OTTAWA AGREEMENTS

New Zealand Herald, Volume LXXVI, Issue 23431, 22 August 1939, Page 5

OTTAWA AGREEMENTS

BRADFORD ATTITUDE DESIRE FOR MODIFICATION SELF-SUFFICIENCY DANGERS [from our own cohukspondknt] LONDON, July '->0 The Ottawa agreements have been the subject of varying comment at the 15th Congress of the Chambers of Commerce of the British Empire. Sir Thomas lnskip, Dominions Sccre-t-nry, in declaring the congress open, said that tho agreements had been an undoubted stimulus to both the United Kingdom and Dominion trade. If they had not solved every problem this country had nothing but gratitude for the advantages enjoyed under tho agreements. Mr. Douglas Hamilton, past-presi-dent of the Bradford chamber, said that in Bradford they maintained that many of tho so-called preferential duties under the Ottawa agreements bad been virtually prohibitive. In Bradford they had completely lost their export trado to Australia through this cause, and it now seemed that New Zealand was also intent on setting up a textile industry at whatever cost. On the other hand, South Africa was buying far more goods from Britain than she was selling to Britain. Canada, too, had been a reliable customer and carried out her engagements under the Ottawa Agreements much better than some other Dominions. Reaction on Foreign Trade The Bradford chamber had tabled, a motion asking for a revision and modification of the Ottawa agreements in the light of six years' experience of their working and with the object stated. Mr. Hamilton said that generally the object of stimulating Imperial trade had been achieved, but increased British imports had been won at the expense of non-Empire countries, and there were reactions. To help Australia, South Africa and the African colonies Britain reduced imports from Turkey, Greece and the Balkans, and from then on she encountered blocked currencies, quotas, defaults in payment, constipated clearing arrangements—all on account of having upset the natural course of trade. No one could possibly maintain that on balance the change had benefited England. The inevitable result of selfsufficiency policies was war, and the only possible way of achieving and maintaining peace was by freeing the movement of individuals and goods. Germany and Italy could only keep alive by foreign trade, but where were they to get it? With emigration and profitable export barred, they had relatively little to lose, and were all the more likely to stake their existenco on a war. Burdens on Britain ■ The chambers pressing for increased preference (British Guiana and Canada) had three or four thousand miles of ocean between them and the nearest enemy, but Britain was in the front lino and had to bear the terrific cost of armaments. Such slogans as "Buy British" had created a strong antiBritish feeling throughout the world. Britain had followed the fashion in tariffs, but the closing of the Empire to reasonably free access had been a contributory cause of Fascism and Hitlerism. An amended resolution was carried in the following form:—"This congress, reaffirming the federation's advocacy of tho extension of trado within the Empire, desires to pledge support to all efforts to maintain and increase the exchange of goods between the various units of the Empire."

PROSPECTS FOR WOOL

NEW AUSTRALIAN CLIP BRIGHTER OUTLOOK FACED SOME IMPROVEMENT LIKELY Australia faces brighter prospects for the sale of the now wool clip than was the case a year ago. She will produce more saleable, better grown wool, giving in most eases heavier weights per sheep, which will command competition from a wider range of buyers. Competition for a largo proportion of the past season's clip was limited because of its faulty growth resulting from drought conditions over a wide area of country, Winchcombe Carson, Limited, reports. Millmcn abroad are in much better heart to engage in the purchase of the raw material than 12 months previously. Activity at the mills in practically all countries, except Japan, has been greater during the past seven months than in the similar period of 1938. The increased volume of manufacturing turnover has admittedly been largely caused by work 011 uniform materials. That' business may not continue at the specially accelerated rate of recent months, but increased military and naval forces once established must be maintained iu equipment and clothing renewals become necessary. The consumption of wool on that account is,, therefore, likely' to be larger in the future than during recent years. The expenditure on rearmament generally lias increased employment, and distributed more money among the people, thereby expanding public purchasing power. It must also increase taxation, which, in turn, detracts from the improvement previously mentioned, but, in spite of that aspect, the tendency is to give the great bulk of the population more spending money. In June combing machinery was more active in Bradford than for some years. Buyers of fabrics were also* showing greater confidence, and were more freely entering into contracts for future supplies in place of the hand-to-mouth policy pursued for a long period. A shortage of stocks in the shops was reported in cases, and some delay was being experienced in securing supplies. Apparently caution in-purchasing has been carried too far. Recent experiences do not stimulate the idea that wool is likely to become decidedly dearer in the immediate future, but they do not suggest a recession in values. The evidence rather points to firm prices and possibly some improvement in rates for the,now clip

CURRENT TRADE QUIET INDUSTRY FULLY BOOKED LONDON, An*. 20 The wool trade is very quiet owing to holidays aiul there is hardly enough movement to test values. The chief need of the industry is to take tip contracts already on tho books and not place further business at present. SUGAR BEET INDUSTRY EXPERT FOR THE DOMINION [from our OWN correspondent] LONDON, All sr. 3 A passenger to New Zealand by the Dominion Monarch will bo Mr. T. M. Hayek, from Brumm, Czecho-Slovakin, who has been specially engaged for the Now Zealand Government to report on the possibility of establishing the sugar beet industry in the Dominion. Mr. Hayek recently advised the Eire Government regarding the establishment of a similar industry in Ireland.