TRADE CHANNELS

Otago Daily Times, Issue 21951, 12 May 1933, Page 9

TRADE CHANNELS

TURNING THE TIDE THE RECENT AGREEMENTS HOUSE OF COMMONS DEBATE (British Official Wireless.) (United Press Association.) (By Electrio Telegraph—Copyright.) RUGBY. May 10. The Danish mid Argentine trade agree inents were discussed in the House of Commons. Mr Walter Runciman (President of the Board of Trade) said the agreements were with countries which had been in close commercial alliance with Britain for a very long time. In the Argentine nearly all the great developments 'if 'docks, harbours, railways and roads had been effected out of facilities provided by Britain. The total amount invested in providing the Argentine railways was estimated at over £500.000.000, there being no investment with outside countries comparable with this within the ■experience of modern industry. In the case of Denmark a large amount of its industrial prosperity had depended not so much on British enterprise as upon Danish enterprise in the British markets. The balance of trade had for the last 20 years been preponderatingly on the side of Denmark. In 1930 the imports from Denmark exceeded the exports to Denmark five times. Following the exhibition of British goods in Copenhagen, the ratio was reduced in 1932 to 4 to 1, but that did not go far enough. As an outstanding feature of increased trade as a result of the agreement, he cited the order for the Storstrom bridge, and mentioned the general understauding that for Government and municipal purposes the first offer of orders of iron and steel should be made to United Kingdom firms, coupled in the case of the Government with a price preference! of 10 per cent. On the other side, Britain had given an undertaking regarding Danish bacon and ham. The agreement achieved something in the way of security for the future.

An entirely different set of problems presented themselves in regard to Argentina, where, unlike Denmark, the tariffs were high, and attempts had been made to secure a reduction in the duties. Under the financial section of the Argentine agreement there had been sent here about £1,250,000 to liquefy small transactions. Beyond that total the amount still due would be liquefied through the process of bonds issued on the security of ' the Argentine Government, to be placed in the hands of representative authorities here, and to he used by them for the provision of cash in sterling in place of frozen paper. This meant liquefying about £11,000,000. Having once started this process of liquefying cash which had been frozen under exchange restrictions they hoped the example would be followed elsewhere. Everything would be done on Britain's part to facilitate similar transactions. The representatives of Argentina had undertaken, as regarded goods of which <i substantial proportion of the imports into Argentina was derived from the United Kingdom and in respect to which proposals had been submitted to them for a reduction of Customs duties, to revert in general to the rates of duty and the valuation for duty of such goods, in force in 1930. Discussions were to be continued with Argentina. He pointed out as a remarkable fact that no less than 99 per cent, of the chilled beef exported from Argentina came to Britain. They had to bear in mind, in dealing with Argentine wheat, that, two other markets—the home and dominions markets —were of primary concern to us. The Government hoped by these agreements that it had done something to turn the tide and that they would now tend in the direction of a steadier price, level.

JVIR AMERY'S CRITICISM

LONDON, May 10.

Mr L. S. Amery 6aid that both the Danish and Argentine .agreements contradicted the whole spirit of the Ottawa agreements. They barred in many directions any expansion of Imperial preference. "We are on the verge of solving the problem of sending the dominions' chilled beef to Britain," he said. "Rhodesia is making hopeful experiments in that direction. There is reason to believe that Australian chilled beef could be brought here in good condition, yet the Argentine agreement prevents the development of this trade. Denmark got the i minimum quota of our total butter imports, compared with the serious diminution of dominion supplies. Valuable as the Danish, trade is it must be remembered that New Zealand- butter represents £3,000,000 in freights alone. The New Zealand shipping trade represents an actual value-of £25,000,000."

REGULATING SUPPLIES

THE QUOTA SYSTEM

LONDON, May 11 (Received May 11, at 8 p.m.)

Major W. E. Elliot, replying,, said that when Britain entered the World Economic Conference she would defend the actions taken to regulate supplies by means of the quota system. He was certain that the conference would approve planning in preference to an anarchic scramble. Denmark's butter quota maintained the principle of the home producer first, the dominion producer second, and- the foreign producer third. Neither agreement showed antagonism to increasing dominion imports, but the market could not stand the supplies that were now being hurled at it. There were at present unrestricted imports of dominions butter and cheese, consequently the butter price was falling 60 rapidly and stocks of home cheese were so heavy that it was impossible to say whether the situation could be saved. It was imperative to seek a higher price, even by restriction of 'imports, or, if necessary, by restriction of production. The Government's long range policy, enshrined in the Agricultural Marketing Bill and subsequent measures, was sound and lie believed that other countries would ultimately have to follow the same line. He denied every one of Mr Amery's charges about the spirit of Ottawa. Major Elliot announced that if the agreements were sanctioned by the Government he would immediately consult representatives of the countries supplying milk products to Britain with a view to arranging restriction of supplies. The Ottawa agreements provided that the dominions should agree as to access to this market, and we could only deal with them by agreement and consultation.

Sir Herbert Samuel said that Major Elliot seemed to advocate a policy of general regulation of agricultural products in this and every other country. With such a policy the Government might as well withdraw from the world conference, for on those lines its labours were bound to be futile.

NO DIVISION TAKEN LONDON, May 10. There was no division on trade agreements, which were discussed under a

motion for the adjournment of the House. This was withdrawn. BRITAIN'S TRADE RETURNS LONDON, May 11. (Received May 11, at 8 p.m.) British imports during April totalled £51,151,000, exports £23,395,000, and reexports £3,538,000. For the past four months the imports totalled £210,072,000, against £246,900,000. Last year's exports were £116,116,000, against £127,113,000, and re-exports £16,142,000, against £20,757.000.