BRITAIN'S QUOTA SYSTEM.

Press, Volume LXIX, Issue 20907, 14 July 1933, Page 11

BRITAIN'S QUOTA SYSTEM.

FURTHER REDUCTION WANTED. PRESSURE ON DOMINION DELEGATES. (united tress association— bt elictjuc HLXGRAPH—COPYSUOHT.) LONDON, July 12. The British delegates to the World Economic Conference suddenly summoned the Dominion delegates to a meeting about the "regulation of production and marketing." British agriculturists are so urgently demanding action through members of the House of Commons that the Government is endeavouring to extend the mutual restriction already applied to meat, desiring further temporary reductions on meat imports and dairy products, particularly butter. Australia and New Zealand might even have to consider reducing their preserved milk exports. It is understood that the Ministers are pressing the Dominions, but cannot enforce measures owing to the Ottawa agreement. Undoubtedly further restriction would rouse the Australian and New Zealand farmers, besides leading to difficulties when the Ottawa agreement terminates.

The negotiations are at present secret, but it is hinted that all the Ottawa agreements may be subject to controversy.

DENIAL OF REPORT. NO DEMAND FOR QUOTA REDUCTIONS. (Received July 14, 1.20 a.m.) LONDON, July 13. In official circles it is denied that the British Government suddenly summoned a meeting of the Dominions' representatives yesterday in order to suggest the temporary regulation of production and marketing with a renewed request for a reduction of exports of dairy produce, and further a temporary reduction in meat exports. Yesterday's meeting was one of those regularly held between Great Britain and the Dominions to which the Press Association is informed, it is unnecessary to attach special significance.

MOVE TOWARDS CONTROL. APPROVAL OF MINISTER'S PROGRAMME. I DAIRY PRODUCE NOW BEING STUDIED. (Special to .United Press Association, New Zealand.) . (Received July 13, 7.15 p.m.) LONDON, July 12. General approval is accorded by | most sections of the press to Mr W. E. Elliot's speech in the House of Commons, in which he claimed success for the quota system. This is a clear indication of the strength of the movement behind the quota proposals in cases where it can be shown, as the Minister sought yesterday to do, that the application of the principle is necessary to raise the prices of British produce. It is also increasingly obvious that very powerful political influences are at work to bring about the limitation of imports as the best way to help the British farmers. Mr Elliot is at present concentrating on dairy produce, in regard to which he declared that stable conditions in British dairying can be reached only if overseas supplies are regulated. He also stated that there must be further limitations of imports of beef. The Irish Free State is apparently apprehensive as a bill was recently introduced into the Dail at short notice, designed to meet the quota system in Great Britain. The bill gives power to the Free State Minister for Agriculture to regulate the export of any agricultural product falling under import quotas in any country, so as to seI cure for Free State exporters the 1 maximum benefits permitted by such a system of control.

REGULATION OF SUPPLIES. I GOVERNMENT'S POLICY EXTENDING. HOUSE OF COMMONS APPROVES. (BRITISH OFFICIAL V.'I^ELESS.) RUGBY, July 12. The House of Commons has approved of the review of the Government's agricultural policy presented by Mr W. E. Elliot (Minister for Agriculture), who took a grave view of the consequence of the continuance of low prices for primary products. While the Government's proposals had eased the situation in some respects they were still encaged in a desperate struggle. The Minister examined the worKing of the wheat quota, a £ d nrobable effects of the brewers undertaking in increasmg the use of home-grown barley, and an nounced that there was every reaSSTto believe that. a satisfactory arrangement concerning the tation of Canadian oats would be re Mr e EHiol f after referring to the for marketing XS frSt, and hops, said the beef producers were engaged in a desperate struggle against ruinously low prices. Although importations had been reduced, and fat cattle nrices had advanced 8 per cent. ES the autumn, the position was still far from satisfactory, and further limitations would have to be wvised The price of sheep, on SKfher hand, had increased 34 S? cent In the same period. Im--1 mpat to the extent of ?n riw? tons had been taken off the Sket without disturbance of the retail inar^V,

FARMERS' VIEWS.

UNRESTRICTED MARKET DESIRED.

NEGOTIATIONS FOR FREE TRADE URGED. LTHE PRESS Special Service.] WELLINGTON, July 13. Opposition to the application of the quota system to New Zealand's primary products was expressed at the Farmers' Union conference today, and a resolution in favour of negotiations being entered into with the British Government with a view of obtaining the free and unrestricted entry of the Dominion's products into the British market was carried. To obviate any suggestion of quotas it was resolved that New Zealand should endeavour by every means to develop free trade with the Homeland.

In moving the adoption of the remit from the combined conference expressing disapproval of the quota system, Mr K. M. Little (Wellington) said that the world was suffering not from over-production but from under-consumption. The conference should protest against any curtailment of production, as restrictions t would still further impoverish the country. Mr W. Boyd (Auckland), who seconded the remit, said that a principle was involved. Mr W. E. Elliot, British Minister for Agriculture, in his statement in the House of Commons on the Agricultural Department's estimates, was expressing the opinion of the British farmer. If New Zealand production was curtailed it would make it increasingly difficult for New Zealand to honour her obligations. From the British farmer's point of view the position was understandable, and Mr Boyd said that he would go so far as to state that the quota would be imposed whether New Zealand liked it or not.

Mr A. P. Melville (Wanganui) said that Mr Elliot would do all he could for the British farmer. Dairymen in Scotland were complaining bitterly over what they called unfair competition with a managed currency. If the exchange was swept away and the free entry of goods from the Old Country was allowed there would be little talk of quotas. Mr D. B. Higgins (Auckland) said that there was still great scope for butter in England, but the trouble was the price. New Zealand should buy British goods and put English people in a position in which they could buy New Zealand produce. Major McDonnell (Southern Hawke's Bay) said that the application of the quota would result in the deterioration of farm lands.

"A Bombshell." At this stage a copy of the London cablegram received to-day was submitted to the chairman and read to the conference. It was described by Mr Boyd as "a bombshell." He said that the conference should send a message to the Prime Minister in London setting out the views of the farmers on the subject. If the British Government could be assured that New Zealand farmers were endeavouring to encourage reciprocity with Britain then there would not be the same agitation over quotas. Captain F. Colbeck (Auckland) said that if the people of Britain were given money to purchase butter the quota agitations would disappear. The following resolutions were carried:—

"That this conference vigorously opposes any governmental step in the direction of curtailing or restricting the export of primary production by way of a quota or otherwise, considering that any action in this direction is inimical to the best interests of the Dominion. "That the free and unrestricted entry of our products into the British market is so vital to the prosperity of the Dominion that negotiations should be entered into with the British Government to ascertain on what terms this privilege could be secured, and what concessions should be made with a view of obtaining it and suggests, in order to obviate any suggestion of quotas on our primary products, that we should endeavour by every means to develop free trade with" the Homeland."

Messrs W. J. Poison, M.P. (president), and W. W. Mulholland (Canterbury), and Captain F. Colbeck (Auckland) were appointed a committee to draft a suitable message to send to the Prime Minister in London setting out the union's views.

RESTRICTION ON DAIRY IMPORTS. MR GOODFELLOW'S OPINION. (PKE3S ASSOCIATIOK TILEGRVK.) AUCKLAND, July 13. Referring to the message from London regarding the proposed restriction on imports of dairy produce. Mr W. Goodfellow, managing director of Amalgamated Dairies, Ltd., said that the Minister for Agriculture in Britain, Mr Elliot, was a keen advocate of restriction as a means of helping the British farmer. The meat and bacon restrictions had undoubtedly proved beneficial, mainly owing to the fact that Britain produced 50 per cent, of the beef for her own requirements and a very large quantity of other meats. The butter quota would not have the same result, as the main business of the dairy farmers of the United Kingdom was the supply of fresh milk to th-j 46,000,000 inhabitants of Britain. Butter manufacture was indeed a small industry in Great Britain, and a rise in butter prices caused by restricting imports would be of very small benefit indeed to the suppliers of fresh milk whose surplus milk was used for butter manufacture. That a quota restricting exports from a country like New Zealand would be a national calamity went without saying, and the repercussions of such an act would be so serious as to warrant a prediction of financial disaster. "A Real Grievance." Mr Goodfellow said that he could say definitely from his own personal knowledge that the farmers of the United Kingdom had a real grievance against both Australia and New Zealand. They regarded the 25 per cent, exchange simply as a dumping measure which placed United Kingdom farmers at a disadvantage in the matter of competition for the Home market. Further, the British manufacturer had complained bitterly at the Australian and New Zealand policy of fostering local industries and thereby virtually excluding British imi ports, A New; Zealand _ business

man, who had recently visited the Midlands, had informed him that he found it unpleasant to admit that he came from New Zealand on account of the unpopularity of the Dominion's existing policy of restricting imports. "The Government should at once telegraph Mr Forbes," said Mr Goodfellow, "and ascertain upon what terms New Zealand could retain a free market for its produce in the United Kingdom, and this should be secured at once, no matter at what cost."

EMPIRE CO-OPERATION URGED. REGRETS AT LACK OF PROGRESS. (Received July 13, 8.10 p.m.) LONDON, July 13. The Federation of British Industries and the Trades Union congress have jointly written to Mr Ramsay Mac Donald regretting the lack of progress of Imperial economic cooperation, and urging the creation of an organisation to study Imperial questions, to study problems which will face Imperial conferences, and to record progress between conferences, in order to give effect to the decisions reached. The letter advocated reconsideration of the abolition of the Empire Marketing Board.