TRADE TREATY.

Press, Volume LXII, Issue 18673, 23 April 1926, Page 8

TRADE TREATY.

AUSTRALIA AND NEWZEALAND. THE MINISTER EXPLAINS. (SPECIAL TO "THE PBESS.") DUNEDIN, April 22. A reference niado in Dunedin on Monday by Sir Henry Barwell concerning trade relations between New Zealand and Australia, in which he said that tho reciprocal tariff agreement could be extended with advantage, specifically instanciug Australian dried fruits, was replied to by the Hon. W. Downic Stewart, Minister for Customs, in an interview to-day. Mr Downie Stewart said: "'When the tariff of 1921 was passed, a suspended duty of 2d per pound was provided for on "dried fruits from foreign countries. I intended to use this item in negotiatiu"- a treaty with Australia in exchange for any concessions that New Zealand might And it desirable to ask for. Tho intention was that by imposing a duty against foreign countries, sueh as Smyrna and Greece, wo would thereby give preference to Australian dried fruits. The terms of the treaty were, howeve'r, agreed upon without the question of granting dried fruits preference coming uuder discussion. I therefore decided to hold it in reserve until I saw how the treaty was received by the New Zealand Parliament and New Zealand producers and manufacturers, so that if I had overlooked any important New Zealand interests I would still have something to bargain with, in order to remedy the position. Certain Grievances. "On my return to Now Zealand the treaty appeared to be well received by Parliament and the various interests affected, and I then made certain proposals to Australia,, with a view to giving them this preference. Shortly after this, however, whilst negotiations were proceeding, action was taken b'ythe Australian Tariff Board, or the Australian Customs Department, which adversely affected certain New Zealand industries, -and I notified the Australian Government that when these grievances were remedied I would recommend the Now Zealand Government to concede to Australia preference on its dried fruits, by bringing into force the suspended duties against foreign countries. So far, theso grievances have not been remedied, and, indeed, others have been created by the Australian system of granting bounties on exports. And as tho New Zealand market for dried fruits is one of great value to Australia, I did not feel warranted in giving them such a valuable concession until an equitable adjustment had been arranged in regard to the grievances I have mentioned. "If these difficulties were ovorcome I should bo quite prepared to recommend the granting of preference to Australia in the interests of Imperial trade, and of a largo number of Australian returned soldiers, whoso fortunes are at stalec in this industry. "It is not correct, however, to say that California receives any better treatment than Australia, so far as dried fruits are concerned, as, until the suspended duty is brought into _ force, all countries are on an equal footing."