QUOTA SYSTEM

Dominion, Volume 24, Issue 19, 17 October 1930, Page 9

QUOTA SYSTEM

To Improve Empire Trade

LESS FOREIGN WHEAT Composition of British Loaf British Wireless. Rugby, October 15. The so-called quota system, as applied to wheat, which is being examined by experts, who will report to a committee of the Imperial Conference, was one of the suggestions taken by the United Kingdom delegation for consideration as one of the various possible methods of improving interImperial trade. Wheat milled in Great Britain is approximately derived from the following sources—namely. United Kingdom 13 per cent., Dominions 44 per cent., foreign countries 43 per cent. Although the United Kingdom delegation has put forward the quota system as a method worthy of examina tion, it is only one of several similar suggestions which will depend upon their ability to pass successfully the test of frank and free discussion and technical analysis. Nevertheless, it is one which the members of the Government and mem bers of the Conservative Party also have recently referred to favourably. Dr. Addison, Minister of Agriculture, during August expressed his personal conviction that it could be advantageously worked, and recalled the Government’s pledge that, as soon as the con elusions of the Imperial Conference were known, whatever practical steps could be devised to put British cerealgrowing on an economic foundation would be undertaken.

Conservative Proposal.

During September Mr. Neville Chamberlain, chairman of the Conservative Party, said that if his party were in power they would put proposals before the Imperial Conference “which, without imposing taxes on foreign wheat, would, nevertheless, give to the British farmer a guaranteed market at a guaranteed price for his wheat, would give to the Empire farmer a larger and more secure market for his wheat, and would still leave us with a margin which we could use for negotiations with those countries which are not within the Empire, but where we have valuable interests. “These proposals are what is known as the quota system—a system which is simplicity itself, which merely provides that you lay down that e vey loaf baked in this country foi Brrtisli consumption shall be composed of a certain proportion of Home-grown wheat and a certain proportionZhich can be gradually Increased-of Emnire wheat. This proposition, on which we have been working for some time seems to me to offer perhaps the greatestcontribution which has yet been made toward the P r ? ble “ velopment of inter-imperial trade.

MR. BALDWIN’S POLICY

Extension of Preference

ANTIDOTE TO DUMPING

By Telegraph-Press Assn.-Copyright.

(Rec. October 16, 5.5 p.m.)

London, October 15.

Mr. Baldwin, supplementing bls recent preference statement, in a lette to Mr. Neville Chamberlain, points out that the final form of any plan tor developing the economic unity of the empire must depend on the further proceedings of the Imperial • Conference, but in the meanwhile lie emphasises that he no longer has in mind any suggestion of a referendum or a second general election. He will go to the polls with a programme to which the electors will be asked to give a final definite assent. The Conservative Party is determined to extend the scope of preference to the utmost limit. “Our Idea is that the circumstances regarding each article which might be the subject of preference should be examined on its merits in co-operation with the Dominions concerned. The remedy to be adopted should be one which after investigation seems best adapted to further our common aim.” Mr. Baldwin, referring to wheat, says that, having provided that a fixed proportion of the British loaf shall be made of home-grown'wheat, it would be a natural extension of the plan to give effective preference to the Empire in the shape of the allocation of a further proportion to the Empire farmer. Such a system would provide an antidote more effective than tariffs against the dumping of Russian or bounty-fed foreign wheat. It could be worked through the normal trade channels, avoiding iin port boards and bulk purchase. Regarding other commodities, investigation might show that there were other means either of addition to or a substitution for tariffs, translating into action the main principle of preference. The Conservatives intended to claim from the electors full authority to give immediate effect to such Imperial agree ments as might be reached. Mr. Baldwin declared that when the Conservatives were returned to power they would cut down expenditure and taxation drastically, reform the unemployment insurance scheme, extend safeguarding, stop dumping, and bring in an emergency tariff on manufactured goods, while a scientific scheme was being prepared. CANADA’S PLAN Mr. Bennett’s Warning London, October 15. “Canada has suggested a plan whereby closer inter-imperial trade can be established,” said Mr. R. B. Bennett, broadcasting throughout Britain. “I shall not refer to the reception of the proposal, which in the near future will either be accepted or rejected. We can only await the momentous decision, but 1 consider it my duty to say that if this opportunity is not seized it may not recur. This is in no sense a threat, but rather a prediction of what I believe to be true.” DINNERS FOR DELEGATES Given by Prince of Wales London, October 15. The Prince of Wales is giving a series of four dinner parties to enable the Dominion delegates to meet well- , known figures in public whom

otherwise they would have no opportunity of meeting. He entertained the South African and Irish Free State delegates to-night. The guests included Admiral Field and Mr. Rudyard Kipling. The Canadians’ dinner will be on October 17, and the Australians will be entertained later.