IMPORTS FROM CANADA

Otago Witness, Issue 4030, 9 June 1931, Page 45

IMPORTS FROM CANADA

PLACED IN GENERAL TARIFF EXPLANATION BY MR FORBES. WELLINGTON,. June 4. The Government’s decision to deprive practically the whole range of Canadian imports of the British Imperial tariff concessions and to place them on the general list was discussed by the Prime Minister (Mr G. W. Forbes) in an interview to-night. He said it was possible that in view of the action taken Canada would now see fit to send a Minister to New Zealand to carry out conversations with a view to reaching a mutually advantageous settlement. No official communication on the question bad so far been received. Mr Forbes said he had been forced to show a strong hand in view of the complete failure of the Canadian Government to listen to New Zealand’s representations. Ever since it was decided in April of last yeai that exports of butter from this country to Canada should be subject to an increased duty Canada had consistently failed to “ come to the point,” and although every endeavour had since been made to reach an agreement no satisfaction could be had. She had gone from statement to statement, in the meantime adding successive increases to the duty on butter imports from New Zealand. This Dominion had been charged with trying to rush butter on to the Canadian market to the disadvantage of the local producers, but this had never been so. Canadian prices had not been above the London parity, and it was thus clear that there was no motive other than that of commercial marketing and an extension of reciprocal trade, as well as an effort to build up a sale for New Zealand primary produce in Canada. Mi Forbes said that when he was in Canada be found that butter from this country was in demand, and it was proving a favourable commodity on the open market. Canada had slammed the door in New Zealand’s face at the very time when this Dominion was anxious to negotiate and when it was understood that representatives of the two Governments were to come together. Since then it had been impossible to gain any satisfaction from Canada, and the New Zealand Government, being unable to tolerate a position in which a growing market had = been cut off at one blow, had been forced to make effective retaliation. The Government, was anxious to foster interEmpire trade to the uttermost, but Canada had not helped the situation by her actions.

The Prime Minister added that his Government’s attitude was that it should buy where it sold, and he had told this to the Ottawa authorities. Even yet, however, it was hoped that some agreement could be reached. In .reply to a question, Mr Forbes agreed that the next move should come from Canada. It was probable that she might agree to send a Minister to New Zealand to go into the problem. The New Zealand Government was still willing to negotiate, although it could not ir. the meantime allow the butter market to be destroyed without taking some form of effective retaliation. STATEMENT BY PRIME MINISTER. WELLINGTON, June 6. The Government has had under consideration the question as to how goods should be dealt with which left Canada before the recent tariff alterations took effect. The Prime Minister (Mr G. \V. Forbes) stated that in the ordinary course the tariff changes would come into operation immediately following their announcement, but the recent changes were due to special circumstances which warranted a departure from the usual procedure. “ Therefore.” he' said, '' it now has been decided that all goods, the produce or the manufacture of Canada which are exjKirted from that country to New Zealand before June 2, 1931, will be admitted at the rates of duty in force immediately prior to that date. This means that the new rates will not ■be charged on any Canadian goods now in bonded warehouses or which left Canada for New Zealand before June 2- If any duty has been overpaid it will be refunded upon application to the collector of customs at the port at which the duty was paid.”

ACTION IN AUCKLAND. AUCKLAND, June 6. Representatives of the 42 firms affected by the Government’s increased tariff on Canadian imports have decided on action designed to heal the breach between the two Governments. The meeting cabled to the Manufacturers’ Association, Toronto, stating it had resolved to act as quickly as possible to bring the dominions together in an attempt to overcome the present difficulties. A deputation waited on tile Canadian Trade Commissioner (Mr Croft) asking him to cable his Government urging an understanding with New Zealand. The meeting also sent a long telegram to the Prime Minister (Mr G. W. Forbes) requesting him not to impose the new duties on goods in bond or in transit before June 1, and urging the Government to act immediately to. readjust relations with Canada.