TWO-THIRDS CUT

Dominion, Volume 27, Issue 189, 9 May 1934, Page 9

TWO-THIRDS CUT

Textile Exports From Japan to Colonies ACTION BY BRITAIN Announcement in House of Commons SHARE VALUES RISE By Telegraph.—Press Assn.— Copyright. (Received May 8, 7 p.m.) London, May 8. Ono of the effects of measures outlined in the House of Commons yesterday by Mr. VV. Runciman, president of the Board of Trade, to protect the British cotton and rayon industries against Japanese competition in Homo and Colonial markets is a two-thirds reduction of Japan s cotton and rayon exports to Colonial markets. Textile shares rose sharply following Mr. Runeiman's announcement. Lancashire members of, the House of Commons are delighted and hope the Dominions will follow suit and come to agreements on similar lines. MR. RUNCIMAN’S SPEECH Britain Declines to Wait REVIEW OF SILK DUTIES (British Official Wireless.) Rugby, May 7. In his long statement Mr. Runcimau recalled that after the textile representatives of the two countries had failed to reach an agreement the whole posi tion was under review between the two Governments. On March 16 hehanded the Japanese Ambassador a memorandum inquiring whether bis Government bad any proposals to make dealing with the problem. Ou March 31 he received a reply in which the Japanese Government expressed a willingness to consider any further proposals which the British Government might make, but making no proposalsof its own. “The Government has considered the whole problem again very carefully in the light of this reply It is already a year since the British Government drew the attention of the Japanese Government to the serious position arising from Japanese competition It is of utmost Importance that every effort should be made to deal with a problem of this magnitude in the most appropriate way. Unfortunately there appeared to be nothing in the Japanese Government’s Note of March 31 to suggest that an early agreement was to be expected. Although, therefore, the Government still holds the view that the problem which faces us is one which can only be settled satisfactorily by co-operation in some fbnn be tween Jaftan and ourselves, the British Government cannot allow a situation to develop in which negotiations are protracted indefinitely without any immediate prospect of success and during this time the Japanese, quite naturally from their point of view, are continuously expanding their exports in our markets to the detriment of Lancashire. while our hands are tied. Not Justified in Waiting. "Accordingly the Government has come to the conclusion that it would not be justified any longer in postponing, in the hope of agreement, such action as is open to it with a view to safeguarding British trade. “I therefore informed the Japanese Ambassador last Thursday that in the circumstances the British Government was obliged, to resume its liberty to take such action as it decided was necessary to safeguard our commercial' interests. I assured him and lam confident the House will join me in this that such steps as it was proposed to take would be taken in no unfriendly spirit.” As regarded the Anglo-Japanese Treaty Mr. Runciman said that he was satisfied the Government could, without denouneii*; it. take proper and suf ficient measures to protect British commercial interests. He therefore saw no reason to terminate a treaty which bad regulated commercial relations between the two countries for over 20 years. As far as the United Kingdom market was concerned the Government felt that it could no longer continue to suspend the review of the silk duties by the Import Duties Advisory Committee. which had now been asked to complete its report on :hese duties as quickly as possible. In the ease of colonial markets the Secretary for the Colonies had been in consultation with the colonial Governments. The Governments of the colonies and protectorates for which such action would be appropriate would be asked to Introduce import quotas which, except in the ease of West Africa, would apply to ali foreign imports of cotton and rayon goods. With a view to reinstating Britain in the position in those mar kets which she held before the present abnormal period it was intended tljnt the basis for apportioning these quotas as between foreign countries should b? ns far as possible the average of their imports in the years 1927-1931 ft was further proposed that necessary legislation in colonial territories should be enacted with the least possible delay. and that it should be so framed that the actual quota regulation would he reckoned as beginning retrospectively from to-day. May 7. so that no attempt at forestalling would be allowed to frustrate the policy and- intentions of the measures under contemplation. West African Colonics. In the most important of the West African colonies there were treatyobligations which precluded a differentiation in favour of British goods. It was for this reason that a year ago notice was given to reieas" the West African colonies from their obligations under the Anglo-Japanese Treaty, and action there would be limited to Japanese goods. Mr Runciman added that while he bad not dealt In this statement with the position of any goods other than cotton and rayon textiles, the Government was aware that Japanese competi tion wrts not limited to these goods, and was considering in the case of each of the other industries Involved

what tariff action In colonial markets was called for As regarded the home market the matter would be dealt with by the ordinary procedure of the Import Duties Act. The Minister concluded by stating that the Government would at any time give careful consideration to any proposals the Japanese Government might make toward a solution of mutual agreement of the difficult problem. Such a solution ought to be possible where two Governments were, as he was sure they were, anxious to agree. JAPAN NOT ALARMED Effect Thought to be Small (Received May S. 9.20 p.m.) Tokio, May 8 The' Government and industrialists generally are taking a calmer view of the British restrictions on Japanese trade. Their study of Mr Runciman’s announcement of quotas discloses that they will liave a comparatively small effect on Japanese trade. The Dominions are not affected, and there is in inclination to discount tlie suggestions of a trade war mentioned in London dispatches POTATOES AND FRUIT . New Problem for India (Received May 8. 7 p.m.) Calcutta, May 8. Indian markets, already flooded witli cheap Japanese goods, are faced with another problem in the shape of Japanese potatoes and fruit, which are brought from Japan by ships as ballast and sold considerably cheaper than the Indian products. CANADA NOT CONSULTED Statement by Mr. Bennett Ottawa, May 7. The Premier (Mr. R. B. Bennett), in the House of Commons, replying to a question by Mr. Mackenzie King, said that he was not aware of any correspondence with the United Kingdom regarding restriction of Japanese goods into Canada. The Press report stating that London had decided on a policy after consultation with the Dominions had been written by someone “with an entirely erroneous understanding.”