THE CHALLENGE TO CANADA.

New Zealand Herald, Volume LXVII, Issue 20650, 23 August 1930, Page 10

THE CHALLENGE TO CANADA.

New Zealand's action in placing Canadian motor vehicles and accessories on the former general tariff has not been long in making its impression on manufacturers and exporters. If there was any doubt about the power of this retaliatory move, it should have disappeared by now. If there is justification for the shock it caused the motor trade, there is none for the shock the Government is said to have suffered. The Prime Minister stated quite definitely that before the Canadian general election the then Government was advised that this action was contemplated. It is conceivable that during the campaign the present Prime Minister did not know what was in prospect, or that when he promised the dairy farmers even more than the increase in duty for which Mr. Mackenzie King's Government had been responsible, he was exposing another industry to the danger of retaliatory action. It is not possible that he remained in ignorance long after taking over the reins, or that he did not know the facts when he refused to extend to New Zealand beyond October the benefits of the tariff concessions to Australia. Whatever he did, he must have acted with his eyes open, and the shock he is said to have suffered must be mythical; unless, of course, Mr. Bennett was able to persuade himself that the 'hint of retaliation was not seriously meant. If so, he knows better now. It is evident he will find himself in an awkward position. It is quite plain that lie committed himself deeply and definitely to the dairy farmers. In the circumstances perturbation can be understood, even if the Canadian Government has no reason to be surprised.