AUSTRALIA'S ECONOMIC POLICY.

Hawke's Bay Herald-Tribune, Volume 81, Issue 72, 17 December 1937, Page 4

AUSTRALIA'S ECONOMIC POLICY.

No doubt the preliminary conversaions now in progress at Wellington between an Australian trade delegaiton, headed by tbe F ederal Minister of Trade and Customs, and members of the New Zealand Cabinet are more or less of a confidential nature, so that tbe withholding of any authentic information regarding theni may be fully warranted until they assume some definite sbape. In the meantime, bowever, some inkling as to their prohable trend may perbaps be gatbered from internal discussions wbich bave been- going on at Canberra and are reported in Sydney papers received by tliisweek's mail. In tbe first place, it is assumed as "practically certain" that arrangements will be eompleted between tbe British Government and the oversea dominions' Governments for a conference late in Marcb next or early in April to revise tbe Ottawa agreements. It is expected that tbe conference will also discuss a proposed trade understanding between not only the United Kingdom but also all other Empire countries, on the one hand, and the United States on tbe other. In fact, it is suggested that the Empire- American talks will go a long way beyond the scope of an ordinary trade understanding as among those inimediately concerned and will extend to devising a general policy for concerted action to stbuulate international trade in its broadest aspects. This latter lias, of course, been a purpose whieh the British Government has all along kept continually in view, but has been as persistently thwarted by the policy of, "national self-sufficiency" which so many other countries havee adopted. Of more recent years, however, America has become a convert to the British point of view and, if not in the President himself, then in liis Secretary of State, Mr. Cordell Hull, it now has a ver-y earnest and active advocate, as being an important factor in restoring more friendly international relationships throughout the world. There would thns appear to he looming up matter of mnch greater iinport than the mere adjustment of the trade balance between the Commonwealth and the Dominion, whieh at present dips so deeply in favour of the former — to the extent of no less than £3-inillion for the first nine months of the calendar year now so closely approachfng itg close. Figures such as tliese, of course, point very definitely to the desirableness of some better equilibrium being established between the two countries. It is, however, a little di£ficult to see how this is to be brought about when the exportable products of the two countries are very much of the same cliaracter and the costs of their production and the governmental burdens and restrictions imposed upon producers are so much higher, so much more heavy and oppressive in the one "country than in the other. So far as coneerns the Ottawa agreements, which during the last five years have conferred snch distinct marketing advantages upon our primary producers, it is noteworthy that Australia, in the interests of her manufacturing industries, has evidently in mind some fairly drastie revision of the basis upon which they were originally rcached. As yet there does not appear to have been any definite fonnulation of Australia 's new proposals. But, speaking last week in the Federal House of llepresentatives, one of his colleagues quoted the Prime Minister as having publicly stated that "a review of the Ottawa agreements would soon be initiated" and that Australia could not, in her own interests or in those of the world, aford to be unduly bound to or prejudiced by the past." On his own account the quoting Minister then went on to say that the prime general principle to be adopted is "that Australia 's alll-round industrial development is the essential eondition not only of her growth but of her existence." In saying this the Minister intimated that he had particularly in view, as a matter of self-defence, the need for materially increasing Australia 's population. This would necessarily involve imigration and that, in turn, meant the further development of secondary industries to provide inducements for prospective immigrants. With this object in view it would seem to be that a definite policy of tariff protection for home industries is in contemplation, even should it mean the sacrifice of some of the preferential benefits enjoyed by Australian priniary products on the British market. According to this Minister some measure of compromise is almost inevitable, but, he added, "we do not purpose to drop the substance for the shadow. We are too conscious of the value of the Empire and its preferential system to make even a modification of that system unless we are driven to it By a real prospect of compensating benefit. The last thing I have in my mind is to foreshadow any ahandonment of the principle of preference. This may all leave Australian policy in a rather nebulous eondition, but at the same time it affords some hint as to the general direction it will take, and it will doubtless give our own Cabinet something to think over.