REVIEW NEEDED.

Auckland Star, Volume LXVII, Issue 237, 6 October 1936, Page 10

REVIEW NEEDED.

THE OTTAWA PACTS. EMPIRE TRADE PROBLEMS. BILATERAL AGREEMENTS. (By Telegraph.—Press Association.) WELLINGTON, Monday. •Empire trade was discussed by the Congress of the Chambers of Commerce of the British Empire this morning. An amalgamation of the resolutions on the subject was moved by Mr. Granville Gibson, M.P. of London. While welcoming and approving the Ottawa agreements he maintained and quoted cases to show that they were working to the disadvantage of England, and must be reviewed. In that review, he insisted, business interests must be represented, and not pushed aside as they were when the agreements were made, but they could not wait for readjustments in all cases, and the Governments of the Empire should consider certaiii cases immediately. The remit moved by Mr. Gibson read: "That this congress, while wholeheartedly supporting the principle of economic co-operation underlying the Ottawa agreements, urges His Majesty's Governments in giving practical effect to that principle to follow in future the following courses:— "(1) To accelerate Tariff Board procedure with a view to eliminating unnecessary trouble and expense to applicants.

"(2) While making the existing Ottawa agreements more effective in the manner indicated above, to overlay them with further agreements negotiated bilaterally, rather than through another Imperial Economic Conference, such bilateral agreements to ensure specific tariff treatment to a selected list of commodities, rather than to rely for advantage to the contracting parties on the application of vague geueral principles. "(3) All future agreements between Empire countries should contain provision for consultation between the Governments concerned, as and when it appears to any one of them that an opportunity has occurred for initiating a movement toward a general reduction in world tariffs and the removal of restrictions and barriers to world trade.

'Lack of Cohesion.' "Further, this congress, recognising that the practical application of the Ottawa agreements has disclosed a lack of cohesion in the economic policies of the United Kingdom and the Dominions and that the time has arrived when the relationship of industry and agriculture must be brought into due perspective if mutual prosperity is to ensue, submits that the ideal to which tho policy of Imperial economic co-operation should be ( directed is that each partner should extend to v the others all the advantages which can be offered at a given moment without detriment to the vital requirements of its domestic situation. "This policy," added the remit, "should provide, in particular, for: (1) Ensuring to the United Kingdom the carrying out of a reasonable agricultural policy. (2) Affording the Dominions an opportunity to develop to a reasonable extent their secondary industries. (3) Eliminating the imposition of restrictions on the importation into the United Kingdom of Dominion primary products, while foreign countries are permitted to maintain supplies on a large scale. (4) Maintaining tho margins of preference now provided for in the Ottawa agreements, subject to such alterations or modifications as may be mutually agreed upon by the Governments of the United Kingdom and the Dominions. (5) Maintaining by tho United Kingdom and Dominions of essential foreign markets for the ' disposal of production which cannot be reciprocally absorbed. (0) Generally bringing about closer co-opera-tion in Empire trade.

[ Mr. Russell, of Sydney, in seconding the motion, made out a case for the primary produce of the Dominions being given unlimited entry into Britain. This was part of the resolution moved by Mr. Granville Gibson, who had explained, however, that he had not arrived when the resolutions were grouped. He was opposed to this part and moved the resolution with that reservation. The proposal, he said, was utterly opposed to the British Government's policy as enunciated by the Minister of Agriculture, Mr. W. E. Eliott. Britain's Foreign Losses. Sir Albert Atkey, of Nottingham, moved the deletion of the paragraph and added to the reasons given by- Mr. Gibson further reasons, among which were Britain's foreign loans and*trade interests. He explained bluntly that the Dominions themselves benefited, as it were, once removed, from Britain's trade with foreign countries, because Britain used the Dominions' products in such trading.

Mr. A. Aiton (Derby), seconded this motion.

Mr. Corke (Sydney), suggested an alteration, which was accepted, making the provision read: "Minimising so far as possible the imposition of restrictions on the importation into the United Kingdom of Dominion primary' products." This deleted the suggestion of elimination of restrictions and also reference to foreign countries. Mr. Gibson intimated glad acceptance of this clause, saying he appreciated the Australians' generosity.

Congress then proceeded to deal with the main resolution with the clause so amended. The resolution, while wholeheartedly supporting the principle of economic co-operation underlying the Ottawa agreements, set forth certain courses to be urged on His Majesty's Government in giving practical effect to that principle. These included agreements negotiated bilaterally rather than through another Imperial Economic Conference, such bilateral agreements to ensure specific tariff treatment to a selected list of commodities, rather than to rely for advantage to contracting parties on the application of vamie general principles. Other provisions included ensuring to the United Kingdom the carrying out °L a reasonable agricultural policy and affording to the Dominions opportunity to develop to a reasonable extent their secondary industries, and generallv bringing about closer co-operation in Empire trade.

Divergence of Views. Groat variance of view was revealed in a long debate, and much of the afternoon was spent in listening to a variety of trado figures, both general and particular, as to the existing position between Britain and various parts of the Empire and world. Much of the discussion also centred on secondary industries, especially as regards Australia. b Mr. Bury, of Newcastle, New South Wales, expressed the %'iew that the agricultural policy of Britain" was not only not in the interests of Britain herself, but was one of the most disruptive forces in the Empire. The resolution was carried with two dissentients. Another resolution was carried strongly recommending to the Governments of Britain and the Dominions that, at the time of reviewing the Ottawa trade agreements, they should invite the co-operation of expert advisers, who should be representative of the primary and secondary industries and Chambers of Commerce.'

A further resolution was carried strongly advocating the interchange of Ministerial visits before the bilateral agreements, which had been suggested, were concluded.