CLOSER UNION.

Dominion, Volume 5, Issue 1352, 1 February 1912, Page 4

CLOSER UNION.

Several proposals have lately been made by the Prime Minister of the Commonwealth and others for bringing about closer relations between Australia and this Dominion, but, owing chiefly k> the present exceptional political situation of New Zealand, none of them have as yet received much attention in this country. The suggestion that New Zealand should join the Federation has been discussed a little, and all that has been said shows that the Dominion is more firmly convinced than ever that a close political union with Australia would be a mistake. Whatever body of opinion there may have been at one time in favour of such a step, it has been discouraged and silenced by the course of events in the Commonwealth. Our people have seen the Federal Government, under Labour guidance, trying to take to itself a very large share of the powers originally conferred upon the States, and although the proposals of last year were rejected at the referendum of Commonwealth electors, Mn. FisnEit has stated that they will be brought forward again. State Ministers of New South Wales, contrary to what might have been expected ( of them, have recently made proposals in the same direction, and there is actually talk in some quarters of substituting unification for Federation. Such a tendency can only harden New Zealand's resolve to preserve her autonomy unimpaired. The Dominion does not wish to be governed from Melbourne, or Sydney, or Yass-Canberra. The other suggestions for closer union stand on quite a different footing. In naval defence the interests of the Commonwealth ' and the Dominion are practically identical, and co-operation, or naval unification, if it comes to that, would lead, under proper administration, to a system in which safety, economy, vigour, and a sense of national, responsibility would be combined in the highest possible degree. Reciprocity in old age pensions, as proposed "by Mr. Imshek, would be a natural extension of a principle already fully accepted by both countries. And it should be possible to make a satisfactory, business arrangement whereby New Zealand could share the. advantages of the magnificent central site which the Commonwealth has purchased for its London headquarters. But the most 'important and potentially fruitful of the whole sericr of proposals for mutual action is that for tariff reciprocity. It is much to be regretted that nothing could come of the effort on this behalf which was one of the closing acts of the career of the late Mr. Seddon. The difficulties' which the New Zealand Parliament found insuperable'were difficulties of detail. The principle of reciprocal trade with the Commonwealth was then and still is, acceptable to lli6,grMt majority of the people of the Dominion. Difficulties, of course, there would still be, and interested sectional opposition would be encountered on both sides of the water, but in one important respect the time is much more favourable to such an enterprise than it was six years ago. The cost of living has risen higher than ever, and the demand for its reduction .has become insistent. Measures with that object arc bound to occupy the attention of the New Zealand Parliament in the near future, and among such measures "a place may well be found for increased facilities for exchange of products between -New Zealand and Australia. A reciprocal remission of Customs, duties might not have a very great effect, v on the price of commodities. It might even cause the prices of our products, in some instances, to rise, through the wider opening of the Australian market, but the net result in both countries would be an increase of trade and production and a lowering of prices to the consumer. Tho community as a whole would benefit. • There are, doubtless, people who think reciprocity would be a step-ping-stone to Federation, just as there were many who thought the proposed reciprocal treaty between the United States and Canada would lead to annexation of the greater Dominion by the Republic. We were never impressed by that scare. What evidence there was on the point—the rhetoric of Mr. Champ Clark, and the excitement of the Morning Post, were not evidence—pointed the other way. If one of the best results that could come from political union may be had without it, political union is less likely to be sought. _ The increased commercial and social intercourse which follow naturally upon reductions of tariff lead in turn to greater goodwill and fellow-feeling, but'these most desirable results are perfectly consistent with the most complete political autonomy. Let us enjoy all sorts of mutual benefits with our neighbours, hut let us he masters in our own house. We cannot leave the subject without mentioning that there is already on the Statute Book of Now Zealand a standing invitation to Australia or any other British country to enter into reciprocal trading relations with this Dominion. The Customs Duties Act, 1908, provides that, if any country within the Empire proposes to reduce or abolish the duty on any New Zealand produet or manufacture, the Governor may (subject to ratification by Parliament) make an for an equivalent reduction or abolition of duties on the produce or manufactures of that country. We believe any New Zealand Government would be prepared to enter into -negotiations under that clause. We already have reciprocity with South arid similar arrangements with Australia and Canada would bo welcomed. If Mn. G. E. Foster, the Canadian Minister for Trade _ and Commerce, should visit Australia, as suggested, for the purpose of negotiating an agreement, we hope New Zealand also will bo brought within the scope of his mission. It is also rjroper to point out that New Zealand has already given Australia certain tariff advantages, and Australia has not responded in kind. The preferential scheme of New Zealnnc] places every part of the British Empire upon the same footing as the Mother Country, whereas the Australian system gives the benefit of preference to the United Kingdom ahin." and places New Zealand in no better position than any foreign country. The removal by the Commonwealth of this disadvantage would be a graceful prelude to ne-. qotiaf.lone for a wider reciprocity between Australia and New Zealand.