“N.Z. Mutton Trade With Canada Increasing”

Press, Volume XCVII, Issue 28766, 11 December 1958, Page 18

“N.Z. Mutton Trade With Canada Increasing”

. (New Zeeland Press Association) WELLINGTON, December 10. New Zealand’s trade with Canada in mutton and lamb was increasing as a result of action taken at the Commonwealth Finance Ministers’ conference in Montreal earlier this year, said the Prime Minister of Canada (Mr Diefenbaker) at a press conference at Government House this morning.

One of the principal' purposes of the Commonwealth conference. which he had helped to convene, was to encourage Commonwealth nations to extend trade between the eouittries of the Commonwealth, he said. At Montreal many changes had been made in existing arrangements in order to increase Commonwealth trade. As far as New Zealand’s trade with Canada was concerned, it had been decided that some action should be taken. It had been agreed to bind Canada against any increase in the tariff rates on mutton and lamb, which ranged from half a cent to one cent. The result was an evident increase in New Zealand’s export of frozen meat to Canada, said Mr Diefenbaker. For the first six

months of 1957 the total had been 2775 tons, but already in the first six months this year that figure had materially increased. The preservation of the present tariff for New Zealand meant that the market in Canada was assured for many years to come. Butter Surplus On the subject of the Canadian butter surplus, which was reported in a cable message yesterday as likely to be 60 million lb, Mr Diefenbaker said he did not think the disposal of that would be allowed to affect the markets of others. Under the Canadian system a considerable portion of the surplus would probably be consumed in Canada. At the Montreal conference, the question of the disposal of surpluses had been discussed at length, he said. * The aim was to find a means of disposal that would not interfere with the commercial markets of other countries, and it had been suggested there should be the fullest consultation between the parties likely to be affected before any action should be taken to dispose of surpluses, he said. A suggestion he had made, which the conference had not accepted, was the setting up of a food bank so that there would be supplies for needy countries of in the case of war. That might prevent surpluses hanging over the normal markets as a serious, potentionl source of competition. In addition, the defence objective would be achieved, as those amounts of food would be in storage. A similar scheme had been suggested by the Food and Agricultural Organisation in Rome but had been rejected by the Soviet countries. The merits and demerits of the scheme were at present being evaluated by experts and economists, Mr Diefenbaker said. Such a scheme would be particularly applicable to wheat, of which Canada had a 700 million bushel surplus. It was comparatively indestructible, so it could be stored, and thus would be removed any threat of uneconomic action to the detriment of other producers. Tourist Trade Mr Diefenbaker could think of no particular moves to expand the tourist industry between Canada and New Zealand. He thought the industry, not just in New Zealand, but throughout the world, should receive more widespread encouragement than it had been receiving. The increasing desire oi people to travel made it necessary for such countries as New Zealand, with such a tourist potential, to extend action to attract tourists. There was no reason why the tourist industry with Canada should not be increased, but New Zealand was handicapped by being a little out of the way of the main stream of world traffic.