Trade with New Zealand Much of the debate on trade
relations between this country and New Zealand was based on a misunder- standing. The Opposition were apparently under the impression that the New Zealand Government had invited the British Government to consider the possibility of granting unrestricted entry to her primary products in return for a reduction or removal of the tariff on United Kingdom goods. That was not the real position. The fact was that the New Zealand Government was being pressed by its farmers to endeavour to secure free entry for their produce to Britain by offering to reduce or remove the tariffs. The Government saw no possibility of reducing the tariffs, but were clearly anxious to placate the farmers by showing them that Great Britain was not able to make a concession to them which would be followed by demands for similar concessions to other Dominions. The reply of the British Government in these circumstances could scarcely be in doubt. The ideal, no doubt, is so to increase consuming power that we could absorb all the produce of our own farmers and as much as could profitably be exported to us by the Dominions. But as long as that consuming power is lacking, and if we intend to avert a glut which will drive prices to starvation point for producers, we must be con- tent to apportion the delivery of supplies as well as we can between our best customers. That is not economic nationalism.
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