TARIFF NEGOTIATIONS

Otago Witness, Issue 2924, 30 March 1910, Page 19

TARIFF NEGOTIATIONS

LONDON, March 22. The Times' Toronto correspondent says that although the Hon. W. S* Fielding, Canadian Minister of Finance, is more disposed to make concessions to avoid a tariff war, the popular teanpei is against the Minister, and grows steadily stronger every day against making any serious concession to the United States. March 23. The Washington correspondent of the Morning Post states that President Taft has informed the Hon. W. S. Feilding, Canadian Minister of Finance, that the minimum tariff will be imposed unless the Dominion grants intermediate rates on selected articles which, in the President's opinion, will not conflict with Canada's arrangements with other countries. The President has promised to use his-influ-ence to secure a reciprocal arrangement covering all agricultural products. March 24. Eeuter's Paris correspondent reports that France has conceded to America the minimum tariff on fewer than 100 articles out of 600 which were but she reserves entire liberty to raise the rates.

This satisfactory result is due to France adopting the Canadian attitude and refusing to yield to American bluff. The opinion prevails in France that President Taft's pliancy is due to the unpopularity of the tariff in America, and to the diminution of the American foreign balance raising the problem of how to prevent large exports of grold. v March 25. The Times' Washington correspondent says a chorus of protests by telegraph against the threatened tariff war are reaching the Government. The Republican party is impressed, and urges a peace, ful settlement. The unpopularity of the tariff is growing both in the East and the West.

The Morning Post states that the Presi- • dent requested the Eight Hon. J. Bryce, British Arnbassadassor, to impress Canada with the necessity of concessions. This is the first time Mr Bryce has had an interview with Mr Taft since the nego tiations cegan.

March 28.

The *■ Times' Washington correspondent says that Canada gives apparently, no exclusive oonoessioms, and maintains the •right to conclude reciprocity treaties. On the other hand, Americans may argue that they have practically obtained compensation for the French treaty. Both sides have promised to do their best to conclude a reciprocity tariff in certain products, but this is only obtainable by a treaty which a. Protectionist Senate must ratify. There may also be troubles with the House of Representatives. The project would be almost hopeless but for the fact that the Republicans may well be iamxious to get credit for making a breach in an unpopular tariff wail. While Sir Wilfrid Laurier and the Hon. Mr Fielding must be congratulated, great credit attaches to President Taft. whose diplomacy alone has saved American, and to a less extent Canadian, commerce from a severe blow and the Republicans from a j serious blunder, j PARIS, March 25. j Despite the French Government's opposition, at the instigation of Sir E. Grey, the Senate declined to modify its amounts, increasing the existing duties on British textile machinery by 25 to 30 peT cent. March 26. The French Senate has passed the new Tariff Bill by 281 votes to 5. The Protectionist element accentuated 1 the statement that there was little satisfaction in protecting foreian importers. WASHINGTON, March 22. President Taft, in. a Message to the__ press, states that his sympathies axe so profoundly with Canadian aspirations as part of the British Eimpine that he does not wish to haggle over mere trade advantages. March 24. President Taft, in the course of an interview, said he must first have time to interpret an inelastic law. But for that he would not hesitate to give Canada the minimum raltes under the Payne tariff. A large deputation of lumber, grain, l&nd manufacturing interests has appealed

to the United States Secretary of State to avert a tariff war. Two hundred million dollars' worth of trade is affected. Mr Knox advised the deputation not to feel unduly alarmed. A significant bye-election has just taken place In Massachusetts, where Mr Foss turned a Republican majority of 14,980 into a Democratic majority of 5640. Mr Foss's platform was a moderate tariff and reciprocity with Canada. March 27.

After a conference at White House between Mr Knox (Secretary of Mr Pepper (recently special American Commissioner to, Canada), the Hon. W.; S. Fielding, and Mr Graham ('Minister of. Railway® in Canada), Mr Knox announced that negotiations bad heen concluded, in the form of giving assurances that a friendly understanding would be reached immediately

NEW YORK, March 21

Although the Albany Conference is reported to have been resmtless, friendly negotiations are being continued, with a view to arriving at an agreement for a limited measure of reciprocity. March 22.

The American Journal of Commerce foreshadows a tariff settlement on the basis of small concessions on Canada's part, and America granting the Payne minimum with mutual promises that negotiations will be undertaken towards the conclusion of a reciprocity agreement.

March 25.

Mr Fielding (Canadian Minister of Finance) is proceeding to Washington to confer with President Taft. It is believed that a temporary agreement is contemplated so that Canada will escape the maximum tariff: Negotiations will be commenced shortly with a view to reciprocity upon an extended list nf articles.

March 26. The Hon. W. S. Fielding (Canada) and President Taft dined together at Washington. v

An increasing volume of American opinion urges that ; the Payne law should be evaded by a reciprocity treaty. It is noted that such action would diminish British advantages.

OTTAWA, .March 28. In return for the minimum rates under the Payne tariff Canada extends by Order-in-Counci] the international rate on a-dozen items of American exports which compete with French products entering at reduced rates, including cottonseed oil, manufactured silks, some wine, and fruits. The agreement provides for legislation for a mutual reduction in the duties on articles of natural exchange. POSITION OF THE COLONIES. WHAT NEW ZEALAND MUST DO. GfBOU OUB OWN COBBESrONDKNT.I LONDON, January 28. _ An interesting commercial question is raised about the provisions of the new United States Tariff Law, which, while giving the minimum tariff to Great Britain, omits from this privilege British colonial possessions. The view is expressed that on general principles this was what was to be expected, considering that the British Dominions beyond the seas are Protectionist countries, and that it is for them to follow the lead of Canada in entering' into direct commercial negotiations with foreign Powers if they so desire. The High Commissioner for New Zealand, in discussing the new tariff, said that the whole question was how far New Zealand desired to meet the requirements of the United States. New Zealand imported a fair amount from America, even with the present tariff, and the United States could do with New Zealand wool especially. But the question was in the hands of the New Zealand Government for its consideration.

Sir T. Shaughnessy, president of the C.^P.Tt . -, said : "The M'Kinley Tariff advanced Canada industrially and agriculturally at least 20 years, and apparently our neighbours to the south wash to give us another advantage of the same character. I look for a similar result in the case of this new tariff. It should provide an additional impetus to our manufactures. and to the policy of making the most'of our natural resources and raw material." It is stated that from a well-informed Australian source Eeuter's Agency learns that, the exclusion of the British colonial possessions from the new American minimum tariff causes no surprise, the Erovisions of the new tariff law having een known for some weeks. Australia,

ft is pointed out, is not treated in any worse fashion than any ether country which levies differential rates against another. The essential point about the" American tariff is that the minimum tariff should not be given except to countries conceding to the United States their minimum tariff, The fact is, therefore, that any other course than that to be adopted by the United States would have caused surprise. In the case of Canada, it is added, the Americans may still hope to extract terms from the Dominion under the powers which Canada holds to make separate treaties.