THE BARGAINING STAGE.

Auckland Star, Volume LXIII, Issue 183, 4 August 1932, Page 6

THE BARGAINING STAGE.

The Ottawa Conference has entered upon what has been called the "bargaining stage," and to-day's cable news indicates the possibility of developments of much importance. The first real test, as was to be expected, is for Australia, and the result will be anxiously awaited as an indication of Britain's general policy towards the Dominions. Not only this, but there are foreign countries, and particularly Argentina, which eagerly look for an announcement of the Conference decisions. Australia is seeking better marketing conditions for her meat and dairy produce in the British markets, and has suggested that restrictions on foreign imports into Britain might be necessary, in addition to the present preferences. Wide issues have been raised by these demands and by the requests of the other Dominions for marketing assistance, and the only indication of Britain's attitude towards these requests so far has been a statement by Mr. Baldwin that more must be done to assist British manufactured goods in j Empire markets.

The remarks of Mr. Baldwin apply much more strongly to Australia than to New Zealand, because the Australians have shown a greater aspiration to become a manufacturing nation. More difficulties arise in connection with the Australian case, and the problems are larger than those for any other unit of the Empire. In view of this, the task upon which the British and Australian delegates are now engaged is of vital concern, and will involve the disclosing of Britain's policy in regard to butter, meat and fruit. At the same time, Australia will have to show how far she is prepared to go to help British products in her markets. It may be thought that this method of procedure by discussions between Britain and the Dominions in turn would lead to bilateral agreements, but this si not necessarily the case. As far as possible the aim should be to arrive at a multilateral treaty in which agreements with all the Dominions are embodied.

Next to the Australian case, and possibly of equal importance in many respects, is that of Canada. It is, therefore, of interest to note Mr. Bennett's significant reference to Canadian cotton mills as an "efficient industry," and his statement that the industry will not be exposed to the full effects of British competition. This, he explained, did not mean that nothing would be done to improve the Canadian market for British cottons, and he apparently visualises some arrangement under which Britain Avould specialise along certain lines. Mr. Bennett's statement calls to mind a recent comment in the "Spectator," that the Lancashire cotton delegation, which visited Canada in June, found the people there as keen on protecting themselves against British as foreign competition. The danger feared was that the Ottawa Conference might be used as a means of raising higher tariff walls all round the Empire to facilitate, as the "Spectator" puts it, some "intrinsically ineffective preference" inside. After considering this, one might turn to ask Avhat New Zealand thinks. Mr. Coates has advocated the quota system to help New Zealand producers, and has said that the imposition by Britain of a quota on dairy produce, meat and fruit is urgently necessary. This is a long step from the statement made by Mr. Forbes at the last Imperial Conference, when, in commenting on a headline in a Beaverbrook neivspaper, "Forbes Kills the Quota," he said: "Well, I should not mind if I did. I should certainly strenuously oppose any attempt to apply it to New Zealand products. I am convinced that it is an instalment of 'Socialism in our time,' which will do more harm than good to Empire trade." Quotas were viewed charily at that time, but now they are eagerly courted. These, however, are times of change. Then Britain was, roughly speaking, free trade, but now she is protectionist, and is apparently ready to extend the quota system, which was introduced recently for the benefit of home-grown wheat.