POTATOES BLOCK THE WAY.

Auckland Star, Volume LXV, Issue 285, 1 December 1934, Page 8

POTATOES BLOCK THE WAY.

The breakdown in the trade negotiations between New Zealand and Australia is a disappointment, but not a surprise. When they heard that Mr. Coates and Mr. Masters were going to Australia, many New Zealanders reflected that it might take more than the prestige and persuasiveness of these Ministers to overcome the pressure of Australian vested interests. Potatoes have blocked the way to agreement. In a message published to-day, the pretence that disease is the cause of the Australian embargo is abandoned. There has been a potato famine in Australia, and a potato glut here, but our surplus is not allowed to supply our neighbour's need. Political interests in Tasmania and Victoria are too strong. The New Zealand delegates insisted that the embargo must be lifted as a preliminary to coming to terms on other matters, so the deadlock remains. Both sides will suffer if this war goes on, but New Zealand is perhaps in a better position to retaliate, iu that Ave buy much more from Australia than Australia buys from us. If we penalise Australia still further for her obduracy, we will deepen the injury to ourselves (unless we can obtain what we want elsewhere), but there seems to be nothing else to be done. More than any other Dominion, apparently, Australia is obsessed with the idea that she can sell without buying, and only economic force will convince her to the contrary. Australians might consider the remarks this week of Mr. J. W. Collins, our Trade Commissioner in Canada. Mr. Collins reports that the business of Canadian manufacturers in New Zealand has been injured as a result of the determination of their country to exclude our butter. Several missions have been dispatched by New Zealand and Australia to deal with this matter in the past few years, but nothing substantial has come of them. No doubt Mr. Coates and Mr. Masters, will make it clear that it will be waste of time to resume these negotiations so long as the Australian Government is in its present frame of mind. ,