TRADE RELATION

New Zealand Herald, Volume LXXII, Issue 22198, 27 August 1935, Page 11

TRADE RELATION

EXPORTS TO BRITAIN DISCUSSIONS reviewed BILATERAL agreements question for future STATEMENT BY Ml!. COATES [j, v TELEOBAPII —SPECIAL REPORTER] DARGAVILLE, Monday Appearing for the first time 011 the platform in bis own electorate since his return from England the Minister of Finance, Mr. Coates, faced a large audienco 'in the Empire Theatre at Dargavillo this evening and was given an enthusiastic reception which, in his opening remarks, ho stated was a tromendous recompense for what ho had jj een called upon to do. Mr. Coates was introduced by the Mayor of Dargaville, Mr *T° ncs > who congratulated kim 011 what 110 had accomplished 011 his visit overseas. Dealing with the trade discussions 111 England Sir. Coates said that although they wero perfectly frank, and sometimes very much so, there was a definite desire to* co-operate. At times, even at the end of a month or six weeks, jt secmecl that tho position was hopeless, but the results showed that it never did to throw up tho sponge. An Important Concession

j[r. Coates dealt with the questions leading up .to the meat agreement and then turned to the dairy industry. The dairy producer,/he.said, was up against 8 problem and probably before next March there would be a discussion on what was to happen, as after November Britain had* the legal right to impose, by Treasury order a tariff on Empire dairy produce. With that over the heads of the people of the Dominion there was a tendency toward nervousness and anxiety. What wa« most desirable was that before an order was made there should be a discussion, and this had been decided upon. Such discussion before any levy or tariff was imposed was an important concession, continued Mr. Coates. lhe nositioii was that it was up to New Zealand and all Empire countries to say whether they would play up to some supply regulation or whether they preferred some system of tariff, lhe preference on dairy produce provided tor by the Ottawa Agreement, los per cwt., -Would be maintained. Orderly Marketing Wanted

Personally, Mr. Coates said, he thought tariffs were dangerous and he did not look upon a tariff preference as being of very great value. It was not restriction but orderly marketing that was wanted, and that was the question that had to be faced before March next At the moment we were free or any tariff on our butter, and lie hoped personally that we would be ablo to devise some means so that wo would be free of anv tariff in tho future. / A lot had been heard, ami would be heard, of bilateral agreements, and this question had cropped up during the discussion. The following letters, one he had written to Mr. Baldwin and the reply, would convey the points he ■wished to make. Britain and Ottawa

The letter written by Mr. Coates on Jolv 10 was as follows: " Dear Mr. Baldwin,—For some two months, as you know, we have been in touch with Ministers of His Majesty's Government in the United Kingdom, mainly in connection with meat, though some incidental and to lis highly significant references have been made to dairy produce also. To the substance of the discussions, which nowf seem fortunately to be nearing finality, I do not wish to refer here in detail. There is, however, a wider aspect on which, if it is possible before I leave for New Zealand—and this would necessarily mean within the next week, for it is a matter of pressing urgency for me to get away—l am most anxious to see you with perhaps some of your colleagues. " What I have in mind is, to put it frankly, the evident abandonment or reversal of the general Ottawa policy -which was so definitely expounded on behalf of the 'United Kingdom and accepted by us in 1932. That policy, as 1 understood it, looked to a conscious raising of the general price-level; an endeavour to correct maladjustment between agricultural prices and industrial prices was implicit in it. The policy, according to the statement made to us at Ottawa by, the Chancellor of the Exchequer (before the Monetary and Financial Committee) and according also to later communications to our Government (your cablegram of 22nd December, 1933, for instance) involved where necessary a measure of supplyregulation. Reciprocal Trade Issue

" New Zealand, I think I may fairly «av, has played her part in implementing her Ottawa undertakings, by preserving and still further reducing our exceptionally low level of tariffs, with substantial preference to British goods; and, so far as the new economic policy of the United Kingdom called for change in our internal and our export policies, we embarked upon the necessary measures of adaptation. "Now'it seems that we are witnessing a material change in United Kingdom policy, a change the implications of which deserve very anxious consideration. This, in essence, is my reason for, asking to see you, so that I might at least return home with a clear understanding of the position. "At the same time, 1 should like to raise with.you a question that commonly arises when our trade relations with the United Kingdom are under attention: is it feasible, or is it likely that in the mensurable future it will be feasible, fdr His Majesty's Government in the United Kingdom- to contemplate a bilateral reciprocal trade agreement with one Dominion? This jssue is one, I appreciate, which inevitably involves manj' considerations: [ts pros and cons I need not attempt here to state, lior do I ask for a written re ply in advance of the personal discussion which I hope you will be able to arrange: but 1 can assure you that it Would be most helpful to us in New Zealand to have as clear a definition °f thte position as you can givo us. " If you are able to givo me a little time and your secretary would advise Jiiine of a date suitable to you, I would be grateful. 1 'My present plans are to leave England about a week hence. 1 had intended to sail to-day, but it was made clear to jne that my leaving before some finality had been reached would be undesirable." /On July 18 Mr. Baldwin replied to fir. Coates as follows: — "I am writing to confirm the result °> our discussion yesterday and to give . ypu. as [ promised, the views of the United Kingdom Government on the Points raised in vour letter of the 10th July. _ 'With regard to your inquiry as to the efforts to raise the world price level ? f primary products, I desire to make it clear that we have not in the least abandoned the policy enunciated nt Ottawa. As you will be aware, however, *'e have found it necessary to change ®ur methods of pursuing that end.

"With regard to the possibility of negotiating a separate bilateral agreement with one Dominion, tho position is that although we are prepared to make (and did make at Ottawa) separate bilateral agreements with individual Dominions based on their special needs and ours, so far as the United Kingdom market was concerned each participating Dominion at Ottawa got in substance tho benefit of concessions given to others. This followed' mainly from the fact that the most important concession we gave to each of tho Dominions was entry free of duty into the United Kingdom for all goods covered by the Import Duties Act, so that there can be no question at present of placing tariffs on products from any Dominion. Imperial Conference Question "We are committed to this principle for the duration of the Ottawa Agreements, and it is only tor good cause shown that we should consider departing from it. In any case, it seems to us that an important question ot principle of this kind could not be settled until there had been an opportunity to discuss it at an Imperial Conference." .. The answer, said Mr. Coates, could not and would not bo given Until the question had been discussed at an Imperial conference. Mr. Coates promised that ho would be back among his constituents again, when they could have " a really good night at politics." Ho had felt that it was his duty first of all to give them the terms and conditions of the meat agreements. All those present at the discussions in England had declared that they would work for the economic unity of the Empire. The Empire must keep together economically, and lie believed that these economic discussions would continue. Congratulations to Minister " 1 believe that a calm look at the policy evolved after the ]9.'51 election will command your respect," Mr. Coates concluded. " What the Government has managed to accomplish is something it can be proud of." The future required the sinking ot a good deal of difference of opinion and the coming together of those who had the good of the country at heart. At the conclusion of Sir. Coaies' address a resolution was carried congratulating him 011 the Success of his mission abroad, and expressing thanks and continued confidence in him as member of Parliament for Kaipara.

MR. FORBES HONOURED CHRISTCHURCH RECEPTION REPRESENTATION AT JUBILEE [nr TELKC.RAPH —PRESS ASSOCIATION] CHRISTCHURCH. Monday As the representative of New Zealand at the celebrations in London of the silver jubilee of the King, the Prime Minister, Mr. Forbes, was accorded a civic reception in the City Council Chamber to-day by the Mayor, Mr. D. G. Sullivan, M.P. There was a large attendance, almost every seat being taken. Mr. Sullivan said that Mr. Forbes was being honoured because he had carried to the King New Zealand's message of congratulation on the attainment of 25 years of his rule, and its appreciation of his wise guidance of the Empire during a period of great difficulties. While those prosent were honouring Mr. Forbes they were, in a particular sense, honouring the King. The Hon. Sir Heaton Rhodes, M.L.C., expressed pleasure at being able to welcome the Prime Minister and regretted that Mrs. Forbes, through indisposition, could not bo present. When Mr. Forbes left for England, it was felt that New Zealand would be very ably represented at the jubilee celebrations, and when he came back it was realised that he had fulfilled his task very capably. Mr. H. T. Armstrong, M.P., spoke on behalf of the Labour Party. The Prime Minister, he said, had worthily represented New Zealand at the jubilee celebrations. Mr. Forbes and Mr. Coates had found time to consider trade relations between tho Dominion and England, and the prosperity of this country depended on its trade associations with England. On behalf of tho Labour Party he had pleasure in associating himself in tho welcome to Mr. F orbes. At the invitation of the Mayor the audience then stood and applauded Mr. Forbes.

After thanking the Mayor for according him a civic reception and the audience for its expression of goodwill, Mr. Forbes said that when he left New Zealand carrying loyal resolutions from both Houses of Parliament he fek he way on a very important mission, and that he was doing something the people of the Dominion wanted him to do. The enthusiasm with which the celebrations had been marked was a wonderful tribute to Their Majesties. It had been said that differences about trade relations would break up the Empire, but he was convinced that there was sentiment binding the Empire together that was stronger than disagreements that trading considerations caused. After paying a tribute to the assistance given him bv INIr. Coates, Mr. Forbes said that he had been deeply impressed by tlie very fine feeling there was iu England toward New Zealand.