PLANS FOR OTTAWA

Dominion, Volume 25, Issue 167, 11 April 1932, Page 8

PLANS FOR OTTAWA

New Zealand’s Trade PREPARING A CASE Currency and Banking JUNE SESSION UNLIKELY (By Our Parliamentary Representative) It is most unlikely at the moment that Parliament Will meet for the main session of the present year at Iho ordinary time in June. Although a definite decision on iho point has not yet been readied by the Government, it is understood to bo almost certain that the Prime Minister will find it impracticable to summon members in the middle of the winter chiefly on account of the Ottawa Conference which opens on July 22. The suggestion that the ordinary session should be postponed was made some time ago, an alternative to this course being that the present emergency session should be allowed to run into about May for the transaction of the greater part of the business the Government would have to offer, and that a short session should be held in about October after the return of New Zealand’s delegates from Ottawa. There is still a likelihood that, having put through the rest of its emergency legislation, the Government will see fit to let the present session run on for a time in order to clear the way for other business after Ottawa, although it is possible that Parliament will be called as soon as possible after the conference to clear up what would ordinarily be the whole year’s work. Choice of Delegates. Some Impatience is being, expressed in Parliamentary circles over the delay in selecting the Dominion’s representatives for the Ottawa Conference. The possibility is that two Ministers will go to Canada, but just who they will be Cabinet has so far been unable to decide, although it is understood the question has been discussed. The work of preparation is going ahead, but it is considered that the choice of representatives should be made at the earliest moment in order that those to comprise the delegation might at once come to grips with the’problems to bo raised at Ottawa so they will be in a position to present New Zealand’s views with authority. On this occasion the Dominion must go to the conference with a definite case. It is believed the Government realises this, and that it will not?be content to take part in the discussions in the spirit that New Zealand is ready to follow Britain’s lead without question on any proposal that might l>e raised. This bus been more or less the Dominion’s traditional attitude at Imperial Conferences, but this time the position is entirely different, for the future of the Empire’s trading relations is at stake, and each Dominion is vitally concerned in the outcome of the deliberations. Tariffs All-Important. While huckstering must be avoided, It appears to bo fully recognised by every Dominion to be represented that friendly bargaining will be essential at Ottawa. The question of inter-Em-pire tariffs will be uppermost in the discussions, and the conference must fail unless some finality can be reached on this all-important issue. No satisfactory conclusion on the point was reached at the Imperial Conferences of 1923, 1926, and 1930, although a notable effort was made by Canada in 1930 to secure agreement. Recent issues of British journals indicate, that political observers there are anxious that Great Britain should go to the conference with a constructive plan. They expect the Old Country to give a lead, but it will be equally Important for the Dominions to be prepared to accept this lead and to be in a position to carry forward the discussions with their own suggestions. New Zealand has already given a substantial measure of preference to British imports, but the chances are that if any agreement is reached concerning a general system of reciprocal preferential tariffs, this Dominion’s Customs tariff schedule will need revising considerably. There also arises the question of New Zealand’s trade treaty with Canada, whose draft was agreed upon nt Honolulu some months ago. This may be affected by the results of the Ottawa Conference, and for that reason its ratification by the two Dominion Parliaments may be withheld until after the Empire gathering. This opinion has been gaining ground among Wellington representatives of Canadian exporting firms recently, especially in view of the delay that has occurred in announcing the terms of the treaty and the opinions upon it of the respective Governments. It is known that cables are still passing between Canada and New Zealand. Central Bank Question.

Another important question upon which New Zealand’s delegates must be acquainted is that of a central bank as it applies to currency reform. The Government, has purposely delayed consideration of action on Sir Otto Niemeyer’s recommendation in this respect, but the question is becoming more important with the passage of time. Tn view of the trend of events it seems that the decision to delay action lias been wise, for Empire currency problems are now almost certain to come up for discussion at Ottawa. The Minister of Finance stated on Thursday that the whole problem of the price-level will be approached from an Empire standpoint if it is raised at Ottawa. All attempts to raise the price-level by international action had so far been unsuccessful, Mr. Stewart said, but concerted action on an Empire scale to raise the sterling level of prices of primary products might be possible,, and was the only thing that could relieve the burden of the external debt.

With this question must be wrapped up that of a central bank in the Dominion for. as was jminted out some time ago, the arrangement of interEmpire finance is held in certain financial circles to be best managed through a chain of central banks.