BUTTER EXPORTS

Hawke's Bay Tribune, Volume XXIII, Issue 72, 7 March 1933, Page 7

BUTTER EXPORTS

DISCUSSION IN LONDON EFFECT OF DOLLAR CRISIS. MR. THOMAS EXPRESSES STRONG VIEWS. By Telegraph—Press Association (Received 7, 11.20 a.m.) London, March 6. With Australia’s point-blank refusal to restrict and with New Zealand’s offer hedged by conditions, negotiations to secure reductions of the Dominions’ butter exports to Britain practically collapsed to-day. The Press Association understands that some heated passages occurred during the discussions between Mr. J. H. Thomas, Mr. S. M. Bruce, and Sir Thomas Wilford.

No further meetings have as yet been arranged, as Mr. Bruco is not empowered to pursue the matter; but discussions may be renewed, especially if the ramifications of the American financial crisis give a new and unpleasant twist to the situation. New Zealand offered to reduce shipments for three months on the basis of the 1932-33 figures provided that Australia reduced by a corresponding amount and that foreigners were severely reMr. Thomas objected to this, in the stricted.

first place because the 1932-33 figures were so far above normal that such a reduction was practically meaningless, and secondly because a three months’ reduction was insufficient, while in any event Australia is unwilling to participate. It is understood that one argument Mr. Thomas used was the possibility of a rise in sterling through the fall of the dollar, thus inducing gold-standard countries whose dairy exports to Britain have practically ceased, resuming them with such intensity that the price of butter would be still further reduced. This, Mr. Thomas argued, might eventually cause Australia and New Zealand to reduce their shipments willy-nilly, whereas if they now accepted the principle of reduction, adequate arrangements might be made to safeguard them against unfair foreign competition through the rise in sterling. It is understood that the Dominion representatives urged that foreigners should be the first to be restricted. POSITION REMAINS OBSCURE. COMPLICATIONS PROBABLE. (Received 7. 11-35 a.m.) London, March 6. It is understood that Mr Bruce communicated the Federal Cabinet’s butter decision to Mr Thomas during this morning’s meeting at the Dominions Office with Sir Thomas Wilford. The position remains obscure and is further complicated by the possibility of America’s departure from the gold standard, with a consequent effect on Canadian and other currencies influencing butter values. Un behalf of Queensland, Mr Pike protested to the Dominions Office against the suggested restrictions on Australian dairy exports.