CANADIAN TRADE HIT.

New Zealand Herald, Volume LXVII, Issue 20650, 23 August 1930, Page 13

CANADIAN TRADE HIT.

NEW ZEALAND CAR TARIFF.

MANUFACTURERS DISMAYED.

PROTESTS TO GOVERNMENT. MORE UNEMPLOYMENT FEARED., (Received August 22, 7.5 p.m.) OTTAWA, August 21. The news that New Zealand has placed Canadian cars on the general tariff cam® as a shock to the Government, which at the recent elections included among its other planks the barring of New Zealand butter. It was hoped to placate Canadian exporters, particularly in British Columbia, by arranging a new treaty to apply wholly to manufactured goods. The change in duty is regarded as a severe blow to the manufacturers in Ontario, where the agitation against the New Zealand treaty was particularly strong. British Columbia persistently urged the Government to re-enact the New Zealand treaty, particularly regarding timber, paper and salmon. The New Zealand development is regarded as likely to create strong opposition in Ontario to this demand.

The Windsor (Ontario) correspondent of the Toronto Star states that the New Zealand motor tariff will throw more than 1000 Windsor employees out of work. The motor-car factory heads are up :in arms over the situation and are assailing the Prime Minister, Mr. R. B. Bennett.

They claim that the Canadian car industry is not only ono of tlio most important of the Dominion's industries, but is also the one most seriously affected by the world-wide depression and this of all times is the worst to disturb the trade arrangements on which this industry has depended. They also point to Canada's growing unemployment. The president of the Ford Motor Company of Canada, Mr. Campbell, stales that the company's sales will be seriously diminished. Tho president of the Chrysler Company, Mr. Mansfield, says the Chrysler Company's business will be transferred to the United States. It is indicated that the motor companies 01 Canada will lose business worth abou* £1,100,000 a year.

No official comment was available today regarding the decision of New Zealand to place Canadian cars and accessories on the general tariff list. It is understood that the 'matter will shortly receive the consideration of the Government as the motor-car trade with New Zealand is fairly extensive and growing. The whole question of Canada's relations with New Zealand is expected to be canvassed by the Government, with: a view to the negotiation later of a new direct trade agreement, to replace the one that will elapse in October.