Hands Across Pacific

Sun (Auckland), Volume II, Issue 415, 25 July 1928, Page 8

Hands Across Pacific

JAPAN AND NEW ZEALAND Mutual Tariff Reductions

(THE SUN’S Parliamentary Reporter.) WELLINGTON, Tuesday. INITIATION of a trade .compact between New Zealand and Japan, by which each classifies the other among “favoured nations” for the purposes of trade, was announced to-day bv the Hon. W. Downie Stewart, Minister of Finance, who? explained that New Zealand would feel its chief benefit through widened opportunities for developing a profitable butter market in Japan. The Minister was taken to task by Messrs. H. E. Holland, G. W. Forbes, and E. P. Lee, for not giving the House notice of the presentation of the report on the subject, which, they said, warranted as full study and discussion as members could give it.

With what merchandise would Japan be able to invade New Zealand under protection of reduced tariff? asked Mr. Holland, and Mr. E. P. Lee sought information as to the exact powers by which the Minister could enter into such agreements. “DICTATORIAL POWER’’ Mr. J. A. Lee, commenting on the fact that the other Mr. Lee had agreed with Messrs. Holland and Forbes, said he was pleased at his conversion, as it perhaps indicated that others were now realising the dangers of arming an irresponsible Cabinet with dictatorial powers.

Mr. A. Harris: Is Japan to have better terms than, say, the United States or France? He thought the favoured-nation concessions should be given to European Powers rather than Asiatic Powers. Mr. W. A. Veiteh thought New Zealand would benefit from the fact that Japan’s greater population offered New Zealand exporters a better market than Japan could obtain in New Zealand. The Minister of Finance assured the House that the agreement put New Zealand in a most favourable position. Butter would now be marketed in Japan at Jcl a lb cheaper, and could thus compete with the Canadian product. This was the main object of the treaty, which put New Zealand in a better position, as regards trade with Japan, than Aus-

tralia was in. Australian critics were now reproaching the Commonwealth for its failure to make a similar agreement. Tariff reductions are also made in Japan on a limited number of other articles similar to those produced in the Dominion, e.g., certain preserved vegetables and fruit, worsted, yarn and wool tissues. The arrangement has the further advantage that if in future any reductions in duty are made in favour of any other country they will, while the agreement stands, automatically apply to New Zealand. “This Dominion has always admitted Japanese goods at the same rate as that charged on the goods of any foreign country/* said the Minister. “This, no doubt, has induced the Government of Japan to enter into the present arrangement with New Zealand. There is the further point that if New Zealand in the future reduces the duty on the goods of any foreign country, whether by way of a tariff treaty or otherwise, the benefits of such a treaty, while the present arrangement with Japan continues, automatically apply to the goods of that country. So far as commerce and navigation are concerned, New Zealand already accords to Japan treatment as favourable as that accorded to other foreign countries. As will be seen from the notes which have been laid on the table of the House, the agreement remains in force until the expiry of three months after notice of termination lias been given by either party.” HOME AUTHORITIES AGREE Japan had entered into a treaty with France, and subsequently its benefits were extended to other countries, including Canada, placing that Dominion in a better position with regard to exports than New Zealand. The New Zealand exporters were anxious to be on the same footing. The Home authorities had agreed to New Zealand’s action, in view of the urgency of the matter. Regarding reciprocity, there was no concession given to Japan. She already enjoyed the same advantages as other nations were afforded by New Zealand’s foreign tariff. Japan’s object in signing the treaty was partly due to a recognition of the way she had been treated by New Zealand and partly because she desired to share in any concession New Zealand might make in the tariff to any other foreign countries. The authority to sign the agreement was vested in the Government by reason of the sovereign powers vested in New Zealand. The Minister said the Consul-Gen-eral for Japan had arrived in New Zealand only that morning, and he had been anxious that the Notes should be signed to coincide with the visit of the Japanese Naval Squadron. As the matter had been fully discussed for many months past, there had been no difficulty in complying with the request.