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Hokitika Guardian, 16 May 1931, Page 4

Negotiations are still being carried out between the New Zealand and the Canadian Governments with a view to reaching some solution of the tariff difficulties which are proving such a handicap to the trade of both dominions. The Prime Minister, the Right Hon. G. W. Forbes, said that although it was too; early at the moment to give an indication when any definite announcement could be made regarding the future trade relations, he. was hopeful an agreement could be reached to the advantage of hotJi counties. Mr Forbes recalled his statements in Canada while on his way to the Imperial Conference last year. He said New Zealand had been placed in an impossible position as a result of Canada's decision to raise the duty on butter from the Dominion to eight cents, or four pence per pound. That meant it would be impossible for New Zealand to market its butter in Canada profitably, and as a result the New Zealand Government had been forced to raise the duty on Canadian motor cars. Mr Forbes said he had pointed out to the Canadian authorities that

New Zealand was anxious to trade. In the past Canada had enjoyed a very favourable trade balance with New Zealand, and it was thought only to he fair that Canada should lie prepared to take some of New Zealand’s <om modi tics in return. The very essence ol trade was that it should be mutual, hut Canada’s action in erecting a tariff wall against New Zealand butter had had the result of practically killing trade in. that particular commodity. If Mr Forbes can arrange this matter satisfactorily it will be very gratifying to the country. New Zealand requires all the markets it can secure for its dairy produce in particular. The butter market abroad is hound to suffer by the import of Russian butter to England, and New Zealand exports to Britain will show a decline most probably. Empire trading becomes more and more imperative when it is realised the harm Rusisa is likely to do by its system of forced trading in the endeavour to wreck the British Empire, as appears to be the main spring to the present action.