TRADE WITH AUSTRALIA.

King Country Chronicle, Volume XXVIII, Issue 4632, 6 December 1934, Page 4

TRADE WITH AUSTRALIA.

It is the opinion of the most notable economists that the main cause of the world depression is the spirit of nationalism by which countries are striving to become self-sup-porting, and refuse to trade with other countries unless for raw materials which they cannot produce themselves. There was a strong movement some time ago to promote Empire trade to minimise the effect of this policy of nationalism, but little progress has been made in this way. The Ottawa Conference did a certain amount to develop Empire trade, but the agreement then made between the Empire countries will expire next year, and the whole position will have to be reviewed. In view l of this it is nothing less than a scandal that the negotiations held last week to arrange a reciprocal trade treaty between New Zealand and Australia have broken down. If these two countries, so close to one another, cannot reach an agreement then all the talk about breaking down international barriers is purely political propaganda with no sincerity. The Australian Ministers have refused to admit New Zealand potatoes in order to secure the votes of Victorian and Tasmanian growers. Some time ago potatoes were selling in Australia at £lB a ton owing to a scarcity due to late crops. At the same time potatoes were obtainable in New Zealand at £2 10s a ton. This means that the people of Australia had to pay an exorbitant price for potatoes, whereas if the import had been allowed from New Zealand they would have been less than a third the price. The excuse is made that New Zealand potatoes might carry disease to Australia, but Australia already possesses all the diseases of this kind that New Zealand has to contend with. The whole of the blame for this state of affairs does not rest with Australia alone, for New Zealand has retaliated by placing restrictions on citrus fruits from Australia. These fruits are badly wanted in New Zealand, more especially in the South Island. Our delegates might have taken a more tolerant and reasonable stand in the matter by admitting citrus fruit from Australia, for their retaliatory policy will tend to widen the breach between the two countries. Australia and New Zealand should be working together in trying to promote Empire trade, but the recent breakdown of negotiations is a shocking example of the harmful influence of politicians when they want to secure votes.