JUST COMPENSATION

Otago Daily Times, Issue 26606, 31 October 1947, Page 5

JUST COMPENSATION

BASIS OF TRADE AGREEMENT COMMONWEALTH’S POSITION UNIMPAIRED Rec. 8 p.m. LONDON, Oct. 29. He hoped that British manufacturers would take full advantage of the tariffs secured with hard-currency countries, particularly the United States, said the President of the Board of Trade. Mr Harold Wilson, announcing that an Anglo-American trade agreement had been signed. Britain had overspent something like £200,000,000 in the quarter ended September 30. Mr Wilson added that September exports for each working day were higher than in any post-war month except June and July. Much of the adverse balance was due to the rise in important prices. Most industries had accepted the export targets providing raw materials and fuel were available. Mr Wilson accused some exporters of being rather defeatist about dollar areas. He urged the selling of British goods in West and Middle West America, not only around New York.

In the negotiations between the United States and the various Commonwealth countries Britain had agreed on reductions in her own tariffs or elimination of preferences she enjoyed in other Commonwealth countries only in return for concessions which Britain considered equivalent in terms of trade which they opened up. Increasing Dollar Exports

Britain had been particularly concerned to secure reductions in the tariffs of other countries, including the United States, which would provide an immediate opportunity to increase British dollar exports. Mr Wilson stated that the Government’s latest information from Geneva was that each dominion had adhered to general agreements and to tariff schedules. The agreements, so far as the United States was concerned, were for three years, with a provision for renewal.

Mr Wilson declared that the suggestion that Britain had agreed to an overall reduction by some formula of al] Imperial preferences, including preferential margins which she enjoyed in colonial or dominion markets, was quite inaccurate. He added that the negotiations had strengthened the economic co-opera-tion of the Commonwealth, and the conference had provided a forum for discussions on economic questions considerably wider than the problems immediately before the conference. Mr Truman Confident

In a statement in Washington President Truman hailed the Geneva trade and tariff agreement as a landmark in the history of international economic relations. Never before have so many nations combined in such a sustained effort to lower barriers to trade. In a world economic situation, characterised until now by progressive deterioration, this agreement is heartening indeed. Reuter’s Geneva correspondent quotes Mr Winthrop Brown, leader of the United States delegation to the International Trade Conference, as saying that very substantial reductions and the binding of law tariffs against later increase had been achieved in the new tariff agreement. Mr Bfown refused to give details of the concessions, but said: “We consider the conference to have been a great success. Trade worth £2,500,000,000 at 1938 values is covered by actual tariff concessions.” Reference to Congress Unnecessary. He added that no United States tariffs had been cut by more than 50 per cent., which meant that the agreement could be adopted by Mr Truman without reference to Congress. Mr Brown said there was no general re duction of Imperial preferences. Negotiations had been conducted on an item by item basis. Quoting authorative sources, Reuter’s political correspondent says that preference eliminations under reciprocal trade' agreements to be signed at Geneva to-morrow will affect an extremely small proportion of British trade with the Commonwealth. There was no question of an all-round 25 per cent, slash in Imperial preferences November 18 is the provisional date for publication of details of the agreement.