PROHIBITIVE.

Auckland Star, Volume LXI, Issue 221, 18 September 1930, Page 7

PROHIBITIVE.

DUTY ON BUTTER.

Mr. Forbes , Plain Speech to .Canada. MUST TRADE ELSEWHERE. (United P.A.—Electric Telegraph—Copyright) (Received 12 noon.) OTTAWA, September 17. "The duty of eight cents per lb on New Zealand butter; will be prohibitive in so far as exportation to Canada is concerned," stated the Prime Minister, of New Zealand, Mr. G. W. Forbes, in an interview on Wednesday. I _

He said he hoped an arrangement would be reached whereby some adjustment might be achieved, but "considering that the duty was put on just as we landed at Ottawa, the situation does not look too hopeful.

"New Zealand, however, stands prepared to discuss matters of tariff. The policy of New Zealand is to encourage trade with those nations which trade with her. If such nations ' said they did not value New Zealand's business, then the Dominion would have to look elsewhere, notably, to the United Kingdom, '

"If prohibitive duties are imposed upon imports from New Zealand," Mr. Forbes continued, "it is obvious that such one-sided trade cannot continue. New Zealand has to export produce in order to pay for imports and 20 per. cent of the Dominion's butter exports are sold in Canada." * ■ .

Regarding the decision of New Zealand to withdraw the preference previously extended to Canadian motor cars, Mr. Forbes declared that the Canadian manufacturer still had a 15 per cent prefence over the United States.

Mr. Forbes met.the Prime Minister of Canada, Mr. R. B. Bennett, and several Cabinet Ministers earlier in the day.

Mr.. Forbes is the guest of Lord and Lady Willingdon at Government House.

Mr. Bennett evidently Is anxious to lose no time in implementing his promises to the electors about butter, which was an issue at .the elections, but there is a strong conviction here, says a Vancouver message, that butter will be placed on a four cents rate, leaving the producers' organisations to whittle down the profits.. I ; It is thought Here tliat New Zealand butter will continue to enter Canada owing to its superior quality and the inability of the Canadian dairymen to meet the all the- year round demand.