EMPIRE BUSINESS

Greymouth Evening Star, 10 November 1923, Page 5

EMPIRE BUSINESS

CONFERENCES CONCLUDING CONTROL OF FOREIGN POLICY. ) (Australian and N.Z. Cable Association..: LONDON, November 8. 1 The Imperial Conference has com- , pleted its labours. i The Economic Conference will to--5 morrow again have the wireless question before it, but the impasse be- . tween the Post Office and Marconi’s r continues, and it looks as if Mr x Bruce will have to continue to ge- : gotiate apart from the Conference in order to secure direct communication. . 11 is understood that he has had . practically no support i'r'om either Canada or South Africa, who are . quite content with the present wire- , less position, and it would thus ap- , pear as if Mr Bruce will have to deal ' with Marconi, instead of the British ’ Post Office, to secure his object. ’ On the subject of foreign affairs Air Bruce is satisfied with the ari|ingementsi made .for Jcdeping the ' Dominions in touch with the march ’ of events. It is understood that the Conference skated over the question of an :Im,periJal Secretariat, ■dt being jie/lt it would involve a constitutional discussion which, at the present moment, would be inopportune, and might create unnecessary difficulties. ' In the matter of foreign affairs, a Secretariat could be of no real value, because secrecy is aimed at in such matters, which might otherwise run additional risk. At the Economic Conference Mr Bruce emphasised that he did not /want the impression to get abroad that Australia was in difficulty, and that he was trying to grab something. On the contrary," Australia was one of the fortunate countries that were in no particular trouble. She was able to go on comfortably, but he believed that her future lay within the Empire, and they would also be helping themselves to an even greater extent. He moved a reaffirmation of ’f’lia *IQ "17 t’zv c* -i-« I--!

tne 1917 resolution. TRADING CONDITIONS REVIEWED LONDON, November 9. ) During the discussion yesterday at the Economic Conference on the question of subsidies, import licenses and the i stabilisation of prices, Sir P. Lloyd } Graeme pointed out that the committee - found subsidies impracticable, as they & involved retention by the Government y granting the subsidy of the right to - excessive supervision and direction f over the recipients’ subsidy. They un- .- animoiisly thought it would obviously e be impracticable for one Government e to do that wliich was within the juris--1 diction of another. It was also imt practicable to make a subsidy vary e - ith the preferential rebates accorded to United Kingdom products, because p a subsidy would have to be constant, s They could not depend on a variable i factor, even if the proposal were 1 attempted. While the direct financial benefit would go to individual traders, I the money for the subsidies would I come from the general taxpayers. It f was also clear that a differential sub- _ sidy might operate unfairly as between 5 one Dominion and another. The Committee considered import lis censes and stabilisation of prices to--3 gether, because the system of prohibition and license would involve the establishment of a State Purchase Board and price control. At the Genoa Conference very careful consideration had been given this question, and the Conference unanimously adopted a re solution, supported by the whole Empire delegation, that a system of pro- ’ hibition and license ought to be avoided, if any other system were ap,ole. The reason which led the 1 present Committee to endorse the 3 Genoa resolution was, firstly, the tre- ' mendous uncertainty of trade. If they 1 had a tariff, everybody knew what it k was. If they had prohibition and li- , cense, nobody knew. The result would 1 be great difficulties in getting supplies 3 and obtaining shipments. It.would be impossible to rely on getting delivery of supplies promptly, on the issue of a i: .. normlo wIIORR UrodUCtiOll

license, and people wnose pioaucuuu you are trying to restrict would naturally be the first to take fclvantage of any artificial shortage by holding up deliveries. Secondly, the effect of the licensing system would give enhanced value to goods admitted to the country which would merely go into the pocket of the person obtaining the license. Ihe licensing authority would have a duty thrown upon it, far too invidious to be borne, and might be faced with the difficulty whether it should exclude chilled meat, if frozen were available; also there was the greater difficulty wherein a licensing authority would be placed in the matter of granting or refusing licenses. If granted a license, all producers, whether here or in the Dominions, would say ‘‘Why did you grant these licenses?” If on the other hand, they refrained from granting them, consumers would say ‘‘lnces have risen; why are not licenses granted?” There was none of the certainty of The tariff, and it really might prejudice the whole system of Imperia development. If once they controlled imports by license, there would be an irresistible demand for price control. Experience in different parts of the Empire of price control made it clear that it was impossible in the system of control to let quality govern the price. They also found that control of prices was a costly proceeding. r amnmittee therefore recommended the closest co-operation between the D minions and Home Governments and producers.. . c.ondi-

y Concerning improved marker, con - V lions Sir P. Graeme indicated that it I £ country decided to impose a duty upon X barley they won d give the Dominions preference of one t third; similarly on hops. t ’ I MR. BRUCE’S SPEECH. LONDON, November 9. Mr Bruce said that Australia recognised the preferences given we. e not at the moment going to msii JJo ll,inion products flowing ’ info Britain, unless they, on the otin . side, were, prepare.l to do al [ ” cccs £ to keep the trade m which the) have been given exceptional o PPoH ual w-. , They would have to improve the bland 5 aW grading and jacking and provide for efficient marking. Iheie was a possibility that preference would not actually be effective unless the Li t sh 1 Government could see its way to take action to see that it be given effect to. 2 There were great interests herei co .- cerned to see that these trades should o not get into the hands of the Donnne ions, and they would try dumping into this market in order to strangle Doll minion trade. Australia at present i, protected British manufacturers against dumping, therefore it was not unreasonable to ask for reciprocal acI tiou. There was one industry, beet, jn which we were much concerned, be-

cause of what it means to Australia and the Empire. He thought that sonic solution, even if temporary, should be sought, and he hoped the Economic Committee just appointed might seek a solution. In reference to the Chairman’s statement in regard to the Committee’s report on import licenses, he wished to make it clear that although he made suggestions which had been investigated, he took no responsibility for them, nor did he hold any brief for the methods proposed. He had indicated that Australia believed there was only one really satisfactory way, and that was by a tariff and preference. He had merely suggested that there were other alternatives that should be investigated. The Chairman interpolated : There is no intention to shut out other means. It was only intended to show that the methods were impracticable, and that they must endeavour to achieve their purpose on other lines. Mr. Bruce continued that he clearly recognised it was entirely a matter for the British Government to determine what it was going to do with regard to anything imported into Britain. It was not the business of any Dominion to exert pressure. “Above everything,” he said, “if Britain is determined against a tariff on wheat and meat, do net let us abandon the idea of doing anything at all.” Mr. Massey endorsed Mr. Bruce’s remark regarding the meat industry. He hoped that New Zealand’s experiment in chilling beef would prove a success ad enable her to compete with South America. He agreed that the meat question was the most serious the British Government had to tackle. He did not see a way out unless by e v tension of preference. He thought something should be done to limit the profits on the handling of produce, and he, instanced the case of the producers receiving only a penny a pound for applies, which sold in London . at sixpence half-penny. The preference just conceded would go a long way to help producers. Mr. Massey thought that it would be better for the Empire if the money proposed to be invested in Rusisa were used to develop oversea dominions. He trusted that the different units of the Empire would do their utmost to place orders in the markets of Britain, and thus help to dispose of unemployment. DOMINION A BUYER.

LONDON, November 7. Mr Massey was chief guest at the Cloth Workers’ Guild. Replying to the toast of the Overseas visitors, he said: “If you are going to make the Empire prosperous, you have got to assist in the development of the countries overseas.” 'The Imperial Government has offered loans, threefourths free of interest, for five years. He was ready to take four millions to-morrow, and use i,t ilo purchase electrical machinery, railway and bridge material in Britain. If other Dominions acted likewise,, it would go a long way towards relieving British unemployment. After the Conference he was going to spend New Zealand money. Whenever a Dominion had an opportunity to spend money it should spend it in Britain. AUSTRALIAN ACCEPTANCE. ADELAIDE, November 10. The Premier announced that South Australia has accepted the Imperial Government’s offer to provide a limited amount of loan money, conditionally that such money be expended firstly, on public works utilities, either by State or municipal authorties or private individuals, provided the money for the materials required for such work was expended in England; secondly, that expenditure be upon undertakings which would absorb migrants. Uunder such conditions the money would be supplied at nominal rate l of interest. South Australia was asking for two million sterling. The offer of loans came through the Federal Government which was negotiating with other State Governments. Dr. Earle Page (Federal Treasurer) states that greatly encouraging responses have been received. He is convinced that sound schemes of development throughout Australia would result from the generous offer.

STORAGE FOR PRODUCE. (Sun Cable.) LONDON, November 9. One of the British Cabinet’s objects in removing the disabilities on wheat and meat producers is to plan numerous national cold storage plants and huge elevators on the principal ports of rifain giving Emplire producers free storage, enabling them to hold large supplies for a lengthy period, regulate sales, and rid the country of the domination of foreign food trusts. It is also planning subsidies to shipping, trading to Empire ports.

A BANKER’S PRESCRIPTION. LONDON, November 7. Sir Herbert Hembling, of Barclay’s Bank, in his presidential address to the Institute of Bankers, said: “We are losing much trade because of the European situation, which is outside our control; but we are losing much more than that as the result of our high production costs, which are within our control. One remedy would be to lower wages, but this would be very undesirable. Indeed, a reduction in wages does not necessarily mean a reduction in the cost of production. Higher wages, in some cases, is likely to be more effective. A better -way is to increase production by greater efficiency and an increased output by the workers. The heresy in favour- of limiting the output is not confined to labour. Many trade combinations appear to have been formed almost exclusively, not in order to organise mass production, but to restrict production and for preventing what these manufacturers consider to be undesirable competition. If Labour- removed all restrictions on the output, and if the capitalists aimed at a small profit on a big output, then Britain would increase her overseas trade, and would curb her unemployment.