TARIFF BARRIERS

Otago Daily Times, Issue 23202, 28 May 1937, Page 9

TARIFF BARRIERS

MOVE TOWARDS LOWERING BRITAIN AND AMERICA THE DOMINIONS' APPROVAL (United Press Association) (By Electric Telegraph—Copyright) LONDON, May 27. (Received May 28, at 0.30 a.m.) With the trade talks between England and America having passed beyond the stage of bilateral trade discussions, no real progress can now be made until the dominions are consulted. Accordingly considerable importance is attached to the commencement of to-day's survey of the economic situation by the heads of delegations. Mr R. G. Casey (Australia), during several informal conversations with Mr Norman Davis, who intimated that America thought Australia could modify the Ottawa agreement, explained the Commonwealth viewpoint very plainly. Nevertheless, in emphasising the difficulties confronting Australia, he pointed out that the Ottawa commodities in which Australia was mainly concerned were meat, dairy, products and dried fruits, Imperial preference on which was vital to Australia. America would have to reciprocate in this connection before Australia could seriously negotiate a treaty with America. The dominions fully approve the principle of Anglo-American initiative towards lowering tariff barriers simultaneously and appreciate the importance of the closest Empire and American relations to the international situation; nevertheless, they realise that difficulties exist which cannot be easily overcome.

The Times, commenting on the United States desire for modification of the Ottawa agreement, says: "It remains to be seen whether it is possible and desirable to consider the Empire as a unit for the purpose of the talks and to agree to mutual concessions with the aim of liberation of a flow of American trade with the Empire. British financial circles generally agree that an Anglo-American agreement is in every way desirable, and the psychological effects of it would far outweigh the possible economic consequences."