OTTAWA AGREEMENTS

New Zealand Herald, Volume LXX, Issue 21578, 24 August 1933, Page 9

OTTAWA AGREEMENTS

EFFECTS DISCUSSED - . y<: SUPPORTERS IN MINORITY ECONOMIC BLOCS FACTOR ; POLITICAL DANGERS SEENf 1 ■ ' By Telegraph—Press Association—Copyright BANFF, Aug. 22 It was stated at to-day's meeting of one section of the conference of the Institute of Pacific Relations that the Ottawa agreements had been a factor in stimulating the drive toward economic blocs and economic nationalism, in other countries. Japan was said to be greatly concerned over these agreements and her Manchurian policy, it was stated, had been influenced by" what was happening among the British nations. Supporters of the Ottawa agreements as a factor in the restoration of world prosperity found themselves in a minority. The case for the agreements, argued largely from the British point of view, evoked criticism from various groups of delegates, including the British themselves. It was suggested by the advocates of the agreements that they formed a wedge which could be driven into the prevailing economic nationalism of the world. Other nations, it was suggested, see-, ing that agreement was reached with a consequent stability of trade achieved over a wide area, would be encouraged to enter into agreements of their own. Thus economic blocs would be formed within which trade could move more freely. It was further suggested that these blocs once formed, would themselves unite into even larger areas within which some reciprocal trade agreements could be worked out. Criticism of this point of view was varied. It was suggested by technical economists that the formation of blocs only meant that the nations would be producing goods they were not naturally fitted to turn out, with the result that, after a short stimulation of trade, the members of the; bloc would find their position worse than before. Representatives of China, Japan and the United States joined in the belief that the political dangers of economic blocs- far over-balanced the economic advantages. The Canadian delegates prominent in pointing out that the Ottawa agreements did not mean that an economic bloc was in progress of formation within tha British Commonwealth!