POLICY OUTLINED.

Auckland Star, Volume LXIII, Issue 124, 27 May 1932, Page 9

POLICY OUTLINED.

NEW ZEALAND'S DEPENDENCE

INTERCHANGE OF TRADE,

RECIPROCITY WITH BRITAIN.

(By Telegraph.—Press Association.)

WELLINGTON, Thursday

In announcing the personnel of the delegation to Ottawa, the Prime Minister gave a brief outline of the policy. He said that in formulating the general lines of their policy at the conference the Government has necessarily been obliged to consider the position as it exists at present and the events that have led to the meeting shortly to be held at Ottawa. This Dominion, even to a greater extent than other Dominions is, and always has been, dependent for its prosperity upon the sale of its primary products in the markets of the United Kingdom and with a full recognition of all that is implied by this fact it has been the consistent policy of New Zealand to purchase its requirements from abroad as far as possible from those who buy our exports, namely, the people of the United Kingdom—a policy dictated also by the general desire in this Dominion to follow deep-rooted sentiment and to trade with our own people. British Assistance Welcomed. At the last Imperial Conference it was the unanimous opinion of the Dominions that it would be in the interests of the Empire if the United Kingdom adopted a tariff policy with a view to protecting her own industries and encouraging trade within the Empire family by a system of Empire preferences. The Government then in office, elected on the poliwi' of free trade, found themselves unable to fall in with these suggestions, and after some preliminary consideration of alternatives, such as quotas, import boards, etc., it was ultimately decided to postpone the whole matter for subsequent consideration at an economic conference specially to be called at Ottawa.

Increasing economic difficulties led finally to the formation of a National Government in the United Kingdom and to the decision of that Government to abandon the policy of free trade and to consider at Ottawa a carefully prepared and calculated policy of Imperial preference. As the first step to this end the British Import Duties Act of this year provided for a duty of 10 per cent on a very large number of foreign products and further protective measures have since been taken or remain under consideration.

It is scarcely necessary to say how warmly the Government and people of this Dominion appreciate the exemption of tho Dominion's goods from the duties imposed by the Import Duties Act. They welcome the assistance that promises to be afforded to New Zealand produce by the preferences thus granted, in respect of which butter, cheese and fruit are our principal products directly affected up to the present.

In discussing the attitude to be adopted at Ottawa the New Zealand Government have not only considered what further preferences or other expedients might properly be asked for and properly granted to New Zealand goods, but they also have searched every appropriate direction in which for their part they might, by increased or additional preferences to British goods, reciprocate the benefits extended or likely to be extended by the United Kingdom. These preparations are well advanced and the -New Zealand delegation hopes to be in a position at Ottawa to submit reasonable, considered proposals which, having regard to the undoubted goodwill existing between the people of this Dominion and of the United Kingdom, may well prove to their mutual benefits. No Spirit of Bargaining.

It will be their earnest endeavour to avoid any spirit of bargaining. In the deliberations of tho conference the principal aim should be, in their opinion, voluntary co-operation and goodwill to secure lasting prosperity for the British Empire. As a result of the conference it is hoped a firm basis for increasingly close commercial co-operation between the several members of the British Commonwealth will be established.

It is impossible to ignore the effect of currency difficulties as an important cause of the grave reduction in the value of this Dominion's products. The Government are of opinion that consideration of problems of price levels, currency and banking must therefore form an important feature of the Ottawa Conference and they have taken steps with a view to having these questions included in the agenda paper.

Any decisions at the forthcoming conference as far as .they affect New Zealand will in due course be submitted to Parliament for approval.

The delegation will sail by the Aorangi from Auckland on June 28, and arri?e at ¥ancouver on July 15. The conference opens at Ottawa on July 21.