OPENING OF TORQUAY CONFERENCE— Prickly Issues For World Trade Talks

Greymouth Evening Star, 29 September 1950, Page 5

OPENING OF TORQUAY CONFERENCE— Prickly Issues For World Trade Talks

LONDON, Sept. 28 (Ree. LIO p.m.). — Speeches by British, American, and French trade chiefs brought into the open the prickly issues which are likely to dominate the big international tariff conference which opened at Torquay today. The conference, which is expected to last four months, will affect the conduct of most of the world’s trade for the next three years. It has brought 800 delegates, representing 38 nations, to the holiday town of Torquay. In addition to large gatherings for general discussion. 000 seis of negotiations will be going on behind closed doors.

Four Problems.' The thorny problems which the conference will consider include:—

1. British Imperial preferences and exchange control . discriminations against, dollar goods. 2. United States tariffs.

3. The paradoxical action of some Continental countries who have raised their tariffs in the hope of gaining enough bargaining power to bring, about a general, reduction in tariffs. 4. The tariffs of other Continental countries which have been raised to offset cuts in import ■ quotas under the European Payments Union. The delegates are particularly interested in the participation of the West German Republic. It signals Germany’s reviving share in world trade and competition. She brings new types of trade goods into the negotiations. The tariffs established for these will influence her ability to buy in the outside world and redevelop her pre-war markets for such things as cutlery, optical goods, precision instruments, chemicals and printing machinery. N.Z. And German Trade It is assumed that German goods will return to such markets as New Zealand and Australia, which did a substantial trade with Germany before the war.

Addressing the opening session of the conference today, the President of the Board of Trade, Mr Harold Wilson, said it was impossible for Britain to think about trade, except as part of the British Commonwealth. He said that narrow and self-regard-ing measures in trade only made matters worse.

He asked the delegates to remember the “special position” of the United Kingdom. Mr Wilson recalled the difficulties which arose between the wars in trade. “When all is said and done, it amounted to this—there was far too little willingness on the part of countries to give due weight to the difficulties of their neighbours,” he said.

Mr Wilson continued: “Many narrow and self-regarding measures, intended to right the situation, only made matters worse. At great price we have learnt the lesson of those

days. We must ensure that tiade is not restricted or forced into unnatural channels by artificial barriers, which ignore the facts of the economic situation.'’ No Isolation No country could play its part in isolation, Mr Wilson said. “It is, of course, impossible for us to think of the United Kingdom, except as part of the British Commonwealth of Nations. The interdependence of our economies within the Commonwealth is a historic fact, finding its natural reflection in the preferential system which exists between us. Our Commonwealth association is one which has been tested in the fire of war and which has not failed us or the world. And in these post-war years it has made a contribution no less significant to the recovery of the world.” Mr Wilson said that Britain did not seek an exclusive position for her trade. “We believe that in our Commonwealth trading system, which accounts for one-third of the total trade of the world, there lies' a measure of stability and a potential for expansion which will benefit not only its participants but the entire world.”

Mr Dana Wilgress, of Canada, said that countries represented in the General Agreement on Tariffs and Trades must face the fundamental question of eliminating restriction on trade. By inference, he referred particularly to the British system of Imperial preference, which is expected to come under strong criticism.

He said that nations must look to their defences against aggression, but must also build solid defences against international economic conflicts. The old tendency .still prevailed to regard protection as a benefit secured at the expense of the foreigner, but it was actually the consumer who paid. Protection was, in essence, a subsidy paid to high-cost producers.

Unhappy Problem Mr Willard Thorp (United States Assistant Secretary of State) said the unhappy problem of international aggression gave even greater importance to the Torquay meetings. The General Agreement on Tariffs and Trade was a tremendous step forward in international relations. Mr Ernest Lecuyer (France) told the conference that a complete revision of the entire French tariff system was completed on September The revision 'was evidence of the

importance France attached to the operation of the General Agreement. France would enter negotiations with practically every country represented at Torauav.