BRITAIN'S NEED FOR MARKETS.

Press, Volume LXVIII, Issue 20612, 30 July 1932, Page 15

BRITAIN'S NEED FOR MARKETS.

Statement by Mr Baldwin. IMPORTANCE OF RECIPROCITY. Favourable Treatment of Dominions in Past. The British position in relation to Empire trade was set out by Mr Stanley Baldwin at the Ottawa Conference on Thursday. After a full review of Britain's share of this tyade, and of the amount of British goods taken by the Nonunions compared with their imports from other countries, Mr Baldwin drew attention to the aid given the Dominions is the past. He urged that rates of duty should be graduated to give British goods an equal chance in Dominion markets, HA gaid: "There is practically no free entry of British exports into the four principal Dominions." Opinion in London welcomes the statement as defining the position, and removing misconceptions. In New York attention was drawn to the clash between the large British Swanrial interests in the Argentine and those of the Doaunions which supply Britain with meat. Lord Hailsham in an interview said that if the Conference failed, there would be danger of the Empire breaking op, with disastrous consequences to the world.

vms 41S0CUTI0V—BY ELECTBIO r ' nusurs-COPTtUGHT.) OTTAWA, July 28. |6r Stanley Baldwin (leader of the has issued an immj&ai statement to the Imperial Coni 'pgtjt defining Great Britain's attireciprocal preferences. Spiwiii "The British delegation has ' jK'jUntlon of weighing meticulously given or received, but is jbdNi lMt the outside world shall spirit animating 11s all |»tee»<oWltsntly and consistently dis(g osr aetual dealings with the fHprfriMn- ' "Any suggestion that Great Britain jujAnrartl in developing or asihßlt ftpjiiT"" trade, or in no't fully i' m£BmK Bonu n * oll - concessions in Allete spirit, is wholly unwarI delegation, appreI [vantages received in ts, entered the Conitestion of making a i the still further exd frankly and fully he articles on which advantages in the We will welcome tenumt of the correjs the Dominions seek market. The British amine these statereceived with an'und an earnest desire to Dominions' wishes, that our own views riven equally favourite's Imports, ted a table, of Great imports for 1930. kuatralia: j December, 1981, inting 12 per cent, the Import Duties iltural Products A.ct, anting 34.6 per cent, luty £20,820,000, re- : cent. w Zealand: » December, 1931, ng 0.2 per cent, le Import Duties Act iral Products Act, enting 50.3 per cent, ufcy. £19,930,000, rocent. * that the proportion he Dominions enjoyceeded 90 per cent, in imports were apSince Great Britain's ley only 30 per cent, ports had been adr Dominions. tinned: "Regarding to the four principal to-day practically no ; of the preferences Britain are the total payable by foreign ing figures show Do- £> .. 129,220,000 kingdom 54,241,000 h countries .. 59^470,000 Zealand. .. 42,663,000 Ongdom 20,223,000 tries .. 13)433)000 igures, all in millions include bullion and ilude re-exports of n 1930: Trade Balances. fta in 1930 were aa

Visible balances (plus moans favourable) : Canada, plus .. .. 7.4 Australia, plus .. .. 37.5 New Zealand, plus .. .. 2G.2 South Africa, plus .. 34.4 Free State, minus .. .. 1.2 plus .. 1.3 India, minus .. .. 9.6 Rhodesia, minus .. .. ,0.3 Total visible balances in favour of the Dominions .. .. 95.7 Meaning of the Figures. "These figures reveal two noteworthy points: First, that the visible tradebalance in favour of the Dominions is nearly £100,000,000; and secondly, that Dominion imports from foreign countries amounted to nearly £350,000,000. It is necessary to remember that the percentage of duty is of great importance in assessing the Value of preference. If it is to give material assistance preference must not be so high as seriously to restrict importation. "The British delegation urges upon the Dominions that the rates of duty should be so graduated as to give British products a reasonable chance of competing -on even terms, and also that the duties againßt British products should be fixed for protective purposes no higher than is necessary to givo a fair chance to any reasonably efficient Dominion industry. "Wo desire to draw attention to the favourable tariff treatment Great Britain has accorded Dominion imports, which competed with United Kingdom products, Britain's Need for Markets. "The certainty of outlook is also important in trade. It is essential that the manufacturer and importer shall be able to assess with reasonable assurance the cost of an article to the consumer. Any arbitrary or uncertain impositions, especially wiiero an executive has discretion to determine duties, cannot fail to restrict, or even prevent, business. We desire also to emphasise to our Dominion colleagues that Great Britain is so highly industrialised that it is vital to the physical existence of her people to find adequate markets for her products. "Actually more than half of Great Britain's exports go to foreign countries. Great Britain has 2,750,000 unemployed. Anything tending to check Great Britain's foreign exports must lessen her people's purchasing and saving power, thus damaging tho markets on which the Dominions largely depend for the consumption of their products. The Position Summarised. "The foregoing tables show: "(1) That Great Britain has been doing her share in encouraging the Dominions' trade and industry. "(2) That Great Britain takes a very, large proportion of Dominion exports, for many of which there would seem to be no other available world outlet. "(3) That Great, Britain lias consistently facilitated the entry of these Dominion products on tho best possible terms, and with tho least possible interference by Government policy or Customs administration. " (4) That Great Britain has been eager to give the Dominions extensive preference, whenever she has found it possible to impose a tariff. "(5) That Great Britain has thus helped the Dominions to build up a substantial, favourable, visible trade balance. Investment and Development. "It is a source of legitimate satisfaction that the preferential access to the British investment market, 1 which has resulted from the clcpo association between Great Britain and the Dominions, has played an important part in the development of Dominion resources. Showing tho extent to which this factor has operated, it is estimated that £3,800,000,000 out of the British capital invested overseas before tho war was placed in Empiro countries. Although necessarily there has been a diminution in tho flow of overseas investment since the war, tho proportion allotted to Empire countries has substantially increased. "Out of a total of £1,401,000,000 invested between 1919 ancl 1931, no less than £848,000,000 has been placed in Empiro countries." Beception of Statement. Mr Baldwin's memorandum, every word of which obviously had had weightiest consideration, is interpreted as Great Britain's intimation to the Dominions that "demands" at the Conference must not bo all on their side. The Dominions are taking special notice of that part of tho statement which says that "the.ro is praitieally no free entry of British exports into the four principal Dominions," hinting that the

present sealo of preference is insufficient from the British viewpoint. The publication of such views, instead of merely enunciating them in the privacy of the Conference, is regarded as a mild indication to the Dominions that the British delegates are slightly piqued at the forccfulness of the Dominion's demands, coming liko an encircling attack. Moreover, the eyes of the British people are focused on Ottawa; therefore the British delegation must walk warily, knowing that assent to anything in the nature of food taxes would cause a tremendous reaction in Great Britain. The statement is regarded as the most vital pronouncement since the Conference met at Ottawa. SUPPORT IN LONDON. REMOVAL OF MISCONCEPTIONS. (Received July 20th, 11 p.m.) LONDON, July 29. The British statement at Ottawa is a leading feature in the newspapers. The editorials support its arguments, except the "Daily Express," which continues to be highly critical of Mr Stanley Baldwin, and declares that there is nothing in the statement except ancient history. "The Times" says: "The British statement at Ottawa if plainly necessary, to remove tho misconceptions which have been given a wide currency, and which might otherwise wreck the Conference., Not only the delegates, but the Dominion public should realise the facts of their trade with Britain. "By negotiation au agreement will probably soon be reached, now it is known what the Dominions and Britain mutually desire." AMERICAN OPINION. DOMINION AND ARGENTINE INTERESTS. (Deceived July 29th,- 9 p.m.) NEW YORK, July 29. The "New York Times" says: "The chief Australian delegation demanded from Britain preferential treatment for Australian foodstuffs that would interfere seriously with the cptry of Argentine meats and Danish dairy products. Britain is thus asked to sacrifice two of her best customers, despite the fact that she has enormous interests in the Argentine. Mark, too, that Australia, like tho other Dominions, seeks industrial self-sufficiency, and is bound to protect her manufactures. There is a multiplicity of causes for the division at Ottawa, not only between the Dominions and the Mother Country, but between the Dominions themselves. NO COMMENT FROM MR BRUCE. AUSTRALIAN POSITION. SACRIFICES MADE BY COMMONWEALTH. OTTAWA, July 2S. Mr Stanley Bruco (tho Australian loader) declines to comment on Mr Stanley Baldwin's memorandum, but may make a considered statement later. Tho impression here is that Mr Baldwin's statement is tantamount to aa open letter to Mr Bruce, who is unwilling to reply because that might suggest tho semblance of a disagreement which does not exist on the main question of reciprocal preferences. Opinion among tho Australians is that Mr Baldwin's statement leaves unanswered Mr Bruce's point that the Import Duties Act last March was a "tardy"' recognition of tho concessions which Australia and the other Dominions had made to Great Britain for many years. It is pointed out that before March Australia received preference only on 12 per cent, of her exports to Great Britain. Tho Ipiport Duties Act raised that percentage to 46.C. If Great Britai. had been faced with tho necessity for stating her position six months ago sho could hardly have said sho was giving ' a reasonable measure of reciprocity in return for what Australia had long granted, amounting to yearly in prosperous times.

Sacrifices by Australia. There was a full discussion of Dominion problems before Mr H. H. Stevens's Currency Committee. Mr Bruce lengthily outlined what the fall in prices had meant to Australia, involving drastic wage cuts and interest reductions. So successful had been Australia's efforts that, notwithstanding world prices, sho had increased her production by. one-third. It had been necessary to reduce her imports by threequarters, and even then Australia had' only just squeezed through, and was meeting her obligations with the utmost difficulty. Mr Bruce continued: "Unless prices increase it is impossible to see how Australia can carry on. Having made all tlioso sacrifices the Commonwealth cannot continue *to make further drastic reductions. We simply must get relief by increased prices,-" < Mr Bruce pressed strongly the view that action was essential, pointing out that it now required double the value of her exports to meet Australia's external obligations. He emphasised that unless exchanges were stable obviously reciprocal preferences could be wiped out overnight by exchange fluctuations. ,Mr Neville Chamberlain Bp ok 6 oil behalf of Great Britain, but the-.debate is only in the preliminary stage, and the matter will. again be secretly discussed to-morrow. General Business. Mr N. C. Ilaveiiga (South Africa) and other Dominion Ministers presented the Empire fruit proposals. The sub-committee on industrial standardisation elected as chairman Dr. H. M. Tory, president of the National Bosearcli Council of Canada. It aims at co-ordinating industrial specifications throughout the Empire, and has already discussed timber, chemicals, and agricultural machinery. * Dr. C. Craig (New Zealand Comptroller of Customs) was elected chairman of the Customs Administration Sub-Committee. ; An official verbal communique stated: "Tjie discussion cliiofly' concerned valuation for duty purposes, 'with a view to gaining uniformity and eliminating matters causing uncertainty." Two hundred newspapermen burst into laughter at the nieagrencss of the announcement, which is typically uninformative, in accordance with the official policy towards the world's Press. ■