EMPIRE RELATIONS UNDER REVIEW.

Auckland Star, Volume LXVI, Issue 145, 21 June 1935, Page 7

EMPIRE RELATIONS UNDER REVIEW.

DOMINION VOTE. Complex Issues in Meat Problem. BENEFITS OF OTTAWA. (British Official Wireless.) (Received 1 p.m.) RUGBY, June 20. , Mr. J. H. Thomas, speaking in the House of Commons when the Dominions Office vote was taken, said that the Statute of Westminster had created an entirely new situation in the relationship between the Mother Country and the Dominions. In short each Dominion had absolute freedom to determine its own destiny.

The recent jubilee celebration, in itself, was the best indication of the family spirit and the sense of unity of the British Empire, and the presence in London of so many representative Dominion statesmen gave them the opportunity to discuss the whole situation in regard to Imperial and foreign policy. In the discussions on foreign affairs and Imperial defence, no attempt was made to ask any Prime Minister to, bind his Government. All the Dominions sympathised with the policy of the United Kingdom Government and declared that it must continue its efforts for peace, bearing always in mind the value of the League of Nations as an effective instrument to that end. Question of Defence. On the question of defence, the Dominions again, without a solitary exception, agreed that in view of the p'reeent state of the Services, which had arisen as a result of an effort to set an example to the world in armaments reduction, it was an essential duty to the people of Britain, and in view of Imperial obligations, that the steps to repair the national defences already announced should be undertaken.

In regard to the Imperial economic position, Mr. Thomae said that the United Kingdom delegates at the Ottawa Conference had said they must retain the right first to consider the interests of the people in Britain; secondly, they wished to encourage and develop all parts of the Empire by giving preference; and, thirdly, but by no means last in importance, they must not be unmindful of the vital importance of their export trade with foreign countries. Stimulus of Ottawa Pact. Aβ indicative of the stimulant to Imperial trade provided by the Ottawa decisions, Mr. Thomas said that Canada had exported to the United Kingdom goods and produce worth £43,000,000, and in 1934 £50,000,000, an increase of 17 per cent. •Auetralia in 1932 sent £46,000,000 •worth, and in 1934 £50,000,000, an increase of 8.7 per cent. New Zealand sent £37,000,000 in 1932 and £40,500,000 in 1934, an increase of 9 per cent.

The United Kingdom exported to Canada in 1932 £17,000,000 worth of goods, and in 1934 £21,000,000, an increase of 20 per cent; to Australia in 1932 £20,000,000, and in 1934 £27,000,000; to New Zealand in 1932 £10,500,000, and in 1934 £11,500,000.

The figures for South Africa were even more significant. United Kingdom exports in 1932 were £18,500,000, and in 1934 they had risen to £31,000,000. He claimed that these figures were a complete justification of the Ottawa policy. It 3 best justification was that without exception every Dominion that ■wae a party to the Ottawa agreements could at the present moment show a Budget surplus and a certain tendency towards prosperity. The Meat Situation. Referring to the meat situation, Mr. Thomas dealt atjength with the various factors involved. The negotiations were still proceeding, and he was not without hope that, a satisfactory agreement would ultimately be reached.

Mr. Thomas said it was only fair that the House and the country should know the difficulties of the meat negotiations. Firet, there was the position of British agriculture. British farmers and agricultural labourers resented the importation of goods, wherever they were produced, when sold in the country of origin above the prices for which they were sold in Britain. Notwithstanding Britain's increase of population in the past 25 years, agricultural production had remained practically stationary. This could not be allowed to continue. As he had explained to the Dominion statesmen, each Dominion had room for many millions more population. Other factors complicated the situation. Britain couid not impose a levy without the Dominions' consent, and there was a system of restriction embargo which led to . all manner of friction. Instead of the British Government having to find heavy subsidies, the policy they were aiming at was to strive to find agreement enabling a tariff to be applied. (Ministerial cheers and cries of "Three years too late!") Article X. of Ottawa Pact. Mr. Thomas continued that whatever policies were adopted three years ago, the Government was entitled, if experience showed it a better way, to face the facts. It was on these lines that they were endeavouring to reach agreement. It was useless the Dominions saying they must have free and unfettered entry into the British market, with preference, unless they,equally bore in mind that there was' another part of the Ottawa agreement, called Article X., providing that as far as possible, instead of prohibitive tariffs and meaningless preferences, British industry should have a fair chance of entering the Dominion markets on a competitive basis.

"I am pleaded to announce that as far as it is possible to judge, there is every indication of an agreement under that head." Although the Dominions debate was regarded as important, barely 80 were present when Mr. Thomas rose, and only half-a-dozen Socialists. It was most apparent that the House was only mildly interested in Dominion affairs.