EMPIRE TRADE

Manawatu Standard, Volume LII, Issue 204, 29 July 1932, Page 7

EMPIRE TRADE

BRITAIN’S ATTITUDE

RECIPROCAL PREFERENCES

MR BALDWIN’S STATEMENT

(United Press Association. —By Electric Telegraph.—Copyright.)

Received July 29, 9.5 a.m.

OTTAWA, July 28

Mr Baldwin has issued an important statement to the Imperial Economic Conference defining Britain’s attitude toward reciprocal preferences.

He said: “The British delegation has no intention of weighing meticulously the benefits given or received, but , is anxious that the outside world shall realise that the spirit animating us all has been constantly and consistently displayed in our actual dealings with the Dominions.

“Any suggestion that Britain has been backward in developing and assisting the Dominions’ trade, or not fully reciprocating the Dominion concessions in the letter and spirit, is wholly unwarranted.

“The British delegation, appreciating fully the advantages received in the Empire markets, entered the conference with the intention of making a full contribution to a still further extension of Empire trade. We have stated frankly and fully to the Dominions the articles on which we desire further advantages in the Dominion markets. We will welcome an equally full statement of the correspondingadvantages the Dominions seek in Britain’s market. The British delegation will examine these statements as they are received with an unprejudiced mind and the earnest desire to give effect to the Dominions’ wishes. We are convinced that our own views will in turn be given equally favourable consideration.’’

BRITAIFSJTRADE. PREFERENCE TO DOMINIONS.

so highly industrialised that it is vital to the physcal existence of her peoplo to find adequate markets for her products. Actually more than half of Britain’s exports go to foreign countries. Britain lias 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 which the Dominions largely depend for the consumption of tlieir products. The foregoing tables show, ns follow : —- “(1) That Britain has been doinjj her share in encouraging the Dominions’ trade and industry. “(2) That Britain takes a very large proportion of the Dominions’ exports, for many of which there would seem to bo no other available world outlet. “(3) Britain has consistently facilitated the entry of these Dominion pro 9 ducts on the best possible terms and with the least possible interference by Government policy or Customs administration. “(4) Britain has been eager to give the Dominions extensive preference wherever she lias found it possible to impose a tariff. “(5) Britain has thus helped tlio Dominions to build up a substantial favourable visible trade balance. DOMINION DEVELOPMENT.

EFFECT OF CHANGE IN POLICY.

Received July 29, 9.30 a.m. OTTAWA, July 28. Mr Baldwin quoted a table showing Britain’s retained imports for 1930 as follow: — FROM AUSTRALIA.

£ cent. Dutiablo beforo Dec.. 1931 4,660,000 12 Dutiable under the Import

Duties Act or the Horticultural Products Act. 13,500,000 34.6 Not subject to duty 20,820,000 53.4

FROM NEW ZEAALND. Dutiablo beforo Dec., 1931 80,000 .02 Dutiablo under Import

Duties Act, or Horticultural Products Act . 20,220.000 50.3 Not subject to duty ... 19,930,000 49.5

Ho pointed out that the proportion of imports from the Dominions enjoying fi'oe entry exceeded 90 per cent. Only the British Indian imports were appreciably below. Since Britain’s change in her fiscal policy only 30 per cent, of her foreign imports had been admitted free. Mr Baldwin continued: “Regarding British exports to tlio four principal Dominions, there is to-day practically no freo entry. Most of tlio preferences granted by Britain are a total remission of the duty payable by foreign goods. Tlio following ‘tablo shows the Dominion imports for 1930: AUSTRALIA— £

“It is a source of legitimate satisfaction that the preferential access to the British investment market which has resulted from tlio close association between Britain and the Dominions has played ail important part in the development of tho Dominion resources. As showing the extent to which this factor lias operated, it was estimated that £3,800,000,(XX) of British capital invested overseas tho war was placed in Empire countries. Although there has necessarily been a dimunition in the fiow of overseas investment since the war, the proportion allotted to Empire countries has substantially increased. Out of a total of £1,401,000,000 invested between 1919 and 1931 no less than £848,000,000, has been placed in Empire countries.”

From all sources 129,220,C00 From United Kingdom . 54,241,000 From other British countries 15,509,000 From foreign countries ... 59,470,C00 NEW ZEALAND— From all sources 42,663,000 From United Kingdom . 20,223,000 From other British countries 9,007,000 From foreign countries . 13,433,C00 BRITAIN’S IMPORTS FOR 1930 The following figures include bullion and coin and also include re-exports:— £ From Canada 33,700,000 From Australia 70,500,000 From New Zealand 44,900,000 From South Africa 62,10C,000 From the Freo State ... 43,100,000 From Newfoundland From India 52,000,000 From Rhodesia 2,300,000

Mr Baldwin’s memorandum, every word of which obviously had had tho weightiest .consideration, is interpreted as Britain’s intimation to the Dominions that the “demands” at the conference must not be all on their side.

The Dominions are taking especial notice of that part of tlio statement ■which says “there is practically no free entry of British exports into the four principal Dominions,’’ hinting that the present scale of preferences is insufficient from the British viewpoint. The publication o:f such viows, instead of merely enunciating them in the privacy of the Conference, is regarded as a mild indication to the Dominions that the British delegates are slightly piqued at the forcefulness of the Dominions’ demands, coming like an encircling attack. Moreover, the eyes of the British peoplo are focussed on Ottawa; therefore, the British delegation must walk warily, knowing that assent to anything in the nature of food taxes would cause a tremendous reaction in Britain. The statement is regarded as the most vital pronouncement since the Conference met at Ottawa.

Total £315,800,000 BRITAIN’S EXPORTS FOR 1930 To Canada 31,300,000 To Australia 33,000,000 To New Zealand 18,7C0,000 To South Africa 27,700,000 To tlio Free State 44,300,000 To Newfoundland 900,000 To India 61,600,000 To Rhodesia 2,600,000

Total £220,200,000 VISIBLE BALANCES—(.PIus representing favourable) £

Canada plus 7,400,0C0 Australia plus 37,500,000 New Zealand plus 26,200,C00 South Africa plus 34,400,000 Freo State minus 1,200,000 Newfoundland plus 1,300,000 India minus 9,600,000 Rhodesia minus 300,000

MEANING OF MEMORANDUM

Total visible balances in favour of Dominions ... 95,700,000 NOTEWORTHY POINTS.

OPEN LETTER TO AIR BRUCE.

“These figures reveal two noteworthy points; firstly, the visiblo trade balance in favour of the Dominions is nearly £100,000,000; secondly, the Dominions’ imports from foreign countries amounted to nearly £350,000,000. It is necessary to remember that the percentage duty is of great importance in assessing tlie value of preference. If it is to give material assistance, the preference must not be so high as seriously to restrict importation. The British delegation urges upon the Dominions that the rates of duty should bo so graduated as to give British products a reasonable chance of competing on even terms and also that the duties against British products should bo fixed for protective purposes no higher than is necessary to give a fair chance to reasonably efficient Dominion industry. FA YOUR A BLE TREATAI ENT.

Received July 29, 12.25 p.m. OTTAWA, July 28

Mr Bruce declines to comment on Mr Baldwin’s memorandum, but may make a considered statement later. The impression here is that Mr Baldwin’s statement is tantamount to an open letter to Mr Bruce, wlro is unwilling to reply because that might suggest a semblance of disagreement which does not exist on the main question of reciprocal preference. The opinion among the Australians is that Mr Baldwin’s statement leaves unanswered Mr Bruce’s point that the Import Duties Act oi last March was a ‘tardy” recognition of the concessions which Australia and the other Dominions have made to Britain for many years. it is pointed out that, before March, Australia received preference of only 12 per cent, on her exports into Britain. 'I he Import Duties Act raised the percentage to 46.6. If Britain had been faced with stating the position six months ago she could hardly have been said to be giving a reasonable measure of reciprocity in return for what Australia had long granted, amounting to £7,000,000 per year in prosperous times.

Air Baldwin continued: “We desire to draw attention to the favourable tariif treatment Britain has accorded Dominion imports which compete with United Kingdom products. Certainty of outlook is also important in trade. It is essential that the manufacturer and the importer shall be able to assess with reasonable assurance the cost of an article to the consumer. Any arbitrary and uncertain impositions, especially where the executive has discretion to determine the duties, cannot fail to restrict and even prevent business. BRITAIN’S MARKETS. “We desire also to emphasise to our Dominion colleagues that Britain is

CURRENCY COMMITTEE. DOMINION PROBLEMS. Received July 29, 11.10 a.m. OTTAWA, July 28. There was a full discussion on Dominion problems beforo Mr Stevens’s Currency Committee. Mr Bruce outlined at length what a fall in prices meant to Australia,

involving drastic wage cuts and interest reductions. So successful had been Australia’s efforts that, notwithstanding the world prices, she had increased her production by one-third. It had been necessary to reduce the imports by three-quarters, but even then Australia had 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. Having made all those sacrifices, tho Commonwealth cannot continue further drastic reductions, but simply must get relief by increased prices.” Mr Bruco pressed strongly the view that action was essential, pointing out that it now required double tho value of exports to meet the external obligations. Ho emphasised that, unless the exchanges were stable, obviously the reciprocal preferences could bo wiped out overnight by exchango fluctuation.

Mr Neville Chamberlain spoke on behalf of Britain, but the debate is only in the preliminary stage and tho matter will again bo secretly discussed to-morrow.

CANADIANS’ DESIRES. PREFERENCE ON BRITISH MARKET. (British Official Wireless.) Received July 29, 11.40 a.m. RUGBY. July 28. A private meeting took place at the Ottawa Conference between the United Kingdom and Canadian Ministers. Mr Bennett enumerated the primary products for which Canada desires preference in the United Kingdom market. Wheat is not now expected to play a serious part, but Canada attaches great importance to the imports of live cattle and bacon. Mr Bennett further stressed the needs of Canadian lumber, baso metals, tobacco and canned fish. He also gave an outline of tho concessions Canada is willing to make, which include the free list for tho whole Empire of non-com-petitive articles and the proposals to reduce tho duties on other articles in such a way as would produce fair competition in the Canadian market. The exchange of views was altogether frank and friendly, and the meeting is considered a valuable step towards a general agreement. MEAT PROPOSALS. PRESENTATION TO BRITISH DELEGATION. Received July 29, 9.40 a.m. OTTAWA, July 28. The unanimous Empire meat proposals presented to the British delegation are exactly as cabled from Suva with tho inclusion of bacon on the same terms as pork. Bacon has become an important topic of discussion by tho Dominion delegates at Ottawa, because, whilo tho Dominions aro not greatly interseted in this product, their support of a tariff, plus a. quota, for bacon would benefit the pig growers in Britain, 90 per cent, of whoso bacon imports come from foreign countries. It is now established that tho British farming- interests are solidly ranged in support of the. Dominions’ case. NEW ZEALAND MUTTON AND LAMB. New Zealand has put forward a strong case for assistance for her mutton and lamb. There is talk in British circles hero that tho meat situation is so difficult, owing to tho British investments in tho Argentine, that a decision may be deferred at Ottawa and the whole matter referred to the- British Cabinet in London. Nevertheless tho Dominions view tho prospect hopefully and still feel that they can offer such substantial concessions as to induce Britain to grant some consideration.

The Dominions are prepared to modify tho preference scule proposed in accordance with the strength or weakness ot any quantitative restrictions which Britain may agree to impose on foreign meat imports.

The message cabled from Suva on July 1, referred to above, was as follows: The Commonwealth proposals at Ottawa to assist tho meat industry will be based upon a schedule of duties drawn up by tho London representatives of the Australian industry, together with a recommendation that the British Government should restrict the foreign imports with tho object of adjusting them to provide for the seasonal requirements of the British markets, thus avoiding gluts and shortages, and assuring steady average prices. The tariff proposals were as follow:—Beef, mutton, lamb, pork and veal, now oil the preferential Empire tariff, to bo all free. The full foreign tariff to bo per pound.—Beef, lid; mutton, lid; lambs, 2d; pork, lid; veal, id. The preferential foreign tariff ta be per lb. —Beef, Id; mutton, Id; lamb, Id; pork, Id; veal, Id.

DOMINIONS’ MEAT. QUESTION OF QUALITY. LONDON, July 28. The Daily Telegraph pgrioulturaZ editor expresses the opinion that it will be five to ten years before all the meat-producing Dominions are lible to send meat of the same quality as tho Argentine’s. He says that tho foundation stocks of most of tho Dominions are only of moderate quality. They could have strengthened their herds with first-class breeding stock, which for yenrs has been selling in Britain at ordinary, commercial prices, but tho opportunities were neglected.