NEW ZEALAND AND BRITAIN.

New Zealand Herald, Volume LXVII, Issue 20723, 17 November 1930, Page 8

NEW ZEALAND AND BRITAIN.

Interviewed after the Imperial Conference had ended, Mr. Forbes gave an outline of what New Zealand would like to have achieved, in contrast to what actually resulted from its deliberations. The sentiments expressed were admirable, but the statement justifies considering what was offered from this Dominion as part inducement to Great Britain to desert the policy of a free market for imports, which has so long prevailed. Full reports of the speeches made when the conference opened arc now available, and frorrtl what Mr. Forbes then said it is evident what prospect he held out as coming from New Zealand. He opened by stating that the Dominions did not go to the conference with their hands open to receive. After suggesting safeguarding duties to prevent dumping, Mr. Forbes reached his climax in this passage: "I feel that a tariff preference in this country in favour of Empire products, including foodstuffs, accompanied by increased preferences in favour of British goods in the overseas Empire would be the greatest single factor in increasing inter-Imperial trade." What Mr. Forbes had in mind was disclosed earlier in his speech, when, to illustrate the effect of the preference New Zealand already grants, he showed the difference between the duties paid by imports of British origin in 1929 and what they would have paid had they been subject to the general tariff. It is quite clear from that passage. and from what ho had to say otherwise, that the best he had to offer in exchange for a preferential tariff in Britain was the form of increased preference with which this country has become very familiar in recent years, higher surtaxes on foreign goods. This policy is of very limited value to Britain, more concerned in stimulating the flow of goods than in working out the marginal difference between the heavy customs taxation on her own commodities and the heavier levied on the products of other nations. The tariff position is such that the only in crease of preference that is of any real value—and the only form likely to appeal in any way to those who are acquainted with the modern trend of tariff policy in the Dominions—is that obtained by reducing duties on British goods. British opponents of tariff reciprocity, usually quoting Australia, have pointed out with telling em phasis that it is not much use citing preferences when, even enjoying favoured treatment, British goods are taxed at practically a prohibitory level. That is coming to be their chief argument. New Zealand has much to answer for in the same way. Consequently, when Mr. Forbes or any other Dominion delegate wishes to impress on Britain the possible advantages of reciprocal preferences, the way to do it is by offering some hope of smaller import duties. There is no evidence that any other did this. Mr. Forbes certainly did not.