"OF LITTLE DANGER TO UNITED STATES"

Auckland Star, Volume LXXVI, Issue 236, 5 October 1945, Page 5

"OF LITTLE DANGER TO UNITED STATES"

EMPIRE PREFERENCE

Will America Insist On Its

Abolition?

Rec. 11 a.m. NEW YORK, Oct. 4. "British imperial preference may not be such a menace as the Britisn would like us to believe,' says tne Washington correspondent of tne New York Times. At least some United States Government officials who have studied the effects of the system on British-American trad have suggested this in confide - tial documents. These documents show that Ottawa P/eferences have had so little ill-effect cm. t:ra that in the opinion of one of tne officials it would be a inistake for the United States to insist on their immediate abolition but ra America should ask for g 1 ad replacement by a multilateral plan. "Imperial preference, although devised by Britain, has not had the desired effect. Although the Ottawa agreements have somewhat increa the share of United exports which went to Empire markets tw have not increased to any £-bs tial extent the propor«OM w Dominions and Indian impor Britain. Britain's share of tne Indian and South Africanl marisets has in fact sharply declined IJV United States was not greatly i jured. Our exports to Brtgg between 1932 and 1938 were omy slightly reduced, which may been partly attributable to ouva. factors. .. ... -

"The preference system could only benefit Britain and other parts of the Empire, if at all, during a period of declining world trade. How- | ever, regardless of how powerfully facts may seem to argue, the preference system is of little danger to Africa It is believed likely by many Washington negotiators that the United States will insist on its abolition, (> if only because of political Government withheld an attempt to devalue the pound to the vicinity of 3 dollars 70 cents after the United States Government informed it of its opposition to such action. This is learned by the Nejv York Herald-Tribune's Washington C °T«a P su n 4 e °ources said one of. the condftions of a substantial American loan to Britain Would be the continued valuation of the pound at dollars 3 cents. ___