BRITISH MARKET

Dominion, Volume 29, Issue 150, 20 March 1936, Page 11

BRITISH MARKET

Larger Share Likely For

Dominions DAIRYING PRODUCTS Anglo-Danish Discussions Collapse Bj’ Telegraph—Press Assn. —Copyright. London, .March IS. Tlie “.Sun-Herald” news agency understands that in connection with the renewal of the Ottawa dairy products agreements the British Government contemplates giving tlie Dominions, particularly Australia and New Zealand, a larger share of the imports of dairy products as a result of the virtual collapse of the Anglo-Danish discussions, coupled with the astonishing trade treaty just concluded by Denmark with Germany. The Danes are now consulting rhe Government after declaring that it was impossible even to consider Britain’s proposals. They have submitted alternative suggestions, which are not acceptable to the British Government, which declares that at the present time it is useless to proceed, as no useful purpose is possible. The agreement between Germany and Denmark compels tlie Danes to purchase an additional £3,500,000 worth of German manufactures, ir. exchange for which tlie Germans will buy an extra £3,500.000 worth of Danish produce. BETTER PROSPECTS Mr. Savage Enthusiastic NEED FOR CONSULTATIONS Tlie possibility of the Dominions gaining a larger share of Great Britain’s dairy market in tbe near future was welcomed enthusiastically by the Prime Minister, Hon. JI. J. Savage, when the above cablegram was referred to him last evening. “I think it is splendid that the Dominions should be brought closer together in the matter of trade,” .Mr. Savage said, “and that tbe British Government contemplates giving the Dominions a larger share of its import market. If we are going to discuss preferential trade within the Empire, this is the sort of tiling that must happen. There is no use talking of mutual trade within the Empire and then working out agreements with other countries. That certainly is not helpful.”

Mr. Savage said the new viewpoint of th e British Government, brought about apparently by a breakdown in the negotiations with Denmark and by the latter country’s recent trade agreement with Germany, strengthened his view that there should be permanent facilities for Empire discussions on trade matters. Tbe different countries of the British Commonwealth ought to be in a position to discuss matters at any stage. The setting up of something in the nature of a permanent Empire council could remove many of the difficulties which were at present encountered. It was not yet clear, Mr. Savage continued, whether New Zealand would be invited to participate in a conference on the future of the British dairy market. The belief iu the past had been that the whole subject would come up for discussion at the expiry of tbe British Government’s agreements with Denmark and the Argentine. Both these agreements expired this year, but so far no invitation had been received by the New Zealand Government to make any representations regarding the future. It was not known whether some form of conference might be called this year or whether the whole matter might be held iu abeyance until next year, when the coronation of King Edward and the holding of an Imperial Conference would menu the presence of a large gathering of Empire statesmen in London. “At present the situation iu Europe overshadows everything,” Jlr. Savage concluded. “The British Government has kept us closely informed of all developments and it seems to me that one result of it all w.ill be that all the countries of the British Commonwealth will be brought closer together.” OTTAWA AGREEMENT Three Years’ Freedom From Duty or Quota CONFERENCE POSTPONED Dairy produce from New Zealand aud the other British Dominions has been catering Great Britain under tlie Ottawa Agreement duty-free aud without quantitative restriction. These rights under the agreement expired last November, and a conference was to have beeu held ■ between Dominion representatives and.the British authorities in London at Hie end of the present mouth or some time in April. In view of tlie extension of the milk subsidy paid (o Home producers under the .Milk Marketing Act, however, this conference has now been postponed indefinitely.

Under the Ottawa Agreement loreign dairy produce entering Great Britain was subjected to a duty of 15/- per cwt. on butter and 15 per cent, ad valorem on cheese. Free entry for Empire .dairy produce was guaranteed I'oi three years from November. 1932. However, the British Government “reserved to itself the right after the expiration of the three years, if it considers it necessary in the interests of the United Kingdom producer to do so, to review tlie basis of preference and, after notification, cither to impose a preferential duty on Empire produce, while maintaining existing preferential margins, or Io put into operation qurintilative regulation of all supplies.” During 1933. tlie British Government, at the instigation of its farmers, sought to obtain voluntary restrictions of expoets from the Dominions, but it was not successful. In the same year Britain entered into agreements with foreign dairy producers, the general undertaking being that there would be no quantitative regulation unless the Dominions were brought in, and that the existing duties as set out in the Ottawa Agreement, would not be increased. The Danish Agreement was signed in April, 1933, and is for three years. Consequently Britain cannot increase, except by arrangement, the present duty on Danish butter, and as the margin of 15/- per cwt. must be maintained in favour of the Dominions during tile five-ygar term of tlie Ottawa Agreement, it follows that Dominion produce must be duty free until after next month at least. If Denmark sends greatly increased quantities of butter to Germany it is reasonable to suppose that less will bo sent to Britain, thus relieving to

some extent the pressure on the Home market and possibly milking it less likely that Britain will feel tlie need of imposing a duty or restrictions on Dominions produce. From the information contained in the above cable message discussions have apparently been taking place between the British and Danish authorities in view of the fact that the period of the threeycar treaty between the two countries lias nearly expired. Representatives of the dairy trade in Wellington have no information concerning the agreement reported to have been made between Denmark and Germany other than that referred to in the cable, although it has been known that negotiations have been proceeding between the two countries.