BRITAIN’S PART

Southland Times, Issue 21773, 30 July 1932, Page 5

BRITAIN’S PART

IMPERIAL TRADE IMPORTANT STATEMENT PREFERENCES GRANTED HINT TO DOMINIONS (United Press Assn.—Telegrnph Copyright.) Ottawa, July 28. Mr Stanley Baldwin has issued an important statement to the conference defining Britain’s attitude towards, reciprocal preferences. He said: “The British delegation has no intention of weighing meticulously the . benefits given or received, but is anxious that the outside world shall realize that the spirit animating us all has been constantly and consistently displayed in our actual dealings with the dominions. Any suggestion that Britain has been backward in developing and assisting dominion trade or not fully reciprocating with the dominion concessions in the letter and spirit is wholly unwarranted. The British delegation, appreciating fully the advantages received in Empire markets, entered the conference with the intention of making a full contribution to a still further extension of Empire trade. We have stated frankly and fully to the dominions the articles on which we desire further advantages in dominion markets. We will welcome an equally full statement concerning the corresponding advantages the dominions seek in Britain’s market. The British delegation will examine these statements as received with an unprejudiced mind and an earnest desire to give effect to the dominions wishes. We are convinced that our own views will in turn be given equally favourable consideration.” Britain’s Trade with Dominions. Mr Baldwin quoted the following figures of Britain’s retained imports for 1930: ~ , , „ From Australia.—Dutiable before December, 1931, £4,660,000, representing 12 per cent. Dutiable under Import Duties Act or Horticultural Products Act, £13,500,000, representing 34.6 per cent. Not subject to duty, £20,820,000, representing 53.4 per cent. From New Zealand.—Dutiable before December, 1931, £BO,OOO representing .2 per cent. Dutiable under Import Duties Act or Horticultural Products Act, £20,280,000, representing 50.3 per cent. Not subject to duty, £19,930,000, representing 49.5 per cent. He pointed out that the proportion of imports from the dominions enjoying free entry exceeded 90 per cent. Only British-Indian imports were appreciably below. Since Britain’s change in her fiscal policy only 30 per cent, of her foreign imports had been admitted free. Mr Baldwin, continuing, spoke regarding British exports to the four principal dominions. There was to-day, he said, practically no free entry. Most of the preferences granted by Britain were the. total remission of duty payable by foreign goods. . "Hie following table showed the dominion imports for 1930: Australia. From all sources £129,220,000 From the United Kingdom 54,241,000 From other British Countries 15,509,000 From Foreign Countries 59,470,000 New Zealand. From all sources £42,663,000 From the United Kingdom 20,223,000 From other British Countries 9,007,000 From Foreign Countries 13,433,000 Imports for 1930. The following figures included bullion and coin and also included reexports of Britain’s imports for 1930: From Canada £3B ’™'°™ From Australia From New Zealand 44,990,000 From South Africa 62,100,000 From the Free State From Newfoundland 2,200,000 From India From Rhodesia 2,300,000 Total £315,800,000 Britain’s exports for 1930 were: To Canada £31,300,000 To Australia 33,000,000 To New Zealand To South Africa ?Hnn’nnn To the Free State 4 ' l ’nnn’nno To Newfoundland WOO Tn India 61,600,006 To Rhodesia 2,600,000 Total ’ £220,100,000 The visible balances were (plus means favourable): Canada plus 7.4. Australia plus 37.5. New Zealand plus 26.2. South Africa plus 34.2. Free State minus 1.2. Newfoundland plus 1.3. India minus 9.10. Rhodesia minus 0.3. Total visible balances in favour of the dominions, 95.7. “These figures reveal two noteworthy points,” said Mr Baldwin, “firstly, that the visible trade balance in favour of the dominions is nearly £100,000,000; and secondly, the dominion imports from foreign countries amounted to nearly £350,000,000. It is necessary to remember that the percentage of duty is of great importance in assessing the value of preference. If it is to give material assistance preference must not be so high as seriously to restrict importation. The British delegation urges upon the dominions that the rates of duty should be so graduated as to give British products a reasonable chance of competing on even terms. Also the duties against British products should be fixed for protective purposes and no higher than is necessary to give a fair chance to reasonably efficient dominion industry. Favourable Treatment. “We desire to draw attention to the favourable tariff treatment Britain has accorded dominion imports which compete with United Kingdom products, said Mr Baldwin. "A certainty of outlook is also important in trade, and it is essential that the manufacturer and the importer shall be able to assess, with reasonable assurance, the cost of an article to the consumer. Any arbitrary uncertain impositions, especially where an executive has discretion to determine duties, cannot fail to restrict or even prevent business. We desire also to emphasize to our dominion colleagues that Britain is so highly industrialized that it is vital to the physical existence of her people to find adequate markets for her products. Actually more than half of Britain s exports go to foreign countries. Britain has 2,750,000 unemployed and anything tending to check Britain’s foreign exports must lessen her peoples purchasing and saving power, thus damaging the markets on which the dominions largely depend for the consumption of their products. “The foregoing tables show, firstly, that Britain has been doing her share in encouraging the trade of the dominions and industry; secondly, Britain takes a very large proportion of dominion exports, for many of which there would seem to be no other available world outlet; thirdly, Britain has consistently facilitated the entry of these dominion products on the best possible terms and with the least possible, interference by Government P°hcy or Customs »dm in titration» fourthly,

Britain has been eager to give the dominions extensive preference wherever she found it possible to impose a tariff; and fifthly, Britain thus helped the dominions to build up a substantial favourable visible trade balance. It is a source of legitimate satisfaction that preferential access to the British investment market, which resulted from the close association between Britain and the dominions, has played an important part in the development of dominion resources. Showing the extent this factor has operated it was estimated that £3,800,000,000 out of British capital invested overseas before the war was placed in Empire countries. Although necessarily there has been a diminution in the flow of oversea investment since the war, the proportion allotted Empire countries has substantially increased. Out of a total of £1,401,000,000 invested , between 1919 and 1931, no less than £484,000,000 has been placed in Empire countries. Significant Passage. Mr Baldwin’s statement, every word of which obviously had the weightiest consideration, is interpreted as Britain s intimation to the dominions that demands” at the conference must not be all on their side. The dominions are taking special notice of that part of the statement which says, “there is practically no free entry of British exports into the four principal dominions, hinting that the present scale of preference is insufficient from the British Publication of such views instead of merely enumerating them in the privacy of the conference is regarded as a mild indication to the dominions that the British delegates are slightly piqued at the forcefulness of the dominions’ demands, coming like an encircling attack. Moreover, the eyes, of the British people are focussed on Ottawa, therefore the British delegation must walk warily, knowing that assent to anything in the nature of food taxes would cause a tremendous reaction in Britain. The statement is regarded as the most vital pronouncement since the conference met at Ottawa. , ~ Mr S. M. Bruce (Australia) declines to comment upon Mr Baldwin’s memorandum and may make a considered statement later. The impression here is that Mr Baldwin’s statement is tantamount to an open letter to Mr Bruce, who is unwilling to reply because that might suggest a semblance of disagreement which does not exist on the main question of reciprocal preferences. The opinion among the Australians is that Mr Baldwin’s statement leaves unanswered Mr Bruce’s point that the Import Duties Act last March was a “tardy” recognition of the concessions which Australia and the other dominions have made to Britain for many years. It is pointed out that before March Australia received a preference of only 12 per cent, on her exports into Britain and that the Import Duties Act raised the percentage to 46.6. If Britain had been faced with stating the position six months ago she could hardly have been said to be giving a reasonable measure of reciprocity in return for what Australia had long granted, amounting to £7,000,000 yearly in prosperous times. LONDON COMMENT HOPES OF EARLY AGREEMENT. (Rec. 11.0 p.m.) London, July 29. The British statement at Ottawa is the leading feature in the newspapers. Editorials support its arguments except the Daily Express, which continues highly critical of Mr Baldwin and declares that there is nothing in the statement except ancient history. The Times says that the British statement at Ottawa is plainly necessary to remove misconceptions given wide currency and which might otherwise wreck the conference. Probably an agreement will soon be reached now it is known what the dominions and Britain mutually desire. PRICE LEVELS NEED FOR RAISING. MR BRUCE’S APPEAL. Ottawa, July 28. There was a full discussion of dominion problems before the Currency Committee. Mr S. M. Bruce (Australia) lengthily outlined what the fall in prices meant to Australia, involving drastic wage cuts and interest reductions. So successful had been Australia’s efforts that notwithstanding world prices she had increased her production by one-third, while it had been necessary to reduce imports by three-quarters. Even then Australia had only just squeezed through and was meeting her obligations with the utmost difficulty. “Unless prices increase,” he declared, “it is impossible to see how Australia can carry on. Having made all these sacrifices, the Commonwealth cannot continue further drastic reductions and simply must get relief by increased prices.” Mr Bruce pressed strongly, the view that action was essential, pointing out that Australia now required double the value of her exports to meet external obligations. He emphasized the fact that unless the exchanges were stable obviously the reciprocal preferences could be wiped out overnight by an exchange fluctuation. Mr Neville Chamberlain spoke on behalf of Britain, but the debate is only in its preliminary stage and the matter will again be secretly discussed to-morrow. , . Mr N. C. Havenga (South Africa) and other Dominion Ministers presented the Empire fruit proposals to Mr Walter Runciman, Sir John Gilmour, and Sir Philip Cunliffe-Lister. The sub-committee on industrial standardization elected as chairman Dr H. M. Tory, president of the National Research Council of Canada. It aims at co-ordinating industrial specifications throughout the Empire and has already discussed timber, chemical, and agricultural machinery. Dr G. Craig (New Zealand) was elected chairman of the Customs administration sub-committee. An official verbal communique stated: "The discussion chiefly concerned valuation for duty purposes with a view to gaining uniformity and eliminating matters which are causing uncertainty.” Two hundred newspapermen burst into laughter at the meagreness of the announcement, which is typically uninformative in accordance with the official policy towards the world’s Press. MEAT PROPOSALS DIFFICULTY FOR BRITAIN. ARGENTINE INVESTMENTS. Ottawa, July 28. The unanimous Empire, meat proposals presented to the British delegation are exactly as cabled from Suva in July with the inclusion of bacon on the same terms as pork. Bacon became an important topic of discussion with the dominion delegates at Ottawa, because while the dominions are not greatly interested in this product their support of the tariff plus the quota for bacon would benefit the pig-growers in Britain, 90 per cent, of whose bacon imports come from foreign countries. It is now established that British farming interests are solidly ranged in support of the dominions’ case. New Zealand has put forward a strong case for assistance for her mutton and lamb. There is talk, in British circles here that the meat situation is so difficult owing to British investments in the Argentine that a decision may be deferred at Ottawa and the whole matter referred to the British Cabinet in London. . Nevertheless the dominions view the

prospect hopefully, and still feel that they can offer such substantial concessions as to induce Britain to grant some consideration. The dominions are prepared to modify the preference scale proposed in accordance with the strength or weakness of any quantitative restrictions which Britain may agree to impose on foreign meat imports. “SHAPING LIKE SUCCESS” LORD HAILSHAM’S VIEWS. RUSSIAN WHEAT QUESTION. (Rec. 5.5 p.m.) Ottawa, July 28. Lord Hailsham interviewed by an Ottawa newspaper, said the conference was shaping like success. “It is vital that it should succeed,” he said, “otherwise it means the breaking up of the Empire within my lifetime. If the Empire goes there is little hope for the world. We are now waiting to see what the dominions are prepared to do, then we can give our reply.” Questioned whether Britain would give a full embargo on Russian wheat and timber which Australia and Canada were seeking, Lord Hailsham said: “She may not be able to do all that is asked, but she certainly could do something.” He denied that Mr Bennett had offered to mediate between the Free State and Britain. “What’s the use of mediating with a man like Mr de Valera, who told me he wants a republic with Ulster included,” said Lord Hailsham. “Ulster does not want to enter, therefore Mr de Valera’s hope is impossible of achievement. Mr de Valera is really fighting a shadow.” PRIVATE MEETING CANADA’S PREFERENCE CLAIMS. WHEAT LESS PROMINENT. (British Official Wireless.) Rugby, July 28. A private meeting took place at the Ottawa Conference between the United Kingdom and Canadian Ministers. Mr R. B. Bennett (Canada) enumerated the primary products for which Canada desired preference in the United Kingdom market. Wheat is not now expected to play a serious part, but Canada attaches great importance to the imports of live cattle and bacon. Mr Bennett further stressed the needs of Canadian lumber, base metals, tobacco and canned fish, while he also gave an outline of the concessions Canada was willing to make which would include a free list for the whole Empire of non-competitive articles, and his proposals reduce the duties on other articles in such a way as would produce fair competition in the Canadian market. The exchange of views was altogether frank and friendly, and the meeting is considered to be a valuable step towards a general agreement. MEAT CANNING WORKS NEW ZEALANDERS’ INSPECTION. ■ (Rec. 8.5 p.m.) Ottawa, July 28. Mr J. G. Coates, Mr David Jones, Sir Francis Boys, Mr Tout and Mr R. S. Forsyth visited the Canadian Packing Company’s meat canning works on the outskirts of Ottawa and viewed all the processes. They were specially interested in the condition of live cattle after travelling 2000 miles from the west. They were not impressed with the quality of the sheep and lambs. CAUSES FOR DIVISION ■ NEW YORK PRESS COMMENT. (Rec. 8.55 p.m.) New York, July 28. The New York Times says: ‘The chief of the Australian delegation demanded from Britain preferential treatment for Australian foodstuffs that would interfere seriously with the entry of Argentine meats and Danish dairy products. Britain is thus asked to sacrifice two of her best customers, despite having enormous interests in the Argentine. Australia, like the other dominions, seeks industrial selfsufficiency and is bound to protect her manufactures. There is a multiciplicity of causes for division at Ottawa not only between the dominions and the Mother Country, but between the dominions themselves.”