TRADE PACT

Manawatu Standard, Volume LVIII, Issue 53, 31 January 1938, Page 8

TRADE PACT

3.15 P.M. EDITION.

CONSIDERATION IN AUSTRALIA. DEALINGS AVITH DOMINION. (United Press Association—By Electric Telegraph.—Copyright.) . Received January 31, 12.5 p.in. CANBERRA, Jan. 31. The Federal Cabinet, which adjourned on Friday until February 7, has been summoned suddenly to meet in Sydney to-morrow to continue the examination of the proposed trade agreement with New Zealand, This decision is said to he a direct development from the criticism of the agreement expressed at Friday’s meeting. Some of the Ministers think that it is inadvisable to postpone consideration of the points raised until February 7. Cabinet, on Friday, refused to accept the New Zealand Government’s proposals without a more thorough examination. The principal objection raised was that New Zealand, by imposing a new range of tariffs on Australian manufacturers alone, was introducing into Empire trade relations the principle of discrimination. The Commonwealth Government does not question New Zealand’s right to increase the duties to nrotect home industries. Deliberate discrimination by one Dominion against another, however, is new to inter-Empire trade relations, and the Federal Ministry _ is not prepared to accept it until its implication has been thoroughly examined. . . ' , The Federal Ministers, it is stated, fear that once New Zealand lias established a precedent she may endeavour to extend the policy in her dealings with Australia.