TRADE RELATIONS

Dominion, Volume 31, Issue 74, 21 December 1937, Page 12

TRADE RELATIONS

Australian And New Zealand Aims

INDUSTRIAL SURVEY SUGGESTED

Delegation Entertained At

State Luncheon

Co-oiwration between New Zealand and Australia in making an economic survey of the national secondary industry potentialities of the two countries was advocated by the Australian Minister of Trade and Customs. Lieutenant-Colonel the Hon. T. W. White, at a State luncheon yesterday in his honour and that oi the officials of the Australian Trade Delegation. He suggested that if this were done it might prevent overlapping in the industrial activities of the Dominion and the Commonwealth.

The Prime Minister, Rt. Hon. M. J. •Savage, presided at the function, which was "attended by Ministers of the ■Crown, Wellington legislators, departmental officials and others associated ■with the negotiations. Mr. Savage extended a formal welcome to the visitors, who were warmly greeted. The Minister of Finance, Hon. W. Nash, referred to the fact that Mrs. •White was a daughter of Alfred Deakin, a former Prime Minister of Australia. Alfred Deakin, said Mr. Nash, was to Australia what Joseph Chamberlain was to Great Britain. He was prominently associated with the early builders of Australia. Mr. Nash also recalled the extraordinary war record of Lieutenant-Colonel White. The delegation, he continued, had . come to New Zealand at the invitation of this Government to discuss the trade between the two countries, and to And out the goods that New Zealand could take from Australia that would not be harmful to any trade in New Zealand. There had been a lot of talk about the disparity of the trade balance between the two countries, and the fact that Australian exports to New Zealand totalled' moro than £5,000,000, whereas New Zealand sold to Australia goods to a value of about £1,500,000. When these figures were analysed it would be found that nearly one-half of the goods from AusItalia, were taken from Australia because they could not be obtained elsewhere, and one-third could not be economically produced in New Zealand. Then they found that, fairly large quantities of the goods imported from Australia could fairly well be made here. Request by Delegation. The members of the delegation had been very courteous. They conceded to New Zealand the right to say what goods should be made here, and what steps should be taken to ensure that they could be made here. “They never said that the tariff was too high,” said Mr. Nash. “They simply said that we are entitled by right to levy a duty on all goods that may come into this country and interfere with what might be called our secondary industries. They said: “We took that right, and we do not deny that right to New Zealand. We do ask that there should be no discrimination agianst Australia.’ ” Mr. Nash said that New Zealand could not reach its zenith if it confined its production to goods from the soil.’ Alongside the production of primary goods New Zealand should develop its secondary industries. The Government had decided that the Dominion should be a producer of primary and secondary commodities, and the -step that was being taken at present was to negotiate to find out how that end could be achieved. He believed that they could succeed. During the next month or two one or two important factors in connection with world relations would arise, and New Zealand discussions with Australia would have a little effect on world conditions. He was speaking of the efforts of Great Britain and the United States of America to come to agreement whereby the produce of those amazing areas should be made available to each other with the least possible barriers. He believed that as a result of these negotiations success would be achieved far in advance fo the original ideas. They wanted so to organise the country that certain commodities made by New Zealand might be made to the maximum extent and would entail less coming from Australia to compete with what they were making in New Zealand. The Australians were not too happy about it, but it was felt that something might be done to divert trade to the United Kingdom. The Australians were not complaining abotit that. All they asked was that a procedure should not be followed which would result in the diversion of trade from Australia to countries outside the United Kingdom. Pleasure and Friendship. “This is not only a trade visit but one of pleasure and friendship too,” said Lieutenant-Colonel White. “I can echo all that Mr. Nash has said when he emphasised that we should get closer together in ail our affairs. I knew that we were up against a pretty tough proposition in coming here. It is strongly believed in Australia that you are all Scotsmen here, and in our sub-commit-tee deliberations we have found that beyond doubt there is a Scottish streak, even if some members of the committee were designated by Hibernian names. “We are the same people. I do not know of any other parts of the world where there is such a similarity between people as between Australians and New Zealanders. We are a strange amalgum of the overflow of Great Britain, but we are still part of a great Empire, and while we may have differences they occur in any family and surely can be overcome. What are potatoes and oranges compared with those Empire ties? Surely those problems can be solved. We may have different forms of Government too, and each of us nyiy imagine that we are doing something in our own way to create a happier world State, while in the long run we are adopting different ways to attain the same end. But we have to deal with problems as they arise. The Governments have fo deal with actualities.

“I have been told that there is antipathy to Australia in New Zealand, but, J have not found any of it,” continued Colonel White. 'There is certainly none in Australia toward New Zealand. The two countries have a lot in common. We have the same in common when it comes to defence. It would be wrong to imagine, as it would be wrong for Australia, that this beautiful Dominion could be free from outside menace. The defence question alone should bring our two countries together. We are the two countries which of all that are neighbours in any sense can help each other in this pari of the world.” Colonel White said that Australia had endeavoured to build up its strength by the development of second-

ary industries. It was good to see that New Zealand was doing the same thing. But it was another thing to encourage such industries wisely, or to do it recklessly. Australia had endeavoured to achieve that end by the use of skilled advise, particularly through the guidance available from the. Australian Tariff Board. It was important for Australia to realise that New Zealand was its only export market for its secondary products. “Your lines and ours are very akin on the primary side,” Colonel White said, “and overseas we are practically competitors. We would like to see you build up your secondary industries, but we are glad to have it from Mr. Nash that in such steps as you will take there will be no discrimination. "I hope that I can suggest that, not only should there be an exchange of Ministers between New Zealand and Australia, but we might also collaborate in an industrial and economic survey. I think, for instance, that it would lie unwise for this Dominion to develop some industry at the expense of Australia. It might not be wise for New Zealand to develop some industry if that industry could be developed in another Dominion to the greater advantage of all. On the other hand, I feel sure that Australia would collaborate in investigating the possibilities of developing some resources in New Zealand which for obvious reasons, perhaps, could be better handled here than in Australia. In this way both countries can be made strong economically.”

Colonel White emphasised that New Zealand was obliged to see that her tariffs with the United Kingdom were at the lowest level, and that discriminatory tariffs against Australia, while designed to help Great Britain, might arouse keener competition from other Dominions or Empire countries. All such problems could be met by negotiation, lie said, but it ought to be toward securing a greater value of trade and not to seeing whether there could be more or less trade. He hoped in the near future, not only that the Prime Minister would visit Australia, but that his suggestion for economic collaboration would be carried out