THE DAIRY INDUSTRY.

Kaikoura Star, Volume LIV, Issue 37, 14 May 1934, Page 4

THE DAIRY INDUSTRY.

MUTUAL MARKETS. LONDON, May 7. In the House of Commons, Sir Herbert Samuel (L.), moving the reduction of the Dominion’s vote, said that though the New Zealand communication did not amount to an offer, it was an inquiry no business man should neglect. The Government’s negative response might be a turning point in the direction of British policy in relation to the Dominions. The Government’s policy of restricting and contracting trade was causing profound concern in Western Canada and Western Australia. Tn Western Australia the people were so gravely concerned that there hud been a considerable secession movement to obtain freedom to make their own commercial arrangements. Mr Lyons had stated that Australia would have to seek markets elsewhere.

Mr J. H. Thomas: Do you suggest that the Western Australian secession movement has been caused by what is done here or in Australia? Sir Herbert Samuel: To a great extent both. Cries of “No.” Sir Herbert Samuel continued, saying that if Australia bad made the same inquiry as New Zealand and received the same reply, it would have been exceedingly 'detrimental to Western Australia and other parts of the Commonwealth. The reply sent to New Zealand was the natural result of the policy of economic nationalism which the Government vigorously condemned but energetically pursued, It was Mr Elliot’s slap-dash, happy-go-lucky poncy which had caused the rejection of New Zealand’s suggestion. The Government should welcome every offer for Ihe reduction or abolition of tariffs. Free trade with New Zealand would render the greatest service to the Empire. Sir Herbert Samuel’s moticn was defeated by 207 votes to 38. The minority consisted of Labourites, SamucJite Liberals, and one Conservative.

WORLD OR CLOSED MARKET. LONDON, May 7. The Daily Herald’s political correspondent says that the issue on Sir Herbert Samuel’s motion concerning New Zealand’s inquiry for mutual free trade in the House of Commons to-day is between the stand of Mr Walter Runciman, President of the Board of Trade, for the development of a world market with Dominions and foreign countries alike and the policy of Mr W. Elliot, Minister of Agriculture, of securing a closed market for the British farmer, even to the point of discriminating against the Dominion producer. Mr Runciman is backed by Nfr Neville Chamberlain, Mr Stanley Baldwin, Lord Hailsham, and member* of Cabinet responsible for the Ottawa Agreement. An acute battle is developing between British industrial and agricultural interests. City opinion is strongly opposed to interference in the trade with the Dominions. Another complication is provided by Mr J. IL Thomas, Secretary for the Dominions, who is becoming increasingly irritated by Dominion pres-

The Daily Express says: Mr Thomas will seek to show that the New Zealand offer was no offer but an inquiry but Mr Forbes’s inquiry was made as the basis to a deal. There was an offer and he had rejected it. It is monstrous to say that acceptance would harm British farmers. Is British industry to lose the New Zealand market because the Government prefers to buy Argentine products? The country won’t tolerate a Government which refuses such an offer. ’ ’

BUTTER QUOTA AUCKLAND, May 7. Information which has been received in Auckland regarding the British Government ’s attitude to the quota question makes it appear that pressure is not being applied from Britain. The British Government stated previously that it was proceeding with its milk scheme and was not now interested in the quota. Information from a reliable quarter in England states that the British Government was very unlikely to take any further action until the expiry of the three years period of the, Ottawa Agreements at the end of the 1931-35 export season. However, it was anticipated that discussions would take place prior to the agreements expiring, but concerning the period of two or three years following it was probale that a suggestion would be made to Now Zealand to accept a “stand-still’ agreement while some restriction on foreign shipments was arranged.