CANADA AND AUSTRALIA.

New Zealand Herald, Volume LXI, Issue 18631, 12 February 1924, Page 7

CANADA AND AUSTRALIA.

PREFERENCE NEGOTIATIONS. DIVERGENT VIEWPOINTS. Australian and N.Z. Cable Association. (Reed. 4.5 p.m.) OTTAWA, Feb. 9. From unimpeachable sources the following facts are learned concerning the present status of the Canadian-Australian trade preference negotiations. The Canadian Government, having proposed to extend to Australia this same preference as she extends to Britain if Australia will accord Canada similar preference; the Australian representatives are constrained to indicate that the basic problem is the volume of trade. Canada would derive benefits from such a reciprocity scheme IS times as great as those Australia would derive. Australia cannot accept any plan which does not do one of two things, namely, provide for much greater Canadian imports of Australian goods or equalise preferences to such an extent that the proportion of benefits derived will be a'minimum of three to one. Canada from such arrangements would still be the greatest' gainer. It is of great interest to note that the view expressed editorially in the French Canadian newspaper, La Canada, one of the largest journals in the Dominion, exactly represents the official Government view. The editorial says:—"lt is necessary to adopt out tariff to the evolving needs of our economic regime and to seek treaties with other countries whereby we may be able to make reciprocally advantageous exchanges conforming with the exigencies of our industrial and commercial life, but we oppose all solution of the tariff question by inflexible doctrine."

The correspondent adds that Canada, unlike Australia, does not believe that preference, especially Imperial preference, is a sine qua non of economic Imperial relationships. Canada feels that she can take or leave preference as she pleases. Canada's attention is centred on trade with the United States. The Prime Minister feels that probably the maximum that Canada can offer has been already offered to Australia. Mr. Eobb and Mr. Low in the meantime are seeking to evolve some mathematical compromise likely to satisfy the Australians, the result of which will probably be intimated early next week.