COMMON ACTION

Dominion, Volume 25, Issue 276, 17 August 1932, Page 9

COMMON ACTION

Mr. Coates States the Case for the Quota OFFER OF PREFERENCE to A direct offer to extend greater tariff preferences to Great Britain, and a firm belief in the application of the quota system to imports into Great Britain, constituted an important part of the speech delivered by the Rt. Hon. J. G. Coates, leader of the New Zealand delegation, at the opening of the Ottawa Conference on July 21. The text of the speech was received by mail yesterday. “To ensure the ' satisfactory settlement of our major problems, we recognise that world recovery is necessary; I and we are unwilling to suggest remedial action for ourselves which would prejudice general recovery,” Mr. Coates said. “We recognise, too, that however much we may foster intra-Emplre trade, exporters of the United Kingdom and of other parts of the Empire must still look to foreign markets to absorb much of their output. The freeing of trade from restrictions recently imposed by foreign countries is therefore a pressing necessity. Need for Common Action. “Nevertheless the most urgent task of the moment, and the one with which we are immediately concerned, is the rehabilitation of trade and industry within and among our own countries. It is in the faith that, by comon action we can serve our mutual interests, that we enter upon this Conference. This is, after all, a British Empire conference. Although our special concern Is thus with our own countries and we seek within them to reverse present disastrous trends in prices, our objects are in no sense detrimental to general world interests. Ou the contrary, steps toward recovery in our Empire are also the most effective contribution we can make toward general recovery. We look, then, in the first place to the stimulation of Empire trade. “My first reference to tariffs and preferential arrangements is to extend to his Majesty's Government in the United Kingdom the grateful thanks of New Zealand for the concessions granted under the tariff which came into force in March of this year. To an extent that was greatly appreciated, the products of the Empire were exempted from the revenue tariff then imposed; and this, we feel, marks the beginning of a new era in Imperial trade. The Secretary of State for the Dominions was good enough in the midst of pressing duties In Geneva to consider the special representations made by New Zealand in connection with the tariff. To the Government and the people of the United Kingdom we wish to express our gratitude. Margin of Preference. “For our own part, as I have indicated, tariff preferences already granted by New Zealand extend over the major part of our imports. We are prepared to go further. We will proceed by l reducing where possible the rates of duty on British goods, and in certain cases we will increase the rates on foreign goods. This will Increase the margin of preference for British goods. Moreover, as an earnest of our desire to facilitate commerce generally, we will reduce also the general or non-preferential rates on many other imports upon which we are prepared to reduce the corresponding British rates. “It is our, sincere desire that his Majesty’s Government in the United Kingdom will be able to increase the preferences already granted on Empire products, and to consider the feasibility of extending them to products which are not now Included. New Zealand is particularly interested in meat and meat by-products. I take it that details in applying the principle of reciprocal tariff preferences will be considered in committee as this Conference proceeds. “Experience has proved beyond question that tariff preferences are a valuable instrument in stimulating Empire trade. Their influence is, however, expressed in long-term trends; and it is we think necessary that, in the present emergency, they should be aided by some more direct means. Foreign Import Quota. “For this reason we support the proposals that have been made for the judicious application with respect to selected commodities, of the principle of the quota to govern the importation of non-Empire products into Empire markets. In no case do we think the quota, or quantitative restrictions, should apply to products of the Empire; but the end can be best achleed by taking power to restrict the volume of foreign imports. This is an unusual course, but prevailing conditions are so highly abnormal that we are forced to regard it as necessary. With the dislocation of trade, we have all the elements of uneconomic dumping by foreign countries of surpluses at prices regardless of costs of production. At the appropriate time we shall be prepared to discuss the application of the principle of the quota to selected articles of Import into New Zealand. “New Zealand is concerned at the

threatened flooding of the markets on which we rely; and in respect to dairy produce, meat and fruit we think that a quota on imports from foreign sources into the United Kingdom is urgently necessary.’ In offering this opinion we are aware that the paramount consideration of his Majesty's Government in the United Kingdom must be the welfare of their own citizens, both as consumers and as producers. We are convinced that the quota can be applied without injury to their interests; and indeed, that while the Interests of the consumer are safeguarded, the home producer can be materially assisted. “The further discussion of Import quotas may presumably be postponed until a later stage of the Conference. For the present the New Zealand delegation gives its full support to the general principle, viewing it as an emergency measure designed to tide us over this abnormal period.”