EMPIRE OR FOREIGN?

New Zealand Herald, Volume LXXI, Issue 21794, 8 May 1934, Page 8

EMPIRE OR FOREIGN?

' Notwithstanding the political play that is being made in Britain with New Zealand's so-called offer of a free market for British goods in return for an unrestricted market for Dominion produce, the House of Commons is now facing a clearcut issue on the question of foreign trade treaties and their possible consequences to the Dominions. It will be unfortunate if the supporters of the Dominions allow it to be inferred that they object to the Board of Trade's policy of effecting j bilateral agreements with foreign j countries. The more manufacture 1 and mining are stimulated in Great ! Britain the greater will bo the pur- | chasing power of the people, and hence the greater will be their 1 capacity to consume the products of the Dominions. The one point at issue concerns the terms of these , foreign treaties in respect of com- ; modifies which are also supplied by the Dominions. The contention is that with the Ottawa agreements as I the weighbeam, the balance has ! been unduly weighted in favour nf ! the foreigner, that the enthusiasm 1 of the Board of Trade to enlarge British exports has placed the De- : partment of Agriculture in such a | quandary that it is inclined to dis- ! criminate by means of the quota ' system against the Dominions. Probably it is the policy that has been pursued by Mr. Runciman, and not | so much that of Mr. Elliot, which has given rise to the anxiety that oppresses New Zealand and Australia in particular. Notwithstanding the fact that the principle- of Ottawa was to give the Dominions an expanding share of the market after the British farmer had received nil the protection necessary, the Board of Trade guaranteed Denmark a butter allocation of not less than 2,300,G00cwt. Under the circumstances such a commitment was not in accord with the principle of Ottawa. Argentina had to submit to an immediate reduction in her meat exports of 20 per cent in mutton and lamb and 10 per cent in chilled beef, but was definitely assured that no further restrictions would be imposed that were not also shared by the Dominions. Again, was this commitment in accord with the prior engagements with the Dominions? Eager to increase the export trade of Britain, and to reduce unemployment, the Board of Trade doubtless considered that such undertakings would not have repercussions in the Empire, but its judgment has proved .wrong, and if, as is suggested, Mr. Thomas is losing patience with the attitude of the Dominions, he should vent his spleen on the Board of Trade. The Dominions need not apologise for demanding as a matter of right an expanding share of the market even at the expense of the foreigner.