QUOTA PROBLEMS

Evening Post, Volume CXVIII, Issue 51, 29 August 1934, Page 10

QUOTA PROBLEMS

SHEEPOWNERS' VIEW

DIFFICULT ALTERNATIVES

MAEKET IN T AMERICA '?

The serious problems which-face the primary producers of New Zealand were discussed by the president <Mr. IT. D. Acland) at the annual meeting of the New, Zealand Sheepowners' and Farmers' Federation held in Welling-, ton yesterday. \ .. . • ■■ '■'.;.-'■

"To my mind," he said, "the most difficult problem facing us .at the moment, is that of the. 'policy of', exelusiveness adopted' by countries who previously allowed tlie "importation of our products, but who in recent years, owing possibly to stress, of economic circumstances, in. most: cases, and to-an evident desire in others to return:- to a condition' of national self-sufficiency, are apparently determined to, ; as far as possible, curtail imports /from- other countries to a, minimum. ■ ■ •■ .

"The attitude of our federation iii connection1 with this restriction' of ■im« ports so plainly stated .before '\ the' ,Ot-> tawa Conference. was held,. has ■ bee" 4 fully justified 'by. subsequent;, events, and today a most disquieting'situa'tion has been reached as between; ourselves and our principal , customer,. Great 1 Britain, as a result of the quota system introduced at Ottawa. It would appear that in its anxiety to assist "the British farmers, the Imperial .Government has lost sight of ,the necessity for maintaining the food supply of Britain as far as possible from Empire sources. ARGENTINE AND , DENMARK. "The reciprocal trading anaugements made with the Argentine mid Denmark since the Ottawa Conference arc cases in poiut. As a result^ of these, the Argentine has beeu given practically Dominion status, but without the obligation which the Dominions have been glad to shoulder in the past r of being considered part of the great British Imperial family, in times Of both war and peace. The result, ofi the continuance of the policy of ..restriction of, quantity of primary., produce from countries such as. ours'to the British market will, in my opinion, be disastrous not only to.New Zealand producers, but, taking the long'view, may possibly become equally so to Britain, as the. Dominions will-. be> forced to attempt a policy of self-pre-servation, through reciprocal trada treaties with foreign, countries. "This will mean, if forced to 'it, that we must, to a certain' extent, givo preferential treatment with regard t« tariffs to foreign countries as an in- . ducement to them to take that proportion of our primary produce which Britain refuses to admit. This will ineaii that it will be much more difricult for the British manufactuier to hold the Dominion markets.for British cxpoits, and apart entirely from;any question of Imperial sentiment, aud •viewed solely tioin a business viewpoint, will, in the long run, be mutually; disastrous to the Dominions and Great Britain herself. WEAKENING THE BONDS. "Impeiial unity appears at th<* ■ moment to be at a discount, but T nun afraid there is grave risk of the Dominions being antagonised by an economic policy which, taking, the lonji view,' must have both political and social reactions on relations^ botweeni countries comprising the British Commonwealth. "It must surely be obvious that*' there is a limit to which British agriculture can be encouraged by subsidies and lestriction of competition, as I ho. consumer in Britain must find the cask for the subsidy or the increased price being aimed at for food'products,'and. his'ability to pay .this will be measure! by the amount of overseas trade wliick can be maintained by Britain for'her , manufactured goods," continued Mr< Aclaud. "Overseas.interest payments must be lowcicd .as a result of the present. British policy, ovciscas puichasing power must be reduced in proportion, while British shipping and financial interests must ultimately faco a drastic readjustment. If Britain refuses imports, theu she cannot expoit. However, if Mr. Elliot's policy is persisted in, it would appear to be'necessary for us in New Zealand to rpadjust our ideas, at least in the meantime* with regard to our exports of meat and dairy products." There would appear to bo' two alter-, natives, said the president, first.-lw explain to Britain New Zealand's position with respect to the possible .inability to moot debt service commitments except by the expanding of out-' put of primaiy pioduce, and the second was for produceis in"the.Dominion to meet the situation as far as possible, with a view to giving the British Government every chance fo trying out its new policy, by endeavouring to reduce the -weight per carcass for export to an average which would take up the , margin of gross-weight by which exports were required to be reduced under the British policy. , MARKETS ELSEWHERE. Mr: Acland suggested that the latter course might be worth consideration by producers, and added that the 'only; other alternative appeared to be that New Zealand should endeavour to ppeu markets outside' Britain, in that respect referred to the interview which the Prime Minister had bad with Mr. Boosevelt and his colleagues following the Economic Conference, at which, time the United States law prohibited the making of trading agreement.* with foreign countries for the jrnporta« tion of foodstuffs into America. Sine* their visit, legislation had been passed in the States authorising the -President: to enter into such agreements. 'Until' the British Government had decided to what extent it intended to restrict imports New Zealand could not know howmuch margin might be exported toother countries. "I hope," said Mr. Acland, "that our federation will urge upon our Government the necessity, following the ratification by Parliament of the new tariff schedule, for giving serious consideration to the advisability of uhmediately sending representatives to the United States, with a" view'to arranging, if possible, for reciprocal trade relations to be established between fhe Dominion and the States."

Mr. Acland remarked, however, that there were many difficulties to be overcome before such an agreement oould be established.