DANGER TO EMPIRE INTERESTS

Timaru Herald, Volume CXXXVII, Issue 19301, 30 September 1932, Page 9

DANGER TO EMPIRE INTERESTS

EFFECT OF OTTAWA AGREEMENTS LIBERALS’ POSITION SUMMARISED United Press Association —By Electric Telegraph—Copyright LONDON, September 28. Sir Herbert Samuel and his Liberal supporters, after the resignation from the Cabinet, issued the following statement : “We regard the Ottawa agreements generally as a danger to the Empire's best interests, a derogation from the powers of Parliament, a barrier to the removal of restrictions on world trade, a burden upon the British people, and a probable cause of increased unemployment and social unrest. It is plain that with differences so fundamental upon matters of such high import, it is impossible for us to remain members of the Government." The above is an extract from a 2000word statement, and summarises the resignees’ position. There follows a lengthy condemnation of the Government’s entire tariff policy, in which the signatories declare the Government, instead of everting every possible effort to free the world of the network of tariffs, quotas, and commercial restrictions, built up an Immense, intricate, lasting system of similar restrictions, resulting in the loss of one-fourth of Britain’s valuable re-export trade, contributing to the laying up of thousands of tons of British shipping and also causing unemployed to increase by 300,000 in the last five months, involving a charge of £70,000,000 on the Exchequer, and the chief cause of our financial difficulties. They recall the withdrawal of resignations in January on the agree to differ principle. The Ottawa agreements produced an entirely fresh situation, because graver than the earlier measures. Also, although the gravest difficulties were facing the country at Home and abroad, there was not the acute and imminent danger existing as either last year or in January, and therefore, no overriding national duty to maintain the present political combination.

Principal Objections. The principal objections to Ottawa Were: — (1) The whole policy of “hard bargaining’’ on trade between the Empire Governmer; s was wrong. We regard the continued unity and harmony of the British Commonwealth of Nations of supreme importance, both to the Empire and the world, but such conferences as Ottawa were only imperial. Pressing one part of the Empire to make unwilling sacrifices to induce another part, equally unwilling to majke counter sacrifices, won’t promote unity and harmony, while bringing trade to the forefront of the political field Invites disagreements among Governments, which are likely sooner or later to become acute. Tighter bonds may mean greater friction. (2) The agreements are unconstitutional because, apart from the question whether the Government is entitled to give an undertaking not to reduce duties on Empire articles for a term of years without the consent of the Dominions, Parliaments cannot enact such a statute as would bar a subsequent Parliament reducing taxes, despite an electoral mandate. (3) The Agreements tie our hands when it is essential to enter a worlld conference free to make agreements and expand the trade of foreigners, which is the largest part, of British commerce. Reductions Problematical. (4) Although the Dominions’ concessions will benefit sometimes, they will be too small substantially to assist unemployed. Moreover, many, if not most of the reductions, are hedged with conditions and qualifications making them problematical. Mr Bruce, regarding Australia, is reported to have stated that “There is no radical departure from Australia’s fiscal policy.” Also, British agriculture is unlikely to benefit. No reference is made to migration, which is of the greatest interest to Britons.

(5) Taxes and quotas on foodstuffs and raw materials raise the British cost of living and production. (6) We condemn the termination of the Russian Trade Agreement and are doubtful whether the Government could enter a more satisfactory agreement, thus striking a further blow to trade. The statement adds:— “We shall state other objections in Parliament. We suggested at the Cabinet meeting that the Ottawa legislation should be postponed to enable of free entry to the World Conference, permitting us to remain in the Government. When the Conference ended the situation could be reviewed afresh. We are disappointed that the Conservative Ministers refused this sacrifice after the Liberals had repeatedly subordinated their views on the fiscal policy In the interests of national unity.”