EMPIRE CONFERENCE

Otago Daily Times, Issue 19016, 12 November 1923, Page 7

EMPIRE CONFERENCE

SUBSIDIES AND IMPORT LICENSES. SYSTEM CONSIDERED IMPRACTICABLE. Press xlssocialion —By Telegraph—Copyright LONDON, November 9. During the discussion yesterday at tho Economic Conference on the question of subsidies and import licenses and the stabilisation of prices Sir Philip LloydCreame pointed out that the committee found that subsidies were impracticable, as they would involve tho retention by a Government granting a subsidy of the right- lo exercise supervision and direction over the recipient’s subsidy. The committee unanimously, thought that it would obviously be impracticable for one Government to do that which was within the jurisdiction of another. It was also impracticable to make the subsidy vary with preferential rebates accorded to the United Kingdom products, because the subsidy would have to be constant. They could not depend on a variable factor even if the proposal was attempted. While the direct financial benefit would go to individual traders, the money for subsidies would come from the general taxpayer. It was also clear that a differential subsidy might operate unfairly as between one dominion and another. The committee considered import licenses and the stabilisation of prices together, because the system of prohibition and license would involve the establishment of a State Purchase Board and price control. At the Genoa Conference very careful consideration had been given to the question, and the conference unanimously adopted a resolution, which was supported by the whole Empire delegation, that a system of prohibition and license ought to be avoided if any other system was applicable. “The reason which had led the present committee to endorse the Genoa resolutions,” said Sir Philip Lloyd-Greame, “was, firstlv, the tremendous uncertainty of trade. Tf they had a tariff everybody knew what it was. If they had prohibition and license nobody would know the result, and there would be great difficulties in getting supplies and obtaining shipment. It would be impossible to rely on getting the delivery of supplies promptly on the issue of a license, and the people whose production you are trying to restrict would naturally be the first to take advantage of any artificial shortage by holding up deliveries. Secondly, the effect of a licensing system would give enhanced value to goods admitted to the country, which would merely go into the pocket of the person obtaining the license. The licensing authority would have a duty thrown upon it far too invidious to do borne, and it might bo faced with the difficulty of whether it should exclude chilled meat if frozen meat was available : also the greater difficulty in which the licensing authority would be placed in tho matter of granting _ or refusing licenses. If it granted a license to all producers, whether here or by the dominions, people would ask, Mhy have you granted these licenses? If, on the other band, it refrained from granting them, the consumers would say ; ‘Prices have risen. Why are not licenses granted? There was none of the certainty of a tariff, and it really might prejudice the whole system of Imperial development. If once we controlled imports by license there would be an irresistible demand for price control. 'Hie experience in different parts of the Empire of price control made it clear that it would be impossible in a system of control to let the quality govern the price. The committee also found the control of prices a costly proceeding. It therefore recommended the closest co-operation between the dominions and the Home Governments and producers concerning improved market conditions.” Sir Philip Idovd-Gieame indicated that if this country decided to impose a duty upon malting" barley it would give the dominions preference of one-third, and the same on hops.—A. and N.Z. Cal>le. THE AUSTRALIAN VIEW. TARIFF AND PREFERENCE REQUIRED. LONDON, November 9. Mr Bruce said that Australia recognised that the preferences given were not at the moment going to ensure dominion products flowing with certainty into Britain, unless they on the other side were prepared to do all that was necessary to keep the trade, in which they had oeen given exceptional opportunities. They would have to improve the standard of grading and packing, and provide for efficient marking. There was a possibility that Preference would not actually be effective unless the British Government could see its way to take action and see that it was given effect to. There were great interests here concerned to see that these trades should not get into the hands of the dominions, and they would try dumping into this market in order to strangle dominion trade. Australia at present protected British manufacturers against dumping ; therefore it was not unreasonable to ask for reciprocal action. “There is one industry—-beef—in which we are much concerned, because of what it means to Australia and the Empire.” He thought that some solution, even if it were temporary, should be sought, and he hoped that the Economic Committee just appointed might seek a solution. In reference to the chairman’s statement in regard to the committee’s report on import licenses, he wished to make it clear that although he made suggestions which had been investigated he took no responsibility for them, nor did be bold a brief for the methods proposed. He had indicated that Australia believed that ihere was only one reallv satisfactory way, and that was by a tariff and Preference. He had merely suggested that there were other alternatives that should be investigated. The Chairman intemolated that there was no intention to shut out other means. It was only intended to show that the methods were impracticable, and that thev must endeavour to achieve their purpose ou other lines. Air Bruce continued that he clearlv rocogniscd that it was entirely a matter for the British Government to determine what ifc was going to do with regard to anything imported into Britain. It was not the business of any dominion to exert pressure. “Above everything.” he said “If Britain ‘a determined against a tar'ff on wheat and meat, do iW let us abandon the idea of doing anything at all.” D Uvet opt vet tjtt? OVERSEAS DOMINIONS. STATEMENT BY MR MASSEY. LONDON. November 9. Mr Alassev endorsed Air Brace’s remarks regarding tbe meat industry. He said he honed that New Zealand’s experiment in chilling beef would prove successful, anil enable her to compete with South Africa. He agreed that the meat onestion was tbe mc=f serious which the p.-iiDb Gcvcrpment had to tacl.-lc. He did not see a wav out unless bv an ext.enri'vi nf p-niworr". IT' l tbeii'dit that something should pc dej-e lo limit profits on the handling of produce and he instanced the case of Hm producers receivin’- Id per lb fo” .apple" which sold ;n Lop don at 71d. The preference hist conceded wculd gri a. long wav to help the prodneer. ATr ALasse’* thought that it would he better for the Empire jf Ihrmonev proposed to he invested in Russia used to develop the oversea dominions. He trusted that the different units of the Empire would do their utmost to place orders in ihe ma-kets of Britain, and thus help to dispel unem-ployment.—A.-.and N.Z. Cairo.

CONCLUSION OF THE CONFERENCE. RESULTS MOST SATISFACTORY. LONDON, November 9. The Imperial Conierenco met this afternoon to wind up the business. The proceedings were marked by great cordiality. All the Premiers expressed the unanimous opinion that the conference had been most successful. Mr Baldwin said the British Government was grateful to the dominion Premiers, whose long journeys had been quite justified by the results achieved. 'The dominion Premiers expressed their gratitude to Mr Baldwin and other Ministers, and to the secretariat. Mr Baldwin, on behalf of the Govern meat, expressed the opinion that the unseen work of the conference had oeen most extraordinarily useful and helpful; also the work of the dominion secretariats and the Economic Conference. it was decided that the Imperial Economic Committee should be composed of lour representatives from Britain, and two each from the dominions, India, and the Grown colonies. It is learned that the dominions will be given a preference of sixpence a gallon on grape juice. Conference adopted the resolution framed by the committee of inter-Imperial exchanges, which expressed the opinion that: (1) The difficulties regarding interImpcrial exchange would disappear when the currencies of Britain and the dominions affected are again convertib.o into gold. (2) It is neither necessary nor desirable to adopt complicated plans for a new credit instrument, like Empire currency bills, which involve difficult and disputable constitutional and financial questions. (3) Where difficulties nave arisen the position could be ameliorated if the note-issuing authorities accumulated their sterling assets, and undertook to exchange for their local currency sterling, and vice versa; which measure might further be assisted by the creation of central banks for mutual co-operation, as recommended by the Genoa Conference s resolution. Finally, the committee says that the bank charges for buying and selling sterling in some cases appear unduly high, and should be capable of reduction. Conference unanimously adopted resolutions relating to the application of the Workmen’s Compensation Act throughout the dominions. The resolution recommending the establishment of an Economic Committee, which will be of an advisory character, stipulates that nq question having any reference to another part of the Empire may he referred to the committee without the consent of the parties concerned. —Reuter. IMPERIAL WIRELESS SERVICE APPROVED. LONDON, November 9. (Received Nov. 10, at 1.15 p.m.) The final meeting of the Imperial Economic Conference considered the question of an Imperial wireless system following on statements by the PostmasterGeneral. The conference adopted resolutions affirming the importance of establishing as quickly as possible an efficient Imperial sendee of wireless communication and expressed the opinion that the Empire should take immediate action to remove any difficulty now delaying the accomplishment therof while providing adequate safeguards against subordination of public to private interests.—Reuter. WIRELESS COMMUNICATIONS. THE GOLD STANDARD. LONDON, November* 10. (Received Nov. 11, at 5.5 p.m.) In the discussion on wireless communications at the Economic Conference the Australian and New Zealand delegates were insistent that decisive action should be taken. Notwithstanding the somewhat pious character of the resolution passed it may be said without fear of contradiction that Australia and New Zealand stood alone in the* matter, and whatever may now be done outside the conference will rest on their efforts to negotiate a service. Whatever benefits the overseas may claim to have received from the conference, Mr Bruce, with the five points he initially laid down for consideration, may be credited with having precipitated firstclass political crisis in Britain. In yesterday’s debate on the currency question Mr Bruce said that he would really like to know if it was the committee’s view that there was a reasonable prospect of an Empire basis of gold standard being restored, or was it merely a statement that if such a thing were possible it would probably solve the problem they were faced, with. Sir Charles Addis replied that that was so. it was based on the assumption of an early restoration. Mi* Bruce continued that he was personally convinced that the restoration of the gold standard was what all should work towards, but the question would have to be faced of finding some other method of providing for future exchange arrangements and their adjustment. Mr" Massey said that he quite realised the difficulties in the way of the committee doing as much as was expected. The time limit rendered an exhaustive inquiry impossible, but the committee had furnished very valuable information. He was pleased to know that there was some possibility of restoration of the gold standard at no distant date. He knew there were many bankers who were not anxious to restore the gold standard as it would interfere very seriously with the profits they had been making.—A. and JN.4. Cable.