WILL BRITISH TARIFF DROP?

Grey River Argus, 21 September 1945, Page 5

WILL BRITISH TARIFF DROP?

To Suit America

LONDON, September 18. The possibility of a modification of imperial preference as a result or British-American economic discussions, at Washington, has been indicated by Lord Keynes’s remark We contemplate that this system of imperial preference will be reduced as much as possible.” The financial correspondent ot the “Manchester Guardian,” commenting on the Americans’ dislike of the sterling area, the dollar pool, and imperial preference, remarks: “The Ottawa agreement which now underpins the whole system of imperial preference has operated to the benefit of the Dominions, and the rest of the Empire rather than that of this country. For our part we may therefore not be too reluctant to see the agreement modified. As far as the Dominions are concerned, some of them were finding even before the war that imperial preference was not enough and that to dispose of thensurpluses an extension of their trade with non-Empire countries was essential. Canada, as one of the Dominions most concerned, is. particularly anxious less a tightening ol the strings of imperial preference should prejudice its vital interests in multilateral trade. “Nevertheless," there has been so much American talk about the evil effects of Ottawa that the idea is now apparent that unless the Ottawa dragon is slain there is no hope for the future of world trade. This ‘holier than thou’ attitude of commercial policy comes ill from a country which has perhaps committed more sins against the light than almost any other. United States tariffs and United States subsidies, notably those for wheat and cotton, have in the past contributed their full measure to the wrecking of international trade.”

The correspondent suggests that Britain mav not be too reluctant to see the Ottawa agreement modified. Lord Beaverbrook, who declared during the election campaign to apparently uninterested readers that he had again launched his Empire Crusade, has published a long defence of imperial preference in the “Sunday Express,” which, the “Daily Express” has dutifully reprinted. Mr. Amery has made a similar defence in a long letter to “The Times.” Lord Beaverbrook declared Lord Keynes’s remark to be “notice clearly given of an intention! to pull down the Empire structure.” Saying that the Empire has withstood “the triple disasters of panic, war, and famine,” he continues. "The foundations of its present economic union were laid at Ottawa when imperial preference was introduced, and the decisions were strengthened by the foundation of the sterling area based in London. Empire trade prospered greatly through the years of imperial free trade and the sterling bloc, while foreign trade showed a decline. “During the war, as a result of the dollar pool, Britain became the centre of the system of imperial financial transactions, and now holds a £3,500,000,000 credit balance, representing money due and owing to various parts of the Empire and other countries in the sterling area. This must be regarded as deposits made in a bank by .customers, who draw out their resources at their convenience; not as a burden of debt, but as a means to further trade within the Empire to the widest extent. Canada holds a special place, being- in the dollar area. Although she is outside the great pooling arrangements, she can be given a position with a foot in both the dollar and sterling camps, and can strengthen the links between the United States and the Empire.”

Lord Beaverbrook called for “the defeat of the aims of those who wish to bring the sterling area and Empire free trade crashing to the ground,” and declares that both have proved their worth in peace and war. “If we divest ourselves of these assets Britain and the Empire will fall in ruin and crumble in decay.”