N.Z. MUTTON FOR BRITAIN

Press, Volume LXXIII, Issue 22135, 3 July 1937, Page 14

N.Z. MUTTON FOR BRITAIN

Mr Nash Negotiates New Agreement

HIGHER ALLOCATION FOR THIS YEAR

"REGULATED EXPANSION OF IMPORTS"

(PHE3S ISSOCtATIOH TELEGRAM.) DARGAVILLE, July 2. The Acting-Prime Minister (the Hon P. Fraser) announced this evening that a cablegram received by the Government from the Hon. W Nash stated that negotiations for an agreement have now been concluded with the British Government, by which the total allocation of imports of New Zealand mutton and lamb for the calendar year 1937 have been fixed at 4,010,000 cwt This represents an increase of 110,000 cwt over the basic allocation, and it also represents the highest allocation yet made to New Zealand. The agreement, Mr Fraser said, first of all provided for a basic allocation, 3,900,000 cwt. This was substantially in advance of the actual imports from New Zealand for 1936, which were 3,530,700 cwt. Provision had also been made in the agreement for a reduction of the 3i per cent, in the basic allocation if the prices of British mutton and lamb for the first six months of 1937 fell appreciably below the level of the two previous years. Such reduction, if it had been made, would, of course, still have left the allocation at a figure in excess of last year's imports. The cablegram received yesterday stated that not only would the reduction not now apply, but under another provision of the agreement the basic allocation had been increased by llO.OOOcwt, bringing the total allocation up to 4,010,000 cwt. Mr Nash also said that the agreement was being announced simultaneously by the British Government.

Increase Possible

"I am sure," said Mr Fraser, "that the producers of New Zealand will be gratified at the result that has been achieved. Moreover, it is an indication that the British Government is sympathetic towards the desire of the New Zealand Government for a regulated expansion of imports of food stuffs from the Dominion." The agreement dealt with imports of mutton and lamb from both New Zealand and Australia. The basic allocation for Australia was 1,750,000 cwt. It had now been decided that the provision for a reduction of 3£ per cent, would not apply and that the provision for an increase in the basic allocation, if it proved possible to make such an increase without endangering the stability of the market, would now operate. Mr Nash expressed himself as being well satisfied with the arrangements made. "It leaves the way open to a realisation of New Zealand's objective," he said. "This objective is the ensuring of a regulated expansion in the supply of the foodstuffs required by the people of the United Kingdom. This is the essence of New Zealand's attitude to problems of marketing and production. It is gratifying that this objective has been given practical expression in respect of an important commodity. Our task is to see the same principle continuously applied so long as the needs remain unsatisfied. We have the ability to produce increasing quantities at prices and under conditions that are reasonable to our own farmers."