OTTAWA DELIBERATIONS

Manawatu Standard, Volume LII, Issue 175, 25 June 1932, Page 2

OTTAWA DELIBERATIONS

NEW ZEALAND’S POLICY TRADE AND CURRENCY MR FORBES’S REYIEW Per Press Association. WELLINGTON, June 24. “The ideal of strengthening the Empire has been the foremost aim of leaders of public thought in all parts of our Empire ; it is an ideal that depends for its strength in the main on sentiment, on ties of kinship, common institutions and a common conception of justice and Government,” said the Prime Minister, Rt. Hon. G. W. Eorbes in a statement on the Ottawa Conference to-night.

“Supplementing these is the knowledge that the material interests of peoples in the constituent parts of the Empire are best served by their standing together in making reciprocal concessions in matters of trade policy. It is in recognition of these facts that we approach the Imperial Economic Conference of 1932.”

“Matters which, a 9 announced to date, aro to be discussed during the forthcoming conference at Ottawa have been under detailed study by a committee of Cabinet and have had extended consideration by Cabinet. “Very briefly, New Zealand’s attitude is based on the belief that the constituent members of tho British Commonwealth of Nations can make arrangements' in trade and other economic affairs which will bo to the material advantage of all and that the severity of the present depression renders it a matter of first urgency that advantage be taken of these possibilities. “Since the Imperial Conference of 1930 adjourned with the understanding that it should resume in Ottawa, changes of great moment have taken place in the economic and financial situation. Britain has imposed duties on certain products from foreign countries, including butter,_ cheese, fruit, flax, tallow, and has withheld the imposition of these duties on Dominion products until November 15 of this year. “This grant of tariff preference, temporary though it is, opens up new and valuable prospects for exporting countries within the Empire. Since the 1930 conference took place, and by reason of the acute financial depression, currency questions have assumed outstanding importance, and the agenda for the Ottawa Conference covers a wide range, though confined to economic and related problems of trade and tariff policies, both within the Empire and between the constituent parts of the Empire and foreign countries, transport and communications, includ-j ing snipping, postal, cable, wireless and broadcasting, monetary and financial questions with the _ restoration and stabilisation of a satisfactory general i price level. , | “From this summary it will bo seen I that the deliberations of the conference are charged with the highest importance for New Zealand. It seems clear that tho reason for the concession of the Imperial Parliament in withholding the duties on the Dominion products' referred to wa9 to afford an opportunity for discussing tho matter with the Dominion Governments, with a view to the further development of inter-imperial trade; therefore, the Ottawa Conference will be concerned with exploring methods for _ enabling increased quantities ‘of Empire goods to be used to supply tho British market, and, on tho other hand, for further facilities being afforded British goods to enter Dominion markets'. “For this purpose the New Zealand Government has collected full information from exporting interests in New Zealand as to the various ways in which their present share of the British market can be conserved and extended. There are, of course, several methods by which this oan be done, if acceptable to Britain. Among these are the maintenance and extension of the preferences at present granted by Britain and a further opening of the United Kingdom market by the regulation of importation of foreign products into that country. “The export trade of New Zealand with the other Dominions is likewise a very important matter for this country and tne conference will afford an opportunity of reviewing and discussing our mutual commercial relations so far as Groat Britain is concerned. “It is clear that if the Imperial Government is to grant further facilities for the encouragement of New Zealand and other Dominion trade by way of tariff changes or other moans, reciprocal advantages must be accorded by the Dominions to exports' from the United Kingdom. New Zealand has already gone a very long way in that direction by granting tariff preferences to the United Kingdom and other parts of the Empire. The Government, however, is satisfied that there still remains a relatively large field for economic co-operation, and they think that the concessions they are able to offer will be sufficient to place New Zealand in a most favourable situation in discussing the matter with the Imperial authorities. “The view of the New Zealand Government is that the Ottawa Conference should be approached in a spirit of mutual co-opcraiaon and not from the point of view of mere bargaining or fine balancing of the advantages that can be accorded by one unit of the Empire to another. “With regard to currency matters, it is recognised that the problem of how to raise the price level to the point that will restore a reasonable measure of prosperity is one of acute urgency. Unless a practical solution to this problem can be found it does not nppear that any increase in trade facilities can by itself save the situation or put the farming industry on its feet; therefore, it is hoped that the expert knowledge that will be available at Ottawa will result in some practical means of stimulating the purchasing power and raising the sterling price level, even although the wider inter-

national problem may have to bo dealt with at the further conference which has alroady been suggested by the Prime Minister of Great Britain.

“There are also other important items on tho agenda paper, dealing with shipping regulations and other matters which the New Zealand delegation havo discussed with their colleagues. It is a matter of general agreement that tariff barriers, rising higher as they have since tho war, are a cause of trade dislocation and depression.

“We welcomo any promise of lessening restrictions so as to permit of the freer exchange of goods in the normal course of trade. If, by mutual agreement, we now seek to move toward greater freedom of commerce over onefourth of the world, this is m no sense antagonistic or detrimental to the interests of other nations, but, on the contrary, can well be a step toward the general end which we desire.” “In this time of crisis it can be that unity of Empire will be still further promoted and cemented by establishing or at least laying the foundations of closer trade relationships,” said Rt. Hon. J. G. Coates to-day. “We must understand each other’s problems and give and secure trade prelorences, and, while showing the world that the Empire is capable of meeting the situation by united action, bear always in mind that tho problem is a world one to bo met ultimately by the nations of the world.

“Whatever be the cause of the crisis, if the Empire can show the world a solution of the difficulties facing it, as well as every other nation, then surely we should not hesitate or be half-hearted in the co-operation we lend to the common cause at the Ottawa Conference.”

The immediate problem, proceeded Mr Coates, was a serious one for New Zealand. Frankly, the position was that the Government was not certain as to how much longer Britain could absorb the country’s surplus products. If arrangements could bo made at Ottawa for the absorption of this surplus under suitable conditions by other Empire markets, the most urgent task would be accomplished. He could say quite plainly that the immediate outlook for tho Dominion’s products was not a .satisfactory one, but successful negotiations at Ottawa would show the way to a better future. MR COATES’S QUALIFICATIONS. REFORM CLUB FAREWELL. Per Press Associaion. WELLINGTON, June 24. On the eve of their departure for the Ottawa Conference, the Minister of Public Works, Rt. Hon. J. G. Coates, and Mrs Coates were farewelled by a large gathering at the Reform Club this evening. Eulogistic references were made to Mr Coates’s long public service and best wishes were extended to him for a successful mission on behalf of the Dominion. Mr H. Johnston, K. 0., presided. Mr Coates said that during the last year or so, particularly during the last year, he could not say that ho had received a great deal of encouragement in his wont on behalf of the country, except from those who were his friends. Criticism was to bo expected, but he was inclined to think that some of the criticism, rather than being helpfully meant, had been for the purpose of distracting the public mind from the main problems and issues before the country. After reviewing the unemployment problem as it existed to-day, and detailing the relief measures planned for the near future, Mr Coates said it was essential to get to tho source of tho trouble. If this could bo dono, therein lay tho groat importance of the Ottawa Conference. It represented a possible solution of the country’s problems and no energy should be spared and no stone left unturned to remedy the position by united Empire action. In discussing the policy to he adopted at Ottawa, ho had held very definite views and had expressed them plainly to his colleagues. The decisions come to had tho full support of his colleagues and he wished to express his appreciation of the confidence reposed in him and the support given by Cabinet. The outstanding task before the Ottawa Conference was that of knitting tho constituent parts of the Empire more closely together in commerce. The ideal of a strongly united British Empire was firmly implanted in the breasts of the people, out in the past this unity hod depended largely upon the thin red line “of blood ties, sentiment and solidarity of far-flung British institutions.”

On behalf of the Reform Club, the ladies’ auxiliary of the Reform League and members of the Junior Reform League, Mr Coates was presented with a set of pipes with a Morocco handbag for Mrs Coates.