IMPERIAL ECONOMIC CONFERENCE, OTTAWA, 1932. AGREEMENT BETWEEN HIS MAJESTY'S GOVERNMENT IN THE UNITED KINGDOM AND HIS MAJESTY'S GOVERNMENT IN NEW ZEALAND.

Appendix to the Journals of the House of Representatives, 1932 Session I-II, A-06a

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1932. NEW ZEALAND.

IMPERIAL ECONOMIC CONFERENCE, OTTAWA, 1932. AGREEMENT BETWEEN HIS MAJESTY'S GOVERNMENT IN THE UNITED KINGDOM AND HIS MAJESTY'S GOVERNMENT IN NEW ZEALAND.

Presented to both Houses of the General Assembly by Leave.

We, the representatives of His Majesty's Government in the United Kingdom and of His Majesty's Government in. New Zealand, hereby agree with one another, on. behalf of our respective Governments, as follows : — Article 1. —His Majesty's Government in the United Kingdom undertake that Orders shall be made in accordance with the provisions of section 4 of the Import Duties Act, 1932, which will ensure the continuance after the 15th November, 1932, of entry free of duty into the United Kingdom of New Zealand goods and the goods of the Mandated Territory of Western Samoa which comply with the laws and statutory regulations for the time being in force affecting the grant of Imperial preference and which by virtue of that Act are now free of duty, subject, however, to the reservations set forth in Schedule A appended hereto. Article 2. —His Majesty's Government in the United Kingdom will invite Parliament to pass the legislation necessary to impose on the foreign goods specified in Schedule B appended hereto the duties of Customs shown in that Schedule in place of the duties (if any) now leviable. Article 3. —His Majesty's Government in the United Kingdom undertake that the general ad valorem duty of 10 per cent, imposed by section 1 of the Import Duties Act, 1932, on the foreign goods specified in Schedule C shall not be reduced, except with the consent of His Majesty's Government in New Zealand. Article 4. —In regard to frozen, mutton, lamb, and beef, the understanding between the Governments concerned is set out in the letter dated the 19th August, 1932, addressed by the Eight Hon. J. G. Coates, M.P., to the Right Hon. Stanley Baldwin, M.P. Article 5. —His Majesty's Government in the United Kingdom will invite the Governments of the non-self-governing colonies and protectorates to accord to New Zealand any. preference which may for the time being be accorded to any other part of the British. Empire : Provided that this Article shall not extend to anv preferences accorded by Northern Rhodesia to the Union of South Africa, Southern Rhodesia, and the Territories of the South African High Commission by virtue of the Customs Agreement of 1930. Article 6.—His Majesty's Government in New Zealand will invite Parliament to pass the legislation necessary to substitute for the duties of Customs now leviable on the United Kingdom goods specified in Schedule D the duties shown in that Schedule, and to exempt all United Kingdom goods from the application of the surtax of nine-fortieths or one-twentieth of the Customs duty, as the case may be.

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Article 7.—His Majesty's Government in New Zealand undertake that protection by tariffs shall be afforded against United Kingdom products only to those industries which are reasonably assured of sound opportunities for success. Article 8. —His Majesty's Government in New Zealand undertake to institute an inquiry into the existing protective duties, and, where necessary, to reduce them as speedily as possible to such a level as will place the United Kingdom producer in the position of a domestic competitor —that is, that the protection afforded to the New Zealand producer shall be on a level which will give the United Kingdom producer full opportunity of reasonable competition on the basis of the relative cost of economical and efficient production. Article 9.—His Majesty's Government in New Zealand undertake that United Kingdom producers shall have an opportunity of putting forward their views in connection with the inquiry referred to in Article 8 hereof. Article 10.—His Majesty's Government in New Zealand undertake that no reduction shall be made in the margins of preference of 20 per cent, ad valorem (or its equivalent), or less, now enjoyed by United Kingdom goods over those of any foreign country, and that where the margin of preference now exceeds 20 per cent. ad valorem (or its equivalent), it shall not be reduced below 20 per cent, ad valorem (or its equivalent) except with the consent of His Majesty's Government in the United Kingdom. Article 11. —His Majesty's Government in New Zealand undertake that the existing primage duty of 3 per cent, ad valorem now levied on United Kingdom goods which are otherwise duty-free shall not be increased, and shall be abolished as soon as financial conditions permit. Article 12. —His Majesty's Government in New Zealand undertake to accord to the non-self-governing colonies and protectorates and the Mandated Territories of Tanganyika, the Cameroons under British Mandate, and Togoland under British Mandate, preferences on the commodities and at the rates shown in Schedule E, and also any preference for the time being accorded to the United Kingdom : Provided that His Majesty's Government in New Zealand shall not be bound to continue to accord any preferences to any colony or protectorate which, not being precluded by international obligations from according preferences, either (i) accords to New Zealand no preferences or (ii) accords to some other part of the Empire (in the case of Northern Rhodesia, excepting the Union of South Africa, Southern Rhodesia, and the Territories of the South African High Commission) preferences not accorded to New Zealand. Article 13. —This agreement between His Majesty's Government in the United Kingdom and His Majesty's Government in New Zealand is to be regarded as coming into effect as from the date hereof (subject to the necessarj/ legislative or other action being taken as soon as may be practicable hereafter). It shall remain in force for a period of five years, and if not denounced six months before the end of that period shall continue in force thereafter until a date six months after notice of denunciation has been given by either party. In the event of circumstances arising which, in the judgment of His Majesty's Government in the United Kingdom or of His Majesty's Government in New Zealand, as the case may be, necessitate a variation in the terms of the agreement, the proposal to vary those terms shall form the subject of consultation between the two Governments. Signed on behalf of His Majesty's Government in the United Kingdom— Stanley Baldwin. Signed on behalf of His Majesty's Government in New Zealand— J. G. Coates. 20th August, 1932.

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SCHEDULE A. New Zealand. As regards eggs, poultry, butter, cheese, and other milk products, free entry for New Zealand produce will be continued for three years certain. His Majesty's Government in the United Kingdom, however, reserve to themselves the right after the expiration of the three years, if they consider it necessary in the interests of the United Kingdom producer to do so, to review the basis of preference so far as relates to the articles enumerated, and, after notifying His Majesty's Government in New Zealand, either to impose a preferential duty on New Zealand produce, whilst maintaining existing preferential margins, or, in consultation with the New Zealand Government, to bring such produce within any system which may be put into operation for the quantitative regulation of supplies from all sources in the United Kingdom market.

SCHEDULE B. Butter .. .. .. .. 15s. per cwt. Cheese .. .. .. .. 15 per cent, ad valorem. Apples, raw (excluding apples consigned direct to a registered cider-manufacturer for use in making cider) .. .. 4s. 6d. per cwt. Pears, raw . . .. .. .. 4s. 6d. per cwt. Eggs in sliell — (a) Not exceeding 14 lb. in weight per great hundred . . .. .. Is. per great hundred. (b) Over 14 lb. but not exceeding 17 lb. .. Is. 6d. per great hundred. (c) Over 17 lb. . . .. .. Is. 9d. per great hundred. Condensed milk, whole, sweetened .. ss. per cwt. in addition to the duty in respect of sugar content. Condensed milk, whole, not sweetened .. 6s. per cwt. Milk-powder and other preserved milk, not sweetened .. .. •. .. 6s. per cwt. Honey.. .. •• •• 7s. per cwt.

SCHEDULE C. Tallow. Canned meat. Sausage-casings. Casein. Meat extracts and essences. Dried peas. Seeds, grass and clover. Leather. Copra. Sugar of milk. Gums, other than gum arabic, gum tragacanth, shellac, sticklac, and seedlac.

SCHEDULE D. New Zealand.

SCHEDULE E. New Zealand.

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Tariff Item No. J Articles. Rate of Import Duty. 32 .. Confectionery .. .. _ .. • ■ • • .. ! 27|% ad valorem. 137 .. Apparel and ready-made clothing .. .. .. .. 27|% ad valorem. 137 . . Hosiery .. .. • • • • • • • • j 27\%ad valorem. 180 (2) .. Silk and artificial silk piece-goods . . .. .. .. Free.

Commodity. Margin of Preference. Asphalt .. .. • • • • • • 10 % ad valorem. Cigars .. ■ ■ • • • • • • 2s. per lb. Cocoa .. • • • • • • ■ • Jd. per lb. Cofiee .. . • ld - P er lb - Rum .. • ■ • • • • ■ ■ s - P er P ro °f gallon. Unground spices, viz. : Cinnamon, cloves, ginger, 10% ad valorem. mace, nutmeg, pepper, and vanilla ! ;

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Letter addressed by the Right Hon. J. G. Coates to the Eight Hon. Stanley Baldwin, and cited in Article 4 of the Agreement.

Dear Mr. Baldwin, — Ottawa, 19th August, 1932. I have given further consideration to the matter of an agreement between His Majesty's Government in the United Kingdom and His Majesty's Government in New Zealand. In my conversations with you and your Ministers we have agreed that a policy will be adopted that will have for its definite objective the twofold purpose of raising the price of meat to a remunerative level, and of progressively increasing the share of the Dominions in the United Kingdom mar ket. J accept your undertaking that effective steps will be taken to secure these results. 2. For the purpose of restricting foreign supplies of mutton and lamb, the arrivals, as compared with the corresponding periods of the year ending 30th June, 1932, as 1 understand the United Kingdom proposal, are to be reduced by at least 10 per cent, for the quarter ending 31st March, 1933, 15 per cent, for the quarter ending 30th June, 1933 , 20 per cent, for the quarter ending 30th September, 1933, 25 per cent, for the quarter ending 31st December, 1933, 30 per cent, for the quarter ending 31st March, 1934, and 35 per cent, for the quarter ending 30th June, 1934, and thereafter, unless otherwise agreed between the Governments concerned, for the remainder of the period of the agreement concluded at Ottawa by not less than 35 per cent. 3. During the year 1933 and in the light of the experience gained, His Majesty's Government in the United Kingdom will consider, in consultation with His Majesty's Government in New Zealand, the best means of ensuring an improved price situation and the more orderly marketing of supplies. 4. To assist in the orderly marketing of supplies, the Dominion will give a reliable estimate of shipments of mutton and lamb as early as possible in each export season. This season will necessarily cover the period Ist October in one year to 30th September in the following year. For the season 1932-1933 ive estimate our exports of frozen mutton and lamb at 200,000 tons, with a 5 per cent, increase in each of the folloiving two years. For the calendar year 1933 you may take it that our shipments of frozen mutton and lamb will be the same as those of the twelve months ended 30th June, 1932 —i.e., of the year which ended with the month immediately preceding the opening of the Conference. 5. It is understood that, in consideration of this undertaking on our part, no restriction will be placed by His Majesty's Government in the United Kingdom upon the importation of any meat from New Zealand during the period ending June 30, 1934. 6. In frozen beef, we estimate our exports for the season 1932-1933 at not more than 22,000 tons, representing a maximum increase over the previous season of approximately 10 per cent. 7. With regard to bacon and other pig products 1 am informed that your Government are now dealing with the reorganization of this industry, and that an effective policy of control of foreign imports will be adopted. This policy, as I understand it, will provide for some expansion of Home and Dominion supplies of pig products. New Zealand is already an exporter of pork and bacon carcases and ivill be granted a reasonable share of the expansion made possible by the reduction of foreign imports. 8. All frozen beef (carcases and boned beef) from foreign sources is to be subject to the same reductions as are specified in paragraph 2. 9. No increase of chilled-beef imports from foreign sources into the United Kingdom in excess of the twelve months Ist July, 1931, to 30th June, 1932, will be permitted during the period Ist January, 1933, to 30th June, 1934, and the rate of importation will not thereafter be increased during the period of the Ottawa agreement except with the concurrence of the Governments concerned. 10. Should it appear to His Majesty's Government in the United Kingdom after inquiry that, at any time in consequence of a restriction upon foreign imports, the supplies of meat of any kind are inadequate to meet the requirements of consumers in the United Kingdom, then His Majesty's Government may remove any such restriction until supplies are again adequate. Yours sincerely, J. G. CO ATE S. The Right Hon. Stanley Baldwiti, M.P., United Kingdom Delegation, Imperial Economic Conference, Ottawa, Canada.

Approximate Cost of Paper.—Preparation, not given ; printing (1,300 copies), £4 15s.

By Authority : W. A. G. Skinnek, Government Printer, Wellington.-—1932.

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