NEW ZEALAND'S PART

Evening Post, Issue 50, 27 August 1935, Page 10

NEW ZEALAND'S PART

A BILATERAL AGREEMENT?

EFFORTS IX LONDON

(By Xelegr.-iph.-'-.Press Association.)

DARGAVILLE, August 26.

The Rt. Hon. J. G. Coates, Minister of Finance and member for Kaipara, arrived at the headquarters of his electorate today, and was welcomed by the Mayor of Dargaville (Mr. F. A. Jones). He concluded a busy day with a public address to a crowded audience op. similar lines to that delivered at Wellington on his arrival last week, when he spoke on the successful loan conversion, the meat conference agreement as far as it was completed, and, as fitting in a dairying district, enlarged somewhat on his remarks made in Wellington on the subject.

Mr. Coates Reviewed the Government's efforts to counteract the effects of the depression. These efforts had been successful, as at the end of four years public finance had been adjusted, and unemployment had been reduced from 75,000 in 1931 to 57,000 today. They were also able to make a restoration of 5 per cent, in salary and wages cuts.

The steps that were being taken to find a market -for boneless beef and bobby calf, which were one of. the dairy farmer's sidelines, were outlined by Mr. Coates. The price might be low, but it seemed there was every prospect that the negotiations to dispose of these products would be successful. , • ■ . LETTER TO MR. BALDWIN. Mr. Coates read a letter he had sent while in England to the British Prime Minister, Mr. Stanley Baldwin, regarding a bilateral agreement, and said that a conference he had had with Mr. Baldwin, Mr. J. H.- Thomas, Dominions Secretary, and others on the questions raised in the letter showed clearly that nothing could be done in this connection until an Imperial Conference was held. :;..■• Mr. Coates's letter, to Mr. Baldwin was as follows:— "For some two months, as you know, we have been in touch with Ministers of his Majesty's Government in the United Kingdom, mainly in connection with meat, though, some incidental, and to us highly-significant, references have been made to dairy produce also. To the substance of the discussions which now seem fortunately to be nsaring finality X do not wish to refer here in detail. There is, however, a wider aspect on which if it is possible before I leave for New Zealand—and this would necessarily mean within the next week, for it -is a matter of pressing urgency for me to get away—l am most anxious to see you with, perhaps, some of your colleagues. What I have in mind is, to put it frankly, the evident abandonment or reversal of the general Ottawa policy which was so definitely expounded on behalf of the United Kingdom and accepted by us in 1932. That policy, as I understand it, looked to a conscious raising of the.general price level, and an endeavour to correct the maladjustment between agricultural prices and industrial prices was implicit in it. The policy according to a statement made to us at Ottawa by the Chancellor of the Exchequer (before the monetary and financial committee), and according also to later communications to our Government (your cablegram 6f December 22, 1933, for instance), involved where necesasry a measure of supply regulation. New Zealand, I think I may fairly say, has played her part in implementing her Ottawa undertakings by preserving and still further reducing our exceptionally low level of tariff with substantial preference, to British goods, and so far as the new economic policy of the United Kingdom called for change in our internal and our export policies we embarked upon the necessary measures of adaptation. Now it seems that we are witnessing a material change in the United Kingdom policy, a change the implications of which deserve very anxious consideration.' This in essence is my reason for asking to see you, so that I might at least return home with a clear understanding of the position. 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? This issue is one, I appreciate, which inevitably involves many considerations/Its pros and cons I need not attempt here to state, nor do I ask for a written reply in advance of personal discussion, which I hope you will be able to-arrange, but I can assure you that it would be most helpful to us in New Zealand to have as clear a definition of the position as | you can give us. If you are able to give me a little time, and your secre-. tary would advise mine of a date suitable to you, I would be grateful. My present plans are to leave England about a week hence. I had intended to' sail today, but it was made clear to me that my leaving before some finality had been reached would be undesirable." POLICY STILL OBSERVED. Mr. Baldwin's reply was as'follows:— "I am writing to confirm the result of our discussion yesterday and give you, as I promised, the views of the United Kingdom Government on the points raised in your letter of July 10 with regard to your inquiry as to the efforts to raise the world price levsl of primary products. I desire to make it clear that we have not in the least abandoned the policy enunciated at Ottawa, as you will be aware. However, we have found it necessary to change our methods of pursuing that end. 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 benefit 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 tha United Kingdom for all goods covered by the Import Duties Act, so that there can be no question at present o£ 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. In any case it seems to us 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."

Mr. Coates, who is suffering from a heavy cold, had to cut his speech short. He appealed to all to sink political differences and pull together for the good of the country.

The meeting closed -with a ysteoJ;

thanks for his efforts in London on behalf of the New Zealand producers, and a vote of continued confidence in him as member for Kaipara.