ECONOMIC WAR

Southland Times, Issue 21770, 27 July 1932, Page 7

ECONOMIC WAR

BRITAIN AND IRELAND FREE STATE IMPOSES DUTIES 5/- A TON ON COAL (United Press Assn.—Telegraph Copyright.) London, July 25. Mr de Valera has announced that the anti-British tariffs will become operative on July 26. They consist of 5/pcr ton coal; 20 per cent, ad valorem duty on cement, electricity apparatus, cables and wireless, insulators and iron and steel articles; 2/4 per cwt. on sugar, molasses and glucose; 9d per ounce on saccharine; id per lb or 3d per gallon on articles other than sugar, confectionery, cocoa preparations, wines, tobacco and spirits containing sugar; 84/- per cwt. on pigs’ meat and sausages; 42/- per cwt. on pigs’ heads, feet and other products, although the duties are reduced to 5/- and 28/- respectively when from countries within the British Commonwealth, but free if the property of Ulster farmers and imported singly, and on lard when required for margarine manufacture. Cheese-making machinery is taxed 100 per cent., although admissible free under license. The potato duties have been varied and the preferential rate has been withdrawn except to Ulster. The clauses provide that British goods will be subject to the tariffs if imported via other countries. The penalties for infringements are £5O, together with the confiscation of the articles.

The importation of British cheese was totally prohibited from to-night. It is explained that the coal and the 20 per cent, duties are applicable only to imports from Britain, while the other duties apply to all countries where exceptions are specified. The Government explains that the steadily growing influx of cheap Continental bacon has necessitated reserving the Home market because the Free State farmers found the British market closed after the duties on July 12. There is much speculation in Dublin whether the sudden visit to London of Mr Hugo Flinn, Parliamentary Secretary to the Free State Ministry of Finance, is a Government mission, which is reported to be of the utmost importance and may result in the reopening of conversations.

RETALIATORY TAXES

LESS SERIOUS THAN EXPECTED.

(Rec. 7 p.m.) London. July 26. The Dublin correspondent of The Times says that Mr de Valera’s retaliatory taxes are far less serious than anticipated. The most serious is the coal duty. It is generally believed that Mr de Valera will go no further until he finds how the public receives the duties. Ministers are touring the constituencies during the week-end to sound public feeling. DEARER COAL SUPPLIES FROM CONTINENT. (Rec. 11.15 p.m.) Dublin, July 26. The Free State Government assures Irish people that coal equal to the best imported British is obtainable from the Continent. The Government will deal with any unjustifiable increase in the price in the Free State. Last year ‘ Britain’s fourth largest coal customer was Ireland. She imported 2,424,699 tons valued at £2,368,438. This represents the output of 8000 British miners. Coal will inevitably be dearer for the Free State and the effect upon industry and the cost of living will be immediate. The position at Irish ports is serious. Outward trade has dwindled to vanishing point. There will be dismissals at the week-end from every bacon factory in Southern Ireland. SERIOUS PROBLEM WITHDRAWAL OF CAPITAL. (Rec. 7 p.m.) Dublin, July 26. Among the problems which the promulgation of the new duties renders acute is the possibility of a large amount of capital being withdrawn from the Free State. Already there is uneasiness regarding loans to farmers, and the sudden heavy withdrawal of capital would mean that farmers would be called upon to repay borrowings at a time when it is impossible to do so. Mr de Valera would then be forced to withdraw securities now in the Bank of England or control the exchange and impose restrictions on financial operations.