Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, FRIDAY, APRIL 17, 1936. TRADE OF THE EMPIRE

Poverty Bay Herald, Volume LXIII, Issue 18992, 17 April 1936, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, FRIDAY, APRIL 17, 1936. TRADE OF THE EMPIRE

From various quarters comes evi deuce of a deeper realisation of the need for closer consideration of vari our Empire problems and of the importance of co-ordinating the policies of the various units of the common' wealth. The London Times recently directed attention to the uneasiness regarding Great Britain's food supplies in the event of war, and pointed out that in recent years, despite the many efforts that had been made the country's production of food had increased by only .14 per cent. In an address the following day, Lord Bledisloc referred to the remarkable fertility of New Zealand pastures and said that the Dominion was so highly favoured by nature that it could support a population of 10,000,000 people. He added that the under-population of parts of the Empire was causing envy among certain nations. A week or so ago, our own Prime Minister suggested the establishment of a permanent Empire council -whoso duty it would be to unify Empire policy on such subject.! as defence, trade, and territorial development. These comments are all related and the commentators are all working towards the same end. Great Britain must always be dependent upon overseas countries for essential supplies of food and raw materials, and the " Dominions, for many years to come fit least, must continue to rely upon the British market for the disposal of a very large proportion of their produce. The Mothei Country already is heavily overpopulated, and the Dominions are capable of carrying many times the number of people that at present inhabit them. These fundamental facts scent to suggest that measures to effect a balance should not be difficult to devise, yet there is-the further inescapable fact that all attempts at agreement, if they have not actually been abortive, have not realised the results that might reasonably be expected. The faults, no doubt, lie on all sides and they cannot easily be remedied, but there should be no insuperable obstacles to the attainment of an economic system that would benefit all parts of the Empire. Tire original idea of British colonisation was that the overseas territories should produce raw materials and exchange them for British manufacturers, but with, the growth and increasing independence of the Dominions this conception of Imperial relations has largely disappeared. Would it' not, perhaps, be advantageous, particularly to Now Zealand, to revive them, at least in some modified form? Despite the many changes of recent years, the fact still remains that Great. Britain can manufacture goods infinitely cheaper than they can be produced in the Dominion, while the Dominion, for its part, as Lord Bledisloe has pointed out, can vastly increase its production of the materials and foodstuffs which Britain requires and which cannot be grown in her own country. Nature has designed the two countries for different spheres, yet today, instead of taking full advantage of this position, they are attempting to compoto with one another —Britain by trying to increase her agricultural production, and New Zealand by seeking to increase her secondary industries. It should be possible to effect some compromise without sacrificing or jeopardising the interests of either country. The Ottawa Conference marked a notable step in this direction, but. although the result was an all-round increase in Empire trade i*. is a remarkable thing that, in most countries there is dissatisfaction with the agreements that were entered into. The Dominions' complaint —and it is a well-founded one—is the failure of Great Britain to give the Empire nations a veal preference over foreign

countries and the proposal to restrict imports from the Dominions in order that the interests of foreigners and British capital in foreign lands should be protected. The cardinal principle of Ottawa was that the Empire markets shokld be reserved primarily for Empire producers and unless tins principle is rigidly adhered to by the Mother Country a solution of the present problems is not likely to be found. The Dominions, however, are not without their obligations and it must. l)e recognised that Britain cat. only import their produce if they are willing to take British manufactures in return. The policy of the present New Zealand Government is to persuade Great Britain to take more of the country's produce and, at the same time, to make the Dominion less dependent upon imported goods. The one effort, however, negatives the other, for no country can hope to gain both ways; it is only possible to sell more if we arc prepared to buy more. The object, then, should be the greatest possible freedom of trade between the two countries. Restrictions invite counter-restrictions, and since Now Zealand, lenst of all countries, can afford to have the market for her produce limited she should be the first to eschew retaliatory action on the part of her only important overseas customer. All parts of the Empire have much to gain and little to lose by an increase in Empire trade. Britain can ensure an adequate supply of essential materials at all times, and by taking the supply can stimulate the demand for the goods she desires to sell. The Dominions, for their part, will obtain an assured market for their produce and will then be ible to increase their populations and thus add to the number who will consume, not only their own goods, but also those of the Mother Country. If the economic aspect of Empire problems is once solved then such related questions as immigration and defence will largely solve themselves and the Empire as a whole will rapidly move forward towards better and more prosperous conditions for all its peoples.