VITAL TO BRITAIN’S EXISTENCE

Timaru Herald, Volume CXXXVII, Issue 19248, 30 July 1932, Page 17

VITAL TO BRITAIN’S EXISTENCE

VIUST FIND ADEQUATE MARKETS 'OMPREHEXSIVE RE VIE W BY MR BALDWIN tTnited P’-ess Association- Bv Electric Telegraph—Copyright Ottawa, July 27. Mr Stanley Baldwin (leader of the Iritish delegation) has issued an imK>rtant statement to the Imperial inference-, defining Great Britain's toward reciprocal preferences, le sa.’Td: ‘“The British delegation has no intention of weighing meticulously the benefits given or received, but is anxious that the outside world shall realise 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 Dominion con cess on c in, the letter and spirit, is wholly unwarranted. The l British d? legation, appreciating fully tI.P advantages received in the Empire markets, entered the Conference with th? intention of making a full contribution to the still further extension of Empire trade. We have stated frankly and fully to the Dominions the articles on which wt? desire further advantages in the Dominion markets. We will welcome an equally full statement of corresponding advantages the Dominions seek in Brit- , ain'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.” Mr Baldwin quoted a table of Britain's retained imports in 1930 which weie:— 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 pbr cent. Not subject to duty £20,820.000. representing 53.4 per cent. Frcm New Zealand. Dutiable before December, 1931. £BO,OOO. representing 0.2 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. British Indian imports were appreciably below. Since Britain's change of fiscal policy only 30 per c*nt. of her foreign imports had been admitted free. Dominion Imports. Mr Baldwin continued: “Regarding British exports to the four principal Dominions, there is to-day practically no free entry. Most of the preferences granted by Britain aie the total remission of duty payable by foreign goods.” The following table shows the Dominion imports in 1930: Australia and New Zealand. 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 coun- * tries. £13,433,000. British Imports. The following figures, which include bullion and coin and also include reexports, represent Great Britain's imports for 1930. From Canada. £38.700.000; from Australia. £70.500.000; from New Zealand. £44,900.000; from South Africa, £62,100,000; from the Irish Free State. £43.100.000; from Newfoundland. £2,200.000; from India. £52.000,000; from Rhodesia, £2,300,000; total. £315,800,000. British Experts. Great Britain's exports in 1930 were: To Canada, £31,300,000; to Australia. £33.000.000; to New Zealand. £18.700.000; to South Africa. £27.700.000; to the Irish Free State. £44.300.000; to Newfoundland. £900.000; to India. £61.600.000; to Rhodesia, £2.600.000. Total, £220,000,000. Visible Balances. Canada. favourable balance of £7.400.000; Australia, favourable balance of £37.500.000; New Zealand, favourable balance of £26,200,000; South Africa, favourable balance of £34,400,000; Irish Free State, adverse balance of £1.200.000; Newfoundland, favourable balance of £1.300.000; India. 0 Adverse balance of £9,600.000; Rhodesia, adverse balance of £300.000. Total "Visible balances in favour of the Dominions. £95,700,000. Figures Examined. lJ<, ‘ 'These figures reveal two noteworthy 'points: <1) Thu visible trade balance ( ‘ln favour of the Dominions is nearly Jd £IOO 000 000: (2r The Dominion 2 'lmports 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, preferences ( must not be so high as seriously to ref 3 itaict importation. “The British delegation urges upon lilt - 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 no higher than necessary to give a fair chance to a reasonably efficient Dominion industry. Britain’s Needs. "We desire,” continued Mr Baldwin. “to draw attention to the favourable tariff treatment Britain accorded Dominion imports, which compete with United Kingdom products. The certainty of the outlook also is important in trade. It is essential that the manufacturer and importer shall be able to assess with reasonable assurance the cost of an article to the consumer. Any arbitrary. uncertain impositions, especially where the executive has discretion to determine duties, cannot fail to restrict, even prevent businesses. We desire also to emphasise to our Dominion colleagues that Britain is so highly industrialised that it is vital to the physical existence of her people to find adequate markets for her products. “Actually more than half Britain’s exports go to foreign countries. Britain has 2.750,000 unemployed. Anything tending to check Briain’s foreign exports must lessen her people's purchasing and saving power, thus damaging the markets on which the Dominions largely depend for the consumption of their products. "The foregoing tables show: "(1) That Great Britain has been doing her share in encouraging the Dominions’ trade and industry. “(2) That Great Britain takes a very large proportion of Dominion exports, for many of which there would seem to be no other available world outlet. "(3) That Great Britain has consistently facilitated the entry of these Dominion products on the best possible terms, and with the least possible interference by Government policy or Customs administration. "(4) That Great Britain has been eager to give the Dominions extensive preference, whenever she has found it possible to impose a tariff. “(5) That Great Britain has thus helped the Dominions to build up a substantial, favourable, visible trade balance." Investment Factor. Mr Baldwin pointed out that it was 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 to which this factor has operated, it was j estimated that £3,800,000,000 of the Biitish capital invested overseas before | the war was placed in Empire coun- ! tries. Although there has necessarily been a diminution in the flow of oversea investment since the war, the proportion allotted to Empire countries substantially increased. Out of a total of £1.401.000,000 invested between 1919 and 1931, no less than £848.000,000 had been placed in Empire countries. Significance of Statement. Mr Baldwin’s memorandum, every word of which obviously had had the weightiest consideration, is interpreted as Britain’s intimation to the Dominions that the "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 viewpoint. The publication of such views, instead merely of enunciating 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 Dominion’s demands coming like an encircling attack. Moreover the eyes of the British people aie focussed on Ottawa and 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. Th# itatemenfc is regarded as the