REDUCTION OF TARIFFS.

Press, Volume LXIX, Issue 20909, 17 July 1933, Page 8

REDUCTION OF TARIFFS.

MANUFACTURERS NOW SxVTISFIED. CASE BEFORE COMMISSION TO BE RESUMED. The repudiation by the British Minister for Agriculture, Mr Elliot, of the suggestion that his speech in the Plouse of Commons last week implied a threat of retaliatory measures if New Zealand's tariffs against British manufactures were not reduced, has satisfied manufacturers throughout the Dominion, and it is now probable that the case of the New Zealand Manufacturers' Federation before the Tariff Commission will be. resumed without delay. In these circumstances the meeting of Christchurch manufacturers Avhich had been called for next Tuesday evening has been cancelled.

There was an unexpected development at Friday's sitting of the commission when the federation asked permission to suspend all further evidence on account of the interpretation placed in New Zealand on the statements made by a British Cabinet Minister. The president of the New Zealand Farmers' Union (Mr W. J. Poison, M.P.) was quoted as having said to the conference of the union: "A definite statement had been made by a British Minister that if New Zealand did not reduce its tariffs the Dominion would be subject (1) to a preferential duty and (2) to a restriction of New Zealand imports into Great Britain." In cable messages published todav both the Prime Minister (the Rt" Hon. G. W. Forbes), who is in London at the World Economic Conference, and Mr Elliot himself repudiate this interpretation of the House of Commons speech. Mr Forbes states explicitly that the present movement for the regulation of imports of dairy produce into Great Britain arises solely from the British farmers' dissatisfaction with the present low prices. Exchange, Not Tariffs. "It is deplorable that Mr Poison and certain others of the farmers' loaders should knowingly or unwittingly mislead the people of New Zealand into a belief that tariffs are the cause of the farmers' troubles and that England insists upon their i reduction," said Mr F. L. HutchinIson, president of the Canterbury ' Manufacturers' Association, yesterday. "Actually tariffs are the least factor in farmers' production costs. It has been shown by year-book figures that the amount of his direct production costs due to tariff charges in the production of £IOO worth of farm produce is less than two shillings, and further that the indirect cost entailed in the protection of local industries which are in competition with imports of boots, clothing, and general necessities amounts to only 18s 8d per annum a head of the whole population. "For the sake, therefore, of saving about £4 per annum on an average farmer's household these so-called farmers' leaders would sacrifice the whole country and throw it into a hopeless state of unemployment and depression. They neither hear the cry of the workless nor do they realise that this moderate customs revenue would have to be found by themselves from other taxes if not from tariffs. It is not the tariffs but the high exchange to which English statesmen object."

MR ELLIOT'S SPEECH. SUGGESTION REPUDIATED. ISSUED rRt3S ISHOCIATIOK—»T tLIUTRIC TBLEOSifH—COPTEIOHT.) LONDON, July 14. The Rt. Hon. G. W. Forbes, in a statement, said: "I cannot understand how those supplying information in Wellington for cabling to the English press have so extensively misinterpreted Mr W. E. Elliot's speech in the House of Commons on Tuesday. "Mr Elliot (British Minister for Agriculture) did not mention the trade position of Great Britain in relation to New Zealand, nor has any British Minister in any way raised the question. On the contrary Great Britain has expressed every approval of New Zealand's preferential treatment for British goods." Mr Forbes added:

"The present movement for the regulation of dairy products in Great Britain arises solely from the British farmers' dissatisfaction with the low prices for dairy products, owing to the glutted market, which is due to excessive imports from abroad." Mr Elliot himself repudiates the suggestion from New Zealand that his speech implied a threat of retributive measures if tariffs were not reduced.