DUMPING.

Auckland Star, Volume LXIII, Issue 194, 17 August 1932, Page 7

DUMPING.

SOVIET PROBLEM. Preferences Would Not Stop Undercutting. EMPIRE CONCERN. .United P.A.—Electric Telegraph—Copyright) (Received 11.30 a.m.) OTTAWA, August 10. The spokesman announced that a meeting of the heads of delegations was held at 5 o'clock and decided that in view of the difficulties encountered in various negotiations it was hopeless to expect finality before Saturday. They arranged, therefore, that their departure in the Empress of Britain from Quebec be postponed from Saturday to Sunday, enabling Mr. Baldwin and his colleagues and large staffs to remain at Ottawa until Saturday night, when they will leave by special train. It is not likely that the plenary session will be • held on Thursday, the spokesman said. There were remark ably good expectations of a satisfactory agreement being reached before Saturday. The British-Canadian situation looks very promising. Asked why the Empress of Britain is to be delayed the speaker said it was owing to natural difficulties surrounding the big problems involved and the large number of negotiators participating. Britain's original idea of finishing the business on Thursday was not an ultimatum.

Questioned regarding the Russian situation, which is particularly exercising Canada, he said it was obvious that the Russian regime was an uneconomic basis from Britain's point of view. The socialistic system was different, and the ideas of monetary rewards and personal gain. Consequently preference in many goods was useless to protect the Dominions against Russian competition on the British market. He instanced lumber, wheat, salmon, butter, asbestos, coal and oil. Russia was prepared to sell goods almost at any price because her imperative need was to establish credits overseas. This would enable Russia to undercut any Dominion. Unless restrictions were applied she could, if she wished, wipe out the preferences overnight. The speaker quoted the case of the Soviet bidding 50 per cent below the selling price of certain Dominion products and consequently capturing the whole business. Mr. R. B. Bennett explains that the delay in reaching agreement regarding Russia is due to an interchange of formulae whereby restrictions might be imposed. Britain and Canada do not yet see eye to eye, nor has Britain agreed to the principle of the quota, but he is hopeful of an early solution. The question of Russian dumping has become purely a Canadian subject for negotiation, seeing Mr. Bruce was compelled to devote his whole time strenuously to the meat issue. Nevertheless, Australia stands behind Canada's strong demand for some effective restriction against Russian exports to Britain.