FEDERAL CABINET

New Zealand Herald, Volume LXXII, Issue 22000, 5 January 1935, Page 9

FEDERAL CABINET

OFFER TO BRITAIN

CONDITION ATTACHED RESTRICTION TEMPORARY QUOTAS STILL OPPOSED By Telegraph—Presa Association —Copyrig/t (Received January 4 7.15 p.m.) MELBOURNE. Jan. 4 The Federal Cabinet sat till late last night on the meat restriction proposal. It is understood that the Cabinet will send a communication to the British Government agreeing to restriction : for three months provided the British Government is willing to raise the larger issue of the futuro of meat imports and Empire trade generally at another such conference as Ottawa. At that conference Australia will press for the abolition, of the quota system in favour of tariff preferences for Empire goods over foreicn goods. Mr. Lyons, Prime Minister, made the following statement this evening: " The Commonwealth Government has made proposals modifying the three months' programme suggested by the British Government. Wo have at the same time indicated that this is to be purely a temporary arrangement and that, in the mutual interests of the United Kingdom and the Commonwealth, we are opposed to any general or permanent policy of restriction. " The whole problem will be discussed between the two Governments during the forthcoming visit of Commonwealth Ministers to London. Meanwhile no details can be given as the matter is still the subject of cable messages. However, it can be stated that every step has been taken to protect the interests of the producers and exporters of Australian meat." \ It is believed, that while the Federal Ministry is unable to accept quotas for the various classes of meat suggested by Britain, it has made coun-ter-proposals which will require the serious attention of the British Government. The Sun says that until the position has been clarified by a full statement of the conditions governing the acceptance by the Commonwealth of Britain's demand for a restriction of meat exports local interests will be unable to judge the effect of the Commonwealth's decision. Although it has not been officially announced the Federal Cabinet has agreed to Britain's request for a voluntary restriction for a short term, preferably the first three months of the year. DOMINIONS' MEAT PROPOSALS OF BRITAIN , AUSTRALIAN ATTITUDE LONDON, Jan. 3 The Dominions Office has not yet issued confirmation of the reported conclusion of an agreement with Australia for the restriction of meat imports for three months subject to the Commonwealth being able to raise the larger issne of the quota at a later conference. Most of the Australian authorities in Britain concur as to the wisdom of the reported decision in view of the greater issues ahead, though the Anglo-Irish agreement is announced simultaneously with Australia's decision to agree to restrictions for three months. In all the discussions between Britain and Australia the possibility of an arrangement between. Britain and Ireland has been borne in mind, and tha British proposals to the Dominions have made provision for increased supplies of cattle from Ireland. While the Australian meat trade foresees depressing effects on the market through the partial restoration of tho Free State's live stock exports it is pointed out that the agreement probably will be less immediately deleterious ±o Australian producers than appears at first, because there is an acute shortage of store cattle in England owing to beef of low quality being marketed in order to obtain the Government cattle subsidy. Another reason is that in the Free State there is also a shortage of fat cattle owing to Mr. do Valera's subsidy. Consequently cattle sent to Britain under the new agreement will bo mostly stores. They will take a long while to fatten, and in any case will not be extensively killed when tho market is unfavourable. Nevertheless, as is generally admitted, there is too much beef already in the Smithfield market. The effect of the influx of Irish cattle presumably will be to make the task of overseas sellers still harder. The Australian High Commissioner, Mr. S. M. Bruce, will communicate by telephone to-night with the Secretary of State for the Dominions, Mr. J. H. Thomas, who is on holiday, seeking enlightenment regarding the Anglo-Irish agreement. Following this conversation Mr. Bruce will despatch a cablegram to the Federal authorities at Canberra. FREE STATE FEELING GREATEST SATISFACTION DE VALERA'S CHANGED VIEW (Received January 4, 10,45 p.m.) DUBLIN. Jan. 4 The news of the Anglo-Irish agreement has been received with the greatest satisfaction by industrial and business circles in the Free State. The hope is expressed that it will be the. prelude to a more comprehensive agreement covering all matters outstanding between the two countries. The Irish Times praises Mr. de Valera for recognising at last that the Free State's economic interests are bound up with those of Britain. It Bays there can be no excuse now for a prolongation of the economic war. The Irish Independent says the agreement is a tardy admission by Mr, do Valcra that the market which he thanked God had gone for ever still exists and is of value to the Free State.