BUTTER TARIFF.

Auckland Star, Volume LXII, Issue 16, 20 January 1931, Page 3

BUTTER TARIFF.

CANADA HAS NOT YIELDED, MR. FORBES' DISCISSIONS IN BRITAIN. FUTURE DEMAND FOR WOOL. (By Telegraph.—Special to "Star.") WELLINGTON, this day. The Prime Minister, the. Right Hon, G. W. Forbes, interviewed by the- "Star" correspondent, made reference to the attention he has paid to New Zealand's export trade during his visit to Canada and Britain. '"It will be remembered," he said, "that notification had been received early last year from the Canadian Government that the existing tariff duty on New Zealand butter imported into Canada would be terminated in October last, and that new tariff arrangements would come into force. In the meantime, a general election took place in Canada, resulting in a new Government being returned to office pledged to impose greatly increased duty on our butter.

"This new duty came into force on the date 1 arrived in Ottawa. I had several conferences, both with the Prime Minister of Canada, the Right Hon. R. B. Bennett, and the Minister of Commerce, Mr. H. H. Stevens, at which I pointed out the value of Canadian trade with New Zealand, which showed a substantial balance in Canada's favour, and strongly urged reconsideration of the proposed duty, which would have the effect of shutting out our principal article of export to our sister Dominion, besides making trade too one-sided to be continued, our policy naturally being to buy in the market in which we sell our produce. It wa.s not possible to arrive at any definite conclusion in the short time at my disposal in Canada, and the matter Avas left over for further discussion in London. I regret to say that these further conversations proved fruitless. The Canadian Government, owing to having definitely committed itself to the imposition of this increased duty, has found it impossible to make any alteration.

"It is my intention," said Mr. Forbes, "to discuss with my colleagues what action the New Zealand Government should take to meet the present position, which is obviously too one-sided to be allowed to remain as it is."

Mr. Forbes had the opportunity in Bradford of seeing valuable wool research work, in which he considered New Zealand growers should co-operate. "Speaking generally," he said, "I found the quality of New Zealand wool highly spoken of, but in some some cases it was considered that the quality was not up to the (Standard of past years, while at present it is impossible to forecast the future in regard to prices. It is the opinion of the manufacturers that wool will always be the most important factor in the manufacture of clothing, and with the improvement of trade it will come into its own again."

In London Mr. Forbes invited 15he beads of firms engaged in the sale of our dairy produce to meet him and discuss with him the low level of prices and the marked disparity between the price of our product and that of Danish butter. ''Several reasons were advanced for this," said the Prime Minister, "and suggestions were made for improving the position also in regard to quality. Comments were made in connection with openness in our cheese, and also with the shipping of the standardised grade. These matters 1 hope to discuss with the Dairy Board."