BRITISH MARKET OVERCROWDED

Dominion, Volume 27, Issue 187, 7 May 1934, Page 8

BRITISH MARKET OVERCROWDED

"Regulation Has to Come” MR. S. M. BRUCE REVIEWS EXPORT OUTLOOK By Telegraph—Press Association. Auckland, May 6. “I have enjoyed the privilege of a private discussion with your Prime Minister and his colleagues,” said Mr. S. M. Bruce after a conference yesterday. "It is not for me to give details, but where the London market for primary products is concerned Australia and New Zealand are facing common difficulties. . Our interests In many ways are very mutual.” Both Australia and New Zealand would have to face the situation that had arisen in England. Mr. Bruce continued, and he inferred that some measure of restriction of dairy exports to Great Britain was in his view inevitable. Great Britain was thinking not so much in terms of expansion of overseas markets for her manufactures, ■ but she was thinking definitely in terms of fostering her own agriculture .and giving her own farmers first consideration in their home market. Mr. Bruce made the point that Great Britain at present absorbed S 3 per cent: of the total dairy product exports of the world. “Free trade was an excellent thing for Britain when she was the workshop of the world,” Mr. Bruce said, “but those days are finished. Other countries are manufacturing their own goods instead of importing from Britain, and Britain finds she must adjust her general trading policy accordingly. Both Australia and New Zealand depend largely on the British market for their primary products. In many respects the British market is to them the world market. It is obvious that we are. vitally interested in the continued economic welfare of Great Britain.” Apart from the restriction of exports, there was one other .possible , avenue open to Australian and .New Zealand producers: that was to accept low prices, and to continue storming the market until even the lowest grades of margarine had been wiped out, necessitating the marketing of butter at about 4d. a pound. “Co-operation with Great Britain presents the logical solution to our difficulties,” Mr. Bruce said. “We need not fear the consequences. In some quarters in Australia I know there is an impression that Great Britain is out to ‘squeeze’ the primary producers of the Dominions, and I gather similar views are supported to a..certain extent in New Zealand. That is’ foolish.- It must be remembered that the expansion of British agriculture cannot go beyond certain welldefined limits. Great Britain has a comparatively small area and a dense population. The country cannot be turned into one large intensely cultivated farm.” Regulation had come. That point was strongly made by Mr, Bruce. It was not a question of it being forcedon the Dominions by Great Britain; it was a question of the Dominions having to adopt the principle in their own interests. Decisions on that principle could be followed by negotiations with Great Britain on the basis that, with the British farmer having his interest in his home market assured, the Dominions would ‘ receive preferential treatment over foreign producers. In Mr. Bruce’s view there was no likelihood of an early Imperial Conference to make fresh Imperial arrangements for the marketing in Great Britain of primary ’products. ? s far as he was concerned, he thought negotiations could be carried on through the various High Commissioners. He realised the dairy industry was probably of greater Importance to New Zealand than it was to Australia, but suggested that one gathered that once the basic, principle of regulation had been adopted, the various Dominions should be free to carry out their own negotiations and make their own mutual arrangements with the British Government. Meat exports provided another point in which both Australia and New Zealand were vitally interested. Mr. Bruce added that the present agreement for meat would terminate at the end of June, and a definite regulation of meat imports into the United Kingdom could be brought into force from July 1. Summed up, Mr. Bruce's views were that the position would have to be faced, without delay. The British market was overcrowded, and the Dominions apparently would bb well advised to accept some form of restriction and see to it. that their fair share of the reorganised British market was secured.