SOUTH AFRICA'S POSITION

Rotorua Morning Post, Volume 1, Issue 150, 18 February 1932, Page 4

SOUTH AFRICA'S POSITION

Although there is a kink in human, nature whfch gives a little compensatiion for our own; ills in the misfortunes of our neighbours, the news that South Africa has also joihed the j growing company of deficit possessors is one which must occasion concern in this country. Little comfort can be taken from the fact that practically every component part of the JBritish Commonwealth of nations is faced with revenue shortages and general budgetary worries, for no part of the Empire can stand alone and unaffected by the anxieties of its neighbours. If New Zealand's troubles were wholly localised, their solution would be greatly simplified, but to an increasing extent wb are b'eing forced to realise that our bwn problems are inextricably int'erwoven with those of every other country with which we have commercial and trading interests. Undoubtedl'y, a large part of the remedy for our varioiis ills lies in our own hands, and within the scope of our own resourees we must work oiit our own salvation. But the matter does not end there. The period of recovery in this country is governed definitely by extraneous conditions, and over these we have no control, beyond the beneflcial reaction which our own recovery must have upon th'e other countries with which we have dealings. In the case of South Africa New Zealand's reciprocal trading does not reach the extent of its connection with Australia, Canada, and of coiii'se, the lVlother CountFy, but it is nevertheless of considerable volume and importance. In 1907 this country inaugurated a reciprocal arrangemen't with British South Africa which enabled direct imports from South Africa to be brought into the Dominion ht reduced rates of duty in return for similar concessions granted by South Africa in respect of New Zealan'd pfoducts. The chief items of import which "benefit under this arrangement are various ciasses of dried frdits and wine, while feathers, fresh fruit, iish, and tea, are also given concessions. New Zealand's imports from South Africa reached their peak in 1922, when the trading arrangem'eht was revised, and the value of direct imports from the Uriibn totalled £152,386. Since that year, however, the value of imports from South Africa ha's decreased to £87,849 in 1930, but on the other side of thb ledger, the value of New^Zealand exports to that country, although fiuctu'ating considerably, has increased, to agkregate a total of £271,161 over a ten year period. Owing chiefly to difficulties of transport, the Soiith Atrican market has been oiie which' New Zealand has developed very little, but it is also one which has very detinite possibilities for this Dominion. The fact, tHerfefore, that South Africa is f acmg. a deficit of £2,000,000 in its na,tional revenue and a similar deficit on its railway revenue is one which must have repercussions upon New Zealand trad^. Stringent ecoiiomies which have for their first step a graduated salary cut upon all civil servants are proposed by the South African Government to meet the position, and as overseas exports to this Dominion have felt the result of the New Zealand wage reductions, so also will New Zealand exports sKow a reaction to income reductions in the purchasing country. Two- points, however, may be raised when considering the South African position. That coUntry does not propbse the imposition of a iixed wage reduction applying in e'qual measure to all scales of income, but will adopt a graduated reduction along the lines which were suggested to the United Gbvefhmeht and rej'ected. We have ajfeady expressed the opinion that this method, entailing a sjt does an equality of sacrifice,- is a much more equitable systbm than that which was adopted in this country, and it will be interesting to observe the comparitive results which will be obtained'. The other point which arises is this. The position ribw disclosed in South 'Africa and which obtains to a greater of lesser extfeiit in every country of the British Commonwealth, emphasises oncq again the ufgeht nec'essity fbr a full discussion of'the Enipire's lhternal probiems and the clrafting of some practical system of co-operation which will assist the nations. under the British Crown to work together fqr their own individuaf and coilectiye benefit. The fbrthcbming Ottawa Conference will hfford the nations of the Empire that oppoftunity, and in the light of .the feconbmic bonditions; it is more thari'ev'er tb be hoped; thht' every participating country will gb t'o the conference determined to make it a milestone in the path of economic reconstruction.