Exchange and Quotas

Manawatu Times, Volume LIV, Issue 7269, 23 September 1933, Page 7

Exchange and Quotas

Former Has No Bearing, Says Ir Masters

LONDON NEGOTIATIONS OUTLINED

Per Press Association.

HEW PLYMOUTH, Last hfiglit,

“In view of the fact that you and the Prime Minister have covered fairly fully most of the questions affecting the World Conference, trade, commerce' and education, have you anything to say with regard to the World Conference in its relation more directly to tho question of a system,of quotas generally being applied in diffortnt parts of tho world?” That question was put last night to the Hon. R. Masters (Minister of Industries and Commerce) when he returned to Stratford after his visit to Great Britain as one of Hew Zealand's representatives to the conference. The question of quotas was a very prominent one before the conference, and was dealt with by the delegates appointed to the Economic Committee.

Mr Masters said tho conference was divided into two sections—monetary on tho one side and economic on the other. "While the Prime Minister represented the Dominion on the monetary side, I was tho representative on tho economic, and on the special committee set up to deal with the question of co-ordination of production and marketing. "I do not think there is anyone who deludes himself into believing that the World Conference was a success, measured by definite agreements and tangible results. At tho saono time, however, there were many elements of value. If the problems can be solved, they will have a most important bearing upon the future of this Dominion. "Tho Hew Zealand delegation was particularly concerned with discussions relating to the supply and marketing of farm products. I. will refer to these particularly, with particular reference to butter, though if tho full story of tho quota discussions were told it would cover a long list of commodities. France, for instance, raised tho problems of co-ordination of production and marketing, and mentioned wheat, wool, wine, coal, timber, copper, silver, and cotton. Other delegations brought forward proposals in regard to coffee and cocoa all cereals, live-stock, sugar, tobacco, dates, tin, and dairy produce.

Principles of Regulation. "Before discussing any product in detail, the conference endeavoured to reach an agreement concerning the principdes that should govern the regulation of production. "The United Kingdom Ministers, who were amongst the strongest supporters of the principle of quantitative regulation, drafted a sot of rules, and these wore adopted at tho conference. Dairy products were not dealt with in the same detail as some other commodities. Regulations were submitted in keeping with the trend towards the regulation of supplies in favour of setting up an International Dairy Council. "Hew Zealand took the view that this international control council would be premature. The closing stages of the .conference were fast approaching when this was under discussion, and nothing binding was entered into so far as dairy products are concorned, but in regard to all farm products the strength of the move towards quantitativo control, and tho approach to unanimity amongst all the importing countries, were features to be noted.

Move for Regulation. “More immediately significant than the trend of general discussions at the World Economic Conference is the movement in the United Kingdom which at the present time looks towards quantitative regulation as desirable. The Agricultural Marketing Acts, 1931 and 1933, givo to tho farmers tho right to organise and regulate the supply of products. A scheme may be drawn up to cover any product, and when it has been approved it binds all produce quantities, and prices may be fixed undor the scheme.

“Of direct concern to all countries that supply the United Kingdom market is the power given by the 1933 Act for tho regulation of the volume of imports. “Schemes of control in the United Kingdom have boon drawn up for pigs and bacon, mi-lk and milk products, and potatoes. Furthermore, wheat is dealt with under a quota, and sugar, beet and hops have control schemes. With regard to fish, action has been taken to regulate the quantity allowed on the market. Regarding fat stock, a reorganisation Commission (concerned with beef, mutton and lamb) is nowsitting, and the Government has announced its intention of setting up a reorganisation commission regarding eggs and poultry. “These references to legislation and to the control schemes that are under way are a good indication as to the extensive action being taken and how with the powers arc for the quantitative regulation of supplies of farm produce in the markets of tho United Kingdom. In dairy produce the powers of the United Kingdom to regulate imports are subject for throe years to the Ottawa Agreement. For that period (counting from 1932) tho United Kingdom Government has undertaken not to limit the volume of dairy produce imports from New Zealand and the other Dominions. While there has been strong inclination in the United Kingdom towards regulating tho volume of imports which are argued to be in overthere has not heen finy suggostion of departing from tho Ottawa Agreement, except by arrangement with the Dominions.

Value of Ottawa Agreement. “There has been a great deal of discussion in New Zealand in regard to tho quota problem, and I should like to mention, one or two points in connection therewith. Firstly, the value of the Ottawa Agreement. Those who arc most insistent on the vnlue of a

Jjgft sag. are most s§g£sa-

]y critical of any suggestion for., even examining tho arguments in favour of the quota, should acknowledge from their point of view tho importance of tho agreement concluded at Ottawa. Were it not for this agreement the free market would not be guaranteed; it would not be for us to choose whether there should bo a quota. Socondly, in regard to the New Zealand Customs tariff and the quota, as clearly as could be the United Kingdom has stated that our New Zealand tariff has no bearing on the quota, and this is equally true in regard to the exchange rate. There were lengthy discussions and prolonged negotiations between the Dominions’ representatives and the United Kingdom Ministers.

“The question simply bristles with difficulties, one of the greatest of which is the impossibility of separating butter and cheese, and it is cheese that tho United Kingdof farmers are particularly anxious to have brought within a comprehensive scheme of control. The farmers in the United Kingdom arc taking this matter very seriously, as is indicated by the fact that the salaries of the general manager and some of the other chief executive officers of the milk control scheme are from £SOOO to £7500 per annum.

Importance of Retaining Goodwill. “We recognise, and producers in New Zealand will recognise, the importance of keeping the goodwill of tho United Kingdom. Difficulties can be best overcome by discussion, and wo took the view that this is a fanners’ problem in leaving the matter open.

“In not agreeing to tho quota proposals, the New Zealand Ministers in London took notice of the principle stressed by the British Ministers and agreed to by the World Economic Conference, viz., any scheme (this affirmed) should, in tho first instance, command a general measure of assent amongst exporting countries, and within these countries a substantial majority of the producers themselves.

“Whatever else was to be said for or a.gainst the quota, the New Zealand representatives in London had to take notice of the very strongly expressed opposition in the Dominion to the suggested quota on dairy produce. Accepting tho view that it is a ; farmers’ problem, we extended an invitation to the National Farmers’ Union of Groat Britain to send direct representatives to New Zealand. Hence the visit of Mr Baxter, who arrived in New Zealand yesterday, with the object of going fully into tho problem of the entry of our dairy produce into the United Kingdom with representatives of our jaagiilaa ja4u&tia?-LN