"SPECULATION"

Evening Post, Volume CXVII, Issue 73, 27 March 1934, Page 10

"SPECULATION"

MR. FORBES'S COMMENT

NO TARIFF OFFER

"I am inclined to regard the statement as political speculation,'' said tho Prime Minister (the Bt. Hon.' G. W. Forbes) when asked to comment today on the above cable. The Secretary for the Dominions (Mr. J. H. Thomas) had made the position clear in his replies to the cables which had been sent to him by New Zealand. Both the cables and tho replies had been made public during the recent Dairy Conference. On October 25 last the following cablegram was sent from New Zealand to the Secretary of State for Dominion Affairs:—

'' With reference to the question of quantitative regulation of agricultural produce imported into the United kingdom: there is a widespread belief on the port of producers in New Zealand that if we undortook a. drastic reduction or removal of New Zealand's protective tariff on United Kingdom goods his Majesty's Government in United Kingdom would guarantee the continuance of unrestricted entry for New Zealand primary products:' His Majesty's Government in New Zealand would be grateful' if his Majesty's Government in United Kingdom would indicate their attitude towards this suggestion."

. The reply of the British Government had been as follows:—

"The suggestion in your telegram would involve a modification of the United Kingdom policy indicated above and could hardly be considered with reference to New Zealand alone. Nor wo think could an examination, of such a question take place on basis of a suggestion put forward by particular trade interests. Foi- this reason we feel hardly in ;a position to give any further indication of our attitude than that outlined above, though we are, of course, at all times ready, to give full and sympathetic consideration to any proposals of the New Zealand Government for the development of mutual trade between the two countries."

, Mr. Forbes pointed out that New Zealand had not, made an offer to reduce her tariffs, but had simply made an inquiry as to what would bo the effect of a reduction of tariffs on Britain's attitude towards the Dominion's products. "The cable we sent makes it perfectly clear that there was no offep to lower tariffs;" said Mr. Forbes. "It would be most improper to make such an offer while a Tariff Commission was sitting and inquiring into the position as far as it affects tho British interests. We simply asked the question in view of the widespread rumours which had been circulating to the effect that Britain would give a free entry for. our produce if we reduced or removed our tariffs. The question was discussed at the Ottawa Conference and the World Economic Conference, and on both occasions it was stated that Britain would / not give to one Dominion what she would not give to the others. However, as the statements still persisted, we sent a cable in order to obtain a public statement from the British Government.?'