THE OUTLOOK

Evening Post, Volume CXXVI, Issue 82, 4 October 1938, Page 12

THE OUTLOOK

TRADE CONDITIONS

AUSTRALIAN PORTENTS

HON. W. D. STEWART

RETURNS

"There is tremendous interest in Australia in the issue of the New Zealand elections and the campaign is being very closely followed by all sections of the community," said the Hon. W. Downie Stewart, who returned today by the Maunganui after attending the British Commonwealth Relations , Conference at Lapstone, New South Wales.

"Anxiety is expressed in some quarters in Australia as to where the present policy of. governmental expenditure in New Zealand is likely to lead the country," said Mr. Stewart. "There is also anxiety in Australia as to the possibility of another general setback. It is well known that in the event of any change in world conditions or prices, Australia always meets the storm or reaps the advantage twelve months at least before New Zealand, so that what happens, in Australia is, in a sense, a warning to New Zealand. This was certainly the case in the last depression and the same warning as was given before that depression is now being given again by Australian experts. It is not thought that the depression which it is considered is approaching will be as severe as the last one, but from the indications in Australia it is considered wise to shorten sail so far as public expenditure and expansion is concerned."

Mr. Downie Stewart said that during his visit to Australia he met both Mr. Lyons, the Federal Prime Minister, and Mr. Stevens, Premier of New South Wales. It was the opinion, in some political quarters in the Commonwealth, that the Lyons Government had been in power so long that it was possible that the. pendulum would swing in the other direction at the next Federal elections and give Labour an opportunity. Whether or not Australian Labour would be in a position to take advantage of this opportunity, however, depended upon a unification of the present divided Labour forces and the enunciation of a policy which would appeal to the country. "The British Commonwealth Relations Conference was most interesting—even more so than the last one in 1933," said Mr. Downie Stewart. "It should make a valuable contribution to a better understanding between the various parts of the Empire. The machinery of the conference had worked splendidly and a very large range of subjects had been discussed. He was in no way disappointed with the results of the meeting, which had been responsible for a very frank and helpful interchange of views. Mr Downie Stewart, who was accompanied by his sister, Miss M. Downie Stewart, proposes to remain in Wellington today and to go south tomorrow.