OFFER TO BRITAIN

Hawke's Bay Herald-Tribune, Issue 179, 16 August 1937, Page 3

OFFER TO BRITAIN

Terms on Which Dominion Seeks New Trade Referring to the negotiations with th© United Kingdom Mr Nash said that his departure from New Zealand was hastened at the request of the United Kingdom Government who in September last urged. that he should leave New Zealand in time to permit his arrival in London not later than November. This interfered with the Government's arrangements as it had been planned for .Air Nash to leave early in Decernber and to reach the United Kingdom early in January. Foilowing the rearrangement of duties tlie Secretary of State for Dominion Affairs was advised by the Prime Alinister that Mr Nash, on his arrival in London, would submit for consideration of the United Kingdom Government the New Zealand Government's policy as follows : (1) The United Kingdom, with minor qualifications, would be offered a full market in New Zealand for its manufactures and raw material equal in value to the balanee of credits from the sale of New Zealand products in the United Kingdom after providing for, (a) shipping charges, (b) invisible itenis, (c) debt services, (d) a proportionate surn for the reduction of New Zealand loans in the United Kingdom. (2) If agreement could be reached, the United Kingdom, in certain. cases, would be given the complete market in New Zealand for special manufac- • tures of a type that were not pro- . duced in New Zealand. In special cases New Zealand would give prcferencc to United Kingdom manufacturers or producers desiring to instal and operate plants in New Zealand for the production of commodities at present imported. • (3) New Zealand's secondary industries to be extended but not by redueing the total volume of United Kingdom export trade to New Zealand. The purpose of the offer was set out to be the extension of trade between the United Kingdom and New Zealand to the maximuni. Ln return for the concessions to the United Kingdom the Government asked the right for the expansion of the market in tlie United Kingdom for its primary products, particularly butter and cheese, meat, fruit, honey, etc. Main Difllculties. The negotiations that had taken place in London, said Air Nash, centred round Ihe poiuts detailed above, as subniitted by cable. The first discussions of urgency were tliose associated with beef, mutton, and lamb which are veferred to elsewhere. The main difticulty, in connection with the negotiations, which are still continuing, is the reluctance oi the United Kingdom Government to admit expan cfing quantities of the Dominion's primary products. The Minister said, however, that hiK answer to this, on behalf of the- New Zealand Government, was tliat it recognised the cliHicu Ities that come te the primary producers when a iniirkei was glutted, but it felt tliat it could not agree in general to the lestriction or reduction of tlie production of anj product that vvas uoce.ssary to humau well'are. ' The difliculties of a falling price level were recognised, hut it was obvious that this was souiething tliat mtist be overcome il tlie people of the British Coinmonwealth were to have made avajlabk ' to theni the tliings that wero neeessarj tor nortnal health which could he produeed from their own resources. Witli this quMlifieation the Alinister said tliat Ihe New Zealand Government w:.s at 1 II times willing to eo-operate with tlie tnited Kingdom Government in a way tliat would eiisuie that the I'annei- oi the United Kingdom would receive like treatment to that which the New Zealand Government was deteriniued should be available to its own farmers. Oue point in this conn.ection Lhat was , of some iinportance wag the uecesaity

for the United Kingdom to ensure tlie production of the maximum quantity of fooclstuffs from its own soil so as to ensure that, should difficulties arise that led. to conflict between the nations, the possibility of a sliortage of food supplies in the United Kingdom would. be reduced to the minimum. Agreement was reached with regard to beef, mutton and lamb, pork, and bacon. The position of dairy -products was being deferred until the agricultural policy of the United Kingdom has been decided. New Zealand Investigating "The present position," said Air Nash, "is that the New Zealand Government is investigating the commodities that can be imported from the United Kingdom without ill-effecting New Zealand's manufacturing economy, and that the United Kingdom's policy, with regard to New Zealand's imports will be determined when the United lvingdom's agricultural policy has been finalised." Whilst the negotiations have not yet been completed, said Air Nash, he felt tliat his visit had extended the understanding and goodwill between the Dominion and the United Kingdom, and tliis view was supported by tlie Secretary of State for Dominion Affairs, who said that he thought the discussions had removed a good many of the difficulties which existed before Aly Nash's visit to the United Kingdom and would help to remove any other difficulties in due course. He added that the personal contacts could not have been happier.