BRITAIN FREES HER HANDS

Evening Star, Issue 21714, 8 May 1934, Page 7

BRITAIN FREES HER HANDS

STEPS TO PROTECT COTTON INDUSTRIES COMBATING JAPANESE MENACE FOREIGN QUOTAS IN COLONIAL MARKETS TARIFFS FOR OTHER INDUSTRIES LIKELY (British Official Wireless.) Press Association—By Telegraph—Copyright. ' RUGBY, May 7. (Received May 8, at noon.) Measures to protect the British cotton and rayon industries against Japanese competition in the Home and colonial markets, were announced in the House of Commons hy Mr Runciman (President of the Board of Trade). In the course of a long statement, Mr Runciman, after reviewing the negotiations for an agreement with Japan, said: “Although the Government still holds the view that the problem can only be settled satisfactorily by co-operation between Japan and ourselves, it cannot permit a development of the situation in which the negotiations are protracted indefinitely, without any immediate prospect of success. During this time the Japanese, quite naturally from their point of view, are continuously expending exports in our markets to the detriment of Lancashire, while our hands are tied. Accordingly, the Government has come to tho conclusion that it would not be justified in any longer 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 that the British Government, in tho circumstances, is obliged to resume its liberty to take such action as is decided to be necessary to safeguard its commercial interests. I assured him, and I am confident the House will join me in this, that such steps will be taken in no unfriendly spirit.”

As regards the Anglo-Japanese Treaty, Mr Runciman said ho was satisfied that the Government could, without denouncing it, take proper and sufficient measures to protect British commercial interests. He therefore saw no reason to terminate the treaty, which had regulated commercial relations between the two countries for over twenty years. As far as the Home market was concerned, the Government felt that it could no longer continue to suspend its review of the silk duties by the Imports Duties Advisory Committee, which had been asked to complete its report on these duties as quickly as possible. In the case of the 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 case of West Africa, would apply to all foreign imports of cotton and rayon goods. With a view to reinstating Britain in the position in those markets which she held before the present abnormal period, it was intended that the basis for apportioning foreign quotas should be, as far as possible, the average of their imports in the years 1927-31. It was further proposed that the necessary legislation in colonial territories be enacted with the least possible delay, and that the actual quota regulation would begin retrospectively from to-day; so that no attempt at forestalling would be allowed to frustrate the intentions of the measures. In i,he most important of the West African colonies there were treaty obligations which precluded differentiation in favour of British goods. It was for this reason that, years ago, notice was given to release the West African colonies from their obligations under the AngloJapanese treaty, and action there would bo limited to Japanese goods.

Mr Runciman added that while he had not dealt in this statement with the position of any goods other than cotton and rayon textiles, the Government was aware that Japanese competition was not limited to these goods, and was considering, in the case of other industries involved, what tariff action in the colonial markets was called for. As regards the Home markets, the matter would bo dealt with by the ordinary procedure of the Import Duties Act. The Minister concluded that the Government would at any time give careful consideration to any proposals the Japanese Government might make. CANADA NOT CONSULTED OTTAWA, May 7. (Received May 8, at 1.5 p.m.) Replying to a question by Mr Mackenzie King in the House of Commons, Mr Bennett (Prime Minister) said lie was not aware of any correspondence with the United Kingdom regarding restriction of Japanese goods into Canada. The Press report that London had decided on a policy after consultation with the dominions was written by someone “ with an entirely erroneous understanding.’’