EMPIRE GO-OPERATION

Evening Star, Issue 21138, 25 June 1932, Page 3

EMPIRE GO-OPERATION

IDEALS FDR DTTAWA THE PREMIER'S AHALYSES [Per United Press Association.] WELLINGTON, Juno 24. The Prime Minister (the Rt. Hon. G. W. Forbes) issued the following statement to-night on the Ottawa Conference:— “ The ideal of strengthening the Empire has been the foremost aim of the leaders of public thought in all parts of our Empire. It is an ideal that depends for its stroii;,di in the main on sentiment, on ties of kinship, common institutions, and the common conception of justice and government. Supplementing these is the knowledge that the material interests of the peoples in the constituent parts of the Empire are best served by their standing together in making reciprocal concessions in matters of trade policy. It is in recognition of these facts that we approach the Imperial Economic Conference of 1932. “ Matters which (as announced to date) are to be discussed during the forthcoming Imperial Economic Conference at Ottawa have been under detailed study by a committee of Cabinet, and have had extended consideration by Cabinet. _ Very briefly New Zealand’s attitude is based on the belief that the constituent members of the British Commonwealth of Nations can make arrangements in trade and other economic affairs which will bo to the material advantage of all, and that the severity of the present depression renders it a matter of first urgency that advantage be taken of these possibilities. “ Since the Imperial Conference of 1930 adjourned with the understanding that it should resume in Ottawa changes of great moment have taken place in the economic and financial situations. Great Britain has imposed duties on certain products of foreign countries, including butter, cheese, fruit, flax, and tallow, and has withheld the imposition of these duties on dominion products until November 15

of this year. This grant of tariff preference, temporary though it is, opens up new and valuable prospects for the exporting countries within the Empire. “ Since the 1930 conference, too, and by reason of the acute financial depression, currency questions have assumed outstanding importance. The agenda for the Ottawa Conference covers a wide range of economic and related problems, trade and tariff policies both within the Empire and between the constituent parts of the Empire and foreign countries; transport and communications, including shipping, postal, cable, wireless, and broadcasting; and monetary and financial questions with the restoration and stabilisation of a satisfactory general price level.

“ From this summary it will bo seen that the deliberations of the conference are charged with the highest importance to Now Zealand. It seems clear that the reason for the concession of the Imperial Parliament in withholding duties on the dominion products referred to was to afford an opportunity for discussing the matter with the dominion Governments with a view to the further development of inter-lmperial trade. Therefore the Ottawa Conference will be concerned with exploring methods for enabling an increase in the quantities of Empire goods to be used to supply the British market, and on the other hand for further facilities being afforded British goods to enter the dominion markets. For this purpose the New Zealand Government has collected full information from the exporting interests in Now Zealand as to the various ways in which their present share of the British market can bo conserved and extended. There are, of course, several methods by which this can be done if acceptable to Britain. Among these are the maintenance and extension of the preferences at present granted by Britain, and the further opening of the United Kingdom market by the regulation of importation of foreign products into that country. “ The export trade of New Zealand with the other dominions is likewise a very important matter for this country, and the conference will afford an opportunity of reviewing and discussing our mutual commercial relations. So far as Great Britain is concerned it is clear that if the Imperial Government is to grant further facilities for the encouiageraent of New Zealand and other dominion trade by way of tariff changes or other means, reciprocal advantages must be accorded by the dominions to the exports from the United Kingdom. New Zealand has already gone a very long way in that direction by granting tariff preferences to the United Kingdom and other parts of the Empire. The Government, however, is satisfied that there still remains a relatively targe field for economic co-operation, and it thinks that the concessions it is able to offer will be sufficient to place New Zealand in a most favourable situation in discussing the matter with the Imperial authorities. “ The view of the New Zealand Government is that the Ottawa Conference should be approached in a spirit of mutual co-operation, and not from the point of view of mere bargaining or the fine balancing of the advantages that can be accorded by one unit of the Empire to another. “ With' regard to currency matters it i; recognised that the problem of how to raise the price level to a point that will restore a reasonable measure ot prosperity is one of acute urgency. Unless a practical solution of this problem can be found it does not appear that any increase in trade facilities can by itself save the situation, or put the farming industry on its feet. Therefore it is hoped that the expert knowledge that will be available at Ottawa /will ■result in some practical moans of stimulating the purchasing power and raising the sterling price level, even although wider international problems may have to be dealt with at a further lonference which has already been sug gested by the Prime Minister of Great Britain.

“ There are also other important items on the agenda paper dealing with shipping regulations and other matters which tho New Zealand delegation have discussed with their colleagues. It is a matter of general agreement that tariff barriers, rising higher as they have since the war, are the cause of tiade dislocation and the depression. We welcome any promise of lessening the restrictions so as to permit of a freer exchange of goods in the norma, course of trade. If by mutual agreement we now seek to move toward a greater freedom of commerce over onefourth of the world, this is in no sense antagonistic or detrimental to the interests of other nations, but on tho contrary can well be a step toward the general end which we desire.”