PRIMARY PRODUCE

Hawke's Bay Tribune, Volume XXIV, Issue 121, 7 May 1934, Page 6

PRIMARY PRODUCE

RESTRICTION PRINCIPLE Crux of Whole Problem MR. BRUCE’S OPINION By Telegraph—Press Association AUCKLAND, May 6. An important conference took place yesterday between the Kt. Hon. S. M. Bruce, Australian High Commissioner, and the Prime Minister, the Rt. Hon. G. W. Forbes, the Rt. Hon. J. G. Coates and the Hon. R. Masters. Mr Bruce was passing through Auckland en route from Sydney to London, and from the time he left the Monterey after breakfast until he rejoined the steamer in the afternoon he was engaged with the New Zealand Minieters in private conference. *•1 have enjoyed the privilege of a private discussion with your Prime Minister and his colleagues,” said Mr Bruce after the conference. “It is not for me to give details, but where the London market for primary products is eoncerned, Australia and New Zealand are facing common difficulties. Our interests in many ways are very mutual.” Both Australia and New Zealand would have to face the situation that had arisen in England, Mr Bruce continued, and he inferred that some measure of restriction of dairy exports to Great Britain was in his view inevitable. Great Britain was thinking not so much in terms of expansion of overseas markets for her manufactures, but she was thinking definitely in terms of fostering her own agriculture and giving her own farmers first consideration in their home market. Mr Bruce made the point that Great Britain at present absorbed 85 per cent, of the total dairy produce exports of the world. ‘‘Free trade was a very excellent thing for Britain when she was the workshop of the world,” Mr Bruce said, ‘‘but those days are finished. Other countries are manufacturing their own goods instead of importing from Britain, and Britain finds she must adjust her general trading policy accordingly. Both Australia and New Zealand depend largely on the British market for their' primary products, and in many respects the British market is to them the world market. It is obvious that wo are vitally' interested in the contin- ] ued economic welfare of Great Brit | ain.” ANOTHER AVENUE. Apart from the restriction of exports there was one other possible avenue open to Australian and New Zealand producers. That was to accept low prices and to continue storming the market until even the lowest grades of margarine had been wiped out, necessitating the marketing of butter at about 4d a pound. ‘‘Co-operation with Great Britain presents the logical solution to our difficulties,” Mr Bruce said. ‘‘We need not the consequences. In some quarters in Australia I know there is the impression that Great Britain is out to ‘squeeze’ primary producers of the Dominions, and I gather similar views are supported to a certain extent in New Zealand. That is foolish. It tmuet be remembered that the expansion of British agriculture cannot go beyond certain well-defined limits. Great Britain has a comparatively small area and a dense population. The country cannot be turned into one large intensely cultivated farm.” Regulation had to come. That point was strongly made by Mr Bruce. It was not a question of it being forced on the Dominions by Great Britain; it was a question of the Dominions having to adopt the principle in their own interests. Decisions on that principle could be followed by negotiations with Great Britain on the basis tfiat with the British farmer having his interest in hie home market assured, the Dominions would receive preferential treat ment over foreign producers. NO IMPERIAL CONFERENCE. In Mr Bruce’s view there was no likelihood of an early Imperial Conference to make fresh Imperial arrangements for marketing in Great Britain of primary products. As far as he was concerned, he thought the negotiations could be carried on through the various High Commissioners. He realised that the dairy industry was probably of greater importance to New Zealand than it was to Australia, but suggested that one gathered that once the basic principle of regulation had been adopted, the various Dominions should be free to carry out their own negotiations and make their own mutual arrangements with the British Government. Meat exports provided another point in which both Australia and New Zealand were vitally interested. Mr Bruce added. The present agreement for meat would terminate at the end of June, and definite regulation of Beet imports Jnfas 14k SkafeinSSsgfonf-

could be brought into force from July 1. Summed-up, Mr Bruce’s views were that the position would have to be faced without delay. The British market was overcrowded and the Dominions apparently would be well advised to accept some form of restriction and see to it that their fair share of the reorganised British market was secured FIRST HAND ACCOUNT. Subsequently the following joint statement was issued by Mr Forbes and Mr Coates: — ‘‘Advantage was taken of the opportunity presented by the visit of the High Commissioner of Australia, Mr Bruce, for New Zealand Ministers to meet him in an informal discussion of problems of common interest to the Commonwealth and the Dominion. The New Zealand Ministers who met Mr Bruce were the Prime Minister, Mr Forbes, the Minister of Finance, Mr Coates, and the Minister of Industries and Commerce, Mr Masters. ‘‘Mr Bruce gave the New Zealand Ministers a first-hand account of recent developments and the outlook as viewed by him in world economic conditions and in the position of the United Kingdom. His summary was of very great interest and value to New Zealand Ministers. It bore out and amplified the conclusions they themselves had formed as a result of personal discussions and contacts with the British Government and the trend of more recent events. ‘‘The on-rush on to the markets of the United Kingdom of the world’s surplus products had led her to adopt new and experimental courses which were of direct concern to, and called for some co-operation by Empire-sup-plying countries. TREND IN AUSTRALIA. ‘‘Mr Bruce also discussed trends in Australia in regard to beef, mutton, and lamb, dairy produce, wool research and publicity, and fruit, and while not of course able to give any precise forecast of future developments there, whether in the matter of regulation of marketing or otherwise, he was helpful to New Zealand Ministers in better appreciating the viewpoint of Australia. He made it clear that steps had been taken as the outcome of his visit to Australia to set up committees representative of producers in various States. •‘lt was agreed by all the Ministers that any policy that looked to the imprewement of market conditions must be based on full cooperation between overseas producers and fanners in the United Kingdom. The removing of any misunderstanding of their common interests was regarded as the most important part of the task ahead. “The various points that were the subject of discussion in the brief time available in Auckland are to be followed up by and through the High Commissioners in London. They will jointly place the facts before the British Government, and will carry on the discussions there while keeping in constant touch with their Governments at this end of the world.”