CANADA CUTS IMPORTS

Press, Volume LXXXIII, Issue 25345, 19 November 1947, Page 6

CANADA CUTS IMPORTS

Drastic Controls Announced FOREIGN EXCHANGE EMERGENCY (N.Z. Press Association— Copyright) (Rec. 11.30 p.m.) OTTAWA Nov. 17. Sweeping emergency controls to correct Canada’s foreign exchange position were announced to-night by the Finance Minister (Mr Douglas Abbott). They include restrictions on imports and pleasure travel and the imposition of special excise taxes, and will become effective to-night. The measures include a long list or outright prohibitions of the importation of goods already produced in Canada to a substantial degree, or in some cases of a semi-luxury or non-essen-tial type. These include jewellery, candy novelties, typewriters, radios, refrigerators, and furniture. The importation of all motor-vehicles is prohibited temporarily, but this will be replaced soon by a restrictive quota system. Quota restrictions are imposed on classes of goods including many types of fruit, some vegetables, all textiles (but not raw materials and yarns), all leathers including footwear, gloves, and luggage, and various items such as clocks and watches, cutlery, and sporting goods. The annual ration of funds for pleasure travel is fixed at not more than 150 dollars a person for those who want to visit any United States dollar area. The Canadian Parliament will be asked to approve an excise tax of 25 per cent, on durable consumer goods such as motor-launches, sporting goods, motor-cycles, musical instruments, and cameras.

The present 10 per cent, tax on motor-cars will be increased to 20, 50, or 75 per cent., depending on value.

Encouraging Gold Production To stimulate the production of gold, for which there is an unlimited dollar market, the Government proposes to defray for three years the costs of gold production above the quantities produced in the year ended June 6, 1947, to the extent of seven dollars for each fine ounce of additional production. The excise tax on sugar and the import duty on tea from normal sources are removed. The duty on coffee is reduced and electricity and gas used in dwellings are exempt from the 8 per cent, sales tax. “The restrictive aspects of this programme will come as a shock to many Canadians,” said Mr Abbott, "but to adopt a lesser programme would be to risk failure and to invite conditions which would necessitate far more drastic restrictions. We intend to get rid of these restrictions as soon as circumstances permit.” The United States State Department, in Washington said it appreciated that the Canadian Government had been reluctant to impose import restrictions and that it had now done so only because the increasing difficulty of Canada’s situation left no alternative. In terms of her continued contribution to World reconstruction, Canada’s action should be considered as a shortterm measure which did not mean the abandonment of the long-term objectives shared with the United States.