Anglo-U.S. Trade Proposal May Split Canadian Liberals

Northern Advocate, 11 June 1937, Page 5

Anglo-U.S. Trade Proposal May Split Canadian Liberals

(Received 10 a.m.) NEW YORK, June 9. Ottawa correspondent of the “New York Times” says that the leaders of the western Liberals in Canada are strongly opposed to Mr Mackenzie King’s consent to a revision of the Ottawa Agreement, requiring the Dominions to make concessions, in order to enable a trade agreement between Britain and the United States to be concluded. The correspondent states that primary producers in the west are not convinced of the wisdom of making sacrifices to enable Mr King to carry out his policy of promoting world peace by lessening trade barriers. The indications, however, are that Mr King will strongly insist, and this may result in a division in the Liberal Party.

Gold Mining Interests. * It. is believed that Canadian gold mining interests will be Mr King’s ally. They fear a reduction by the United States of of gold might result, unless freer world trade, initiated by a comprehensive treaty between Britain and the United States, ; assured prosperity to the United States. The political correspondent of the “New York Times” states that President Roosevelt and the Secretary of State, Mr Cordell Hull,

are In danger of embarrassment, as fresh, opposition is developing on the part of American manufactur- , ing interests against concessions to English manufactured goods, which might be necessary under a treaty. U.S. Wants Tariffs. The costs of production in the United States recently have risen enormously, owing to rises in wages and other concessions to labour. Already pressure has been brought to bear on the Senate against approving of tariff reductions.

There is a strong feeling that a trade treaty between Britain and the United States would be an immeasurable source for world stabilisation and an assurance bf peace, but the pressure of immediate economic necessity may vitiate these aspirations.