DAIRY PROBLEMS

New Zealand Herald, Volume LXXI, Issue 21763, 31 March 1934, Page 12

DAIRY PROBLEMS

QUOTA AND TARIFFS

NO CONCESSIONS MADE SEEKING NEW MARKETS DEFINITE INVESTIGATIONS [BY TELEGRAPH —PRESS ASSOCIATION] CHRISTCHURCH, Friday The erroneous views held in some quarters concerning the British Government's attitude to the unrestricted entry of New Zealand produce to Great Britain, and the effect of this attitude on the tariff policy of the Dominion, were commented upon by the Prime Minister, Mr. Forbes, to-day. Mr. Forbes said it was realised that the capacity of the British market to absorb New Zealand produce at a reasonable price was limited, and consequently the possibility of developing new markets had been discussed at recent Cabinet meetings. It had been made quite clear in cable messages that New Zealand had not offered free entry to British goods in return for unrestricted entry of her own produce in England. The opinion expressed by producers and producers' organisations that New Zealand could obtain special concessions to the exclusion of other Dominions was unfounded. It had been clearly stated at the Ottawa Conference and since then that there could be no differentiation on the British market in the treatment of various Dominions. In its communications with the British Government on the subject, the New Zealand Government had merely been asking for information. The replies had shown that there was no justification for the belief that if New Zealand gave free entry to British goods, Great Britain would give unrestricted entry to New Zealand produce. That belief was opposed to the expressed opinion of the British Government.

"The whole subject > of marketing, including the possibility of developing new markets, will be discussed with the Dairy Produce Board when the Government confers with it again," said Mr. Forbes. "In the meantime, definite steps are being taken to explore every possibility of finding additional markets.

"In investigating possible new markets, the main object will be to seo that it is possible to develop them at prices that will justify the undertaking." Mr. Forbes said he was unable to state whether there was any possibility of a Ministerial representative being, sent to the East or to any other countries that might be concerned. He added that there would be no difficulty in making arrangements with shipping companies to carry New Zealand produce where it was required.

MANUFACTURING VIEWPOINT EFFECT OF LONDON STATEMENTS [BV TKLEGKAPH PRESS ASSOCIATION'] "WELLINGTON, Thursday "Information from London indicates that Mr. Dynes Fulton, chairman of the Dairy Produce Board, is making repeated public declarations that New Zealand is prepared to effect drastic reductions or even the abolition of tariff on British goods in exchange for exemption from a quota i " stated the president of the New Zealand Manufacturers' Federation, Mr. F. L. Hutchi-

"As Mr. Fulton is in London officially and not as a private individual," he added, "his declarations cannot be dismissed as mere expressions of private opinion. Even if our Government has a clear understanding with the British Government, it is apparent that influential circles in London are accepting Mr. Fulton's statements as semi-official and inspired.

"I therefore invite the Prime Minister to make a pronouncement which will prevent New Zealand's position being placed further in a false light and definitely repudiate the suggestion, that the Government is willing to sacrifice our manufacturing industries, if required, to avoid the quota."

FREE TRADE SUGGESTION NO OFFER FROM NEW ZEALAND LONDON, March 28 Replying in the House of Commons to the request of Mr. Harcourt Johnstone (Liberal —South Shields) for a statement regarding New Zealand's suggested free tariff on British goods in return for free and unlimited entry of New Zealand products into Britain, the Dominions Secretary, Mr. J. H. Thomas, said no such offer was made. The member probably was referring to recent correspondence on the question of dairy produce. Sir Percy Harris (Liberal —Bethnal Green): Is the Government prepared to give a free market if tho offer is made ? Mr. Thomas: You can understand what my answer is when you read it.