Mr Bruce's Opinion

Star (Christchurch), Volume LXVI, Issue 20298, 7 May 1934, Page 6

Mr Bruce's Opinion

Must Cut Exports

Position Facing N.Z and Australia. Per Press Association AUCKLAND, May 6. A USTRALIA and New Zealand are facing common difficulties on the London market and fheir interests are mutual, according to Mr Bruce, in an interview following his meeting with the Prime Minister (Mr Forbes), Mr Coates and Mr Masters. He would not give details of the discussions but he inferred that in his opinion some measure of restriction of dairy exports was inevitable. Great Britain was thinking not so much in terms of expansion of overseas markets for her manufacturers, but she was thinking definitely in terms of fostering her own agriculture and giving her own farmers first consideration in their home market, he said. Mr Bruce made a point that Great Britain at present absorbed So per cent of the total dairy produce exports of the world. “ Pree trade was a very excellent thing for Britain when she was the workshop of the world,” said Mr Bruce, “ but those days are finished. Other countries are manufacturing their own goods instead of importing from Britain, and Britain finds she must adjust her general trading policy accordingly. Both Australia and New Zealand depend largely on the British market for their primary products. In- many respects the British market is to them the world market. It is obvious that we are vitally interested in the continued economic welfare of Great Britain.” An Alternative. Apart from restriction of exports, . there was one other possible avenue open to Australian and New Zealand producers, he added. That was to accept low prices and to continue storming the market until even the lowest grades of margarine had been wiped out, necessitating the marketing of butter at about 4d per lb. “ Co-operation with Great Britain presents the logical solution to our difficulties,” said Mr Bruce. “We need not fear the consequences. In some quarters in Australia, I know there is the impression that Great Britain is out to ‘ squeeze ’ the primary producers of the Dominions, and I gather similar views are supported to a certain extent in New' Zealand. That is foolish. It must be remembered that the expansion of British agriculture cannot go beyond certain well-defined limits. Great Britain has a comparatively small area and a dense population. The country cannot be turned into one large intensely cultivated farm.” Regulation had to come. That point was strongly made by Mr Bruce. It was not a qtiestion of it being forced on the Dominions by Great Britain, he said; it was a question of the Dominions wanting to adopt the principle in their own interests. Decisions on that principle could be followed by negotiations with Great Britain on the basis that with the British farmer having his interest in his home market assured, the Dominions would receive preferential treatment over foreign producers. London Negotiations. In Mr Bruce's view, there was no likelihood of an early Imperial Conference to make fresh Imperial arrangements for the marketing in Great Britain of primary products. As far as he was concerned, he thought that negotiations could be carried on through the various High Commissioners. He realised that the dairy industry was probably of greater importance to New Zealand than it was to Australia, but suggested that one gathered that once the basic principle of regulation had been adopted, the various Dominions should be free to carry out their own negotiations and make their own mutual arrangements with the British Government. Meat exports provided another point in which both Australia and New Zealand were vitallv interested, Mr Bruce added. The present agreement for meat would terminate at. the end of June and definite regulation of meat imports into the United Kingdom could be brought into force from July 1. Summed up, Mr Bruce’s views were that the position would have to be faced without delav. The British market was overcrowded' and the Dominions apparently would be well advised to accept some form of restriction and see to it that their fair share of a re-organised British market was secured.