PRODUCE QUOTAS

Greymouth Evening Star, 17 July 1933, Page 5

PRODUCE QUOTAS

BRITAIN’S NEW POLICY NO CONNECTION WITH TARIFFS [BY CABLE —PRESS ASSN. —COPYRIGHT.] LONDON, July 14. Nothing further has happened relating to restriction of Dominion meat and dairy exports. The Dominions have made it clear that they have gone the limit, of their contribution, and the next, proposals must, come from Britain.

The latest suggestions encompass an agreement in which the Argentine would be a party, but some of the Dominions, while not rejecting the practicableness of this, raise the point that if Argentina participates primarily as a meat country, Avhat about the dairy countries —not only Denmark, but. all the Scandinavians? These probabilities naturally centre on the ideal of a creation of a sterling bloc. Avhich, hoAvever, gains no definiteness. Major Elliot, who, by the way, repudiates the .New Zealand suggestion that his speech on Tuesday implied any threat of retributive measures if NeAV Zealand’s tariff were not reduced, had to take a hand in guiding today’s debate into the safer haven of a sub-committee, in which the great butter-producing countries would be better able to manage the discussion. Incidentally, Major Elliot reiterated the point that the United Kingdom was determined systematically to increase its percentage of home-grown dairy produce. Mr Masters said that. Ncav Zealand favoured Major Elliot’s proposal for a sub-committee to consider all the proposals and report next week. This Avas agreed to. and New Zealand Avas appointed to the sub-com-mittee.

QUOTAS AND OTTAWA. LONDON, July 15. The Empire delegates here W’ill reassemble next week in connection with the regulation of the Dominions’ trade in foodstufs. The British representatives continue to urge the voluntary acceptance of quotas wherewith to replace duties. They are citing the effects of the Ottawa agreements, whereby meat prices in Britain have risen under the influence of the quotas imposed, whereas the price of butter has fallen under the duties. Evidently the British consider that some of the Dominion delegates to the Conference have been convinced that gluts have chaotic effects on prices, but that the delegates cannot impress the Dominion Governments and farmers, whose remoteness geographically prevents their appreciation of facts.

New Zealand cablegrams on the matter were read here with interest, especially because the New Zealand farmers show hostility to the regulation of their exports, which hostility contracts with the pamphlet that was recently issued by Mr J. G. Coates, the Acting-Premier (which favoured the idea of quotas for dairy produce). It is here - considered that the New Zealand farmers’ attitude probably will prevent Mr Forbes from committing the Dominion Government to the regulation of British imports. A failure on the part of the Dominion to co-op-erate will be equally disastrous to both the Home and the Dominion farmers. Probably it will necessitate substantial revisions of the Ottawa agreements covering meat and dairy products. The movement to terminate the Economic Conference has brought the regulation of dairy products within the Conference’s ambit, but Mr Bruce (Australian delegate) declines to participate in these discussions, pending Monday’s Anglo-Dominion meeting. Great significance for the Dominions’ export outlook when the Ottawa agreements are terminated, attaches to the British Agriculture Minister, Major Elliot’s speech, at the Economic Commission, in which he said that Britain intends embarking on a comprehensive policy for the reviewing of British agriculture, and one ultimately affecting the Dominions.

BRITAIN AS MARKET. [OFFICIAL WIRELESS.] RUGBY, July 15. The World Conference is expected to adjourn on July 27. The question of reassembly after the recess will probably be left to the Bureau, which it is expected will be invested with power to call the delegates together again when the world situation is more favourable for a solution of the problems before the Conference. / During the discussion on proposal of the Polish delegation to set up a sub-committee to consider need for improvement in marketing conditions of dairy products, Major Elliot said that. Britain took 80 per cent of the world’s butter exports, and 50 per cent of cheese exports. The United Kingdom was also a large producing, although not exporting, country and

was thus affected by the existing world’s surplus of butter and dairy products. He made clear the Government's intention to increase the output of dairy products. There were no meetings, to-day, of the Conference Committees, but work will be continued on Monday, when meetings will include one of the drafting committee of the sub-commission on subsidies and shipping. MR. FORBES’ DENIAL LONDON 1 , July 14. Mr. Forbes, in a statement, said: “1 cannot understand how those supplying the information at Wellington for cabling to the English press have so extensively misinterpreted Major Elliot’s speech in the House of Commons on Tuesday. Major Elliot did not mention the Anglo-New Zealand trade position. Nor has any British Minister in any way raised that question. On the contrary, Britain has expressed every approval of New Zealand’s preferential treatment of British goods.”

Mr. Forbes added: “The presentmovement for the regulation of dairy products in Britain arises solely from the British farmers’ 'dissatisfaction with the low prices for New Zealand products, owing to the glutted market due to excessive importations from abroad.” MESSAGE TO MR COATES. WELLINGTON. July 17. 'Mr Coates, to-day, received a cablegram from Mr Forbes, in which the

latter says that Major Elliot’s statement in the House of Commons has apparently been misunderstood. Mr Forbes states: “He definitely stated to me that rhe trade position has no hearing whatever on the quota proposal, and it. is entirely a matter of interest to the United farmers, Avho are strongly pressing for restrictions on the importation of butter and cheese from abroad. which is glutting the market, and bearing down prices. The treatment by Neiv Zealand of British manufacturers so far as the tariff is concerned is considered to be fully satisfactory by the British authorities, and has at no time been raised in connection Avith the discussions that have taken place.” EXCHANGE RATE CONTROVERSY. WELLINGTON, July 17.

Mr Edwin Salmond, president of the New Zealand Importers’ Federation, in a statement, to-day, resumes the exchange controversy, saying:— The Farmers’ Union is apparently forcing itself to believe our tariff is accountable for Britain’s threatened action to ration our exports. There is absolutely no evidence of this. It is quite apparent from the London cablegrams it. is the English farming community Avhich is putting pressure on the British Government. It. is absurd to argue that the British farmers ar 0 concerned over our tariff which, after all, does not concern them, and is entirely a matter for the British manufacturers. On the other hand, English farmers bitterly resent New Zealand’s action in inflating exchange which enables our dairy farmers to dump our butter and cheese on the United Kingdom market, under the protection of 25 per cent. Mr Salmond proceeds to deal with the Farmers’ Union statement, which he says endeavours to prove that 25 per cent, is not an artificial rate. “If farmers are honest in the belief that the 25 per cent, is no\s- the natural rate, Ave challenge them,” says Mr Salmond, “to request the Government to release control, Avhen according to their own theory, exchange will automatically remain at the present figure. If they are wrong, the rate Avill readjust itself to the proper level, that will no longer unfairly penalise the community, and the fallacy of the farmers’ propaganda will be fully revealed.”

MANUFACTURERS’ APPEAL DUNEDIN, July 15. A telegram was sent to-day to the Acting-Prime Minister, Mr. Coates,’ by Mr. F. Campbell, President of the Ngav Zealand Manufacturers’ Federation as folloAvs: “On behalf of the manufacturers of Ngav ’Zealand I urge the Government not to be stampeded by the dairy industry, Avhich is evidently bringing great pressure to bear on the Government to commit itself to the reduction of the tariff without waiting for the findings of the Royal Commission which is now, in accordance with the Ottawa Agreement, enquiring into the Avhole question of our industries, and tariff. In vieAV of the fact that our tariff is loav and moderate —about one-third of Australia —we trust the Government will give full consideration to this fact before taking action.” CANADA’S SUPPLIES OTTAWA, July 14. Mr. J. Singleton, the Dominion Dairy Commissioner, states the announcement that Canada had 19,930,000 pounds of butter in storage on July 1, which is 3,344,000 pounds more than she had in storage a year ago, has had a depressing effect on dairying in Canada.