DOMINIONS AND OTTAWA.

Auckland Star, Volume LXVI, Issue 202, 27 August 1935, Page 6

DOMINIONS AND OTTAWA.

On two important points the trade outlook between New Zealand and the United Kingdom has been clarified by the correspondence released by Mr. Coates at Dargaville. In the letter which Mr. Stanley Baldwin wrote in reply to certain questions put to him by Mr. Coates it appears quite definite, firstly, that there has been no departure from Britain's Ottawa policy of giving to all the Dominions the benefit of concessions allowed to any particular one, and, secondly, that the question of imposing tariffs against Dominion produce cannot be settled "until there has been an opportunity to 'discuss it at an Imperial conference." Mr. Baldwin was emphatic that Britain "had not in the least abandoned the policy enunciated at Ottawa" for raising the price level of primary products; the methods, however, by which it was hoped to bring about the rise had been changed. It is this change in methods that has spread abroad among Dominion producers the impression, as expressed by Mr. Coates, that there had been a reversal of Ottawa policy. Just three years have passed since the Ottawa pacts were signed; for the whole of that time meat, butter and cheese have been marketed at unpayable prices. Foreign countries, the powerful rivals of the Dominions in these important staples of trade, have elbowed their way in and have secured from Britain trade terms which have tied her hands and, in the opinion of the Dominions, have played a major part in compelling the British Government to modify and revise its methods of carrying out its part of the Ottawa obligations. Had the Dominions similarly negotiated trade treaties with numerous countries outside the Empire, the basis built at Ottawa would by now have vanished completely.

As it is, this basis is being subjected to strains and stresses which are seriously disturbing to New Zealand's trade. If there is to be one door and one only for the entry of Dominion products into Britain, while e% T ery foreign country is to be free to negotiate and obtain terms, New Zealand will be compelled to alter the whole course of its economic development to bring it more in line with its Empire competitors, and particularly Australia. New Zealand does not desire to force the change, as its tariff history shows, but if Britain is to treat our tariff level as a matter of no concern when considering our rights in the Home market it is useless to open up more of our market to British manufactured goods. The position as at present understood is that New Zealand could tear down all tariffs and become completely free trade, or it could raise its tariff to the skies, and neither movement would be of the slightest interest to the British Government. From the point of view of those actually

engaged in trade nothing could bo more illogical, yet that is what Mr. Baldwin's statement means. Is such a statement or such a policy likely to stand for long? The only path towards freer trade within the Empire, as outside it, is to offer every Dominion some inducement to scale down its tariff. Failing such inducement the trend must be either towards greater selfsufficiency or more energetic Dominion efforts to obtain a footing in foreign markets. In practice, perhaps, both these movements may develop side by side.