BUTTER IN LONDON

New Zealand Herald, Volume LXX, Issue 21457, 3 April 1933, Page 9

BUTTER IN LONDON

PRICES STILL DEPRESSED NO SIGN OF RECOVERY CONTINENTAL SUPPLIES 1 DUMPING BEING CONTINUED By Telegraph—Press Association—Copyright (Received April 2. 5.5 p.m.) LONDON, April 1 There is no sign of a recovery of butter prices. Importers take a most serious view of the situation. One leading importer said they are most reluctant to make a reduction in advances, for they recognise that these payments mean a much reduced spending power for dairy farmers, and in many cases terrible hardship for their families. But the slump in values might have been prevented if tho Jsew Zealand and Australian Governments, through their dairy boards, had co-operated with the British Government in the limitation and regulation of supplies. The importers, despairing of any such co-operation, had to face the facts of the situation and let the market take its natural course. Unfortunately it is impossible to estimate how much further prices may go down if Continental supplies continue to be dumped. These are considerably in excess of those of last year. TRADE EMBARGO BRITAIN AGAINST SOVIET NEW ZEALAND MAY BENEFIT CANBERRA, April 1 A hint that as the British Government has broken off trade negotiations with the Soviet she will impose an embargo on Russian goods was given in the House of Representatives to-day by the Acting-Prime Minister, Mr. J. G. Latham. He said he had received information that an important piece of legislation relating to trade with Russia was to be introduced in the House of Commons either on Friday or Saturday. This action would have a beneficial effect on the trade of Australia and New Zealand with Britain, and might even make the proposed restriction on Australian and New Zealand butter exports to Britain unnecessary. A London message states that in connection with Mr. Latham's conclusion that Britain will impose an immediate embargo on Russia, it is understood this decision was virtually reached, but some of the Ministers became apprehensive and urged a postponement until the British Ambassador, Sir Esmond Ovey, returned from Moscow. The Sun news service, however, says it is informed that an embargo is still possible. According to the New r Zealand Dairy Produce Board's statements, the quantity of Russian butter imported by Britain in 1932 was 16,145 tons. During the same period New Zealand and Australia exported 109,517 tons and 91,462 tons respectively, a total of 200,797 tons, to Britain. A 6 per cent restriction of these exports equals about 12,000 tons, which is considerably less than last year's Russian shipments, which equalled approximately 8 per cent of the exports of New Zealand and Australia. At present it is understood that considerably inoro butter from Russia and the Baltic States is entering Britain. A cablegram received by an Auckland dairy produce agent last week advised that these countries were dumping heavily on the British market in anticipation of the embargo. QUOTA PROPOSAL ATTITUDE IN BRITAIN STATEMENT BY MR. COATES [by telegraph—OWN correspondent] WELLINGTON, Sunday "I desire to remove any possible misunderstanding as to the origin of the suggestions for restricting the volume of butter imported into tho United Kingdom," said tho Rt. Hon. J. G. Coates, Minister of Finance, this evening. "Already I have made it clear that neither the Now Zealand Government nor, as far as I am aware, any New Zealand interests have at any time suggested tho application of tho quota to Dominion produce imported into tho United Kingdom. "The fact is that, arising from trade representations, tho New Zealand High Commissioner in January last requested the British Government to convene a meeting for discussion of the possibility of restricting the imports of foreign butter. Following this, joint meetings and discussions were held, and there proposals for a general restriction came under consideration. It was made clear by British Ministers that tho reduction of foreign imports while imports from tho Dominion were left uncontrolled would not be possible. "The British Government is understood to take the view that, having regard to the substantial tariff preference already given to Dominion butter over foreign butter, it cannot reasonably ask foreign countries with whom j it is at present negotiating trade agreements, to suffer severe limitations while the market is left open to flooding from Dominion sources. The British Government did not in this instance take the initiative in proposing regulations and restrictions of dairy produce, or in suggesting a modification of the terms of the Ottawa agreement." FREE ENTRY SOUGHT THE BRITISH MARKET [by telegraph —own con respondent] DUNEDIN, Saturday Speaking at a meeting of the emergency committee of the Farmers' Union, Mr. James Begg said he was gravely concerned over the idea, of restrictions on imports being applied to New Zealand produce by Britain. He considered the New Zealand Government should ask Britain on what terms she would be prepared to grant absolutely free entry for New Zealand primary products, and that New Zealand should do its utmost to meet whatever terms tho British Government might stipulate. "I believe," said Mr. Begg, "that if we show we are prepared to meet England liberally we shall get in on the I ground floor."