RECIPROCITY.

Dominion, Volume 4, Issue 1101, 13 April 1911, Page 5

RECIPROCITY.

MOST-FAYOURED-NATION CLAUSE. AN.AMERICAN RULING. By Telegraph-Press Association-Copyrizht Washington, April 11. In deciding a. whisky duty case, the Customs Court incidentally held that the so-called "favoured nation" clause existing in commercial treaties between the. United States and Britain nntl other European, Powers does not restrict the action of the- United States in effecting reciprocity with Canada. Tho whisky importers claimed that the same duty was payable on English whiskies as on Trench, but tho Court rejected the claim, holding that the "favoured nation" clause did not apply to England. Consequently, political circles declare that America cannot be compelled to grant to other nations concessions made in the Reciprocity Agreement, citing the above as preof of their contention. BENEFITS NOT UNIVERSAL. AMERICAN ATTITUDE DEFINED. (R«c\ April 13, 0.25 a.m.) New York, April 12. The Associated Press has published an inspired announcement to the effect that a European Government—the name not being given—has raised the question whether Canada's benefits under reciprocity .are to be extended to other countries in accordance with the most-favoured-nation clause. The State Department has replied that reciprocity is a bargain i which the United States receives concessions in return for concessions, and other nations will not secure the benefits of reciprocity unless a special agreement is made.

AMERICAN BILL TO PASS. DEMOCRATIC SUPPORT ASSURED. (Rec. April 13, 0.25 a.m.) Washington, April 12. The Democratic caucus, which now controls the Lower House, has decided to pass the Reciprocity Bill first, and later to pass a Bill amending the tariff so that farmers' necessities will be placed on the free list. The Reciprocity Bill will be put through unaltered. CANADIAN BILL'S PROSPECTS. Ottawa, April 11. It is considered improbable that the Reciprocity Bill will pass the Canadian Parliament before Sir Wilfrid Laurier, tho Prime Minister, leaves for London on May 18. Lord Selborne recently declared that under the "most favoured nation" clauses in British commercial treaties Canada would Iμ compelled to extend to the goods of twelve foreign countries the concessions she was proposing to grant America under the Reciprocity Agreement. Tho most-favoured-nation article began to appear in British commercial treaties so far back as the 17th century, and was first inserted in a treaty made "by Cromwell with Sweden in IGM. It provides that goods of a country enjoying most-favoured-nation treatment shall in no case be subjected to a higher duty than the goods of any other country. In return for admitting foreign imparts free, Great Britain now enjoys most-favoured-nation treatment with most other countries. "The self-government enjoyed by the larger British colonies," states tho "En-, cyclopaedia Britannica," "has led,.'since 188G to the insertion of an article in British commercial ancl-iqther; treaties, svhciftrv by the assent of these 'colonies;- and likowise of India, is reserved before they apply to each of these possessions. And, further, tho fact that certain other British colonies" are now within the sphere of commercial intercourse controlled by the United States, has since 1891 induced the British Government to enter into agreements on behalf of colonies for whose products- the United States is the chief market. As regards the most-favoured-nation nrticle. it is to be remembered that the Mother Country and colonies are not foreign r,o\mtries with Teipect to each other. The most-favOured-nation article, therefore, does not preclude special arrangements between the Mother Country and colonies, nor between colonies."