PRODUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CIX, Issue 51, 1 March 1930, Page 12

PRODUCE & MARKET REPORTS FROM DAY TO DAY

RECIPROCITY

BRITAIN & ARGENTINA

LORD D'ABERNON'S MISSION

BrltlJb OffleUl Wlreleis.

RUGBY, 27th February

The' report was issued to-night of Lord D'Abernon's economic mission to the Argentine, Brazil, and .Uruguay. The mission points out that as Great Britain ia the largest customer' for many South American products, she has a definite claim to favourable treatment. This claim is strengthened by the fact that, in strong contrast with most other importing countries, Great Britain now allows South American produce free of entry to its vast market, and has hitherto refused to listen to those who advocate Customs duties against foreign produce.

The members of the mission are convinced that real advantage can be derived from negotiating on a reciprocal basis, either through block purchases, similar to the system initiated in Buenos Aires, or, still better, by stipulating concessions in return for, advantages offered by Great Britain as a consumer. Reciprocity, they Bay, might become an essential feature of the British economic policy in South America, each country endeavouring to assist the other by facilities, receiving in exchange adequate return. Doctor Irrigoyen, President of Argentina, with foresight and prescience, has demonstrated adherence of the Argentine Government to this policy by signing with the mission trade agreement, whereby each country undertakes to buy up to £8,700,000 in value of the products of the other. Referring to the enormous potentialities of the Republic of Brazil, the mission contrasts the high tariffs of that country with the absence of British' tariffs against Brazilian produce. The mission recommends that on the British side, removal of the coffee duty should be sympathetically considered, if Brazil shows signs of reciprocal concession favouring, imports- of British goods. Regarding the Republic of Uruguay, the mission suggests that discussions on reciprocal treatment which they have initiated should be continued.

Lord D'Abernon, who will best be remembered in New Zealand as Sir .Edgar "Vjincent, when he came here as head of the British Royal Trade Commission, has directed attention to the special, if not unique, character of the relations between Great Britain and Argentina. In the "Economist" he has shown that for 1928 total exports from Argentina were of the value of £206,051,660; and of these £76,785,099 were to the United Kingdom. English capital invested in Argentina is between £500,000,000 and,£600,000,000, and English capital invested in' other countries was-in Canada £440,000,000; Brazil, £300,----000,000; and in the United States £270,----000,000. • In a special supplement dealing with Argentina; "The Economist" makes a comparison- between its area and population; and; some other countries, from Tvhich, as being of perhaps greater interest to New Zealand, the following comparisons are selected: —

..' v "•■ Sa. miles. Population. Australia .... 2?974,581 = 6,262,720 ' Canada 3,542,049 9,658,000 Great Britain ..' 89,041; 44,375,000 ' To which may be added New Zealand, with an area of 103,862 square miles, including Pacific'jadministrations,. and a population 0f:1,468,405. .... , ■!■■•■■-. .".' .rArgentine meat exports for 1928 in touß were-124,685. frozen,-and-383,078 tons, beef; 77,V1Z mutton -and-'lamb,I"and". 66,836 tons preserved; cereal • exports , for 1928 were 53;271,000 quintals wheat, 1,475,940 quintals wheat' flour, 64,300,000 quintals maize, 3,000,000' quintals oats, 19,700,000 quintals linseed. Argentina is the first wheat exporting country in the world, Canada being second, United States third, Australia fourth. Of. its ocean shipping tonnage in thousands 6£ net ions, in 1928, British amounted to 5,110,000 tons; the total of all countries being 11,716,000 tons. Germany was second on the list with 1,094,000 tons.

Lord D'Abernon has expressed the opinion that "the popularity of England is proved by the reception of the British Economic Mission in August and September of this year. (1929), and the important convention they were able to conclude with President Irigoyen. "In my view, we do not take adequate advantage of our position, nor do we attribute to the friendly sentiments of the Argentine people the importance they deserve."