TRADE WITH JAPAN.

Auckland Star, Volume LIX, Issue 174, 25 July 1928, Page 5

TRADE WITH JAPAN.

AGREEMENT SIGNED.

PREFERENCE FOR BUTTER.

REDUCTION OF id PER LB. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. Butter from New Zealand will be allowed into Japan at a duty rate of onehalfpenny less than formerly, as the result of an agreement which the Government has entered into with Japan. This places New Zealand butter on a more favourable basis than Australian. This afternoon the Minister of Customs (Hon. W. Downie Stewart) laid on the table of the House of Representatives a draft of an exchange of notes arranging mutual most-favoured-nation treatment between New Zealand and Japan, in matters of commerce, customs and navigation. In moving that it be printed, the Minister stated that the principal advantage to New Zealand was more favoured treatment of butter in regard to duty. The Leader of the Opposition (Mr. H. E. Holland) asked if any reciprocal concession had been made to Japan. It was very satisfactory to know that New Zealand butter could go to Japan at a reduced rate. Would there be any difference in the rates for tinned meats and wool? asked the leader of the Nationalist party (Mr. G. W. Forbes). He regretted that members could not discuss the paper intelligently, since notice of its presentation had not been given. Mr. E. P. Lee (Oamaru) found himself for once in accord with the two last-named members. He regretted that the subject could not be di»cu3sed. It would be interesting to know on what statutory authority the Minister acted in making this arrangement. It seemed to be an exceedingly wide power. Mr. Lee was not saying that the Minister should not have it. Everyone would be delighted that our produce 6hould be able to get into Japan on a favoured rate, but there was the question of what would be coming in to New Zealand fi.om Japan. "I am pleased at the conversion of the last speaker," said Mr. J. A. Lee (Auckland East). "I recollect that last year, when the member for Auckland West and rcyself protested against the Minister being given too much bargaining power on a host of items, we were alone in our protest. Even Reform members seem to be realising that it is not safe to arm an irresponsible Cabinet with dictatorial powcra, and that it is not wise to repose too much confidence in 'Coates and Confidence.'" In this case the House was confronted with what had taken place after the event, and members were told that they could take it or leave it. Mr. Lee thought the House and not the Minister should do the bargaining. Did this arrangement mean better fiscal treatment for Japan than for America, France and Germany? asked Mr. A. Harris (Waitemata). Personally he would rather see preferential treatment for European countries than for Asiatic. "Japan is a powerful and influential nation, a close neighbour and a nation to whom we owe something for the part she has played within the last ten or fifteen years," said Mr. W. A. Veitch (Wanganui). "People in New Zealand will welcome this arrangement, and will not cavil over ite detail." The Hon. W. Downie Stewart said the paper had been presented that day because the Japanese Consul-General (Mr. Iyemasa Tokugawa) had arrived only that morning, and it had been decided that the notes should be exchanged at a time coinciding with the visit of the Japanese warships. Mr. Stewart read the text of the notes to the House, showing the Prime Minister had signed a note informing the ConsulGeneral that, pending the eventual adhesion of New Zealand to the Treaty of Commerce and Navigation between Great Britain and Japan, the New Zealand Government was prepared to accord to Japan, on and after August 9, 1928, 1 the same treatment in matters of commerce, customs and navigation as is, or may be, accorded to the most favoured foreign country. The Japanese note is identical. For some time past, said the Minister, Canada had been on a better footing than New Zealand, and Waikato and other dairymen had approached him, asking that something be done to obtain more preference for New Zealand butter. In view of that request, direct negotiations had taken place instead of through the British Foreign Office. The Home Government had acquiesced in the exchange of notes. New Zealand was now on a better footing than Australia, and the Australian Press had been reproaching Australia for allowing New Zealand to get ahead in this important matter. The Minister Old not know if there was a market for tinned meats or other items. Regarding the imports from Japan, he could only say that Japan already enjoyed the same advantages as other most favoured nations. Japan would automatically receive the benefits of any further favoured treatment. The whole object of the negotiations was to improve the position of our butter exporters, allowing Japan the same treatment as she had received all along.