Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, WEDNESDAY, OCT, 7, 1936. THE OTTAWA SPIRIT

Poverty Bay Herald, Volume LXIII, Issue 19139, 7 October 1936, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, WEDNESDAY, OCT, 7, 1936. THE OTTAWA SPIRIT

New Zealand has a particular interest in the discussion at the Empire chambers of commerce congress on the question of inter-Empire trade, and the people of the Dominion would do well to consider the opinions expressed by delegates from other parts of the Empire. The significant point is that, while there was almost complete unanimity in support of the principles underlying the Ottawa agreements —which cjur own Government, at least, prior to its assumption of office, was inclined to condemn—there was considerable diversity of viewpoint regarding various details. This position is understandable, and almost unavoidable, since the delegates represent many branches of industry and have conflicting interests in different countries. The congress, for example, would not commit itself to advocating the unlimited entry into Great Britain of the primary produce of the Dominions, but contented itself with suggesting that should be reduced to a minimum. This decision, presumably', was due primarily to recognition of the fact that British agriculture is entitled to some protection, and the arguments in support of this view could be strongly reinforced by reference to the fact that none of the Dominions afford unrestricted entry to British manufactured goods. An even more effective point is the fact that some of the Dominions, Australia and New Zealand in particular, subsidise their own exporters and penalise those of the Mother Country by the artificial depreciation of their currency. New Zealand has now gono a step further by paying a guaranteed price to its dairy producers, and it may be found that this policy will cause resentment among British farmers with whom the produce comes into competition. At the present time there are signs of increasing’ hostility to all forms of artificial trade barriers, and this trend of opinion is one which the Dominions cannot afford to ignore.

British criticism of the Ottawa agreements is directed mainly to the alleged failure of the Dominions to carry out their undertakings to give British industry equal opportunity of competing in the overseas markets of l.ho Empire. How far this charge is true is not: so important, perhaps, as the fact, that the excessive protection given to Dominion industries has caused British traders to look for openings in other spheres. The result, is that a large export; trade has been built up with some foreign coun-

tries which, as primary prodncers, are in competition with the Dominions, ami it is not to be expected that these markets will be willingly sacrificed by those directly concerned. It' foreign countries are prepared (o accept Britisli goods which are virhinlly shut out by the Dominions, can the Dominions legitimately complain if ih.ere is a demand that foreign produce should be admitted by Britain in exchange for her exports? That seems to be the crux of the whole question; it comes down, finally, to the principle of two-way trade, and unless the Dominions are prepared to give reasonable market facilities to the exports of the Mother Country they cannot expect to overcome an agitation that might prove seriously detrimental to their interests. .

There is no doubt that Great Britain sincerely desires to trade within the Empire, and in some measure at least, the extent to which she is not doing so' is due to the restrictions imposed by the Dominions. Speaking on behalf of the Prime Minister at the Conservative Party conference, Mr. Chamberlain ridiculed the suggestion that Britain should get rid of the Ottawa agreements in onlei to be able to treat foreigners more generously than the Dominions. 1 believe we would see the end of the Empire if that view were adopted,” he said. “The United Kingdom has no customers to compare, with the Dominions, but wo cannot expect them to abstain from developing thcii own industries.” It is apparent, however, that the more the Dominions develop their own industries the less will they require to buy from Britain, and does it not follow that, if the trade balance is to be preserved, Britain will need to buy less from them? The solution of this problem will be found in another comment by Mr. Chamberlain when he stated that the Dominions had room for a vast increase in population “as soon as economic conditions justify it.” It is a question for consideration whether immigration would not itself create those economic conditions which would justify an increase in the overseas population of the Empire. It is not sound policy, for instance, for a small country like New Zealand to develop secondary industries for a stationary population when it can only do so at the expense of British manufactures, and, ultimately, at the expense of its own export of primary produce. It would be sound, however, to expand the scope for existing industries by increasing the number of people demanding their products, for in this way the Dominion would automatically provide more consumers for imports from Britain and thus make it possible for Britain to take more from the Dominion in return. The future of New Zealand., and, indeed, the future of the whole Empire depends upon the extent to which two-way trade can be increased, and with this object in view it is the duty of every unit to take whatever steps are practicable to eliminate barriers to inter-Empire trade and give fuller expression to the - spirit of Ottawa.