ORIGIN OF IDEA.

Auckland Star, Volume LXIV, Issue 70, 24 March 1933, Page 7

ORIGIN OF IDEA.

LOCAL EXPLANATION. Unofficial Suggestion for Restricting Foreign. BRITAIN'S ATTITUDE. The present developments in regard to butter throw into significant light the move made at tho Ottawa Conference by the New Zealand delegation to secure Great Britain's approval of the application of the quota system with respect to the British importation of dairy produce. It was Mr. J. G. Coates who originated the proposal, but it was not acceptable to the British authorities, and the agreement subsequently negotiated provided for assistance to New Zealand dairy produce exports by the duty method. Last month the New Zealand Government firmly identified itself with the opinion of the Dairy Produce Board that thi>re should be no restriction on the exportation of New Zealand produce to England. Subsequently, when intimating the Dominion's willingness temporarily to reduce butter shipments, provided Australia did the same and foreign supplies were restricted, the Prime Minister, Mr. G. W. Forbes, emphasised that the Government strongly concurred with the reiterated view of the Dairy Board that any restriction' of New Zealand's butter exports would have a disastrous effect on the dairy industry. British Ministers Decline. Discussing the problem this morning, a prominent Auckland authority said that when butter prices slumped so badly early in the New Year, New Zealand dairy representatives in London took up the matter unofficially with the British Board of Trade, seeking a restriction of foreign imports. British Ministers, when approached, promptly declined to agree, and insisted that the Dominions should be included in any curtailment. Actually there was a proposal that New Zealand should reduce its supplies for the present season by 10 per cent, Australia by a larger percentage, and Denmark by a lesser proportion than either. That suggestion was entirely unpalatable to New Zealand and Australian representatives, and further discussion resulted in a proposal being made to the New Zealand Government that Empire supplies should be restricted by 0 per cent and foreign by 12 pei cent. It was at this stage, continued the authority, that the New Zealand Government first came into the picture. There was an obvious inclination on the part of Cabinet to accede to the suggestion, but the Dairy Board stood so firmly against restriction that Cabinet's attitude changed. Meanwhile the Australian Government had in some way been misled as to the attitude of New Zealand, and that misunderstanding had temporarily affected the Australian attitude towards restriction. However, the misunderstanding had now been cleared iip, and both the New Zealand and Australian boards were presenting a united front against any restriction of their output. PRODUCTION FALL. AUSTRALIA'S DRY WEATHER. | (Received 10.30 a.m.) SYDNEY, this day." Speaking at Kyogle at a dairy farmers' meeting, Mr. J. Hayter, chairman of Norco, Limited, butter exporters, declared that owing to the decline in butter production in New South Walea arid Victoria, due to dry weather, it was unlikely that there would be an exportable surplus beyond the- suggested restricted limit. ■ Therefore, it would appear that there was no need to impose a 6 per cent restriction.