REPORT RELEASED IN LONDON

Otago Daily Times, Issue 21775, 14 October 1932, Page 7

REPORT RELEASED IN LONDON

TERMS OF THE SCHEDULES

WIDE RANGE OF PREFERENCES (British Official Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.). RUGBY, October 12. (Received Oct. 13, at 6.5 p.m.) With the publication to-night of a summary of the proceedings of the Imperial Conference at Ottawa, the terms of the schedules, which have hitherto been kept back, mainly at the request of the dominions, owing to risks of forestalling, are revealed., It is on the basis of the agreements and schedules thereto contained in this report that legislation has been drafted, which will be taken up by the House Of Commons immediately Parliament reassembles on Tuesday. Legislation will be pressed forward with all speed, not only to prevent forestalling, but -because under the Import Duties Act provision for free entry of imports from the dominions and colonies will cease on November. 15.

The report contains the terms of the agreements between the United Kingdom and the various dominions and India, and, in the opinion of the Government, the agreements greatly increase the opportunity of interimperial- trading and represent an important step towards the restoration of world trade. This overriding consideration was expressed in a resolution passed by the conference, which declared that by a lowering or removal of barriers among themselves provided for in the agreements the flow of trade between the various countries of the Empire would be facilitated, and that by the consequent increase in the purchasing power of their peoples the. trade of the world would also be stimulated and increased. _ . The agreements with all the dominions follow the same general _ form. Imports from Empire countries into the United Kingdom fall into three classes, namely:— 1. Those accorded entry free of duty, subject to revision three yeats hence. 2. Those which are granted preference through the imposition of specific duties on foreign goods. 3. Those which receive preference in virtue of a 10 per cent, ad valorem duty bn foreign goods imposed under the Imports Duties Act. In the first category are included eggs, poultry, butter, cheese and other milk products from Canada, New Zealand, South Africa, Newfoundland and Southern Rhodesia.

Foreign goods are in the second category, respecting which Parliament will be asked to impose specific duties set out in the schedules to the agreements, these including xvheat in grain, 2s per quarter; butter, 15s per quarter;, and cheese, 15 per cent, ad valorem. The schedules to the various agreements set out details of other proposed duties. In the schedule to .the Canadian agreement the goods include apples, pears, canned apples, dried fruits, eggs, and condensed milk. Under a corresponding schedule . in the Australian agreement, in addition to the above, poAvdered milk, honey, mv oranges, and grape fruits are included. The .New Zealand agreement makes no additions to this list, but the schedules attached to the South African agreement include a number of specific duties to be imposed on foreign imports, various fruits (raiv and canned), anA a 10 per cent. ad. valorem duty throughout the year on maize. The only items specified in the corresponding schedule to the Newfoundland agreement are duties on foreign cod liver oil (Is 4d per gallon), and on chilled or frozen salmon (lid lb). r Under the United Kingdom-liuhan agreement, Avhich is subject to ratification in India, provision is made for the imposition of duties on foreign imports ot wheat, rice, castor oil, magnesium chloride, and linseed. An undertaking is given by the British Government not to reduce the existing general ad valorem duty of 10 per cent, imposed under the Import Duty Act on a large class of foreign goods. Avhich are also enumerated in special schedules to the. agreements with the dominions whose interests are affected. In regard to modification of the import duties in the. dominions on articles imported from Britain, full particulars are given of the new rates imposed. • In regard to Canada, these modifications apply to some 215 items, of which in 132 cases the duties on United Kingdom goods are to be reduced, AA'hilc in 79 cases such goods are for the first time to enjoy freedom from Customs duty. On the basis of last year’s trade over 40 per cent, of the imports from the United Kingdom into Canada will enjoy immediately the advantage of lower Customs duties than those previously in force. Goods to the value of over 8,000,000 dollars being admitted free of Customs duty. The agreement with Australia provides that, subject to the Tariff Board’s recommendations, United Kingdom goods avill enjoy certain minimum preferences, graded according to the duties chargeable upon them. The minimum margin of preference Avill range from 15 per cent, ad valorem AA’hcn the duty on United Kingdom goods is up to 19 per cent, ad valorem, to ,20 per cent, preference where the duty is 29 per cent., but the maximum duty rate must not exceed 75 per cent. Preferences that exceed those resulting from the application of the formula remain at the existing level, subject to certain minor reservations. Certain prohibitions on British imports are AvithdraAvn and the removal of surcharges and primage duties is promised as soon as practicable. An important feature of the agreement Avith Australia has reference to the arrangements for the regulation of imports into Britain of frozen and chilled meat.

It provides, inter alia, for Australia limiting the export of frozen mutton and lamb to Britain in 1933 to an amount equivalent to that so imported in the year ended June 30 last. Meanwhile the United Kingdom Government will arrange with the Australian Government for the regulation of the importation of foreign meat in accordance with an agreed programme and for quantitative regulation of the supplies of bacon and hams coming* on the United Kingdom market. The Governments will consult in 1033 on the best means of securing an improved price situation and more orderly marketing of supplies. Britain already enjoys a very large proportion of the New Zealand trade. The new agreement with the Dominion undertakes not to increase the primage duty, to lower still further the existing duties, to abolish the surtax on British goods, and to modify certain basic import duties. Increased margins of preferences on United Kingdom' goods are granted by the South African agreement, affecting £2,200,000 worth of trade, of which Brihitherto supplied £400,000. Hitherto Newfoundland has not adopted the principle of "Imperial preference, but its agreement provides, as from July next, for preferences of 10 per* cent, on a wide range of goods, subject to certain reservations. India absorbs about *lO per cent, of Britain’s total exports, but hitherto Britain has had no Customs advantages. Preference is- now proposed on, articles in. which the total trade last year Was £34,900,000, of which Britain supplied £14,300,000. BRITISH PRESS COMMENT (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, October 13. (Received Oct. 13, at 8 p.m.) The Times, referring to Ottawa, said: “It may be said immediately that the concessions to British industry in the dominions’ markets are more substantial ,and cover a wider range of exports than had generally been anticipated, and when the modified duties are effective a great step will have been taken towards Freetrade throughout the Empire. There can be no doubt that the agreements, taken as a whole, do constitute a lowering, and not a raising, of tariff hindrances to trade.” The Daily Telegraph says: "Now that the scehdules have been published in full, a majority of British industrialists will be surprised to find that the domiuions’ concessions are as numerous and valuable as they are and that Britain has'secured an enormous opportunity for her export trade. The Government’s avowed intention to raise the wholesale prices of foreign meat will almost certainly be misrepresented as a wicked attempt to make the British consumer pay more, but if the livestock industries of the world are ruined meat supplies will shrivel, and then prices will soar, so that the poorest meat will become a luxury. Wholesale prices can rise a long way without reasonable excuse for advancing retail prices.” The Daily Mai) says; “ The agreements will satisfy all but a small minority of people here who' believe it is wrong to take any step to promote trade within the Empire or benefit British, industry by tariff adjustments.”

The Morning Post, while suspending detailed judgment, says it finds substantial grounds for confirming its original impress sion that the dominions’ concessions offer a fair return for the advantages accorded them by Britain, and that the net result will be an increase in volume, not only of Empire, but of world trade.

LORD SNOWDEN'S CRITICISM “ USELESS WINDOW DRESSING.” (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, October . 12. In an article in the Financial News, Lord Snowden, in severely criticising the Ottawa agreement, says: “In order to get illusory concessions from, the dominions, the British delegates - agreed- to' raise the existing duties against the foreigner on a’ number of foodstuffs. Australia agreed to limit the exports of mutton and lamb to the United Kingdom to the amount exported for the year ended June, 1932, -but Australia can well afford this, as these exports were abnormal, and, were' largely responsible for the fall in prices. It is frankly admitted that the restriction bn the imports of foreign meat is to enable the dominions to get higher prices at the expense of the British consumer. In every case the" British' concessions mean, an increase in ■ the price of commodities, mainly necessary foodstuffs, but in the. case of the dominions all the changes give relief to dominion traders and consumers, Anyone who is acquainted with the history of tariff boards in the United States and Australia will have little faith in the impartiality Of such boards, especially when nominated by Mr R. 8.-Bennett. It is just a bit of useless window dressing.” THE CANADIAN AGREEMENTS EFFECT ON AMERICA’S EXPORTS! (United Press Association.) (By Electric Telegraph—Copyright.) NEW YORK, October 12. (Received Oct. 13, at 8 p.m.) The Ottawa correspondent of the New York Times telegraphs that pubication of the details of the agreements between the United Kingdom and Canada discloses that the United States exports to Canada, normally aggregating many hundreds of millions of dollars annually, will be considerably reduced under the new schedule. Of 262 tariff changes,. 225 _ are for the direct purpose of transferring part of Canada’s import trade from the United States to Britain, since they are chiefly of an industrial character, where steel and iron are the basic materials. CANADA’S OBLIGATIONS (United Press Association.) (By Electric Telegraph—Copyright.) OTTAWA, October 12. (Received Oct. 13, at 8.30 p.m) In outlining in the House of Commons details of the trade treaties made at the Economic Conference, the Prime'Minister (Mr R. B. Bennett) declared: “Canada will carry out her part under the agreements in the spirit in which they were made, and no good Canadians will dare to suggest that any Empire country will be ahead of us in recogntion of those obligations.” NEW ZEALAND AND CANADA , NEGOTIATIONS FOR TREATY. (United Press Association.) (By Electric Telegraph—Copyright.) • OTTAWA, October 13. (Received Oct, 13, at 11 p.m.) Referring to the presence of the New Zealand delegation at the Economic Conference, the Prime Minister (Mr R. B. Bennett) on Wednesday told the House of Commons that it afforded an opportunity of discussing the extension of the trade agreement between the two countries for a year. He hoped that further negotiations would lead to the conclusion of another agreement for a long period. FIJI’S PREFERENCES (United Press Association.) (By Electric Telegraph—Copyright.) SUVA, October 13. (Received Oct. 13, at 5.5 p.m.) Owing to Fiji’s geographical position, the Fiji Legislature was the first Empire legislature to pass the. U-islation implementing the Ottawa agreements. At the meeting to-day the special preferences to New Zealand, the United Kingdom, Canada, and Hongkong were repealed. Australia permits Fiji to export to Sydney and Melbourne about 4100 cases of bananas every month, the duty being 2s 6d per cental instead of 8s as formerly. Other preferences were granted according to the Ottawa agreements.