QUOTA DANGER

Ashburton Guardian, Volume 53, Issue 256, 10 August 1933, Page 8

QUOTA DANGER

MIGHT FORCE DEFAULT. • PAYMENT OF INTEREST. (Special to the " Guardian.") CHRIST/CHURCH, This Day. In the event of quotas being placed on New Zealand exports to Britain, there is, according to Mr E. Hay (president of the Canterbury Sheepowners' Union) a grave danger of the Dominion defaulting in her interest payments. "It is with our nroducts alone, our only real wealth, that these dues can be met," he said. Speaking at the annual of the union last eyening, Mr Hayjsaid that New Zealand farmers had fresh problems to face these days which were not so much to the fore a year ago. A new question which was very prominent to-day was .the one of quotas. The position of the British farmer was so desperate that the Minister of Agricultcre, Major Elliot, was apparently determined to restrict the quantities of meat and dairy produce which are being imported into Britain. "It is clearly stated at Home that the Dominions must submit to a restriction of these imports if the British farmer is to be saved," Mr Hay continued. "The tremendous increases of meat, butter and cheese imported into Britain not only from the Dominions, but also from foreign countries these last few years have no doubt made the position acute from the British farmer's point of view. His position is so serious that something is going to be done for him, and that something is going to affect us. Probably Ave are not going to be allowed to export so much to Britain, and that possibility has to he faced. It is a serious business for New Zealand. Only Real Wealth. "If we are expected to continue to pay interest on our loans from Britain, we must be allowed to pay it witli the only real wealth we have; that_ is, speaking broadly, the products from the cow and sheep," said Mr Hay. "If Britain refuses to take a' sufficient quantity to enable us to meet our obligations, then there would appear to be grave danger of our defaulting, but ■the blame for this surely could not be laid at our door if we are prepared to continue to work harder and produce a greater quantity of real wealth sufficient to balance the lower currency prices being paid for it on the British market." Dealing with quotas, .the' airinual report stated that the executive had, all through the controversy, stressed the point that restriction of production, with fixation of nrice level, was unsound in principle, and should not be voluntarily accepted ; but,' admittedly, if this was imposed by the British .authorities, then .the Dominion must submit, but the way would still he left open to nrotest. Forcing the Issue. If the issue were forced by Great Britain, we should be entitled to ask for consideration with regard to our overseas interest payments, at least to the extent to which we cculd show that our trade had been detrimentally affected by the British legislation. Britain could not have it both ways any more than could we ourselves. "The executive feels that the admission of the principle and negotiating under it, may possibly result in the computation of quantity being arbitrarily altered to our detriment in future, and while admitting that the British authorities have the right to do this when dealing with foreign sources of, supply, the executive is still of opinion that provided free entry is given to British imports into New Zealand in •the same proportion as the freedom we ask for into the British market, "that we have a reasonable case for consideration equally with the British primary producer," stated the report.