DOMINION AND QUOTAS

New Zealand Herald, Volume LXXII, Issue 22117, 24 May 1935, Page 10

DOMINION AND QUOTAS

Upon Mr. Coates' arrival in England, it was stated that he would approach the meat negotiations from another angle than that taken by Australia. Subsequent reports and especially the London cablegram published this morning confirm the original anticipation. Both Commonwealth and Dominion are agreed in opposition to the proposed levy, but appear to differ widely in the attitudes adopted toward quotas. Australia is fighting British import restrictions with every gun she can bring to bear. She believes she if? entitled to a larger share of the /British market, and that it can be obtained by displacing foreign competitors. She has gone to London with plans for increasing her meat export trade on a very large scale and she is going to make it as hard as possible for Britain to deny her importunity. Mr. Coates, on the other hand, appears to be quite ready to accept the quota system, arguing that it is the only way to prevent the flooding of the British market and the collapse of prices. It is even reported from London today that New Zealand says "she has effectively restricted killings and expansion of production in order to keep within the quotas." In fact it is being made to appear that New Zealand is resigned to quotas, that she is prepared to sec limits placet! on her productive development and expansion, that she assents to halt at her present stage of progress. There is here a great contrast to the urgency of Australia's express desire to advance and one which may weigh against New Zealand in the negotiations with Britain. Actually the Dominion's interest in the meat trade is quantitatively much greater than the Commonwealth's and proportionately even more so. It would be extremely damaging if, by assenting to quotas, the New Zealand representatives gave rise to the impression that this country was prepared to mark time at her present stage of development and also that their case was loss urgent than that of the clamant Australians. Mr. Ransom, in replying to Mr. Thomas yesterday, expressed the minds of most New Zealanders. "I want to say emphatically," he declared, "that in this young country we will not under any consideration contemplate a restriction on our production and we will fight that to the last ditch." That is well said. New Zealand's line in the London negotiations should be clearly marked and strongly held. She should decline to agree to a levy (as she is doing), and she should oppose restriction of Dominion exports, leaving the onu6 with Britain to impose quotas if she insists upon doing so.