WORLD TRADE

Greymouth Evening Star, 24 July 1930, Page 5

WORLD TRADE

NEW ZEALAND’S POSITION

SPEECH BY GOVR.-GENERAL

[PER press association.]

WELLINGTON, July 23

C The Governor General was the chief • guest of the New Zealand Club at I luncheon to-day. He gave a short address on world economics, as it affects this Dominion. His Excellency said he was far from expecting entire agreement, with the views which he formed during his short sojourn in the country. The state of 'industry was governed by world-wide factors over which they had little control, and not purely, or even mainly, by domestic activities and requirements. New Zealand was especially affected by these considerations, for she was a pre-dominantly pastoral country, with relatively a small, very small, population for her geographical area, and her economic welfare depended, and must for at least another. 30 years mainly depend, upon supplying her primary products, wool, meat, butter, cheese, fruit and honey to other nations. Upon their purchasing power, and upon her capacity to produce at a reasonable margin of profit these commodities of this description, and of comparable quality with those flowing from other pastoral areas of the world, depended in the near future not. merely her prosperity, but her. very existence. Secondary industries must gradually develop as population, increased. Their value as additional producers of wealth and as, to some extent, consumers of primary produce, was considerable, and if these industries were ancillary, or closely allied to the local primary industries, their national utility and their, stability would bo enhanced. But it must always be borne in mind thq.t the world’s great centres of consumption. for industrial output were far from these shores, and that their existence, unless they were offshoots of some great established manufacturing corporation, might prove to be precarious in competition with mass production (accompanied by relatively low overhead costs) in other countries. Also, whereas while trade was thriving, such undertakings provide much employment at good remuneration, when the inevitable waves of' depression occurred, they enormously accentuated unemployment,' and consequently the task of modern Governments and local bodies, and the depletion of'their financial resources in seeking its alleviation, become immeasurably greater. If, moreover, people of any country, especially one with a sparse population, failed to patrohise fully its secondary products, their manufacture became increasingly precarious. So far as these commodities were now available, patronage should bo given preferentially by a country of primary producers to the.manufactures of their best overseas customers, in order that sound international finance and satisfactory exchange rates be maintained. Financial stringency, with increased taxation avoided, and due facilities provided at reasonable freight rates by ocean ships carrying in both directions irierchandise. rather than ballast.

His Excellency added: “My own settled conviction, as a careful student of this world-wide industrial problem, is that those nations will ultimately gain victory in the present battle for trade, and ensure lasting prosperity and contentment for their peoples, which are ready and able on the one hand to supply their oversea customers, especially those in Great Britain, with commodities of uniformly high quality, complying with the exact .specification which they prescribe, and on the other hand, to abstain at least for the next, decade from ail avoidable domestic strife, emphasising (in a spirit of conciliation and the truest patriotism) the points of contact, rather than the points of difference. I earnestly hope that New Zealand may be reckoned among their number.”

CANADA AND NEW ZEALAND.

[special to “star.”]

WELLINGTON, July 23

An announcement was made by Mr. Forbes, in the House to-day, that Dr. Craig, Comptroller of Customs, will leave for Canada on August 12, to enter into discussions with Ottawa authorities, with a view to inducing the Canadian Government not to impose the proposed increased duty from 1 cent, to 4 cents, per pound on New Zealand butter until a tariff agreement can be made, and implemented by legislation here. Mr. Craig will then proceed to London to assist at the Imperial Conference. when the tariff and allied economic matters are being discussed.

VANCOUVER, July 23.

New Zealand preference to Canadian lumber greatly pleases the British Columbia lumbermen, who declare the action will materially assist the negotiation of a new trade agreement at Ottawa, which Premier King in his election campaign, has made one of tlie leading issues. The preference on manufactured doors and sashes is particularly welcome.

LONDON PRESS COMMENT.

[RY CABLE —PRESS ASSN. COPYRIGHT.]

LONDON. July 23

Directing attention to what it terms “the significance of recent nows items,” the “Morning Post” recalls the fact of the Australian Prime. Minister, Mr J. H. Scullin saying that preference would be further increased to Britain by Australia if Britain would enter further into reciprocal arrangements. The “Post” also draws attention to New Zealand's newlyincreased tariff preferences. to Britain, and to Canada’s similar Budget; provisions, and likewise to the Indian Government's insistence on British preference while agreeing to a. rise in the fiscal duties on cotton. The “Post” goes on to say:—“These fiscal actions being undertaken, show that at least a. pari of the Empire would be prepared to progress further along the road of preference if them were a chance of something being obtained in return.

“Is there anything being done?” the paper asks. "Wo could, it we liked, make tempting offers. It is easy to see what, even a small advantage on the British market would moan to the Canadian wheat farmer in the mallei' of security. And so in the case of Australia, where wheat is one of the staple crops, and of South Africa, v. here, especially, maize growing might, be developed. New Zealand, as a grower of mixed produce, would also like a. stake in the British market. The

old countries have shut us out. Our future lies with new countries.”

LORDS FORM GROUP

LONDON, July 23

Thfrty-six members of the House of Lords, including Lords Allenby, Beatty, Birkenhead, Elibank, and Jellicoe, have formed an Empire economic group. They elected Lord Melchett as chairman, and passed a resolution pledging itself to use the utmost endeavours to promote the Empire’s economic unity.