AUSTRALIA AT OTTAWA

Evening Post, Volume CXIII, Issue 141, 16 June 1932, Page 11

AUSTRALIA AT OTTAWA

ELABORATE CALCULATIONS

EXCHANGE RATE BONUS

United Pres3 Association—By Electric Tele-

graph—Copyright. /

LONDON, loth June.

The Australian Press Association learns that though elaborate schemes have been worked out in the preparation of Australia's ease for presentation at the Ottawa Conference, there is danger of the whole preparatory work being ultimately rendered useless.

Many sets of figures have been carefully worked out envisaging British imposition of various duties on different commodities of foreign origin in tho interests of the primary producers of Australia and other, Dominions whose products' would be admitted to Britain free in return for increased preference to certain British manufactures, in the Dominions, but it is understood that throughout all the calculations on Australia's behalf it was apparently assumed that the present 25 per cent, exchange between Britain and Australia would'continue indefinitely. Ever since it has operated this .exchange has had the effect of giving Australian prodncers a bonus of 25 per cent, above the low world prices of commodities which have prevailed in recent months. If the Ottawa Conference were to adopt an Empire sterling currency as advocated in many influential quarters, the exchango would disappear.

In such an event Australian, producers might be landed in an even worse plight than at present. They might possibly, for example, receive 10 or 12J even 15 per cent, advantage as against foreign producers, yet lose on the deal through the disappearance of the present exchange. v