EMPIRE TRADE.

Otago Witness, Issue 3590, 2 January 1923, Page 17

EMPIRE TRADE.

DEVELOPMENT OF DOMINIONS. NEED 1 OR IMPERIAL PREFERENCE. LONDON, December 20. Mr L. C. M. S. Amery (First Lord of the Admiralty), addressing the British Empire Union on trgde within the Empire, said that if Britain’s horizon were limited to its own island and Europe, one would have cause to doubt the future. We needed, however, to return to our forefathers’ wisdom and to recall that it was trade, built up in consequence of the founding of the American colonies, that helped England to withstand Napoleon for 20 years. Similarly now the most hopeful outlook consisted in the development of the dominions. Mr J. R. dynes (Labour leader), recently in advocating a remission of the German reparations and the recognition of the Soviet as a remedy for the present trade stagnation, had suggested that trade with the dominions was not worth consideration, because they contained only 15,000,000 people, compared with 300,000,000 in Europe. The important consideration was not the number of people, but the quantity of goods bought. In 1913 the dominions bought goods to the extent of £5 per head, compared with 3s per head bought by the rest of Europe. .Our net exports to Europe in 1913 totalled £32.000,000, to other foreign countries £98,000,000, and to the British Empire £164,000,000. He could not open up all the subjects which would be discussed at the forthcoming Imperial Economic Conference, but he wanted to emphasise the need for Imperial preference, using the phrase in its widest sense. We have passed the stage when the phrase formed the basis of a keen political issue. A Ministry representing all parties agreed in 1917 to extend preference to the limited extent of Britain’s present Customs’ schedule. Preference within those narrow limits had already had amazing results in the supply of Empire-grown cocoa, coffee, dried fruits, jam, and sugar. Mr Bonar Law had undertaken a fiscal policy which would not be fundamentally changed without a further appeal to the people, but there were many forms of preference still open to the Economic Conference’s consideration. For instance, preference in communications, postal rates, cable charges, and air services, which offered valuable assistance to the development of trade with the dominions —their best customers. Personally, he would like to see some sort of preference in stamp or other duties, making it cheaper to invest in Empire than in foreign securities. In the passage of the Empire Settlement Act they had not faced the problem from the viewpoint of solving the immediate unemployment problem, but the building up of the future strength of the Empire. He believed there was nothing promising better for the well-being of the British people here and overseas than the operation and extension of that Act. Sir Montague Barlow (Minister of Labour), in proposing a vote of thanks, described Mr Amery as the chief apostle of Empire development. He said that many people had hoped that Mr Amery would have been called to another high office in the Cabinet instead of the Admiralty. OVERSEAS TRADE. LONDON, December 20. At the Colonial Institute luncheon to Sir W. Joynson-Hicks (Department of Overseas Trade) Sir G. Lagden, in toasting the guest, said that the Department of Overseas Trade had been conspired against by the Economy Committees, and finally crushed altogether by the Geddes axe. From that condition it had been rescued by vigorous protests from the Chambers of Commerce in Great Britain and overseas. The cultivation of overseas trade had always been neglected by Great Britain, but they might rejoice today that the statesmen recognised that Britain had a most precious asset in Empire trade, and the dominions were ready to give her preference. Sir W. Jovnson-Hicks said the Department of Overseas Trade was the one department which might enable the country to recover from unemployment and bad trade. The only possible means of removing unemployment wais fostering trade between Great Britain and the do-

miv'ions. Most foreign nations either oou/rl not or would not trade. If Britain couW recover £300,000,000 worth of the expoi-t trade lost since 1913-14 she could absofb over 90 per cent, of her unemployed. An examination of the figures relating to the dominions trade did not alwajrs reveal pleasing facts. New Zealand was one of the greatest importers of British goods. Thirty vears ago she imported 67 per cent, of British goods, but the percentage steadily declined, until in 1920 it was only 46 per cent. In the first half of 1922 it had risen to 52 per cent. On the contrary, the United States 13 years ago provided 5£ per cent, of New Zealand’s imports, and to-day the percentage was 16£ per cent. The year 1920 was the most fatal year to the dominions, because France and Italy became enormous customers of Britain, which was unable to supply the dominions; consequently the United States took advantage of her position. Australia 30 years ago imported 68 per cent, of British goods, and in 1920 only 46 per cent. This year the percentage had recovered to 50 per cent. On the contrary, the American proportion had risen from 6 to 26 per cent, in 1920, and to day it was 18 per centi Canada notably was not “taking the same proportion of British goods as the other dominions, owing doubtless to more intensive competition by the United States. Canada was anxious and willing to trade with Britain, which was allowing herself to be ousted. Canada waa taking only 13 dollars worth of British import* per head, compared with 59 dollars per head of American goods. Canada and Australia were becoming srreat industrial countries. Twenty years ago only 198,000 were employed in the industries in Australia. and to-day there were 400,000 employed. Britain must realise that it was no ’use asking the dominions to do what was opposed to their own interests. The greatest possibility of developing overseas trade lay in the dominions’ lack of population. Britain must relieve her surplus population. She must offer the dominions men, not refuse. It was no use asking the dominions to accept the scum. The dominions would take the best men with enough money to establish themselves. It would be better for Britain if, instead of paying £100,000,000 in unemployment doles, she devoted £30,00-O.COO in placing men in a position to become desirable citizens of the dominions. Everyone so placed would he a potential consumer of British exports. Britain would thus - create her own markets. The dominions had shown a desire for closer trade relationship. He was convinced that if only the best men were sent them they would realise that true prosperitv lay along the l.nes on which the United States had built up her great wealth. He hoped that the coming Economic Conference would produce good results. Ine dominions would enter it with the knowledge that they could negotiate on equal terms. COMMENT BY" THE TIMES. LONDON, December 21. The Times, in a leading article stressing the importance of the dominions’ trade, states: “If the Government can devise further means to encourage and expedite Imperial undertakings as investments for British capital imperially enabling the purchase of British products, it will automatically create new markets for British produots, and consequently the earlier the Imperial Economic Conference is held the better it will be for the unemployment question.” Thd paper advocates the earliest possible exchange of views by practical men acquainted with the details of Imperial trade, some of whose recommendations will make possible an immediate development, even if the others require consideration by the heads of th# Governments.