TRADE FIGURES SHOWN

Hawera Star, Volume LII, 29 July 1932, Page 7

TRADE FIGURES SHOWN

AID GIVEN TO DOMINIONS POLICY IN GREAT BRITAIN MAIN OUTLET FOR PRODUCE COMPARISON OF BALANCES Received 1.30 p.m. to-dav. OTTAWA, July 28. „ In his statement to the conference Mr Baldwin quoted the taxable value of Britain’s retained imports, of 1930. He said) that from Australia the values were: Dutiable before December, 1931, £4,660,000, representing 12 per cent.; dutiable under the Import Duties Act or the Horticultural Products Act, £139,500,000, representing 34.6 per cent-. ; not subject to duty, £20,820,000, representing 53.4 per cent. From New Zealand the values were: Dutiable before December, 1931, £BO,000, representing 0.2 per cent.; dutiable under the Import Duties Act or Horticultural Products Act, £20,280,000, representing 50.3 per cent.; not subject +/» duty. £19,930,000, representing 49.5 per cent. He pointed out that the proportion of imports! from the Dominion enjoying free entry exceeded 90 per cent. The only British Indian imports were appreciably ■ below. NEW FISCAL POLICY

Since Britain’s change of fiscal policy only 3Q per cent, of her foreign imports had been admitted free.

Mr Baldwin continued regarding British exports to four of the principle Dominions, stating there was to-day practically no free entry. Most of the preferences granted by Britain were a total remission qf duty payable by foreign goods. He quoted the following table showing the Dominion imports of 1939:

Australia. —From all sources, £129,220,000; from the United Kingdom, £54,241,000; from other British countries, £15,509,000; from foreign countries, £59,470,000. New Zealand. —From all sources, i £42,833,000; from the United Kingdom, £20,223,000; from other British countries, £9,007,000; from foreign countries, £13,433,000. > The following figures included the bullion and coin and als-o the re-exports of Britain’s imports in 1930: From Canada, £33,700',000; from Australia,; £70.500,000; from New Zealand, £44,900,000; from South Africa, £62,100,000; from 1 the Ffee State, £13,100,000; from Newfoundland, £2,200*000; from; India, £552,000,000; from Rhodesia, £2,300,000; total, £3155,800,000. British exports in 1930 were: To Canada, £31,300,000; to Australia, £33,000,000; to New Zealand, £18,700,000; to South Africa, £27,700,000; to the Free State, £44,300.000; to Newfoundland, £900,000; to India, £61,600,000; to Rhodesia, £2,800,000; total £220,100,000. The visible balance's wore (plus meaning favourable) : Canada, plus £7,400,000; Australia, plus £37,500,000; New Zealand, plus £26,200,000; South Africa plus £34,400,000; Free State, minus £1,200,000: Newfoundland, plus £l,300,000; -India, minus £9,600,000; j Rhodesia, minus £300,000. The total j visible balances in favour of the Doj minions were £95,700.000.

BALANCE FAVOURS DOMINIONS. “These figures reveal two noteworthy points,” continued Mr Baldwin. “Firstly, they show the visible trade balance in favour of the Dominions is £100.000,000, and secondly that the Dominions’ imports from foreign countries amounted to nearly £350.000,000. It is necessary to remember the percentage of duty as of

great importance in assessing the value of preference. “If it is to give material assistance preference must not be so high as seriously to restrict imports. The British delegation urges upon the Dominions that the rates of duty should be so graduated as to give British produce a reasonable chance of competing on even terms; also that duties against British products should be fixed for protective purposes no higher than is necessary to give a fair chance to reasonably efficient Dominion industries. FAVOURABLE TREATMENT.

“We desire to draw attention to the favourable tariff treatment Britain has accorded the Dominion imports which compete with the United Kingdom products. The certainty of outlook is also important in trade. It is essential that the manufacturer and importer shall be able to assess with reasonable assurance the_ cost of an article to the consumer. Any arbitrary uncertain impositions, specially where the executive has discretion to determine the duties, cannot fail to restrict or even prevent business. “We desire also to emphasise to our Dominion colleagues that Britain is so highly industrialised that it is vital to physical existence for her people to find adequate markets for her products. Actually more than half Britain’s exports go to foreign countries. Britain has 2,750,000 unemployed. Anything tending to check Britain’s foreign exports must lessen } her people’s purchasing and saving ! power, 'thus damaging the markets on i which the Dominions largely depend I for consumption of their products, i “The foregoing tables show, firstly, that Britain has been doing her share in encouraging the Dominions’ trade and industry; secondly, that Britain takes a very large proportion of the Dominions’ exports, for many of which there would seem to he no other available world outlet; thirdly, that Britain has consistently facilitated the entry of these Dominion prodiicts on the best possible terms and with the least possible interference by the Government policy of Customs administration ; fourthly, that Britain has been eager to give the Dominions extensive preference wherever she has found it t>os si hie to impose a tariff: fifthly, that Britain thus helped the Dominions to build up a substantial favourable visible trade balance. * PART IN DEVELOPMENT. “It is a source of legitimate satisfaction that the preferential access to the British investment market which resulted from close association between Britain and the Dominions has played ’an important part in the development ,of the Dominion resources. Showing the extent to which this factor has operated, it was estimated that ; £3,800,000,000 of British capital in- ! vested overseas before the Great War was placed in Empire countries. Al- | though there has necessarily been _ a S diminution of the flow of overseas investment since the war, the proportion. allotted to Empire countries has substantially increased. “Out of the total of £1,401,000,000 invested between 1919' and 1931 no less than £848.000,000 has been placed in Empire countries.”

OPEN LETTER TO MR. BRUCE COMMENT DEFERRED. DENIAL OF DISAGREEMENT. Received 2.30 p.m. to-day. OTTAWA, July 28. Mr S. M. Bruce, leader of the Australian delegation, declines to comment on Mr Baldwin’s memorandum. He may make a considered statement later.

The impression hero is that Mr Baldwin’s statement is tantamount to an open letter to Mr Bruce, who is unwilling to replv because that might ■siifreest a semblance of disagreement, which does not exist on the main question of reciprocal preferences.

3’he opinion among the Australian delegates is that Mr Baldwin’s statement leaves unanswered Mr Bruce’s

point that the Import Duties Act of last March was a “tardy” recognition of the concession which Australia and other Dominions had made to Britain for many years. It is' pointed out that before March Australia received a preference of only 12 per cent on her exports into Britain. The Imp or Duties Act raised the percentage, to 46.6. If Britain had faced stating the position six months ago she. could hardlv have said she was giving a reasonable measure of reciprocity in return for what Australia has- long granted, amounting to £7,000,000 yearly in prosperous times.

PROBLEMS OP CURRENCY NEED FOR HIGHER PRICE© STABILITY OF EXCHANGE Received 2.30. p.iu. to-day. OTTAWA, July 28. There was a full! discussion of the Dominions problems before the Stevens Currency Committee. Mr S. M. Bhuoe lengthily outlined w hat the fall in prices meant to Australia, involving: drastic wage cuts and interest reductions. So successful: Iliad been Australia’s efforts that notwithstanding the world prices she had increased her production by one-third. It had been necessary to reduce imports by tJiree-qujarters. Even then Australia only just squeezed through and. was meeting her obligations with the utmost difficulty. ... “Unless prices increase it is impossible to see how Australia can carry on,” continued Mr Bruce. “Having made all these sacrifices the Commonwealth cannot continue further drastic reductions. She simply must get the relief of increased prices.” Mr Bruce pressed strongly' the view that action wa,s essential, pointing out it now required double the value of exports to meefc external obligations. He emphasised that unless exchanges were stable, obviously reciprocal preferences could be wiped out overnight by exchange fluctuation. ■ Mr Neville Chamberlain, the British Chancellor, spoke on behalf of Britain, but the debate was only in the preliminary stage and the matter will again be secretly discussed to-morrow. INDUSTRIAL STANDARDISATION SUGGESTIONS FOR. CUSTOMS BRIEF REPORT RAISES LAUGHS. Received 2.30 p.m. to-day. OTTAWA, July 28. The sub-committee on industrial standardisation elected as chairman Dr. H. M. Torry, President of the National Research Council of Canada. It aims at co-ordinating industrial specifications throughout the Empire and has already discussed timber, chemicals and agricultural machinery. Dr. Craig (New Zealand) has been elected chairman of the Customs Administration sub committee. An official verbal communique stated that “discussion chiefly concerned valuation for duty purposes with a view to gaining- uniformity and eliminating matters causing uncertainty.” Two hundred newspapermen burst into laughter at the meagreness of tho announcement which was typically uninformative in accordance with the official policy towards the world.

PROPOSALS FOR FRUIT. FORMAL PRESENTATION. Received 2.30 p.m. to-day. OTTAWA, July 27. Mr S. M. Bruce (Australia) and Mr N. llavenga (South Africa), with the other Dominion Ministers, presented the Empire fruit proposals to Mr Walter Runciman, Sir John Gilmour and Sir Cunliffe Lister. AIMS OF CANADA. TALK WITH BRITISH MINISTERS HELPFUL EXCHANGE OF VIEWS. Received 12.50 p.m. to-day. OTTAWA, July 28. A private meeting took place at the Ottawa Conference between the United Kingdom and the Canadian Ministers. Mr R. B. Bennett, Canadian Prime Minister, enumerated the primary products for which Canada desired preference in the United Kingdom markets. Wheat is not now expected to play a serious part, bvyt Canada attaches great importance to the import of live cattle and bacon.

Mr Bennett further stressed the needs of Canadian lumber, base metals, .tobacco and canned fish industries, and also gave out a line of the concessions Canada, was willing to make. The latter include a free list for the whole of the Empire of non-competitive articles and proposals to reduce duties on other articles in .such a way as

would produce fair competition in tlie Canadian market. . , The exchange of views vas ■aether frank and friendly and the meeting is considered a valuable step towards general agreement. EMPIRE MEAT INDUSTRY PROBLEM OF ARGENTINA MAY defer to cabinet Received 12.15 p.m. to-day. OTTAWA, July 28. The unanimous Empire proposals presented to the British delegation are exactly as. cabled from buva on Wj 1, with the inclusion of bacon on til same terms as pork. Bacon became an important topic of discussion w > the Dominion delegates at Ottawa because while the Dominions are not ' o-re a til y interested m this product them support of tariff plus a quota for bacon would benefit pig-growers m Britain. Ninety per cent, of the bacon imports come from foreign countries. It is now established that British farming interests are solidly ranged in supp'Ort of the Dominions. New Zealand lias put forward a 1 strong case for assistance for her mutton and lamb. There is talk in British circles here suggesting that the meabj situation is £?o dittioiilt* owing: to , tish .investments in the Argentine that the decision may he deferred at Ottawa and the whole matter referred to the British Cabinet in London. Nevertheless, the Dominions’ view the prospect hopefully and still feel they can offer such substantial concessions as to induce Britain to grant, some consideraJtion. The Dominions are prepared to 'modify the preference scale proposed in accordance with the strength or weakness of any quantitative restrictions which Britain may agree to impose on foreign meat imports. LONDON PRIES® COMMENT DOMINIONS "HANDICAPPED LONDON, July 28. The “Daily Telegraph’s” agricultural .editor expresses the opinion that it w-ill ha from five to ten -years before all. the meat producing Dominions will he able to send meat of the same quality as Argentina. ' The foundation stocks of most of the Dominions are of only moderate quality. They could have strengthened their herds with first-class breeding stock which for years lias been selling in Britain at ordinary commeroial prices, but the opportunities were neglected.