DAIRY POLICY

Evening Star, Issue 21710, 3 May 1934, Page 6

DAIRY POLICY

MR BRUCE AND NEW ZEALAND MINISTERS THE POINT OF CONTACT FUTURE NEGOTIATIONS- WITH BRITAIN [Special to the ‘ Star.’] WELLINGTON, May 3. The brief conference of the Australian High Commissioner, Mr Stanley Bruce, with New Zealand Ministers during the short stay of the liner Monterey in Auckland on Saturday is likely to be confirmed to dairy policy questions. It is the intention of the Prime Minister and the Hon. Robert Masters (Minister of Trade and Commerce) to go to Auckland, and the Rt. Hon. J. G. Coates (Minister of Customs) will also participate in the discussions. It there is time, no dpubt questions relating to mutual trade relations between the Commonwealth and New Zealand would be raised, for it is an interesting fact that the Commonwealth is still, anxious to revive this subject, though it was very exhaustively discussed when the treaty was revised on the occasion of Mr Massey Greene’s visit last year. Australian producers are concerned over lessened Imports of Australian flour into the dominion. Our importers have preferred to take the Canadian product, which carries an exchange handicap compared with Australian. While the Australian shippers contend that the sliding scale of duties is prejudicing them in competition, New Zealand importers are said to hold the view that quality_ and suitability for their special requirements is the real deciding factor. Meanwhile, Australia continues to enjoy a substantial balance of advantage in the trade between the two countries. New Zealand’s exports for the first two months of this year were £128,000 less in value than its imports from Australia. One of the significant features is the large volume of iron and steel manufactures coming from Australia. On superficial view, this development appears to be directly contrary to the ideal of fostering mutual trade relations with New Zealand’s best customer, Britain, but a gentleman prominent in the hardware business assures your correspondent that some of the most important hardware lines coming from Australia are manufactured there in branch establishments of English firms, and_ are sold under a price _ agreement with the English principals, which gives a definite advantage to the Australian-made, product. As far as can be ascertained, there is only one practical point for mutual co-operation between the New Zealand Ministers and Australia’s representative, and this is forced on them by the Home Government’s clearly stated policy of conducting no separate negotiations with individual countries of the Empire. If the dairy producers wish to come to an understanding with Britain regarding its future dairy-im-port policy, such an agreement has to bo negotiated with all the overseas dominions interested and apply generally throughout the Empire. Australia’s interests are very, dissimilar from those of New Zealand, for the Commonwealth has a more diversified production, is not almost wholly dependent,, as is New Zealand, upon the British market, and is not much interested in the outlet for cheese, so important to New Zealand and constituting .the riinin bugbear of the English farmer when he views the flood of dairy products going into Britain. Taking all these factors into account, it would-appear_ that the coming “ conversations,” while likely to be highly interesting, cannot be decisive, though they may pave the way for future action- if a mutually acceptable policy is ultimately evolved.