Evening Post. MONDAY, AUGUST 16, 1937. WHAT ARE THE RESULTS?

Evening Post, Volume CXXIV, Issue 40, 16 August 1937, Page 8

Evening Post. MONDAY, AUGUST 16, 1937. WHAT ARE THE RESULTS?

The Minister of Finance and Marketing, Mr. Walter Nash, has returned to New Zealand,after ten months' absence. In that time he assisted in representing the Dominion at the Imperial Conference and conducted negotiations with Ministers of the United Kingdom for a trade agreement. Further, he visited the Continent of Europe and America to discuss trade. The results are not complete, for Mr. Nash states that negotiations are still continuing with Britain. Further, we may expect that agreements will be made sooner or later with other countries as a result of the discussions begun by Mr. Nash. But it is fair to assume that the Minister, in the comprehensive survey he has given, has acquainted us with his principal achievements. These are the conclusion of agreements with Britain for beef, mutton, and lamb, and pork and bacon,imports, and a tentative agreement with Germany. The agreements with' Britain allow for an increase in meat exports from New Zealand this season with future allocations to be decided by negotiation and there is a guarantee of freedom from a meat levy for the term of the agreement. No agreement has yet been made concerning dairy produce. Considering these results fairly and impartially we can see in them no difference from the agreements which a Minister of any other Government could and would have made. Indeed they follow very closely on the lines of the agreements previously made by Mr. Coates on behalf of New Zealand. We do not say this in disparagement of Mr. Nasn's work. No Minister could have worked harder or more earnestly to achieve his purpose. British references show that his knowledge and zeal proved impressive. But what is the conclusion that he has come to? It is stated in his own words: "Until the United Kingdom decides as to its dairy produce import policy, it will not be possible to decide New Zealand's position. In the meantime the situation is satisfactory." Britain has not been prepared, in fact, to commit herself to acceptance of the whole of the dairy produce exported by New Zealand under a guaranteed price system. The present position, Mr. Nash states, is that the New Zealand Government, is investigating the commodities that can' be imported from the United Kingdom without ill-affecting New Zealand's manufacturing economy and that the United Kingdom's policy with regard to New Zealand's imports will be determined when the United Kingdom's agricultural policy has been finalised. , There is, therefore, no complete agreement. The quantities of produce of various classes to be admitted will be fixed by negotiation from year to year. The quantities fixed for meat this season permit an expanded supply, but there is no guarantee of further increases. So far as dairy produce is concerned, we have hopes of freedom from a levy, but no assurance and nothing has been determined about quantities. It is abundantly plain, therefore, that the Minister has not concluded the type of agreement to which he optimistically referred when explain- ' ing the Primary Products Marketing 1 measure to producers and to Parlia- '■ merit. The Minister was warned by Mr. Coates, speaking from his own experience in negotiations, of this possibility, Mr. Nash replied: We hope to convince those in other countries that the road we are trying ' to travel will be beneScial to them as well as to us. I honestly believe that the authorities in the Old Country, when they see the road we are going, will be willing to discuss and negotiate the bilateral agreement which the honourable member for Kaipara said .is not possible. I think it will be possible to do that, because it will be : beneficial to Britain as well as our- ; selves. : Addressing producers Mr. Nash went even further than this and spoke of : the type of agreement that could be '. made. They could say to Britain: • "If you take all our produce we will r take, for instance, all your cotton t goods and none from Japan." 3 No such agreement has been conI eluded. The New Zealand Govern- , ment has found, indeed, that those . who said such an agreement was impossible were not just pessimists. • They were stating facts. The Mm!- --! ister has discovered that the United [ Kingdom's agricultural policy is not • finally determined. He encountered t a main difficulty in "the reluctance ' of the United Kingdom Government tto admit expanding quantities of ? the Dominion's primary products. Negotiations are now in progress for > the same form of agreement on ex- ■ ports and imports as would have been negotiated, and was negotiated, » by the preceding Government. We s do not suggest that Mr. Nash's time • was wasted in learning this, or that j the Government was not justified in • sending him to Britain to see'if more I could be done than was done by its i predecessors in office. But the fact c is patent that the great marketing " and guaranteed price plan cannot 7 now be based upon all-embracing re- • ciprocal trade agreements. We shall c wait with interest to see what effect a this has upon the Government's mart keting policy and plans. Obviously ? it must have some effect for prices cannot be guaranteed unconcernedly with no guarantee at the market end.