THE OTTAWA AGREEMENT

Nelson Evening Mail, Volume LXVI, 14 November 1934, Page 2

THE OTTAWA AGREEMENT

BRITISH RESTRICTIONS MR MACDONALD’S ASSURANCE VITAL TO PROTECT AGRICULTURE Providing the first comprehensive reply to criticisms of Great Britain’s policy of restricting imports of foodstuffs, tlie Under-Secretary of State for Dominion Affairs (Mr Malcolm MacDonald) said at the annual dinner of the Australian Association of British Manufacturers in Melbourne that foreign imports would be curtailed first, and that every effort wouid be made to give the Dominions the largest possible share in the home market. Speaking on behalf of the British Government, Mr MacDonald pointed out that Great Britain’s agriculture was highly important to her. The policy of restriction had been forced on the Government) to save the industry from destruction. Whatever was done, Great Britain would abide by the Ottawa agreements, but if it was found necessary to revise them action would have to be taken to improve what was, after all, merely an experiment in the the Empire (reports the “Argus”). TRADE FLOWS MORE FREELY

i Mr MacDonald said lie admitted that one of the Empire’s primary needs today was greater reciprocal trade. The I several Ottawa agreements had been the first attempt to establish “two-way traf- ( I fic in trade” on a more comprehensive 1 i basis, and lie believed that the results ! so far apparent had been encouraging., Imperial trade had certainly flowed a little more freely since the Ottawa conf ference, and he was confident that, as time enabled the effects of the agreements to be seen more clearly, Great Britain and the Do'hiinions would appre-; ciate even more the benefits that were I being received. ’ “Of course,” said Mr MacDonald, ' “there are complaints here, in. Great Britain, and in the other Dominions, that the Ottawa agreements are not perfect. No doubt in time we will find 1 some faults, and some modifications will 1 have to be made. I, for instance, like s my fellow guests, have beard various ' criticisms since we came to Australia ■ about certain things that the British Government is doing and proposes to do. I have been made aware of a feel- ! ing in Australia that possibly some of L the things we propose to do are not : quite consistent with the Ottawa agreement. Far be it from me to suggest that I have not heard . similar things ; whispered in . the United Kingdom. ; (Laughter.) That is to be expected with,in the family. This evening I would , like#o say something abo.ut the British ! Government’s policy which is being very i freely and frankly, and I may add quite naturally, criticised in Australia. ' “Australians are feeling somewhat , alarmed at our agricultural policy, es- ! pecially at that part of it which consists '■ of tlie restriction of the importation of ; foodstuffs into the United Kingdom mar- <■ ket. What I say it not propaganda, it is 1 not aimed to ‘put something across’ you, • but simply to explain what the British ' Government has in mind and what it is : trying to achieve in its restriction of imports.” I IMPORTANCE OF AGRICULTURE 1 There were those who said that Great Britain knew nothing of agriculture, said Mr MacDonald, but the fact remained that this was one of the country’s most important industries, employing about 1,500,000 persons, a larger number than was employed in that industry in any Dominion. “We do not like the policy of restriction upon which, we are embarking, but we have been forced into 1 adopting that policy in defence of that 1 gigantic industry,” said Mr MacDonald. ’ It was most important that the Do- ■ minions should understand clearly that 1 Great Britain was net trying to make ' herself independent of oversea supplies, he added. Her sole object was to save 1 the British agricultural industry from 1 extinction. This being so, it was not fair to say that Great Britain was pursuing a selfish policy. An effort was being made ! to restore prices in the world’s most important market for primary produce. The aim was to do this in a way that would benefit producers in the Dominions and other supplying countries. If the British Government) • could restore the level of primary produce prices, the Dominion producers, tlie Australians included, would benefit considerably. For that reason the Australian producer had a real interest in the policy being followed in Great Britain, for its primary object was to break the depression. Australian critics agreed that this was a wise and good course, but they asked why the British Government did not make a start by restricting the imports from foreign countries and avoid penalising Dominion exporters. The answer to that was that the British .Government had already made a start upon the restriction of foreign foodstuffs importations. FOREIGN RESTRICTIONS FIRST Foreign imports would be restricted firsts and Dominions imports second, but they would not be penalised except as a last resort. For instance, the Argentine had not been able to increase her imports of chilled meats above tlhe quantity sent to Great Britain during the year before the Ottawa Conference, and her imports of frozen meats were reduced by 35 per cent, after the Ottawa Conference. The policy of the British Government was to give the Dominions a share in the home market, added Mr MacDonald. However, Australians would agree that Great Britain could not cue , down her trade with foreign countries beyond a certain point.. The Argentine, Denmark, and other countries were large purchasers of British manufactured goods, more than half of Great Britain s exports of manufactured goods going to foreign countries. In order to keep her own people employed in the manufacturing industry, Groat Britain could not afford to neglect this important aspect of her trade. Australia would appreciate this point, for she also knew she could not avojd trading with those countries which bought her goods. “I can only say,” Mr MacDonald said, “that as far as possible the British Government will confine its restrictions to imports from foreign countries, and that, however far it has to. carry its restriction policy, it will always abide by the Ottawa agreements, and give the Dominions ail increasing share in its market. (Applause.) Tlie Ottawa agreements are an experiment. We shaped a new piece of machinery to help the Empire in its commercial relations, and, with experience, we may find that the machinery is r.ot perfect.” Were this proved to be so, it was confidently expected that the various parts of the Empire would have the good sense to compose their differences around the conference table. Revision of the agreements could not be hasty; the relations between Great Britain and the Dominions should enable differences to be settled as they would be among a family, (Applause:) “We cannot help agreeing,” Mr MacDonald concluded, “because we can never forget that there is a higher purpose in the association that exists between the British peoples than the promotion of their own material well-being. We always have been servants of a greater cause than that.”