TRADE AND FINANCE

Evening Post, Volume CXV, Issue 73, 28 March 1933, Page 10

TRADE AND FINANCE

PRODUCE & MARKET REPORTS FROM DAY TO DAY

BUTTER EXPORTS

CRITICAL POSITION

AUSTRALIAN ATTITUDE

"Evening Post," March 28,

A private cablegram dated London, March 25, was received in Wellington yesterday, reading: "Opinion of majority o£ trade here is that New Zealand should agree to limited quotas promptly, thus curtailing European imports immediately. "Increased prices will more than compensate and ensure [ better market Dominion outputs for coming years. "Four months bacon quotas have increased price goods to 30 per cent, wholesale. "Bacon prices now same as butter." This dispatch was from one of the most prominent provision firms in the United £Lingdoxn. Meantime cable advices have been received today from London showing a still further decline in the butter market there. QUESTION AT CANBERRA. Some light was throwri on Australia's attitude \ towards restriction when the Commonwealth Government on March 21 decided to defer action in that direction. This decision was come to in order to enable the Australian Dairy Produce Export Control Board to confer with the New Zealand Dairy Board.

The Attorney-General of the Commonwealth assured the Federal Parliament that if the Australian board recommended that no restriction should be imposed, the Government would have no hesitation in adopting that recommendation. The proposal under consideration is that Australia should agree to the importation of Australian butter into the United Kingdom being reduced by 6 per cent, on condition that foreign importations are reduced by 12 per cent: The imposition of a compulsory export levy of ,%d a lb to be paid by all Australian producers was suggested. This export levy would enable the surplus Australian butter, estimated at 6000 tons in the present year, to be. purchased from the producers and disposed of on the local market. These proposals had already been agreed to tentatively by the executive of the Dairy Produce Export Control Board, but were the subject of further consideration. The New Zealand Dairy Board delegation is not to leave New Zealand for Australia on this mission until well into next month. WHO RAISED* THE QUESTION? Mr. Latham informed the Federal House that the question of restricting butter exports to the United Kingdom had been raised not by Great Britain but by the New Zealand Government. The British' Government had merely asked New Zealand and Australia to meet its representatives to discuss the position. The Ottawa Agreement provided for free entry for butter from the Dominions for three years. The British Government did not ask that that provision be amended, and the Dominions could, if they wished, maintain the Ottawa position, and have no restriction. If there Lwere no restrictions it was quite certain that negotiations now pending for trade agreements between the United Kingdom and Denmark and other countries would be greatly facilitated. The question. must m considered in Australia simply from the point of view of the interests of the local, industry. NO DICTATION. The question under consideration, continued Mr. Latham, related to a Dominion restriction with a foreign Restriction of double the percentage of any Dominion restriction that might be adopted, together with the maintenance of the 15s preference to Dominion butter. The Commonwealth Government had sought the advice of the Dairy Produce Export Control Board, and it' was reasonable to draw the conclusion that the board possessed the confidence of the industry. If the board recommended that no restrictions be imposed, the Government "would have no hesitation in adopting that, recommendation.

"There is no question of the Commonwealth Government dictating to the industry, and there is no foundation for statements designed to promote the impression that one Government or the other is attempting such dictation," added Mr. Latham. SINISTER INFLUENCES. Mr. Latham reiterated the facts as stated by Mr. Bruce. On January 26 the Resident Minister sent a message to the _ Government that the Secretary of State for the Dominions, the High Commissioner for New Zealand, and he himself had discussed a proposal made by New Zealand for a 25 per cent, restriction on imports into England of foreign butter. The question had then been raised,whether it was possible to restrict foreign exports of ' butter without a restriction on Dominion butter. There were apparently some interests—he did, not mean that they were in the House —which were prepared tb do ■what they could to create bad feeling between Great Britain and the Dominions, and, for sonie reason, they had been carrying oni a campaign. There had been 'amazing press propaganda about Great .Britain attempting to dictate to the Dominions. There had: been no such "attempt made. His statement to the House was, he believed, absolutely accurate. It 'certainly was completely in accordance with all the information the Government ;liad.