THORNY PROBLEMS

Auckland Star, Volume LXIII, Issue 103, 3 May 1932, Page 7

THORNY PROBLEMS

PREFERENCE COMPLEXITIES

LONDON, April 29,

There appears little likelihood of Britain giving preference to the Dominions on meat, wheat, wool and hides at the Ottawa Conference. The meat situation, however, is not so hopeless as it was a few weeks ago.

The Australian Attorney-General, Mr. Latham, had a long talk with the Lord President of the Council, Mr. Baldwin, regarding meat, and other Dominion representatives conferred on the same subject with the Secretary for the Dominions, Mr. Thomas.

The result is that the Government has undertaken to examine the position regarding meat. Members of the Government, particularly the President of the Board of Trade, Mr. Riineiman, were averse to taxing beef, primarily because chilled beef is the staple product of the middle classes and the Dominions provide a mere portion of Britain's requirements.

The Government is also loath to tax the Argentine product in view of enormous British investments there. Further complications arise owing to British agriculturists' clamour for protection, even against the Dominions.

The wheat situation lias similarly undergone a change. The Government adheres to the quota, but some sections realise that that will not greatly assist Australia, though it is difficult to see what can replace it. Australia and Canada together supply more wheat than Britain consumes.

The Russian output is a problem because prohibitive measures would mean that Russian wheat would be diverted elsewhere, further depressing prices. Such problems prompted recent Ministerial warnings not to expect miracles from Ottawa. Britain's real hope is that Ottawa will lay the foundations of a long-range policy leading to Empire economic unity.