MUTUAL PREFERENCE

Evening Post, Volume CVI, Issue 89, 12 October 1923, Page 7

MUTUAL PREFERENCE

DEBATE BY ECONOMIC CONFERENCE

BRITAIN'S APPLICATION OF THE PRINCIPLE.

(UNITED PRESS ASSOCIATION. —COPTtRIOHT.)

(RECTER'S TELEGRAM.)

(Received 12th October, 9 a.m.)

LONDON, 11th October.

At the Economic Conference, Mr. Austen Chamberlain initiated the discussion of the preference in regard to public contracts. He said the Government had recently investigated the practice in various departments, and had endeavoured to agree upon a uniform policy. The result was that it was shown to be undesirable to fix any percentage of preference. The efforts of the departments had been satisfactory. The Air Ministry had bought no foreign supplies ; the Navy's purchases, excepting of oil-fuel, comprised only 1 per cent, of foreign supplies; and the War Office only bought foreign goods which were specialities, and unprocurable elsewhere. The Post Office always specified for British and Colonial metals.

Mr. G. P. Graham ("Canada) said there must be flexibility. Preference could be no question of a fixed percentage. Preference should be given to those contracts which were likely to lead to an expansion of Imperial trade. He favoured every part of the Empire giving preference to every other part. Mr. H. Burton (South Africa) agreed. It was undesirable, he said, to make preference . rigid. The South African Government had had to contend with trade combines and rings, and therefore the principle must be left elastic. Mr. C. A. Innes (India) said that in practice India purchased 95 per cent, of her materials in London, which was evidence of the effect of the preference she granted to the Mother Country. The discussion was adjourned.

CREDITS FOR FASTER DEVELOPMENT

In the afternoon they discussed cooperation in financial assistance for Imperial development. Sir P. Lloyd-Greame said the question was how far they could co-operate with the Dominions, so that the finan-' cial 'commitments undertaken should not in the initial stages place an undue burden on a particular country. All the Dominions, the Colonies, and India had great problems of development. It was to the general interest that they should be accelerated as far as possible. Britain was already given a large measure of financial assistance to settlement. It they could g.et this speeded up, it meant the placing of orders, and the British Government was prepared to assist financially. It was proposed that Britain should advance part of the interest for a period in respect of anticipated schemes, as were put in hand Uetore the normal time, and which represented orders placed in Britain It appeared to the British Government \ ]ut th^.. w°"W help in.rthe. rapid deveopmeiit of the Dominions, and w6iild' help Britain by giving employment. Certain conditions, however, mut oe sati*.ied. He hoped, the requisite- machinery would be devised for examining schemes and settling terms. The British Government was determined to help development in every way it coukL ihe pioposal was sound economically, because it was merely using credit to accelerate normal development when if was needed most. He quoted as instances New Zealand's hydro-electrical programme, Australia's railway devet w^vs en andnnfh lndia>S P^ramm! of rat «dys, and other works. Sir P. Lloyd-Greame said that thn Government might be prepared to g u^ T.i'll TT t nd CapUal in respect of development schemes in the colonies, as distinct from the Dominions. ■ NAVY AND ARMY RATIONS In connection with the proposed financial co-operation scheme, Mr. Amerv pointed out that all naval supplies of meat were obtained from Imperial sources, and said he was doing his best to induce the British sailor to smoke SSfi^" Uibuxo' but hithert° Lord Derby said that aU the frozen meat used by the Army was obtained from Austral and New Zealand It was impossible yet to obtain ail the preserved meat needed from Imperial sources, but he hoped tha? aS He dot reaChed t0 enable &

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