TRADE IN MEAT

Manawatu Standard, Volume LV, Issue 230, 27 August 1935, Page 2

TRADE IN MEAT

MR COATES’S NEGOTIATIONS

WITH BRITISH PREMIER

Per Press Association. DARGAVILLE, Aug. 26. Rt. Hon. J. G. Coates (Minister of Finance vnd member for Kaipara) arrived at tho headquarters of bis electorate to-day, and was welcomed by the Mayor of Dnrgaville (Mr F. A. Jones). He concluded a busy day with a public address to a crowded audience on similar lines to that delivered at Wellington on his arrival last week, when he spoke on the successful loan conversion, the meat conference agreement as far as it was finalised, and, ns fitting in a dairying district, enlarged somewhat on his remarks made in Wellington on the subject. Mr Coates reviewed the Government's efforts to counteract the effects of the depression. These efforts had been successful, as at the end of four years public finance had been adjusted and unemployment had been reduced from 75,000 in 193 J to 57.000 to-day. They were also able to make a restoration of 5 per cent, in salary and wages cuts. Mr Coates mentioned that while in New York a shipment of New Zealand pork had landed from Auckland, which earned warm praise from those who handled pork in that country. Ho said that steps were being taken to find a market for boneless beef and bobby calf, which were one of the dairy farmer’s side-lines. The price might be low, but it seemed that there was every prospect that the negotiations to dispose of these products would be successful.

BILATERAL AGREEMENT. Air Coates read letters he Had sent while in England to the British Prime Minister, Air Stanley Baldwin, regarding a bilateral agreement, and said that a conference he had had with Air Baldwin, Air J. H. Thomas (Dominions Secretary), and others on the questions raised in the letters had shown clearly that nothing could be done in this connection until an Imperial Conference was held.

Mr Coates’s letter to Air Baldwin was as follows: “For some two months, as you know, we have been in touch with Ministers of His Majesty’s Government in the United Kingdom, mainly in connection with meat, though some incidental, and to us highly significant, references have been made to dairy produce also. To the substance of the discussions which now seem fortunately to he nearing finality, I do not wish to refer here in detail. There is, however. a wider aspect on which if it is possible before I leave for New Zealand—and this would necessarily mean within the next week, for it is a matter of pressing urgency for me to gee away—l am most anxious to see you with, perhaps, some of your colleagues. What I have in mind is, to put it frankly, the evident abandonment, or reversal, of the general Ottawa policy which was so definitely expounded on behalf of the United Kingdom and accepted by us in 1932. That policy, as 1 understand it, looked to a conscious raising of the general price level, and :an endeavour to correct the maladjustment between agricultural prices and industrial prices was implicit in it. The policy, according to a statement made to us at Ottawa by the Chancellor of the Exchequer (before the monetary and financial committee), and according also to later communications to our Government (vour cablegram of December 22, 1933, for instance), involved where necessary a measure of supply regulation. New Zealand. I think I may fairly say, has played her part in implementing her Ottawa undertakings by preserving and still further reducing our exceptionally low level of tariff with substantial preference to British goods, and so far as the new economic policy of the United Kingdom called for change in our internal and our export policies, we embarked upon the necessary measures of adaptation. Now it seems that we are witnessing a material change in the United Kingdom policy, a change the implications of which deserve very anxious consideration. This, in essence, is my reason for asking to see you so that T might at least return home with a clear understanding of the position. At the same time I should like to raise with you a question that commonly arises when our trade relations with the United Kingdom are under attention: Is it feasible—or is it likelv that in the measurable future it will be feasible for His Alnjesty’s Government in tho United Kingdom—to contemplate a bilateral reciprocal trade agreement with one Dominion? This issue is one, 1 appreciate, which inevitably involves many considerations. Its pros and cons 1 need not attempt here to state, nor do I ask for a written reply in advance of personal discussion, which I hope you will he able to arrange, but I can assure you that it would he most helpful to us in New Zealand to have as clear a definition of the position as you can give us. If you are able to give me a little time, and your secretary would advise mine of a date suitable to you, I would be grateful. Aly present plans are to leave England about a week hence. I had intended to sail to-day, but it was made clear to me that my leaving before some finalitv had been reached would be undesirable.” MR BALDWIN’S ANSWER.

Air Baldwin’s reply was as follows:

“J am writ'ng to confirm the result ol our discussion yesterday and give you, as I promised, the views of the United Kingdom Government on the points raised in your letter of July 10 with regard to vour inquiry as to the efforts to raise the world price level of primary products. I desire to make it clear that we have not in the least abandoned the policy enunciated at Ottawa, as you will be aware. However, we have found it necessary to change our methods of pursuing that end. With regard to the possibility of negotiating a separate bilateral agreement with one Dominion, the position is that, although we are prepared to make (and did make at Ottawa) separate bilateral agreements with individual Dominions based on their special needs and ours so far as the United Kingdom market was concerned, each participut'ng Dominion at Ottawa got in substance benefit concessions given to others. This followed mainly from the fact tiiat the most important concession we gave each of the Dominions was the entry free of duty into the United Kingdom for all goods covered by the Import Duties Act, so that there can he no question at present of placing tariffs on products from any Dominion. We are committed to this principle for the duration of tho Ottawa Agreements. It is only for good cause shown that we should consider departing from it. In any case it seems to us that an important question of principle of this kind could not ho settled until there had been an opportunity to discuss it at an Imperial Conference.”

Air Coates, who is suffering from a heavy cold, had to cut hi-s speech short. He appealed to all to sink political differences and pull together for the good of the country. He promised to come back later on and deal with general politics. The meeting closed with a vote of thanks for his efforts in London on behalf of the New Zealand producers,

and a vote of continued confidence in him as member for Kaipara.

TRIBUTE TO .MINISTERS. BY BOARD CHAIRMAN. ALLOCATIONS SATISFACTORY. Per Press Association. AUCKLAND, Aug. 26. A tribute to tho work of Messrs J. G. Coates and G. AV. Forbes at the meat consultations in London was paid by Mr T. A. Duncan, chairman of the New Zealand Aleat Producers’ Board, who returned to-day after attending the discussions in an advisory capacity. “It was absolutely necessary that the leaders of the Government should have been present at tho negotiations,” said Mr Duncan. “Both Mr Coates and Air Forbes can appreciate the farmers’ difficulties, and they were able to watch carefully the interests of the Dominion producers and to conclude an agreement very satisfactory to tho Dominion.” j Air Duncan was accompanied to; England by Air J. Fraser, general manager of the board. Air Fraser will return to the Dominion in about three weeks, having delayed his departure in order to study distribution and marketing arrangements in the English provinces. Air Duncan left Auck- 1 land for Hunterville, and lie will at-; tend the annual meeting of the board which opens at Wellington on Thursday. The allocations arranged for New Zealand were very satisfactory in the circumstances, Air Duncan said. The; political air in Great Britain was full of talk of levies, and how far New Zealand would be affected in future it was hard to say. Britain was undergoing a change in her trade policy. The old free trade idea was passing and its place was being taken by protection. *Mr Duncan said the regularity of New Zealand’s meat supplies gave the Dominion n great advantage over her main competitors, Empire and for-, eign. One aim of the Aleat Board was to keep tho name “New Zealand” pro-, minently before the consuming public, and loss' attention was now beimr given to provincial names such as “G'anter-