A DEADLOCK

Waikato Times, Volume 117, Issue 19599, 11 June 1935, Page 5

A DEADLOCK

THE MEAT NEGOTIATIONS.

NEW ZEALAND AND AUSTRALIA.

BOTH STANDING FIRM

(Supplied and released by the New Zealand Government.) (Received June 11, 10.5 a.m.) LONDON, June 10. Something In the nature of a deadlock has been reached In the negotiations between New Zealand and Australia on their respective proportions of mutton and lamb to be exported to the United Kingdom market. Both countries are standing firm on the figures cabled on May 29.

The discussions will be resumed after the Whitsuntide vacation, which has taken practically the whole British Cabinet and officials out of town.

Question of Beef.

The deliberations regarding beef have been held up pending negotiations between the United Kingdom and the Argentine.

The British Government’s proposals involve a variation of the Argentine treaty, which does not expire until 'the end of next year and it will he necessary 'to obtain mutual consent to any amendment.

On May 2'9, during the negotiations, it was shown that of Britain’s imports from Australia and New Zealand last year Australia supplied 31.4 per cent, and New Zealand GB.G per cent. New Zealand 'contended that that was not a fair basis as Australia’s supplies included large percentage of low-grade meat, her first-grade amounting to only 15 per cent- of her total, whereas New Zealand first-grade percentage was Go, with the result that New Zealand prices were lid per lb above Australian. New Zealand was therefore anxious to maintain quality to command a 'higher price. Britain suggested New Zealand. 70.6 per cent, and Australian 29.4 per cent., but Australia pressed for the retention of G 8.6 and 31.4 per cent, respectively. This would reduce New Zealand shipments to the extent of 400,000 cwt.

BLAME FOR POSITION.

PLACED ON DOMINIONS. THEIR ABNORMAL EXPANSION. The blame for the present position in the British beef market is placed on Australia and New Zealand by a correspondent in the London Times. “Much emphasis is being laid on the British capital Invested and the volume of reciprocal trade, but one fact which needs keeping to the front is that the capital in home argiculture is infinitely greater, and that a real recovery will he immediately reflected by greatly, increased spending, all on the home market,” he writes. “Agriculture has for so long been'starved of capital that it could abstirb a vast amount once economic stability has been reached, but it is an undisputed fact that a sound beef industry is a major essential-

“Australia has 'conducted a very intense campaign against any interferferencc with her meat imports into this ■country, but she seems to overlook 'the fact that the present deplorable position is very largely the result of Australia and New Zealand’s failure 'to adhere lo their Ottawa estimates of beef.shipments and their continued abnormal expansion. Had there been any suggestion of this expansion made 'at, Ottawa it is quite reasonable to suppose that the unfortunate Argentine Pact would not have been agreed lo in its present form. Australia must also bear Jn mind that since 1932 her interest payments on overseas debt are less by £2,500,000 a year.”