.R. 285. Manufacturer and importer interested in representing U.S. firms, would ultimately like to license manufacture of cotton synthetic piece New Zealand air agency seeks electronic components The Stores Manager of New Zealand's Civil Aviation Administration has issued tender No. CAQ 43/64, calling for the supply of various tubes, semiconductors and rectifiers. The bid deadline for this tender is April 16, 1964. Copies of the tender documents are avail- able at the office of the New Zealand Senior Trade Commissioner, 1145 19th Street, NW., Washington, DC. 20036. (Telephone: Area Code 202, 338-8820). A loan copy is available to firms located in the U.S. from the Electronics Division, BDSA-308, Room 4117, Department of Commerce, Washington, D.C. 20230. (Tele- phone: Area Code 202, 967-4036). goods, underwear fabrics, ladies dresses, sheet wear, sports wear, blouses, shirts. Sargood Son & Ewen Ltd., Durham Lane South, P.O. Box 5447, Auckland. WTD 10/29/63. I.R. 171. 221 Broad Woven Fabric Mills, Cotton Importer wants to buy, furnishing and up- holstery fabrics, furnishing cotton 45" at $.50 to $1.00 per yard; also synthetic rayon and acetate mixtures. R. J. Nesbitt Ltd., P.O. Box 3030, Auckland. I.R. 280. Importer interested in representing manufac- turer of bed-ticking. Johnson & Archer Ltd., P.O. Box 5024, Auckland. I.R. 263. Firm wishes to import furnishing fabrics (drapery and materials) and percale sheeting. Reginald G. Kain Ltd., 20-22 Victoria St., Box 452, Wellington. I.R. 34. Firm wishes to import waterproof cloth for heavy duty rainwear. Also interested in coated or laminated apron materials resistant to blood and lactic acid for meat, dairy industries. The Manawatu Canvas Co. Ltd., Box 41, Palmeston North. I.R. 42.* 222 Broad Woven Fabric Mills, Manmade Fiber, Silk Textile manufacturer interested in importing all types of synthetic blouse fabrics, silk prints. suitable for blouses; usual purchase is 2,000 to 5,000 yd.; also dacron and wool blends for ladies skirts. Venca Ltd., P.O. Box 7570, Wel- lington. I.R. 108. 224 Narrow Fabrics, Other Smallwares Mills Retailer desires to import U.S. furnishing and dress fabrics for over the counter sale, par- ticularly flocked dacron marquisettes for cur- lains. Lewis' Departmental Stores Ltd., P.O. Box 158, Lower Hutt. WTD 10/5/60. I.R. 107., Firm interested in obtaining agencies in cur- tain material, mostly in cotton; ladies' dress material in cotton prints, silks, woven mate- rials; particularly interested in men's shirtings. P.E. Muller & Co., 115 Remuera Rd., Auck- land, S.E. 2. I.R. 283. 229 Textile Goods Manufacturer of ladies' slippers interested in importing additional resources for slipper materials. Anton Footwear Ltd., Box 1121, Wellington. I.R. 119. 231 Men's, Youth's, Boy's Suits, Coats, Overcoats Firm looking for agencies in men's clothing. Cheyne Owen Ltd., 23 Elliott St., Auckland. I.R. 285. 233 Women's, Misses', Juniors' Outerwear Businessman who runs yearly fashion pro- motion wishes to include U.S. cotton or syn- thetic dresses, this year's show without charge to promote U.S. fabrics. U.S. manufacturer would supply six youthful, campers' type, teenage dresses free. Must be in New Zealand by end of May. Fashion Promotions, P.O. Box 15040, New Lynn, Auckland. WTD 11/26/63. I.R. 269.* 236 Girls', Children's, Infants' Outerwear Importer wants to purchase knitted baby wear, sizes up to 2 years of age. F. T. Thorpy, Ltd., 5 Elliott St., Auckland. I.R. 172. 242 Sawmills, Planing Mills Importer wants to buy Western Red Cedar; also looking for veneer source. S. C. Scott & Co., Ltd., P.O. Box 5047, Dunedin. I.R. 210.* 254 Store Fixtures Manufacturer wants to distribute and pos- sibly to enter into future licensing arrange- ments for frozen food cabinets, supermarket , shelves, checkers. Multiplex Industries, Box 145, Wellington. I.R. 16. 280 Chemicals Importer desires to represent and import from U.S. manufacturers not now represented in New Zealand additional lines of land chem- ical material requiring further processing to end products; includes nitule rubber, agricul- tural chemicals, phenolic, other molding ma- terials. Robert Bryce & Co., Ltd., 19 Tory St. Wellington. WTD 8/27/63. I.R. 44. 281 Industrial Chemicals Manufacturer wants to import for distribut- ing or manufacturing under license products for treating soft wood timber, agricultural 27 chemicals, insecticides. Swift & Co., Ltd., Box 1002 Wellington. WTD 2/15/62. I.R. 30 284 Soap, Detergents, Cleaning Preparations, Perfumes, Cosmetics Importer seeks ethical drugs, medical com- pounds sold through "detail men". Riker Laboratories N.Z. Ltd., Box 469, Wellington I.R. 48. 287 Agricultural Chemicals Manufacturer's representative wishes to im- port sulphur in bulk quantities for agricultural purposes. W. H. Huthnance & Co., Ltd., Box 479, Lower Hutt. WTD 2/10/64. I.R. 20. 289 Chemical Products Manufacturer interested in sources of supply of sulphate of ammonia, cobalt oxide, free cobalt sulphatex. Thos. Hvde Ltd., Box 503, Christchurch. I.R. 103. 299 Products of Petroleum, Coal Manufacturer's agent wishes exclusive agency for paraffin wax (135-140 melting point), petroleum jelly (light amber, white), pine oil (water white steam distilled in car load lots). Firm supplies all New Zealand disinfectant manufacturers. Suppliers must be able to guarantee constant supplies. Firm wants cif prices, samples; will purchase on own account, carry stock. Elliott Beckett & Co. Ltd., 156 Grafton Rd., P.O. Box 989, Auck- land. WTD 9/13/63. I.R. 158. 306 Fabricated Rubber Products Importer seeks distributorship for rubber hosing for spraying, under pressure, steam, oils, chemicals. Frank M. Winstone Merchant Ltd., 71-77 Customs St. East, Box 2195, Auck- land C.l. WTD 12/20/63. I.R. 173.* 307 Plastic Products Wholesaler and retailer wish to import poly- propylene split fibre. R. E. Tingey, Box 545, Wellington. I.R. 53.* Importer desires to buy from and represent U.S. manufacturer of linoleum, floor coverings. P.F. Solnik & Co., Ltd., 47 Dixon St., Welling- ton. I.R. 35. 329 Abrasive, Asbestos, Nonmetallic Mineral Products Manufacturer/distributor seeks offers on gun stock fibreglass shavings (60 end). Taylor/ Hull Fibreglass Products, 29-33 Fitzherbert St., Petone. I.R. 49. 342 Cutlery, Hand Tools, General Hardware Importer wants distributorship of U.S. manufacturer of chain saws, attachments, lumber industry tools in general. Frank M. Winston Merchants Ltd., 71-77 Customs St. East, Box 2195, Auckland C.l. WTD 12/20/63. I.R. 173.* Importer desires additional sources of sup- ply of stainless steel kitchen ware. R. L. Bowden Ltd., P.O. Box 2377, Auckland. I.R. 257.* Importer wants supplier of head tools, socket wrenches. Arthur Martin Ltd., P.O. Box 2748, 16-18 Fanshawe St., Auckland, C.l. WTD 11/8/63. I.R. 232.* Manufacturer seeking agencies for super- market equipment (cabinets, etc.). Thos. Hyde Ltd., Box 503, Christchurch. I.R. 103. Importer interested in direct purchase and/ or agency for hardware; hand tools. T.W. Williams Ltd., 102-104 Wakefield St., Welling- ton. I.R. 4. Factory representatives desire to import hand tools, other hardware items. J. Russell Han- cock Ltd., P.O. Box 414, Wellington. WTD Aug. 1962. I.R. 40. Firm seeks to import all kinds of hardware builders tools, including hand tools. C & A Odlin Timber & Hardware Co., Box 1995, Wel- lington. I.R. 54. 343 Heating Apparatus, Plumbing Fixtures Firm wishes to import directly or act as agent for U.S. manufacturers for room heating units and residential, commercial, industrial heating equipment. Temperature Control Ltd., Box 13, Otahuhu, Auckland, I.R. 310.* 344 Fabricated Structural Metal Products Manufacturer wants to import aluminum in- sect screening. E. R. Houlahan Ltd., 73 Custom House St., Gisborne. I.R. 3. 348 Fabricated Wire Products Manufacturer interested in aluminum strip- ping for windows 2% "-4" .050 and .030 thick- ness in rolls. Quote minimum quantities up to 10 tons. E. R. Houlahan Ltd., 73 Custom House St., Gisborne. I.R. 3. 353 Construction Machinery Manufacturer and importer desires distribu- torship of hardware items (except wire) and machinery involved in pre-stressed concrete system; all types of equipment, tools, ma- chinery, hardware used in concrete field. Joseph Nathan Ltd., 13 Grey St., Box 1792, Wellington. WTD 5/24/62. I.R. 143-A. Manufacturer desires to purchase, lease and/or act as New Zealand distributor of light building mechanical equipment, espe- cially material handling equipment. Firm will purchase on its own account stock spare parts and provide engineering and service facilities. Safeway Scaffolding Co., Ltd., Box 3286, Wellington. I.R. 133-A. 354 Metalworking Machinery Importer wishes to represent firm offering machinery and technical information for small industries in metal working field for production of finished products. Commercial Sales Corp. Ltd., 105 Dilworth Bldg., P.O. Box 1286, Auck- land. WTD 8/27/62. I.R. 156. Manufacturer of metal products seeks ma- chinery for manufacture of expanded metal 7 wire lath out of aluminum and black galvan- ized steel sheet heaving 1,000 fm per annum capacity. Also wire knitting machine, including galvanizing unit that can make 3,000 tons of 1", 1%" and 2" wire mesh per year. Adams Products Ltd., Wairau Road, Takapuna, Auck- land, N.Z. I.R. 220.* Firm wants machine for manufacturing spring washers. Simon Metal Products Ltd., Box 5001, Nae Nae Wellington. I.R. 15. Manufacturer wants to import machine to produce rain gutters and storm spouting ca- pacity 100 lb. per hour with rigid p.v. N. P. Croft & Co., Ltd., P.O. Box 64, Lower Hutt., WTD 9/19/63. I.R. 7. Manufacturer seeks distributorship for small Ik rich lathe (home work shop type), complete line of surface grinders, press brake and orbital threading head screw machines. Jas. J. Niven and Co., Ltd., P.O. Box 2096, Wellington. I.R. 120. Mechanical engineers interested in new types of: automatic press-feeding machine for manu- facture of steel shelving, spray guns for paint- ing shelving, machine tools. Precision En- gineering Co. Ltd., P.O. Box 381, Wellington. I.R. 106. Firm wishes to buy knife grinder for indus- trial shears and paper cutters; magnetic chuck capable of holding blades 14'-6" long. Extra features desired: channel grinding for press brake blades, groove grinding for corrugating rollers; also 50 cy 440V-220V motor, hydraulic feeds desired. Gray & Elliott Ltd., 167 Vivian St.. Wellington. I.R. 111.* Manufacturer wishes to buy cold heading forging machine up to %" bolt size for high production; also interested in representing electro arc. disintegrators. Nelson Day & Co., 7 Wakefield St., Napier. WTD 1962. I.R. 109.* 355 Special Industry Machinery Manufacturer seeks equipment for package small municipal sewage treatment plant, com- ponents, controls necessary for local manufac- ture, specialized water, sewage testing, labora- tory equipment. U.S. firm expected to supply engineering on above, on packaged water treat- ment plants and components, including water purification distribution valves (2-3-4 way ports ) , related instrumentation controls. D. McL. Wallace Co., Ltd.. 528 Khyber Pass Rd., Auckland. WTD 1/17/63. I.R. 270.* Manufacturer wishes to purchase machinery for manufacturer of men's belts, include know- how and continual advisement of new styles and innovations. Firm will consider recondi- tioned machinery. Also wants to contact sources of electro-plating equipment for baby shoes (bronzing), specifically solution used in treating leather prior to electro-plating. DeSoto Belt & Buckle Co., 490 W. Coast Rd., Glene- den. I.R. 159. Importer seeks agency for new lines of wood- working machinery, tools; lumber, and sawmill machinery, related lines. Geoffrey M. Shortt Ltd., P.O. Box 12109, Auckland. I.R. 308. Importer wishes to represent U.S. manufac- turers of food packaging equipment on an agency basis. John Burns & Co., & Hobart- Berkel Supplies Ltd., P.O. Box 2380, Auck- land. WTD 7/19/63. I.R. 289.* Importer wishes immediate quotes on veneer lathe that can handle logs 8' long x 4' dia., also wants to represent U.S. manufacturers of food packaging machinery. Harrisons Crosfield A.N.Z. Ltd., Fort St., Auckland (P.O. Box 3326). I.R. 305. Importer would like to purchase low capacity wrapping machine for soap-wax in two layers of paper, one layer of foil; low capacity auto or semi-automatic woodworking machine for the manufacture of 10 foot boat oars and 7 foot paddles. Commercial Sales Corp., Ltd., 105 Dilworth Bldg., P.O. 1286, Auckland. WTD 8/27/62. I.R. 156. Importer desires agency for all sizes and types of printing machinery including web off- set flexingraphic, gravures, letterpress equip- ment. Coates Bros. (NZ) Ltd., 313 Church St., P.O. 12068 (Penrose) Auckland. WTD 1/ 27/61. I.S. 146. Importer wants agencies and/or license for wood working equipment, paper mill, paper converting machinery, packaging machinery. Wants folding machine on direct purchase. Na- tional Machinery Co. Ltd., P.O. Box 9031, Auckland. I.R. 255. 28 Engine reconditioning and piston ring manu- facter wants machine for making combined ex- pander-spacer. B. Johnson & Sons Ltd., P.O. Box 1680, Auckland. I.R. 282. Firm interested in all types of modern U.S. textile machinery as agent and for direct pur- chase. Brown & Dureau (N.Z.) Ltd., Tasman Bldg., Anzac Ave., Auckland. I.R. 313. Importer interested in representing U.S. manufacturers of flat-bed knitting machines comparable to German Stroll, full-fashioned knitting machines for jerseys, needles, sinkers for circular knitting-maca. Hardie Trading Co. (NZ) Ltd., 5-7 Kingston St., P.O. Box 1367, Auckland. WTD 1/7/64. I.R. 170. Manufacturer of 3' to 16' plasterboard needs planning and equipment which use pumice as filler material. New Zealand Wallboards Ltd., 153 Balmoral Rd., P.O. Box 10059, Auckland. WTD 3/18/63. I.R. 169. Food processor recently in juice processing interested in purchasing machinery and equip- ment for processing orange, grape fruit, lemon, both juicing and canning (in smaller way), processing of peel, small capacity equipment. Sharland & Co. Ltd., 180 Victoria St., P.O. Box 859, Auckland, N.Z. I.R. 278. Wishes to import machine to make bobby pins. Offering should also include quotations on wire. Modest production requirements 2 to 3,000,000 pins per month. B. H. Nixon & Sons Ltd., Box 1445, Christchurch. I.R. 17. Manufacturer of textiles interested in all types of new attachments for industrial Singer and Union sewing machines. Buys against doc- uments. Venca Ltd., P.O. Box 7570, Welling- ton. I.R. 108. Firm seeks packaging plant or equipment for small potato starch plant and french fry freez- ing plant; also meat processing equipments. Waitaki Farmers Freezing Co., Box .78, Oamaru. WTD 7/17/63. I.R. 98.* Manufacturer interested in moulding equip- ment, new materials for manufacture of brake lining. Don Agencies Ltd., P.O. Box 4064, Christchurch. I.R. 10.* Importer wants to be agent for U.S. firm manufacturing packaging equipment, mainly for frozen and canned foods such as carton forming, filling and sealing, pouch making; also looking for pouch for freeze-dry meats. Dalhoff & King N.Z. Ltd. 163 Thorndon Quay, Wellington. WTD 6/12/63. I.R. 140. Importer interested in getting distributor- ship for U.S. meat processing machinery. Levin & Co. & MacEwans Machinery Ltd., Box 3048, Wellington. WTD 2/5/64. I.R. 46. Manufacturer desires to purchase scrubbing plant for processing 2-3 million cu. ft. natural gas daily. Croucher & Crowder Engineering Co., Ltd. 8 Nelson St., Hawera. I.R. 96.* Importer interested in wrapping machinery for bread and baking industries. Henry Berry, 89 Cuba St. (Box 6321), Wellington. WTD 1/64. I.R. 127. • Automatic platen, 2, to take maximum sheet size of 10"xl5" ; automatic letter- press cylinder machine, 1, stop cylinder type; automatic eyelelling machine, 1; hand fed perforating machine, 1 ; automatic matrix cleaner, 1; paper counting machine, 1. Tender No. 900, bid deadline April 27. Gov- ernment Printing Office. Waterloo Quay, Well- ington. Copies of tender available from New Zealand Senior Trade Commissioner, 1145 19th St. NW, Washington 6, D.C. 356 General Industrial Machinery Pump manufacturer interested in local dis- tributorship of U.S. pumps, associated equip- ment; also desires license to manufacture jet pumps. W. H. Price & Son Ltd., Box 1084, ChTistchurch. WTD 11/17/61. I.R. 23.* Manufacturer and importer interested in purchasing heavy sewage valves and liquid level gauges used for pumps. Flames and work- ing pressures must be in British standard dimensions. Tolley & Sons Ltd., Box 665, Wellington. WTD 7/11/62. I.R.. 141. Factory representative interested in purchas- ing refrigeration components. J. Russell Han- cock Ltd., P.O. Box 414, Wellington. WTD 8/62. I.R. 40.* Importer and manufacturer wishes to act as distributor leading to license of spraying pumps suitable for tractor drive having suffi- cient pump pressure and design for applica- tion of agricultural chemicals; necessary equipment, components needed for assembly to complete and install unit, e.g. Nozels, which are not produced in New Zealand; steam cleaning apparatus for motor and machinery maintenance. Frank M. Winstone Merchant Ltd., 71-77 Customs St. East, Box 2195, Auckland C.l. WTD 12/20/63. I.R. 173.* 357 Office, Computing, Accounting Machines Office equipment dealer wants agencies for following machines: franking, calculating, duplicating, addressing, folding, photocopying, checkwriting, filing and index systems. W. S. Smith & Co. Ltd., Box 5155, Auckland. I.R. 306. 358 Service Industry Machines Interested in stainless steel, controlled tem- perature, sanitary storage compartments for both hot and cold fillings for pancake fillings or toppings. Geoffrey Levien Ltd., P.O. Box 5785, Auckland, N.Z. NCIA. I.R. 235. Wants commercial restaurant equipment: fryers, grillers, broilers, coffee makers; also domestic clothes dryers, garbage disposal un- its. L. T Hayman Ltd., Box 15028, Auckland. WTD 10/16/62. I.R. 304. Manufacturer wants to distribute and even- tually license wholesale cooling units. Multi- plex Industries, Box 145, Wellington. I.R. 16. Importer desires ice cream; infra-red oven; roller grill, drink, restaurant equipment. J. Mercer & Sons Ltd., 10 Vivian St., Wellington. LR..128.* Firm wishes to import directly or act as agent for residential, commercial, industrial air conditioning; cooling towers; refrigeration equipment. Temperature Control Ltd., Box 13, Otahuhu, Auckland. I.R. 310.* 362 Electrical Industrial Apparatus Manufacturer wants 20 to 40 kw high fre- quency table size welding equipment for plastic, specifically for welding of polyvinyl chloride sheeting. Industrial wave of welder should be 27.2 megacycles, ±.2. Plastroweld (H.F.) Co., 375 Main Rd., Upper Hutt. I.R. 94. Importer wishes to purchase used 3-ton top changing electric arc furnace, complete, 50 cy. 440 v. Plant voltage is 2,200 v. R. C. Macdonald Ltd.? P.O. Box 1201, Wellington. I.R. 116. 363 Household Appliances Firm wishes to import directly or act as agent for U.S. manufacturers of domestic ap- pliances including washing machines, refrigera- tors, stoves, cookers, hot water producing equipment, referigeration equipment, fans — propeller, axial flow, centrifugal. Temperature Control Ltd., Box 13, Otahuhu, Auckland, I.R. 310.* 365 Radio, Television Receiving Sets Firm wishes to import radios, televisions. C & A Odlin Timber & Hardware Co., Box 1995, Wellington. I.R. 54.* Sales engineer wishes to represent electronic radio-communications, tape recorders. Audio Engineering, 2 Harthawn Crescent, Stokes Valley/Wellington. I.R. 126. 366 Communication Equipment Importer interested in electrical connections, tape recorder for broadcast and video, related equipment; studio microphones, amplifying and distribution equipment, adjusting tools for relays. P. H. Rothschild & Co. Ltd., P.O. Box 170, Wellington. WTD 12/10/62. I.R. 29> 367 Electric Components, Accessories Manufacturer interested in importing elec- tronic components such as resistors, valves, sockets, condensers. Allied Industries Ltd., P.O. Box 14-157, Panmure, Auckland. WTD 8/20/63. I.R. 204. 369 Electrical Machinery, Equipment, Supplies Importer wishes to obtain electro-mechani- cal equipment, specifically automatic electric load dropping equipment, power generation, distribution equipment, electrical insulating materials for high temperature application. Electro Par Ltd., 55 Mackelvie St. (Gray Lynn), P.O. Box 2403, Auckland. I.R. 148.* 371 Motor Vehicles, Motor Vehicle Equipment Manufacturer seeks brake equipment for trucks. Transport Specialties Ltd.. 849-855 New North Rd., Auckland, S.W.2. I.R. 314.* Machinery distributor interested in sources and agencies for automotive parts, winches, tools, gasoline powered equipment up to 10 h.p. Engine Utilities Ltd., P.O. Box 1065, Auckland. I.R. 164.* Factory representatives interested in import- ing automotive parts, accessories. J. Russell Hancock Ltd., P.O. Box 414. Wellington. WTD 8/62. I.R. 40.* Importer seeks winches, steering clutches, off-the-road tires, replacement parts for cat tracks. General Accessory Co. Ltd. WTD 10/8/62. I.R. 63. Manufacturer desires agency for brake hard- ware; parts must include English and U.S. ones; brake lining rivets. Suppliers should have full line so that agency can furnish com- plete service. Don Agencies Ltd. P.O. Box 4064, Christchurch. I.R. 10.* £72 Aircraft, Parts Importer desires to obtain exclusive agency for air cushion vehicle, 4 to 20 seating ca- pacity, for distribution in Australia and New Zealand. Rural Aviation Ltd., Kings Bldg., 36 Devon St., W. New Plymouth. I.R. 160. Importer wishes direct purchase of used single and twin engine aircraft, parts. Cory- Wright & Salmon Ltd., P.O. Box 1230, Well- ington. WTD 3/16/62. I.R. 136.* 29 379 Transportation Equipment Distributor interested in importing major component parts for tilt type trailers, 3 tons and under; boat trailers to sell directly or to manufacture under license by purchasing ma- jor components. Safety Mfg. Co. of Levin, Box 200, Levin. I.R. 9. 382 Instruments for Measuring, Controlling, Indicating Physical Characteristics Firm desires to import and distribute U.S. atomic instrumentation. Swift & Co., Ltd., Box 1002, Wellington. WTD 2/15/62. I.R. 30. Importer interested in detergent control system for wool washing. W. Arthur Fisher Ltd., Box 176, Wellington. I.R. 134. 399 Manufacturing Industries Importer desires exclusive import agencies with manufacturers on permanent basis for new household, kitchen lines; T.V. trays, stands other than fibreglass; new jewelry lines; chinaware; glassware; earthenware; cutlery, household, woodworking tools. Wil- liam Bacon & Co., 27 Dixon St., Wellington. I.R. 122. Importer wishes to buy general deodorants, handling equipment, lowering equipment, work tables, cosmetics, casket finishes — morticians equipment. International Associates, Box 500, Lower Hutt. WTD 2/23/64. I.R. 1. Importer wishes to extend representation in non-competitive products, particularly house- hold aluminum, household housewares, glass- ware. H. M. Fogarty Ltd., P.O. Box 1065, Auckland. I.R. 152. 508 Machinery, Equipment, Supplies Firm wants hotel supply agents to handle complete buying in U.S., supply technical knowledge. N.Z. Breweries Ltd., Box 211, Wellington. I.R. 31.* 739 Business Services Firm wishes to employ U.S. trained engineers specifically interested in refrigeration engineer- ing. Wilkins & Davies Development Co., Box 5056, Wellington. WTD 2/26/63. I.R. 39* Leads for Importers 209 Food Preparations Manufacturer would like to export frozen venison livers, flank flops and other fat free trimmings for U.S. manufacturer into dog or cat food. Estimated prices $0.25/lb. cif veni- son. $0.12/lb. cif goat meat. Maddren Bros Ltd., Box 434 Christchurch, I.R. 95. 220 Textile Products Manufacturer is looking for U.S. Sales agencies in textile field, particularly furnish- ings, curtains, draperies, white goods, towels and sheets, and synthetic fabrics for manufac- ture of plain and printed dresses and lingerie. National Mortgage and Agency Co., of New Zealand Ltd., Box 930, Dunedin I.R. 33* 223 Broad Woven Fabric Mills, Wool Wants to offer N.Z. made 100% wool blankets f.o.b. price $5-10 to U.S. market. Would like to find agent in New York. Anthony Creations Ltd., 28 Fanshawe Street, Auckland, C.L. NCIA. I.R. 307. 242 Cutlery, Hand Tools, and General Hardware Manufacturer interested in securing outlet in U.S. for Marine hardware. Cleveland Metal Pressing Co. Ltd., 7 Patiki St., P.O. 19045 (Avondale) Auckland WTD I.R. 154. 281 Industrial, Organic Chemicals Manufacturer wishes to export Geothermo- graphs (39.6" long, 2.2" in diameter, weighing 15 lbs. with temperature range 0-300°C subject to modification up to 400°C stainless steel). Instrument used for measuring temperatures in deep bores. Eric Paton Ltd., 89-91 Penrose Station Road, Penrose S.E. 6., I.R. 162* 307 Plastic Products Wholesaler desires to import specialty plas- tic housewares, K. J. Rew and Company, 118' Wakefield Street, Wellington. v'i'TD 2/10/64. I.R. 37 (supplement) 349 Fabricated Metal Products Exporter would like U.S. distributor for ironing boards. Will give exclusive franchise. Godfrey Allen Agencies Ltd., 7 Lower Albert St., P.O. Box 1696 Auckland. I.R. 151* 351 Engines and Turbines Manufacturer desires to sell or license in U.S. a small axial flow jet engine which yields up to 100 h.p. Arnold France Ltd., 380 Mont- real Street, Christchurch. I.R. 296* 354 Metalworking Equipment Manufacturer wishes distributors for hexa- gonal socket type set screws. Nelson Day & Company, 7 Wakefield Street, Napier. WTD 1962. I.R. 109* 355 Special Industry Machinery Manufacturer desires to sell directly or through U.S. distributor milking machines and rubber accessories for milking equipment. Skellerup Industries Ltd., Box 226, Christ- church. WTD 7/23/62. I.R. 12* 364 Electric Lighting and Wiring Equipment Manufacturer seeks direct sale or distribu- tors for specially lamps. Enzart Import Ltd., Box 2913, Wellington. I.R. 51. 384 Surgical, Medical, Dental Instruments Wishes to sell or license for manufacturer in the U.S. electric fence unit patented in U.S., veterinary instruments and special purpose plastic fabricating machinery. Plastic Prod- ucts Ltd., Hamilton, New Zealand. I.R. 238* Investment Opportunities U.S. Trade Mission results in 48 opportunities for machinery manufacturing; licensing rights, joint ventures offered U.S. firms The U.S. Machinery and Equipment Mission to New Zealand's interviews with local businessmen have resulted in 48 op- portunities for U.S. manufacturers. Six oportunities are offers of licensing rights for U.S. firms to produce down under products. They are glass cleaners, fence anchors, automatic gates, diesel engines, hay conditioners, and a metal dress form. All types of U.S. products are sought for New Zealand production, particularly under license. The greatest interest is for the production of household appliances, chemicals, and building materials. Additional information, if available, and the names and addresses of the fol- lowing firms offering manufacturing li- censes to U.S. manufacturers is available by referring to the appropriate file num- ber. Requests should be addressed to the Bureau of International Commerce, Of- fice of International Investment, Depart- ment of Commerce, Washington, D.C., 20230. Licenses offered Glass cleaners License for the production of a glass cleaner offered U.S. manufacturers of glass cleaning compounds. Manufacturer claims its cleaners have special features not avail- able in U.S. File 1214. 30 Fence Anchor Manufacturer of complete fence anchor unit seeks U.S. licensee to produce, distribute its anchor. Reported unique in design; sells for about $25. File 1215. Automatic gate Small manufacturer wants to license U.S. production of its gate which may be opened automatically from a distance by passing wheel of vehicle over tripping device or manually by lifting gate latch. File 1216. Diesel engines License offered for manufacture of newly- designed diesel engine of 25 h.p. prototype weighing 400 lb. has been built and tested, has been patented in U.S. Engine designed for easy servicing, simplicity in manufactur- ing. File 1217. Hay conditioner U.S. licensee sought for manufacture of hay conditioner that opens wet, matted swaths of hay setting them up to allow flow of air to pass through, evenly dries hay re- ducing harmful bleaching by the sun. Raking not required; swaths are left ready for baling. File 1218. Dress form License offered to produce U.S. patented dress form made of wire which can be ad- justed to copy exactly any figure. File 1219. Licenses, joint ventures sought 203 Canned fish City of Nelson, interested in having U.S. firm establish fish cannery, has formed com- pany to handle preliminary negotiations with interested firms and provide informa- tion on types, extent of certain species of fish easily accessible. Nelson Cannery Ex- ploratory Co., Ltd., 266 Mardy St., Nelson. 204 Cereals-Mixes Manufacturer of ice cream, related prod- ucts seeks license to produce breakfast foods, pancake, cake mixes. General Foods, Ltd., Box 9196, Auckland. 209 Food Products Diversified group of companies seeks license to manufacture pet foods, cake mixes, sauces, condiments, specialty-prepared food items. W.&R. Smallbone, Ltd., P.O. box 787, Wellington. 234 Ladies Lingerie, Undergarments Clothing manufacturer seeks licensing ar- rangement to produce medium to better ladies lingerie. Adam Hall, Ltd., P.O. box 196, Queen St., Levin. Dress manufacturer interested in licensing arrangement to make ladies undergarments. National Mortgage and Agency Co., Box 930, Dunedin. 252 Office furniture, store equipment Manufacturer of office equipment seeks license to make U.S. office furniture, file cabinets, frozen food cabinets, supermarket shelves, checkout stands. Multiplex Indus- tries^ Box 145, Wellington. 281 Industrial chemicals Marine, industrial chemicals manufacturer seeks license to make U.S. industrial, auto- motive, marine, special purpose chemicals. New Process Chemical Co., Ltd., 139 Albert St., Auckland. 284 Detergents, waxes, oils Joint venture sought by firm, active in soil research, veterinary preparations, to make surface active agents—detergents (or- ganic), vegetable oils; modified waxes, fats — lanolin production, aerosol packaging. A. G. Crosby, Ltd., 1 12 Albert St., Auckland. 285 Paint products Manufacturer of paint seeks licensing ar- rangement; paints, varnishes, enamels, lac- quers for floors, walls, ceilings. N. Z. Paint and Varnish Co., Ltd., Box 313, Napier. 307 Plastic building material Producer of plastic products seeks license to make building materials of plastics in- cluding tiles, wall board, insulation materials. Also interested in license for industrial com- ponents made of plastic which employ injec- tion molders 8 oz. and smaller — attachments important. Bunting & Co., Box 268, Christ- church. 327 Pre-stressed concrete Manufacturer of pre-stressed concrete products seeks license for U.S. process for prestressing concrete. Joseph Nathan Ltd., 13 Grey St., Box 1792, Wellington. 339 Cold forging Metal products firm seeks joint venture in establishing plant for cold forging steel, brass, small parts for other manufacturers. Firm seeks equipment know-how. Simon Metal Products, Ltd., Box 5001, Naenae, Wellington. 342 Hardware items Manufacturer of standard, screw machine components desires license to produce spe- cialty hardware items for consumer, build- ers, industrial markets. S. Wrigley, Ltd., 47 Union St., Auckland. Manufacturer of steel fabrications, steel, link belts, conveving equipment seeks li- cense to produce builders' hardware. Fletcher Steel & Engineering Co., Ltd., P.B., Auck- land. 343 Heating, air-conditioning Manufacturer of air handling ducting for heating, ventilating, air conditioning seeks joint venture to produce new types of allied equipment to go with present machinery. Bruce Wallace, Ltd.. Davis Crescent, New- market, P.O. box 9102, Auckland. 344 Fabricated metal products License to manufacture various aluminum products for building, construction trade sought bv manufacturer of aluminum ladders, doors. Lyte Aluminum Industries, Ltd., Birch St., Upper Hutt. Manufacturer of construction equipment, scaffolding, desires license to produce steel shuttering, windows, window, door frames. Also desires license for aluminum fabri- cated materials. Safeway Scaffolding Co., Ltd.. Box 3286, Wellington. Firm engaged in manufacture of doors seeks license to produce folding door tracks, overhead garage door tracks. Flushfit, Ltd., Box 6, Mt. Maunganui. License sought by manufacturer of build- ing materials to produce aluminum alloy building components; particularly any type of sun control systems — awnings, adjustable louvres. Dominion Light Alloys, Ltd., 6 Puriri St., P.O. box 15038, New Lynn. Company engaged in general engraving, automotive production seeks license to make aluminum prefab building materials such as windows, frames. Brugger Metal- craft, Ltd., 136 Jackson St., Petone. Engineering firm seeks license to manu- facture steam boilers of 15 h.p. to 750 h.p. J. F. Hargrave, Ltd., P.O. box 493, Welling- ton. 349 Valves Foundry, machine shop engaged in manu- facture of hardware items in plumbing, building field, seeks license to produce flush, thermostatic mixing valves. George Boyce and Son, Ltd., P.O. box 8140, Auckland. 355 Special industry machinery Manufacturer seeks joint venture to es- tablish sintered metals plant. Nelson Day and Co., 7 Wakefield St., Napier. Manufacturer of packaging, fire fighting, sprinkling equipment wants license to make packaging machinery, oil, petroleum filtra- tion equipment. Southern Cross Engineering Co., Ltd., P.O. box 2013, Christchurch. 356 Nozzles New Zealand firm seeks license to pro- duce automatic nozzles for gasoline pumps. Beck & Co., Ltd., 8 Luxford St., P.O. box 7058, Wellington. 358 Refrigeration equipment Engineering company, seeks license for manufacture of equipment for industrial freezinc. Scotts Engineering Co., Ltd., P.O. box 2433, Christchurch. Joint venture sought by manufacturer of radio, musical instruments with U.S. firm. to produce commercial refrigeration, elec- tronics of all tvpes. Dominion Radio & Elec- trical Corp., 21 Huia Rd., P.O. box 22-044, Otahuhu. Manufacturer of mechanical electrical en- gineering products seeks joint venture in producing laundry equipment; both home, industrial. Also interested in industrial or coin-operated dry cleaning equipment, and mechanical or pneumatic conveyor systems. Wilkins & Davies Development Co., Box 5056, Wellington. 362 Electrical industrial apparatus Firm producing welders, circular saws in- terested in manufacturing welding electrodes and flexes under license. Nethanz Co., Ltd., Box 3087, Wellington. Joint venture sought by manufacturer to produce fractional, sub-fractional motors. Jas. J. Niven & Co., Ltd., P.O. box 2096, Wellington. Manufacturer of electro-mechanical de- vices seeks joint venture or license arrange- ment for the production of similar items e.g., controls, actuators, electrical, mechani- cal components, valves, switches, relays. Richardson, McCabe & Co., Ltd., Box 792, Wellington. 363 Household Appliances Electric blanket manufacturer seeks li- cense to produce electric blankets, other ap- pliances. Ralta, Ltd., P.O. box 6283, Welling- ton. Washing machine manufacturer seeks li- cense or joint venture arrangement with U.S. appliance manufacturers. A. R. Harrrs 31 & Co., P.O. box 1007, Christchurch. Manufacturer of small appliances desires to make electric mixers, vacuum cleaners under license. Zip Industries, Ltd., Box 5063, Nae Nae, Wellington. 366 Communication Equipment Joint venture or licensing arrangement sought by manufacturer of electronic gear to produce land mobile radio equipment, telephone equipment. Edac, Ltd., Box 6415, Te Aro, Wellington. 369 Electrical Components Manufacturer of small electrical devices such as switches, thermostats, seeks license to produce U.S. electrical components. Richardson McCabe & Co., Ltd., 216 Willis St., Wellington. 371 Auto Parts Manufacturer of semi-precision parts seeks license to manufacture auto parts, builders, marine hardware. Particularly interested in hydraulic cam cleaners. Spackman Engi- neering Co., Ltd., P.O. box 7519, Welling- ton, E.3. 394 Toys, Novelties Toy manufacturer seeks U.S. license to make wooden or cardboard toys and novel- ties. Jones & Max, Ltd.. P.O. box 15042, 11 Queen St., Auckland. Varied products Joint venture sought by clothing manu- facturer for production of stockingette ma- terials for meat packaging or a silk screen printing plant. M. K. Manufacturers, Ltd., P.O. box 9054, Auckland. Manufacturer of TV sets, other electrical items seeks license to make portable electric tools, watt-ohm meters, stamped metal fast- eners. Bell Radio & Television Corp., 274 Dominion Rd., Auckland. Manufacturer of sprayed fibre glass units seeks license and know-how to produce fibre glass boats, cabinets, tanks, truck, trailer body components. Taylor/Hull Fibreglass Products, 29-33 Fitzherbert Street, Petone, Wellington. Plastic, leather luggage manufacturer seeks license to make lugeage out of fibre glass and other materials. Bell Bag Co., Ltd., 500 Karangahope Road, Auckland, C.2. Communications firm seeks -license for production of radio-telephone equipment, digital display devices, clocks, car control, parking systems. Communications Systems, Ltd., P.O. box 6040, Auckland. U.S. DEPARTMENT OF COMMERCE FIELD OFFICES Albuquerque, N. Mex., 87101, U.S. Courthouse. 247-0311. Anchorage, Alaska, 99501, Room 306, Loussac-Sogn Building. Phone: BR 2-9611. Atlanta, Ga.. 30303, 75 Forsyth St., N.W. JAckson 2-4121. Birmingham, Ala., 35203, Title Bldg., 2030 Third Ave., North. Phone: 323-8011. Boston, Mass., 021 10, Room 230, 80 Federal Street. CAp- itol 3-2312. Buffalo, N.Y., 14203, 504 Federal Building, 117 Ellicott St. TL 3-4216. Charleston, S. C, 29401, No. 4, North Atlantic Wharf. Phone: 722-6551. Charleston, W. Va., 25301, 3002 New Federal Office Building, 500 Quarrier Street. Phone: 343-6196. Cheyenne, Wyo., 82001, 207 Majestic Bldg., 16th & Cap- itol Ave. Phone: 634-2731. Chicago, 111., 60606, Room 1302, 226 West Jackson Blvd. 828-4400. Cincinnati, Ohio, 45202, 809 Fifth Third Bank Bldg., 36 E. Fourth Street. 381-2200. Cleveland, Ohio, 44101, 4th Floor, Federal Reserve Bank Bldg., East 6th St. & Superior Ave. 241-7900. Dallas, Tex., 75202, Room 1200, 1114 Commerce Street. Riverside 9-3287. Denver, Colo., 80202, 142 New Custom House, 19th & Stout Street. 534-4151. Detroit, Mich., 48226, 445 Federal Bldg. 226-6088. Greensboro, N. C, 27402, Room 407. U. S. Post Office Bldg. 273-8234. Hartford, Conn., 06103, 18 Asylum St. Phone: 244-3530. Honolulu, Hawaii, 96813, 202 International Savings Bldg., 1022 Bethel St. 588874. Houston, Tex., 77002, 5102 FederalBldg., 515 Rusk Ave. CA 8-0611. Jacksonville, Fm., 32202, 512 Greenleaf Building, 204 Laura Street. ELgin 4-7111. Kansas City, Mo., 64106, Room 2011, 911 Walnut Street. BAltlmore 1-7000. Los Angeles, Calif., 90015, Room 450, Western Pacific Bldg., 1031 S. Broadway. 688-2830. Memphis, Tenn., 38103, 345 Federal Office Building, 167 N. Main Street. Phone: 534-3214. Miami, Fla., 33132, 408 Ainsley Bldg., 14 N. E. First Ave. FRanklin 7-2581. Milwaukee, Wis., 53203, Straus Bldg., 238 W.Wisconsin Ave. Phone: BR 2-8600. Minneapolis, Minn., 55401, Room 304, Federal Bldg., 110 South Fourth Street. Phone: 334-2133. New Orleans, La., 70130, 1508 Masonic Temple Bldg., 333 St. Charles Avenue. Phone: 527-6546, New York, N. Y., 10001, 61st PI., Empire State Bldg. , 350 Fifth Ave. LOngacre 3-3377. Philadelphia, Pa., 19107, Jefferson Building, 1015 Chest- nut Street. WAlnut 3-2400. Phoenix, Ariz., 85025, New Federal Bldg., 230 N. First Avenue. Phone: 261-3285. Pittsburgh, Pa., 15222, 1030 Park Bldg., 355 Fifth Ave- nue. 471-0800. Portland, Oreg., 97204, 217 Old U. S. Courthouse, 520 S. W. Morrison Street. 226-3361. Reno, Nev. , 89502, 1479 Wells Avenue. Phone: FA 2-7133. Richmond, Va., 23240, 2105 Federal Building, 400 North 8th Street, Phone: 649-3611. St. Louis, Mo., 63103, 2511 Federal Building, 1520 Mar- ket Street. MAin 2-4243. Salt Lake City, Utah, 84101, 222 S. W. Temple Street. 524-5116. San Francisco, Calif., 94102,Federal Building, 450 Golden Gate Avenue. Phone: 536-5864. Santurce, Puerto Rico, 00907, Room 628, 605 Condado Avenue. Phone: 723-4640. Savannah, Ga., 31402, 235 U. S. Courthouse and Post Office Bldg., 125-29 Bull Street. ADams 2-4755. Seattle, Wash., 98104, 809 Federal Office Bldg., 909 First Avenue. Mutual 2-3300. 32 U.S. TRADE MISSIONS PROGRAM