The Daily News THURSDAY, NOVEMBER 15, 1934. INTER-DOMINION TRADE.

Taranaki Daily News, 15 November 1934, Page 4

The Daily News

THURSDAY, NOVEMBER 15, 1934. INTER-DOMINION TRADE.

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The visit to Australia of two New Zealand Ministers, Messrs. Coates and Masters, is not being made a moment too soon. In some respects the Dominion and the Commonwealth are rivals, in that they are both desirous of selling their exportable primary products,in the same markets. In furtherance of such desires private commercial undertakings have often found that an ounce of co-operation will do more for mutual benefit than a ton of controversy, and the same holds good in regard to the export of foodstuffs from New Zealand and Australia to Great Britain and elsewhere. It is true that the pefcentage of exports to production is greater in the Dominion than in the Commonwealth. Australia has nearly five times the population of New Zealand, and her domestic consumption of primary products is so much the greater. But the output from Australia is increasing rapidly, and with more produce to sell her competition with the Dominion is likely to grow keener. There is room for friendly cooperation in that regard, especially in view of the determination of the Government of Great Britain that any intra-Empire trading agreements made must apply to all the self-governing Dominions alike. It may be that it would be to the advantage of the Commonwealth and of New Zealand if Britain’s ruling on this point could be altered, and no doubt this is one of the matters Messrs. Coates and Masters will deal with at Canberra. Then there is the old, vexed question of inter-Dominion trade, of which the recent “oranges and potatoes” controversy has been an unhappy reminder. In the handling of this matter the New Zealand delegation has been well chosen. Mr. Coates knows the attitude of the primary producer, and as Minister of Finance as well as Minister of Customs will be able to gauge the effect upon the Dominion’s revenue qf ‘any tariff modifications proposed. Mr. Masters is well aware of the commercial outlook and of the serious competitor with Great Britain the Australian manufacturer has become. As Minister of Industries and Commerce Mr. Masters has shown great interest in the development of new markets, and in this regard some co-operation with Australia may be found possible. There is also the question of subsidised foreign shipping in which the Dominion and the Commonwealth are mutually interested. Most people are aware that a heavily subsidised American shipping line is in active competition with Australian and New Zealand-owned vessels, although the United States, will not permit similar competition by vessels—whether subsidised or not—between American ports. The problem of combatting subsidised shipping is very involved. To meet subsidy by. subsidy appeals to many as the only solution. Unfortunately, even if New Zealand could afford it, that remedy is not so straightforward as might appear. Only this week the Auckland Harbour Board has drawn attention to the loss of revenue it might suffer if foreign subsidised shipping were excluded from that port. Moreover, the board contended, by such action the tourist traffic in •New Zealand would be reduced considerably, and the cost, direct and indirect, of supporting local shipping become therefore altogether prohibitive. The repercussions of politically controlled economics have an unfortunate habit of appearing where and when they are least expected. Great Britain, with all her resources and with centuries of experience in shipping enterprises, is moving very cautiously in regard to this problem of foreign subsidised vessels. She is attempting to bring about improvement by negotiation rather than by retaliation, and it is an example of which New Zealand and Australia must take full heed. Joint negotiations by the Dominion and the Commonwealth are more likely to carry weight than efforts made by either country individually, and if this can be arranged at the forthcoming discussions at Canberra the visit of the New Zealand Ministers will have more than justified itself. They are aware that public opinion is with them in an endeavour to bring about better trading, conditions and closer co-operation in national affairs between the Dominion and Australia. Their task will not be one that is easy, but the knowledge of the support that is behind them should give them courage to undertake it with zeal and determination.