TARIFF CHANGES

Press, Volume LXXIV, Issue 22345, 8 March 1938, Page 13

TARIFF CHANGES

EFFECT ON ENGLISH MANUFACTURERS RETALIATION THREAT GOVERNMENT'S ACTION CRITICISED [THE PRESS Special Service.] WELLINGTON. March 7. The action of the New Zealand Government in increasing the duty on English footwear Imports has provoked a threat of a boycott of New Zealand produce by 8000 operatives in Rossendale Valley, England. The following cable message was received from the Rossendale Association of Manufacturers to-day: "The new duty of 3s a pair means an embargo on three-quarters of English footwear. The exporters would be satisfied with a 25 per cent, tariff, otherwise the 8000 operatives in the Rossendale Valley will place the same embargo on New Zealand produce." "This makes it appear that the lion's tail has been given too big a twist, and conveys a real warning of the repercussions likely to follow any attempt to place undue restrictions on imports from the United Kingdom," said Mr C. W. Budd, president of the United Kingdom Manufacturers' and New Zealand Representatives' Association, when the cable message was referred to him.

"The United Kingdom market, although very large, is very sensitive to anything which is tantamount to an embargo on its products," he continued. "We always understood that the authorities in New Zealand were opposed to specific duties, one reason being that they could be construed as discriminatory by foreign, countries. It is very surprising, therefore, to find them extended to imports from the United Kingdom. The New Zealand Government has recently granted tariff concessions to about 22 foreign countries, and it is difficult to reconcile these concessions with the increased duties against the United Kingdom and other Empire countries. Outcry in the Past "Whenever there has been talk in England of restrictions on New Zealand produce to conserve the interests of English farmers there has been an outcry in New Zealand, in which Ministers of the Crown, who have begged that such restrictions should not be imposed, have taken part. Can we now wonder at the reaction shown in the cable message just received?

"We trust this boycott movement will not spread to other industrial cantres which have been affected by the increased tariff, and we hooe that the New Zealand Government will take immediate steps to reverse its decision, which might have such disastrous effects on the goodwill held for New Zealand by the many thousands of employees in the factories affected, most of whom are staunch buyers of our primary produce.

"No doubt the New Zealand farmers will watch the position with interest, as such a move gravelv affects them. Ail efforts to build up a marketing system in the United Kingdom could go for nothing if our customers are offended. This applies to trade between nations as well as trade between individuals. When you find individuals in a nation combining> in a concerted move of this nature as customers they must have the last sav, irrespective of what politicians mav say or do to the contrary. Chiefly Agricultural Country "The Government has decided to adopt higher tariffs as a policy, and this in spite of the fact that New Zealand is chiefly an agricultural and pastoral country, from which industries practically the whole of its wealth has been directly and indirectly obtained. It is indeed strange that in this country we find a Government without any land policy, and willing to sacrifice everv interest of the farmers to bolster up. secondary industries bv a svstem of high tariffs'". "While this policy is being carried ?u m - ? ew Zealan d, we find that the High Commissioner recently in Birmingham emphasised the "fact that one must buy where one «-»Us if continuity of reciprocal trade" is to be maintained, and vet because of this contradiction of ideas we have ships coming to New Zealand in ballast. Surely there must be a misunderstanding at one end or the other.

"ft .is being definitely recognised that it is an extension of the idn of intense nationalism that is causing so much unrest throughout the countries of the world. 'Here we have Ministers of the Crown preaching for reciprocity, goodwill, and co-operation over "the whole international field, and vet doing very thing to prevent the maintenance of the goodwill that has bee" built up in the past. "Other countries which in the oast adopted such measures have learned their lesson, and are now steadilv reducing their tariffs to stimulate trade. It would seem that New Zealand is not leading the w<~-rld in progress after all."