AN ISSUE IN EMPIRE ETHICS

Evening Post, Issue 50, 27 August 1935, Page 8

AN ISSUE IN EMPIRE ETHICS

The letter which he wrote to Mr. Baldwin and Mr. Baldwin's replyj which Mr. Co'ates read at Dargaville yesterday, on the question of a bilateral trade agreement between Britain and New Zealand raise interesting issues not only in Empire economic policy, but also in what might be called the ethics of Empire relations. After detailing how New Zealand had "played her part in implementing her Ottawa undertakings," Mr. Coates. in , his letter, said: . . '-,

At the same time I should like to raise with you a question that commonly arises when our trade relations with the United Kingdom are under .attention: Is it feasible or is it likely that in the measurable future it will be feasible for his Majesty's Government in the United Kingdom to contemplate a bilateral reciprocal trade agreement with-one Dominion?

Mr. Baldwin's reply to this particular point, inter alia, was:

With regard to the possibility of negotiating'a separate bilateral agreement with one Dominion, the position is that although we' are prepared to make (and did make at Ottawa) separate bilateral agreements with individual Dominions based on their special needs and ours, so far as the united Kingdom market was concerned, each participating Dominion at Ottawa got in substance the benefit of the concessions given to others. This followed mainly from the fact that the most important concession we gave each of the Dominions was the entry free of-duty into the United Kingdom for all goods covered by the Import Duties Act, so that there can be no question at present of placing tariffs on products from any Dominion. We are committed to this' principle for the duration/of the Ottawa Agreements. It is only for good cause shown that we should consider departing from it.

What was in.the mind of Mr. Coates was no doubt ..some form of quid pro quo arrangement of reciprocal trade by which New Zealand's special concessions to British imports, compared with the treatmen^ .accorded by some other Dominions, would receive concrete recognition under the British tariff. Mr. Forbes also made reference to this form of bilateral Empire free trade in his speech at Rangiora- last night and pronounced it, to be impracticable. Mr. Baldwin furthermore informed Mr. Coates that "an important question of principle of this kind could not be settled until there had been an opportunity to discuss it at an Imperial Conference." We have on several occasions expressed our owii view that a multiplication of trade agreements is a prolific source of friction, injurious to the Empire's ethical relations which are base"d on other grounds. If New Zealand carries out all her obligations, as she has done in the main respect faithfully, the good will thereby created will be found in the long run to be a sufficient reward.