SPIRIT OF OTTAWA

Evening Star, Issue 21749, 18 June 1934, Page 12

SPIRIT OF OTTAWA

RECIPROCAL TRADE FEDERATION REPLIES THE HIGH EXCHANGE EVASION [Pbr, United Phess Association.] . AUCKLAND, June IS. “ The Reciprocal Trade Federation advocates the removal of trade barriers between New Zealand and Britain, thereby complying not only , with the letter, but also with (what is vastly more important) the spirit of the Ottawa Agreement,” said the chairman of the federation, Mr William Goodfellow, in reply to Mr Coates. Mr Goodfellow said Mr Coates’s statement re Mr Albert Russell was incorrect and misleading. Mr Coates’s reference to the probability of the country being inundated with tracts and reprints obviously referred to the activities of another organisation than the federation, which, had no such programme in view.

Mr Coates referred to Russell as an entertainer, when he knew very well 'that Russell for many years had been a director of one of New Zealand’s largest firms. Mr Russell had never said New Zealand had “ done nothing,” but that New Zealand had not carried out the spirit of Ottawa, and that- was the opinion of a large number of responsible people both in New Zealand and in Britain.

Why did not Mr Coates frankly admit that, by the 15 per cent, increase in exchange, New Zealand had placed the British manufacturer in infinitely worse position than before Ottawa. As Minister of Customs Mr Coates had refused to take active steps even to stop the transfer-of-millions of pounds’ worth of goods diverted .from the manufacturers of the United Kingdom to Australia. Further, the Government was reported to have purchased large quantities of railway and other materials from Australia—goods which, but for the currency depreciation, would have been purchased much more cheaply from Britain. • When we bought' from Britain we created employment and built up a market for our own goods. When we bought in Australia and sold in Britain we created unemployment in Britain, and got lower prices. Ships came out empty, and freights increased, and we defeated the spirit of the Ottawa Agreement.