TRADE AGREEMENT WITH GERMANY.

Hawke's Bay Herald-Tribune, Volume 81, Issue 11, 6 October 1937, Page 4

TRADE AGREEMENT WITH GERMANY.

Tlie preliminary air of mystery cast over special and urgent business to be brought before the House of Representatives at last night's sitting was dissolved when -the Hon. Walter Nash, Minister of Finance and of Marketing submitted for adoption certain tariff resolutions bearing on a trade agreement arranged with Germany. It is, of course, the customary practice to have resolutions of the kind passed rapidly so as to preclude the possibiilty of advantage being taken of any interval in the way of dodging payment of any increased duties tliat may be imposel. In this case, however, only reductions of duty were involved, while it would seem that even they were not to come into operation for a week. It would tlius seem as if the main purpose of stirring curiosity as to wliat was in the wind was to magnify as much as possible the sole concrete outcome of the Minister' s admittedly earnest and strenuous efforts to fmd fresh markets for the Dpminion's export products. As for the agreement itself it is cast on general lines such as Germany has' for the last two years been eager to introduce into her trade relations with almost any country prepared to subscribe to them. As the Minister himself says, they are, in broad terms at any rate, similar to those embodied in an agreement entered into some time ago between Germany and Canada. They are also — though Mr Nash avoided answering a question on the point — of a like character to those which were proposed to Australia some eighteen months ago, but which, if memory serves aright, were turned down by the Commonwealth Government. There is thus, except perhaps in detail, very little that is really novel in fhe arrangemenT that has been concluded, subject, of course, to the necessary legislative ratification by Parliament, which, having regard to the strength of parties, will assuredly follow. As to the probable practical advantages for the Dominion to be derived from the agreement, these will no doubt be threshed out in detail during the debate on the ratifying Bill, probablv this aftrnoon. On the face of things, however, it is evident that the Minister has had particularly in mind the finding of some further outlet for New Zealand butter. How far he may have succeeded will depend entirely upon the extent to which the Dominion market will prove receptive of. German manufactures and commodities, especially those to with preferential rates of duty have been extended. Anjrway, so far as concerns butter any benefit to be secured will not enure to the producers, but to the Government itself as the sole exporter under its guarant'eed price scheme. Howeyer, in this way it may be that the agreement will work towards relieving the taxpayers from some of the burden of any further losses the Government may incur in its realisation of dairy products." The fruitgrowers have also had special consideration at' the Minister's hands, a specific share of the proceeds of the sale of German wares in New Zealand being earmarked for the purchase of apples for Germany. In this case, whatever benefit may be gained will seemingly go direct to the producers. The same may be said of such other of our products as Germany may elect to buy with the balance of the credits available from the sale of her own in New Zealand. Although it is obvious that the tariff preferences granted to certain classes of German manufactures must necessarily to some extent affect the market for British goods of a like kind, Mr Nash is abl to give assurance that the agreement has had the full concurrence of British authorities. In this we may find further evidence of Great Britain's strong desire to see the internationai trade of the world revived. Bilateral agreements such as that now negotiated with Germany may not fulfil this ideal, but they are doubtless regarded as at least setting ajar doors that are now practically closed, and it is in this respect that Mr Nash's agreement probably finds its main significance. The fact that it is to have an assured currency of only two years indicates pretty plainly that it is regarded as being merely experimental. ,