TRAFFIC DIVERSIONS TO CANADA.

Horowhenua Chronicle, 31 January 1929, Page 3

TRAFFIC DIVERSIONS TO CANADA.

U.S. SHIPPING BOARD CALLS FOR REPRISALS

KELLOGG MORE DIPLOMATIC.

Received Wednesday, 7.5 p.m. WASHINGTON, Jan. 29,

President Coolidge to-day forwarded to the Senate Commerce Committee two divergent reports, one signed by Mr. Kellogg and the other by the Shipping Board, explaining the status of the al Jeged divergence of American shipments to Australia from American ports to Canadian ports, in order to obtain preferential treatment under the tariff by which the tvhoie cost of railway carriage in the case of the latter ports is not added to the value of the goods. A .Senate resolution last year had asked the President for information on this question. Mr. Kellogg’s report states: "It may bo concluded that the Canadian Customs preferences in favour of British territories result in some diversion of tiallic from American to Canadian ports, although evidence is lacking that tho losses from this cause alone have been, or cun be, very large, and observes that the Australian Government.had amended its regulations in order to place the United States on a parity with othes countries ami that cause for complaint no longer existed. The Shipping Board, in discussing the regulations ,held that "under the artificial rule prescribed by a foreign Government politically affiliated with Canada, American railways and American ports are prejudiced with respect to the transportation of American foreign commerce, with a corresponding advantage to Canadian railways ami ports ami British vessels. Parity should be established to the end that American 1 redacts, when imported into Australia, shall be subject to tin; import taxes of that country on a basis as favourable to shipments through American ports as to shipments of American products through Canadian ports. The report concluded with the request that conditions should be equalised.

It is known that the State Department is discussing the matter through diplomatic channels with Canada. I? is believed that insufficient time remains for the present session of Congress to take legislative steps, which would possibly penalise Canadian shipment abroad'through American ports as a retaliation.