THE ECONOMIC OUTLOOK

Otago Daily Times, Issue 22827, 11 March 1936, Page 10

THE ECONOMIC OUTLOOK

VALUE OF TRADE TREATIES IMMIGRATION POLICY ADVOCATED (Per United Press Association! WELLINGTON, March 10. Mr M. G. C. M'Caul, in his presidential address at the annual meeting of the Wellington Chamber of Commerce, said the country could congratulate itself on successfully weathering the greatest financial storm in this generation. They bad every reason to be proud of the part played by the banks in salving the wreck caused by public and private extravagance in the past. Ho did not think they could expect permanently improved conditions until international trade was restored. The policy of selfcontainment now followed by many nations must inevitably result in a lowering of the standard of living. The object of many of the leading statesmen of the world appeared to be to make the world’s goods dear and scarce. Surely cheap and plentiful would be a better motto. «

Mr M'Caul said be regarded the trade treaty with Belgium as a milestone on the road of the economic life of New' Zealand, and it should be the policy of the Government to extend the usefulness of the agreement and initiate negotiations with other highly industrialised European countries and America for an interchange of products on favourable terms. A very serious obstacle to such negotiations was New Zealand’s obligations under the most-favourcd-nation clause of the international treaties to which she was bound. He sugested that the new Empire policy should be to give first consideration to our own kith and kin and next to those foreign countries which were willing to trade on mutually satisfactory terms. Foreign nations whose policy was to sell to us hut not to buy from us should be treated with everv consideration but no favours.

Steps should be taken, Mr M'Caul continued. to encourage a steady flow of suitable immigrants to New Zealand. It was absurd that a beautiful and fruitful land should provide a livelihood for a population that was only equal to a large British town. There was still time for New Zealand to choqse the nationality and type of immigrant we would like, but if we did not choose the choice might be -made for us. A hopeful feature about world conditions, Mr M'Caul added, was the increased sense of responsibility exercised by rulers and leading industrialists in the care of the working people; but modern legislation was going too far in directing and restricting the activities of the people. They were becoming inclined to place too much reliance on the promotion of legislation and too little upon the cultivation and exercise of their abilities as individuals for overcoming difficulties. RECIPROCAL AGREEMENTS EARLY CONSIDERATION A MINISTERIAL ASSURANCE (Per United Press Association) WELLINGTON, March 10. A promise of earnest and early consideration of reciprocal trade agreements was made to the Wellington Chamber of Commerce at the annual meeting tonight by the Minister of Industries and Commerce (Mr D. G. Sullivan), after a plea for the review of overseas trade treaties had been made in the presidential address by Mr M. G. C. M'Caul. “ The Government must examine the position of our trade with each country and undertake negotiations with a view to negotiating trade treaties securing rights for the entry and sale of our produce according to value of this Dominion as a consumer of that other country,” said Mr Sullivan. “ Such a course of reciprocal negotiations is the only logical one under the present conditions of world trade. Unfortunately, definite action in these matters should have been undertaken years ago, and it is impracticable and inadvisable to rush hastily into such negotiations and agreements.

“ You have my assurance, however,” Mr Sullivan added, “ that the question of reciprocal trade agreements looms largely in the horizon of the Labour Government’s policy in relation to external trade, and that this question will have a careful and detailed investigation as soon as more pressing internal matters have been disposed of.”