NORTHERN ADVOCATE DAILY Registered for transmission through the post as a newspaper. TUESDAY, JUNE 23, 1925. IMPERIAL TRADE

Northern Advocate, 23 June 1925, Page 4

NORTHERN ADVOCATE DAILY Registered for transmission through the post as a newspaper. TUESDAY, JUNE 23, 1925. IMPERIAL TRADE

The recent adoption of certain Imperial preference resolutions by the British House of Commons marked am important advance in tariff policy. It is true that the measure of preference granted is of greater value to Australia than to any other part of the Empire, and applies only to certain secondary industries in the Commonwealth, but it implies the possibility of something more in the future. A policy of direct fiscal reciprocity between the Mother Country and the Dominions is not in sight, but an effective policy of preference throughout the Empire has probably been brought nearer through the action that has been taken already. The subject is one in which New Zealand is keenly interested, as Sir George Elliot pointed out last week in his address to the shareholders of the Bank of New Zealand, j Sir George returned not long ago from a visit to England, and he was able to speak from first-hand knowledge. He dealt interestingly with the extent to which views on trade policy still commonly held in Britain diverge from those that prevail in the Dominions. It is claimed by many otherwise wellinformed persons in the Mother Country, he pointed out amongst other, things, that the New Zealand Customs i preferences are more apparent than real, and that their abolition would not materially affect British trade. The prevalence of this erroneous opinion no doubt does a good deal to impede the development of a more effective co-operation between Britain and the ! Dominions in matters of trade. Fortunately ideas on this subject are beginning to clear in Britain. Of late there have been many complaints by the representatives of British exporting industries that these industries 1 are severely handicapped by the protectionist policy of foreign countries. This in itself must tend to concentrate attention on the favourable treatment given to British goods here and in other Dominions. No doubt a statement made'some days ago by the Secretary of State for the Dominions, Mr Amery, would help to clarify ideas on the subject of Empire trade. Australia and New Zealand, Mr Amery said, bought between them last year over 80 million pounds' worth of British [ goods. This meant that one Australian I or New Zealander was worth to British ' trade 600 times as much as a Russian, 300 times as nmeh as a Chinese, and 20 times as much as an American. Britain, by the war, is now doing as much trade with Russia and States that were formerly part of Russia as she did with Russia before the war. Customs preference is an important factor in building up the demand for British goods in Australia and New Zealand. It is in the interests of the Dominions to ! continue building up the demand." 'Sir 'George ' Eliott remarked last- week that' unless British industry J was' fostered Great' Britain could not [continue to be the splendid market that she had been for colonial produce. This is the simple truth, and it negds attention in the Dominions us well as in Britain. The policy of open markets, which Britain i.s maintaining •ill, spite.,of-?an increasing .inflow of foreign manufactured, imports, yiiich do-' prive her own people 'of employment, • is not only "undermining British prosperity, but threatens progressively to impair the only good market the Dominions can find for a considerable part of their export produce. If Britain fostered her own industries by well-considered measures of protection, there would be no need to ask her to grant tariff preference on foodstuffs or other produce imported from the

Dominions. Full tariff reciprocity between Britain and the Dominions ia clearly impracticable, but as its rea value comes to be better understood in Britain, the preference extended to that country by the Dominions mwt encourage tlie people of the Mother Country to. revise their ideas. Britain must find, means of retaining for her own industries the bulk of the trade that she is now surrendering to foreign manufacturers; Her own industries re quire some form of and the more they are built up the better '.t will be for the Dominions inasmuch as a thoroughly employed population will require increasing quantities of produce from the overseas Empire