IMPERIAL CONFERENCE

Evening Star, Issue 20610, 9 October 1930, Page 12

IMPERIAL CONFERENCE

PLENARY SESSION DISCUSSION OH ECONOMIC QUESTIONS (British Official Wireless.) Press Association—By Telegraph—Copyright, RUGBY, October 7. The plenary session of the Imperial Conference, which will bo begun tomorrow, will bo devoted to economic questions, with particular reference to interiniperial trade. The Secretary for the Dominions (Mr J. H. Thomas) will he the first speaker, and after him the Canadian, Australian, and New Zealand Prime Ministers and other delegates will express their views. Although the' sitting will be in private, the full speeches will Iks issued as soon as possible after their delivery. To-day the conference proceedings were mainly devoted to committee work. Tho General Economic Committee discussed the standardisation of invoices, and the Research Committee dealt with technical questions, including "wool research. The Committee on Communications had a preliminary discussion on particular problems which embraced broadcasting, cable, postal, and nows services, and tho War Graves Committee examined further proposals for providing additional educational and medical facilities for the families of the ex-service personnel stationed at war cemeteries. The Sankey Committee began consideration of the constitutional questions which were referred to it for report, including the question of a proposed Empire tribunal and certain aspects of tho nationality question. DOMINION SECRETARY ON THE POSITION LONDON, October 8. (Received October 9, at H. 30 a.m.) Speaking in the economic debate at tho Imperial Conference, Mr J. H. Thomas, after pointing out that the world had been struck by an economic blizzard, declared: “ The United Kingdom’s share of the world’s trade decreased by 25 per cent, between 1913 and 1928. The imports had declined 12 per cent, and the exports 19 per cent, since last year. Though Britain had not complained, the dpminions wore now doing trade that had been hitherto Britain’s. Tho United States had also made large strides. The United Kingdom annually imported £467,000,000 worth of food products and raw T materials from foreign countries, much of which could be imported from the remainder of the Empire, and tho remainder of tho Empire imported £235,000,000' worth of foreign goods, much of which could be supplied from the United Kingdom. How can wo devise practical steps to increase the trade volume to our mutual advantage? Tho cause of the trouble is over-production. Wo must not let the dominions down. If we say that here is a common pool to which wo are all going to contribute something we shall succeed.” MR FORBES EMPIRE PREFERENCES URGED. LONDON, October 8. (Received October 9, at 10.30 a.m.) Mr Forbes, dealing with the methods adopted by New Zealand to increase interiniperial trade, expressed the opinion that tariff preference was most effective. He showed figures indicating that the preference accorded to British countries by New Zealand undoubtedly had a great influence in retaining the dominion’s market in tho Empire. .The value of tho preferences granted in 1929 was £4,883,000, and this year it was estimated at £5,621,000. It was sometimes urged that tariffs between Empire countries restricted trade, but ho asked was not the prosperity and happiness of the Empire as a whole the object of their discussions? Trade was merely a means to this end—not an end in itself. If this was correct it was a matter of indifference in what part of the Empire tho articles were manufactured so long as the industries carried on economically the promotion of the Commonwealth. Mr Forbes advocated the utmost possible extension of tariff concessions, either by general or individual agreements. The effect of foreign tariffs in limiting the expansion of Empire trade should be discussed to see if some form of co-operation could be arranged. If New Zealand had any suggestions to offer it advanced them out of an earnest desire that tho United Kingdom might recover her former prosperity and prominent commercial position. New Zealand agreed that tho policy of the United Kingdom was one for tho solo decision of her people and the Government, but the Empire delegates were invited to consider how best the general prosperity of every portion of the Empire could be increased. As a first step ho urged the consideration of providing adequate, assistance for Britain’s languishing industries. That could effectively be afforded by tariff protection against the dumping of surplus products by other countries whoso tariff walls prevented tho free flow of trade, also against the competition of imported goods ou an unfair basis. He said ho felt that tariff preference in favour of Empire products, accompanied by increased preference in favour of British goods from overseas, was the greatest factor in increasing interempire trade. Air Forbes pointed out that Now Zealand had consistently given preferences to British goods. She never looked for quid pro quo from Britain, and did not do so now; but if some preference were extended to Empire produfce it would be greatly appreciated, and New Zealand would not fail to take her full share of any arrangement to facilitate interimperial trade. The seriousness of the problem confronting tho Empire demanded definite action. If the conference broke up without an effective accomplishment in this matter it would have failed.

MR BENNETT LONDON, October 8. (Received October 9, at 11 a.m.) Air Bennett said that Canada’s declared policy was to provide a cheap market for tho consumer while securing protection for the producer. Canada had recently changed her tariff. “ Accordingly,” he said, “ I stand four-square behind the policy of Canada. First, we must approve or reject the principle of Empire preference. There is no room for compromise, and no possibility of avoiding the issue. The time for action has come. I offer all parts of the Empire preference in Canada in exchange for a similar preference in their markets, based on the addition of a 10 per cent, increase, flexibly applicable to the general tariffs. Empire Freetrade is undesirable and impossible. It would defeat the very purpose we are striving to achieve.” MR SGULLIN s LONDON, October 8. (Received October 9, at 11 a.m.) Air Scullin said: “ We are all agreed as to the need of international cooperation, but surely co-operation, like charity, can begin at home. Australia’s policy is, firstly, to encourage the support of Australian manufactures; secondly, to secure to British industry the lion’s share of the Commonwealth’s import trade. Empire buying, however, begins at home. It is well known that Australia is experiencing a critical period. The drastic measures which have been taken in the Commonwealth should be regarded wholly as of an emergency nature, subject to review, and in some cases to withdrawal as soon as the financial position permits. Although it has been suggested that different methods should be considered at the conference, I must definitely declare that tariff preference is, in our opinion, the most satisfactory form of help.” SOUTH AFRICA LONDON, October 8. (Received October 9, at 11 a.m.) Air Havcnga, speaking instead of General Hertzog, said that South Africa would welcome agreements for reciprocal tariff benefits of stable duration, COMMENT IN CANADA WIDELY DIVERGENT VIEWS. VANCOUVER, October 8. (Received October 9, at 10.30 a.m.) Mr Bennett’s conference tariff plan is greeted with widely divergent views in Canada. Air lan Alackenzie (Liberal and former Minister of Colonisation) declares that the scheme is a policy of telling the rest of the Empire that it must accept Air Bennett’s proposals or there will be no Empire trade. It contains tho vicious principle that there must be a tariff on everything. It also provides for bargaining among the dominions themselves, with- tho result that there is bound to he discrimination against some in favour of others, which is wholly contrary to the policy of Great Britain as laid down by Mr MacDonald. It also smacks of interference in the Old Country’s affairs. Canadian manufacturers express the keenest delight with the avowed policy of granting greater protection to Canadian industries, but Western lumbermen assert that Australia should be granted greater preference than the rest of the Empire in return for greater preference on British Columbia lumber, MR FORBES'S OPINIONS LONDON, October 8. (Received October 9, at 11.30 a.m.) ‘‘The next move rests with the British Government,” said Air Forbes, in a statement tp night. ' “ When we get into committee we shall see whether between us we can work out some mutually advantageous scheme for a basis of inter imperial trading. It was not expected that Air Thomas in opening, the debate would be able To advance concrete offers, but the British Government now knows what the dominions expect. The matter of preferences, and Empire trade will bo dealt with effectively at this conference. All tho dominion delegates feel that unless some definite plan is decided upon the present conference will be practically a waste of time. I believe that tho British Cabinet recognises the exceptional diseases, and the need for exceptional treatment, and that changes uprooting long traditions of British policy may be necessary. It is most important of all that Britain should protect her own home market. From the New Zealand viewpoint we feel that a more prosperous Mother Country would be even more valuable in providing us with a market than preferences.” STATEMENTS ELABORATED VIEWPOINTS OF THE DOMINIONS (British Official Wireless.) RUGBY, October S. (Received October 9, at noon.) v The second plenary session of the Imperial Conference is being held today at the Foreign Office to begin a general discussion on the problems of interiniperial economic relations. The opening statement for the Government in the United Kingdom was made by Mr J. H. Thomas (Secretary for the Dominions). It was arranged that' tho chief delegates should meet tomorrow to consider the subject in the light of these suggestions and declarations. The Secretary for tho Dominions, speaking on behalf of tho British Government, said that the plenary session gave an opportunity for setting out broadly the economic position of tho various dominions, to be developed later In committee. The difficulties

that each of the delegates were experiencing in the economic field were naturally uppermost in all their minds. The circumstances of the last twelve months had not only altered their whole conception of things, but had created unprecedented difficulties. Turning to interimeprial trade, Mr Thomas said that the United Kingdom’s total imports were valued at £] ,220,000,000, of which the imports from the rest of the Empire represented £358,000,000. The imports into the overseas part of the Empire totalled £778,000,000, of which imports valued at £354,000,000 came from the re is of the Empire. The United Kingdom’s total imports of food, drink, tobacco. and raw materials, amounted to £737,000,000, of which £270,000,000 came from, the rest of the Empire, while the imports into the overseas parts of the Empire of manufactured products totalled £448,000,000, of which £213,000,000 came from the vest of the Empire. A detailed examination of the figures for each dominion showed the following position United Kingdom imports from Canada £46.000,000, exports to Canada £35,000,000. United Kingdom imports from Australia £55,500,000; to Australia £54.000,000. From New Zealand £47,500,000; to New Zealand £21,000,000. From South Africa £24,000,000; to South Africa £32,000,000. From the Irish Free. State £45,000.000; to the Irish Free State £36,00,000. While admitting that a great part of the £467,000,000 worth of food products and raw materials imported from foreign countries could be produced in the Empire, and that it was desirable and necessary to see how far interimperial trade could be improved, no one would assume for a „ moment that Britain could entirely cut herself off from the rest of the world, and, on the other hand, a great part of the £235,000,000 of manufactured goods imported into the rest of the Empire from foreign countries could be manufacture,! in the United Kingdom. Proceeding, Mr Thomas referred to the unemployment figures and to the tremendous burden of taxation carried by Britain, which was still maintaining a standard of social services second to none in the world. Unfortunately the economic difficulties which affected Britain must by the nature of things also impoverish the dominions, from which Britain was in consequence unable to buy that which she should like to do. “Is the same way you are equally affected. It is because of that common interest, and because we are dependent and interdependent, and because our difficulties affect you, that 1 feel that we have a common interest in discussing these problems. Wo as the Government and the people appreciate to the full the preferences, however they are given, that you offer to the Old Country. It is on your part a frank gesture and recognition of your Imperial interests and your anxiety to help; bnt l am sure on the other hand that you are not unmindful of the value of the Imperial con nection. “In defence, as trustees of your securities, and in. the work of the Empire Marketing Board, contributions that we make towards helping you are vsvealed. Probably no nation possesses greater potentialities than those contained within the British Commonwealth of Nations. Surely it is not impossible to devise ways and means whereby this trade and these great potentialities can be used for the benefit of the people as a whole.’’ MR BENNETT'S PROPOSAL The Canadian Prime Minister (Mr Bennett) said, it. was conceivable that preference should be lower for raw products, or where the Empire supply did not meet the demand, and higher where 10 per cent, was inadequate to give' Empire goods an appreciable advantage over foreign countries. He saw no reason why by creating additional preference on goods carried oai Imperial ocean transport between Empire ports the merchant service should not' be profitably used. If this change in the interimperial economic relationship was to bo made there should be no delay. He suggested that technical committees be set up in each country of the Empire to complete an inquiry into the effect upon their domestic situation of_ the proposal. These should be ready within six months, and he therefore proposed an economic conference to meet again at Ottawa as the guests of the Canadians early next year to discuss the final reports. AUSTRALIA'S REQUIREMENTS The Australian Prime Minister (Mr Scallin) pointed out that nearly £45,000,000 worth of foreign manufactured goods' were imported into Australia, which he would like to see shared by Empire industries. How that could be done was a matter for those engaged in the industries of Australia and Britain to determine, and he thought methods of consultation should be evolved between their industrialists with a view to making such an allocation of supply of Australia’s requirements as would benefit both parties. His Government would help to bring the suggested allocations into effect. As an example of the value of the Australian markets to British manufactures, Mr Scullin said that, while Argentina and Denmark contained twice as many people as Australia, and had a wool import trade' almost twice as great, yet £56,000,000 worth of British exports went to Australia, compared with £51,000,000 worth to those two countries. Nevertheless Britain imported £130,000,000 from Argentina and Denmark, as against £54,000,000 from Australia. Mr Scullin suggested that a committee be formed to which he would submit detailed proposals for a policy of economic co-operation. NEW ZEALAND'S VIEW Mr Forbes said that as to bulk purchasing and price stabilisation of goods be thought that to administer such a scheme it would be necessary to obtain complete control over the goods affected. New Zealand’s' view was

averse to the extension of State trading or of Government interference in commercial matters further than was necessary for the welfare of the people. SOUTH AFRICA AGAINST FREETRADE The South African Finance Minister (Mr Havenga) said that Empire Freetrade had been presented as a panacea for all ills, but South Africa could not afford and would not subscribe to such a policy. If reciprocal tariff agreements were reached they should be for sufficiently lengthy periods to‘ give confidence and further stability. NEWFOUNDLAND’S DESIRE . Sir Richard Squires (Prime Minister of New Foundland) said that Newfoundland’s desire was for the development of such extensive interempira trade between the dominions, colonies, and Homeland as might be possible, having regard to the economic conditions of each of the countries affected. IRISH FREE STATE The Irish Free State Minister of External Affairs (Mr M'Gilligan) pointed out that his country received 80 per cent, of its imports from - Britain, to which it sent 94 per cent, of its exports. The Irish Free State sincerely, desired an extension of this trade, although the development of interimperial trade involved problems too delicate and complicated for a solution by a mere policy formula. INDIA'S POLICY An Indian delegate, Sir Geoffrey Corbett, said that India was ready to consider favourably all schemes designed to encourage the development' of trade within all the other countries of the British Commonwealth. She was not prepared to depart from her present policy of discriminating protection, which seemed to fulfil the conditions of nationalised production. India, therefore, was unable to commit herself to any general scheme of tariff preference with the Empire, but must reserve complete freedom to deal with each case as it arose. QUESTIONS OF HIGH POLICY HEADS OF DELEGATIONS TO. CONFER. LONDON, October 8.: (Received October 9, at 1.20 p.m.) . Certain proposals contained in tba speeches at the Imperial Conference involve questions of high policy with -which the Cabinets must deal, hence the heads of the delegations will discuss them as affecting their Governments, .when it will be seen how much room is left for co-operation and the development of interimperial tradeMr Moloney (Australian Minister of Markets) drew attention to the special urgency of Australia’s position regarding the wheat industry, and asked the conference in, view of Canada’s concern in this matter to constitute a committee to deal Jptli it. It was agreed that this was not necessary because wheat will be considered by the Imperial Co-operation Committee.