The Guardian Ind Evening Star, with winch is incorporated the West Coast Times. TUESDAY, SEPT. 23, 1930. DIAMOND CUT DIAMOND.

Hokitika Guardian, 23 September 1930, Page 4

The Guardian Ind Evening Star, with winch is incorporated the West Coast Times. TUESDAY, SEPT. 23, 1930. DIAMOND CUT DIAMOND.

Canada and New Zealand are at eross purposes, in respect to tariff agreements, particularly in regard to sending butter from mis ixmnnion. When, following the late general election, a farmers’ party went into power, Mr llennett, the leader true lo ins ejection pledges, announced the intention or putting a higher duty on New Zealand butter. hour cents were suggested, being an increase from the one cent levied by the previous Government. ' Mr Forbes at tne moment was revising the New Zealand tariff, and he responded with a substantial duty on motor cars from Canada, •''the principal trade with this Dominion. Mr Forbes left in due course for the 'lmperial Conference, travelling via Canada, and landed in the big Dominion just in time to learn that the new duty on New Zealand butter was to be eight and not four cents | Mr Bennett has hitched his waggon to a star. He wants to be well up so that in any whittling process he will not come down too low. But, of course, he 10 not reckoning on his host. The Canadian press has summed up Mr Forbes as “a plain man with no oratorical flourishes,” but one who is capable of driving a good business bargain. There have been some verbal exchanges, but it does not appear likely that the matter will bt settled promptly. Mr Bennett lias certainly entrenched himself well, for he must vcdpect his election pledges so lately given, and so acceptable to the country’s demands. On the other hand, just as New Zealand desires the Canadian market for its butter, so Canada is desirous of retaining the New Zealand market for motor cars. There are thus business interests to be considered, and while New Zealand last year sent over twentysix per (‘(lit of its butter export to Canada, and so helped the New Zealand dairy producer greatly, Canadian trade with New Zealand was tremendously in excess of the value ol the imports from this Dominion. To settle this reciprocal trade matter satisfactorily, the stage is set as a were for a game of diamond cut diamond. Each is fortified with a high tariff against its opponent as a lever To improve tbo final settlement. Thus

lias been introduced into the atmosphere of Imperial trade relationships an element not altogether conducive to the best feeling. Retaliatory measures, as a contemporary remarks, may be necessary occasionally. but mutual co-operation is better, if it can be achieved. It is to be hoped, therefore, that a new trade treaty, framed on a broad principle of reciprocity, will result from the Prime Minister’s sojourn in Canada en route to' the Imperial Conference. Further, this visit, even though hurried, will no donut emphasise to Mr Forbes that trade questions touching the interests of other British Dominions are likely to he regarded from varying points of view. That lie already appreciates this is evident from his remark, in an interview, that while New Zealand regarded Empire free trade as an impossible dream, nhe believed in closer Empire trade. That is tho standpoint—to get together for mutual advantage—taken by the now Canadian Prime (Minister in his pre-election speeches. He declared that Free Trade within the Empire was impossible, but that “the Conservative Party and all parties in Canada are very anxious to expand Empire trade, consistent with the development of our ovn resources and national life.” The recent election campaign afforded the Mother Country and the sirsfcev Dominions a clear glimpse of Canadian feeling on this tpiesloll. The ex-Prime Minister (Mr Mackenzie Fins) .stood for Hie old idea of unconditional Dominion preferences, Mr Renett, says, in effect, that not even the most loyal of the Dominions can continue, indefinitely, to offer something for nothing. He is an ardent supporter of Imperial trade co-operation, and willing, ( “giving (bargain for bargain,” to allow British goods from overseas a preferred place in the Dominion markets, on the understanding that the Canadian manufacturer retains the shelter of an adequate protective wall. Mr Forbes’ stay in Canada lias been limited necessarily,, owing to the opening of the Imperial Conference in London next week. But he is attended by expert Customs officials who are charged with all the details of the inter-Dorn inion trading, and who will be able to work out a 'basis for I action. Tho final adjustment may not come quickly. There is a considerable gulf to bridge between the two countries, and it is not unlikely that the conversations begun already in Canada, will be completed in London, where the two Prime Ministers meet again in what will be probably ft. less strained or partisan atmosphere.