TRADE COMPETITION

New Zealand Herald, Volume LXX, Issue 21577, 23 August 1933, Page 9

TRADE COMPETITION

WORKERS' WAGES FACTOR THE OTTAWA AGREEMENTS JAPAN- GREATLY, CONCERNED By Telegraph—Preßs Afifiocintion—Copyright (■Received August 22, 9.55 p.m.) OTTAWA. Aug. 21 The varying wages paid in different countries and their relationship to protection through tariffs came before the conference of the Institute of Pacific Relations at Banff, Alberta, to-day, when the four round-table groups resumed their work. Serious do ibts that concrete results can be obtained in the efforts to resolve the rising conflict between Britain and Japan in the world markets were expressed. Japan, it was suggested, is now in the same position that Britain held at the close of the 19th century, when France was tho leading industrial country.

Britain's policy of free trade was represented as the agency of Britain's advance, and a British delegate pointed out that if he were a statesman in Japan to-dav he would advocate a policy of free trade, so that Japan might wrench markets from her competitors as Britain had from France. Two points wero made: One was that the adoption of a policy of closing markets to Japan in those areas where Britain has power to do it would result in increased competition from Japan in other markets, such as South America, and would mean only the re-allocation of trading areas, with eventual loss to Britain.

Conflict if Outlets Not Found The second point was that Britain and Japan each had bargaining counters, which might bo used in negotiations if these could bo initiated. Tho conception of closed, self-suffi-cient regional blocs was attacked, and armed conflict was pictured as unavoidable unless in such development countries like Japan were afforded opportunities ,to find outlets.

It was represented that such a bloc was not created by the Ottawa agreements, of which ib was said that they were not to the disadvantage of Japan so far as her sources of raw materials were concerned. The idea of preference to Britain which they contained was not new. The industrialisation of Canada and Australia was inevitable, according to the discussion, and it was predicted that improved methods of agriculture would result in tho relative depopulation of all tho agricultural areas of those countries. Tariffs Causing World Chaos A world moving into further chaos as the result of steadily mounting tariffs was pictured by several speakers. Tho opinion was expressed that the world is far from ready for any general congress at which all nations would be willing to declare for a tariff truce and a "new deal." It was also stated that the present situation of piling tariff against tariff is a menace to civilisation itself.

Japanese delegates intimated that Japan had been greatly concerned about the Ottawa agreements, not on account of their future effect, but for what they implied might happen to the trade of Japan by a British tariff agaihsfc Japanese goods. The Canadian tariff of 60 per cent and the Indian tariff of 75 per cent against Japan were cited as examples, and the paradox was discovered of Japanese and American subsidies to shipping for tho reason of national defence, while both .have signed the Kellogg Pact, Secretary-General Appointed

Mr. Edward C. Carter, of New York, has been chosen to fill the newlycreated post of Secretary-General of the Institute. The position was created owing to the growing responsibilities and demands of its programme, with members assembled from China, Japan, the United States, Australia, Now Zealand, Canada, Britain and the Philippine Islands, and observers from France, the League of Nations, and the International Labour Office.

The institute is pushing on with its plans for further extension of its work during the coming two years from its central headquarters at Honolulu, and by means of frequent trips to the national council offices bordering the Pacific.

Mr. Carter will superviso and carry out these plans, especially in connection with the research programme. He has been secretary of the American-Council of tho Institute of Pacific Relations since 1927, and for tho past two years vice-chairman of tho institute's programme committee. New Chairman of Council Mr. Newton 1). Baker, who was United States Secretary of War in the Wilson Administration, has been appointed chairman of the council of the institute. He succeeds Mr. Jerome Green, of tho University of Wales. In acknowledging the honour, Mr. Baker said that most of the troubles of tho world arose from misunderstanding. Therefore tho institute had a high duty to perform in seeking and spreading knowledge in order to lay a basis for understanding through approaching in a hopeful, scientific way the great international problem which had come to bo the world's chief preoccupation and concern.