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TRADE WITH BRITAIN
"PROBLEMS OF UTMOST
DIFFICULTY."
CANDID SPEECH BY MR.
MENZIES.
At a luncheon given in his honor by
the Australian Association of British
Manufacturers at the Hotel Windsor
ycfterdny the Commonwealth Attorney-
General, Mr. R. G. Menzics, delivered a
candid speech on the present serious dif
ficulties in the way of Improving trade
iciuuuns oeuvccn Australia and the
United Kingdom. .The president, of the
association, Mr. S. Harper, presided.
Mr. M. Coatcs, in proposing the health
of Mr. Menzies, read a statement in
which it was declared that, although
Australia had difficulty in persuading
Great Britain to absorb increasing quan
tities of Australian meat, that problem
was relatively a simple one compared
with the present difficulties confront
ing certain sections or British industry
whose trude witli Australia was rapidly
disappearing. British manufacturers
hoped that the negotiations which were
taking place would lead to a greater un
derstanding of their difficulties, and that
the Commonwealth Government would
make early efforts to alleviate those diffi
culties.
Sir Lcniion Raivs. in supporting the
toast, said Australia was fortunate in
having been represented abrond. on a
unique occasion by two such men as Hie
Prime Minister and Mr. Menzics. (Hear
lienr.)
Mr. Menzics said lie entirely subscribed
to the view that Australia's trade pro
blems with Great Britain- were of the
utmost difficulty. The whole trouble was
that wc were very much disposed to over-
simplify these matters from our own
point of view. One of the first things an
Australian representative found on going
to London to discuss our export trade
was that the problem was nbout as diffi
cult ns any problem could be. There
were two big things which set a limit to
the capacity of the United Kingdom to
take what Australia could produce. The
first was the necessity for Great Britain
to maintain an extensive foreign trade.
He for one did not quarrel with that.
The fortunes or the United Kingdom;
indeed, of the British Empire, had been
built up on the basis or a world-wide
mercantile activity'. He thought It would
not be at nil proper at this stage for any
Dominion to say to the United King
dom, "You must be prepared at a mo
ment's notice to sacrifice your foreign
trade to our interests." The process in
evitably had to be a gradual one. He
was confident from his discussions in
London that gradually, and us normal
business considerations permitted, Aus-
Iralla would find increasing entrance to
the British market. (Hear, hear.)
Britain's Agricultural Policy.
The second great difficulty, said Mr
Menzics, rested with the agricultural
policy of Great Britain. There were
some people who thought that the
ideal state of affairs in the British Em
pire would be for Australia to grow the
primary products nnd do no manufac
turing, and for England to do the manu
facturing, send her manufactured goods
to us, and take our primary products in
exchange., it was a very healthy cor-
£iV?„ l, nny, sweep'"'!." view of that.
kl"d t0 remember that the agricultural
iliVnM,. i t British Government was
directed maintaining British agricul-
.nv0n,m pnc0 .basls wllieh wns ann
ually uneconomic. The price which
British agricultural policy had designed
un.: V Primary producer
Was one wllieh the .Australian primary
reducer would regard as bevond the
Js. ! avarice. British agricultural
m„,3L ? never >lrrciscd to bo directed
it tain a iv" economic lines,
JnliH.nl n 14 a dcnnitc social and
irihni .t.hcory and a desire to redis-
a-wa the population of the United
innH a1.1 ' aV L, keep People oil the
land, in order to restore Hie physical
character of the English citizen; to give
propei balance between town and coun
try, and to give Great Britain that
KrV'i security and self-sufficiency
Rhn m , ft'l'P'jes Which she felt she
not be without in Hie present
..rem r„thc world. (Hear, hear.) No
vkiting Australian Minister would dream
of quarrel ing with this, but it was well
rail ituh .\at tlle arguments that
In Ai.nl J. U oC '"danced economy
in Australia were precisely parallel with
those applying in England to-day.
I come back to Australia," Mr. Men-
fhnV CA yuCi "',',1,orc satisfied than ever
that Australia, like England, needs to
have a proper development of her re
sources on all sides if she is to carry
out her responsibilities to the world. But
Hjat docs not dispose of the problem.
Thcie bUH remains in both countries that
surplus of business with Which each coun
try is concerned. I am gind to find nn
Increasing realisation of the necessity for
a closer exchange of benefits between
Hie mother country and Hie Dominions.
There is an increasing realisation of the
fact that, while all of us — in Great Britain
and Australia — will necessarily have to
g vc consideration to the difficult pro
blem of foreign trade, our ultimate sal
vation depends on more nnd more busi
ness being done within the British Em-
pire itself." (Cheers.)
Full Understanding Required.
As a pmcLicnl illustration of the kind
of problem Hint arose in trade discus-
slons.,when contending parties "descended
from the level of pious rhetoric to the
lower but. more Important level of busi
ness discussion," Mr. Menzics quoted the
British motor trade. In discussions with
British cor manufacturers he had pointed
out that the average Australian did not
buy American motor ears because ho
loved America. He bought them because
he liked American cars. Whatever his
views might he about America, (lie Aus
tralian buyer had been supplied by
America with the kind of car he wanted,
In spite of all argument he had heard to
the contrary, lie was still of oDinlon that
tlio volume of American car sales was
due to their satisfaction of a particular
Australian demand. To deal effectively
with the problem as to whether the ma
jority of cars was to come from America
or from Great Britain, we must direct
our minds very anxiously to the problem
of reconciling not only Australia's tariff
policy, but also tho fiscal policy of Great
Britain herself, and also the commercial
policy of British manufacturers. If there
wns to be the development of trade be
tween Britain nnd Australia which we all
desired, it must bo conditioned by a full
understanding on the part of Hie British
manufacturer of, the kind of thing Aus-
tralia wanted, and by a full willingness
on the part of Australia ' to give an ade
quate measure of preference to British
manufacturers; ul.so a lull understanding
by the British Government that as far
as its policy stood in the way of full de
velopment of trade between the two
countries thnt policy must be amended.
In conclusion. Mr. Menzies said that
lliasl, of the errors in trade discussions
had ocurred by confusing rhetoric with
reason. We hi Australia should realise
the overwhelming importance of Orcat
Britain io us, and those who were carry
ing on business In Great Britain should
understand that we lind passed the day
when British colonies took British goods
because they were British. Wo had
reached the nclull stage when we knew
what wo wanted, and expected to get
11/, ilL IIUU VUIIIL UcU.K. IlUltl ulCilt
Britain more conscious thnn ever he had
been before ns to the vital importance
of strengthening every association which
existed between Great Britain and our
selves. It wns perfectly hopeless for Aus
tralia to expect that England would
throw her agricultural policy over the
wall In order to take our primary pro
ducts. and it was equally hopeless for
British manufacturers to expect that wo
would throw over our notions of national
development In Australia In order to be
come good customers of Great Britain.
These two points of view must lie re
spected. Outside those limits we should
have a determination to do in Ihe future
a good deal of business with each other
which In the past we had been doing
Willi oilier people. (Loud appluusc.)
W. M. Klimwmi I'ty. I.M., .Wis Vietorlii-
inert. Wr-.it Mirltmumo, mparts Imvlni: .-"In nt
miction brick balcony liouso, Bound# ry-rond,
.North MelljuUl'r.e, for JJ '
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