TRADE WITH BRITAIN

Waikato Times, Volume 118, Issue 19665, 27 August 1935, Page 8

TRADE WITH BRITAIN

ADDRESS BY MR COATES.

REVIEW OF DISCUSSIONS.

81-LATERAL AGREEMENTS SOUGHT

DARGAVILLE, Monday

Appearing for the first time on the platform in his own electorate since his return from England the Minister of Finance, Mr Coates, faced a large audience in the Empire Theatre at Dargaville this evening and was given an enthusiastic reception. Mr Coates dealt with the questions leading up to the meat agreement and then turned to the dairy industry. The dairy producer, he said, was up against a problem and probably before next March there would he a discussion on what was lo happen, as after November Britain had the legal right to impose, by Treasury order, a tariff on Empire dairy produce. With that over the heads of the people of the Dominion there was a tendency toward nervousness and anxiety. What was most desirable was that before an order was made there should he a discussion, and this had been decided upon. Such discussion before any levy or tariff was imposed was an important concession, continued Mr Coates. The position was that it was up to New Zealand and all Empire countries to say whether they would play up to some supply regulation or whether they preferred some system of tariff. The preference on dairy produce provided for by the Ottawa Agreement, 15s per cwt., would be maintained. Tariffs Not Favoured, Personally, Mr Coates said, he thought tariffs w T ere dangerous and he did not look upon a tariff preference as being, of very great value. It was not restriction hut orderly marketing that was wanted, and that was the question that had to be faced before March next. The following letters, one he had. written to Mr Baldwin and the reply,,would convey the points he wished .to make.

The letter written by Mr Coates on July 10 was as follows: — “ Dear Mr Baldwin, —For some two months, as you know, we have been in touch with Ministers of His Majesty’s Government in the United Kingdom, mainly in connection with meat, though some incidental and to us highly significant references have been made to dairy produce also. “ What I have in mind is, to put it frankly, the evident abandonment or reversal of the general Ottawa policy which was so definitely expounded on behalf of the United Kingdom and accepted by us in 1932. That policy, as I understood it, looked to a conscious raising of the general price-level; an endeavour to correct maladjustment between agricultural prices and industrial prices was implicit in it. The policy, according to the statement made to us at Ottawa by the Chancellor of the Exchequer (before the Monetary and Financial Committee) and according also to later communications to our Government (your cablegram of 22nd December, 1933, for instance) involved where necessary a measure of supply-regulation.

Ottawa Bargain Kept.

“ New Zealand, I think I may fairly say, has played her part in implementing her Ottawa undertakings, by preserving and still further reducing our exceptionally low level of tariffs, with substantial preference to British goods; and, so far as the new econmic policy of the United Kingdom called for change in our internal and our export policies, we embarked upon the necessary measureo of adaptation. “Now it seems that we are witnessing a material change in the United Kingdor policy, a change the implications of which deserve very anxious consideration. This, in essence, is my reason for asking to see you, so that I might at least return home with a clear understanding of the position. “ At the same time, I should like to raise with you a question that commonly arises when our trade relations with the United Kingdom are under attention: is it feasible, or is it likely that in the measurable future it will be feasible, for Ilis Majesty’s Government in the United Kingdom to contemplate a bilateral reciprocal trade agreement with one Dominion? This issue is one, I appreciate, which inevitably involves many considerations: its pros and cons I need not attempt here to state, nor do I ask for a written reply in advance of the personal discussion which I hope you will he able to arrange: but I can assure you that it would be most helpful to us in New Zealand to have as clear a definition of the position as you can give us.” Reply from Mr Baldwin. On July 18 Mr Baldwin replied to Mr Coates as follows: — “ With regard to your inquiry as to the efforts to raise the world price level of primary products, I desire to make it clear that we have not in the least abandoned the policy enunciated at Ottawa. As you will be aware, however, we have found it necessary to change our methods of pursuing that end. “ With regard to the possibility of negotiating a separate bilateral agreement with one Dominion, the position is that although we are prepared to make (and did make at Ottawa) separate bilateral agreements with individual Dominions based on their special needs and ours, so far as the United Kingdom market was concerned each participating Dominion at Ottawa got in substance the benefit of concessions given to others. This followed mainly Iron: the fact that the most important concession we gave to each of the Dominions was entry free of duty into Ihc United Kingdom for all goods covered by Hie Import Duties Act, so that there can be no question at present of placing tariffs on products from any Dominion. “We are committed to this principle for the duration of the Ottawa Agreements, and it is only for good cause shown that we should consider departing from it. In any case, it seems to us that an important question of principle of this kind could not be settled until there luid been an opportunity to discuss it at ail imperial Conference.”

Resolution of Confidence. q'lie answer, said Mr Coates, could I not and would not be given until [lie question had ■been discussed at an Imperial conleuuce. Mr Coates promised that lie would be back among his constituents again, when they could have “ a really good night at politics." He had felt that it was his duty first of all lo give thorn 1 (Continued m next column.)

the terms and conditions of the meat agreements. “ I believe that a calm look at the policy evolved after the 1931 election will command jour respect," Mr Coates concluded. “ What the Government has managed to accomplish is something it can be proud of.” The future required the sinking of a good deal of difference of opinion and the coming together of those who had the good of the country at heart. At the conclusion of Mr Coates’ address a resolution was carried congratulating him on the success of his mission abroad, and expressing thanks and continued confidence in him as member of Parliament for Kaipara.