N.Z. & CANADA

Hokitika Guardian, 15 August 1931, Page 7

N.Z. & CANADA

PROPOSED NEGOTIATIONS. Following a series of communications between the two parties, the following telegram was sent on 12th August, 1931, from the Prime Minister, Wellington, to the Prime Minister, Ottawa. Your telegram 28th July :—, (1) 1 note your statement in paragraph 2 that the Canadian Government are prepared now as at all times since assuming office to undertake negotiations for a trade agreement with New Zealand and a similar statement in paragraph 4 that the Canad-

ian Government have done everything

possible to provide for a. personal discussion and negotiation of a comprehensive. direct agreement in which a provision as to butter would find an appropriate place. It is with extreme regret that I find myself unable to concur with this statement of the position.

(2) During the course of telegraphic correspondence since the 12th April, 1930, the New Zealand Government have intimated to the Canadian Government on not less than seven distinct occasions their desire to enter into direct conversations. The Canadian Government for their part not only declined to postpone their drasticaction against New Zealand butjter until such time as negotiations could take p'ace hut in point of fact before conversations were possible actually doubled the prohibitive rate originally proposed, and during a period of sixteen months they have taken no definite steps to accede to our repeated requests for a conference to discuss in detail the questions at issue. (3) Indeed on the two occasions when New Zealand Ministers actually put themselves in personal touch with Canadian Ministers the lesults entirely failed to convince the New Zealand Government of any desire on the part of the Canadian Government to enter upon effective discussions. On the first occasion, on the day of my arrival at Ottawa, (where I had been invited by the Canadian Government to discuss the matter) I was met with a heavy additional increase in the duty on New Zealand butter, while the Canadian Government were unable to enter into aiiy detailed negotiations whatever; and on the second occasion, at London, an abortive exchange of views took place but no suggestion was communicated to me then or on any subsequent date that I should return to New Zealand via Canada for the purpose of participating in yet a third series of conversations.

(4) I am unable to agree that the fundamental difficulty has been the absence of a direct agreement between New Zealand and Canada) (though such an agreement was suggested by us in 1928 and since April 1930, the New Zealand Government have fruitlessly made every effort to enter into the negotiations necessary to arrive at such an agreement). Notwithstanding the fact that the balance of trade between the two Dominions was heavily against New Zealand the New Zealand Government raised no objection to the arrangement existing prior to Canada’s termination of the extension to New Zealand butter of the rates accorded to Australian butter } though it would seem plain that if either Dominion had ground for complaint owing to the absence of such a trading agreement it was not Canada. Even now i must repeat that New Zealand continues to grant remissions on Canadian goods to a greater estimated value than Canadian remissions upon New Zealand goods and that Canadian motor cars on admission to New Zeaalnd are still accorded a preference of at least 18 per cent, ad valorem over foreign motor cars.

(5) The New Zealand Government share your view that telegrams are an inadequate substitute for personal discussion, and with you they appreciate the futility of spending further time in assessing the-responsibility for the unfortunate situation that has developed, though they must be allowed to retain the views they have already expressed in this connection. They note with regret however that the Canadian Government regal'd the forthcoming general election in New Zelaand

as necessitating a. further delay in the initiation of conversations. The New Zealand Government do not share this view and they must accordingly reiterate their continued willingness to receive a Canadian Minister at the earliest pos ible date and their desire to enter into negotiations with the least possible delay. They have however no option but to await a notification from the Canadian Government as to when a definite date for the contempted discussions can be fixed.

(6) With reference to your telegram of the oth August I have no objection to.your publishing any of my communications to you—indeed I should be grateful for your concurrence in the publication of the whole of our telegraphic .correspondence on the subject. Tn anv case T propose on the loth August to publish this telegram.