BRITAIN TELLS DOMINIONS

Wanganui Chronicle, Volume 75, Issue 178, 30 July 1932, Page 7

BRITAIN TELLS DOMINIONS

NOT BACKWARD IN CONCESSIONS

MOTHER COUNTRY PRESENTS CASE AT OTTAWA WILL FULLY CONTRIBUTE TO EMPIRE’S TRADE [By Telegraph—Press Association—Copyright] OTTAWA, July 28 Mr. Baldwin has issued the following important, statement to the Conference, defining Britain’s attitude to reciprocal preferences:— “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 concessions in the letter and spirit is wholly unwarranted. The British delegation, appreciating fully the advantages reveived in Empire markets, has entered the Conference with the 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 we desire to secure further advantages in Dominion markets. We will welcome equally a full statement of 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 in turn will be given equally favourable consideration.” RECENT TARIFF ADVANTAGES. Mr. Baldwin proceeds "" imports (imports u“t re-exported) and Tho tablc S'ows wha" percentage .import.. received uXth; new tariff an^'XX remains without such advane no Ug hts must be added): Value of Aus. Percentage of Aus. Imports. Imports. £lOOO. Before December, 1931 .. .. • • 4,660 12 Under new Acts* 13,500 04,6 Not subject duty -0.8-0 Value of N.Z. Percentage of N.Z. Imports. Imports. . £lOOO. Before December, 1931 30 Under new Acts* 20,280 50.3 Not subject duty 19,900 49.5 ‘lmport Duties Act or Horticultural Products Act. COMPARISON ON DUTT-FREE BASIS. Mr Baldwin points out that about 90 per cent, of the ynports sent by the Dominions enjoy free entry into Britain, and in no case ls the Percentage appreciably below 90 per cent, except tn the case of India. Since Britain's change of fiscal policy only 30 per cent, of her foreign imports arc admitted free. Regarding Britain’s exports to the four principal Dominions, there is to-day practically no free entry. Most of the prefer enees granted by Britain to Dominions are a total remission of the duty payable b* foreign goods. The following table shows the total imports of Australia and New Zealand and the sources from which they are drawn:— Australia. New Zealand. £lOOO. £lOOO. From all sources 129,220 42,603 „ United Kingdom .. .. .. 54,241 20,223 „ Other British countries . 15,509 9,007 „ Foreign countries .. .. 59,470 13,433 SOME EMPIRE FIGURES. The following table of imports* and exports for 1930 is in millions sterling, and includes bullion and coin, and also includes re-exports. lhe table shows what Britain imports from and what she exports to the several Dominions:— U.K. Imports. U.K. Exports. £1,000,000. £1,000,000. Canada .. , 38.7 31.3 Australia 70.5 33 JjTew Zealand 44.9 18.7 South Africa 62.1 27.7 Irish Free State 43 1 44.3 Newfoundland 2.2 0.9 India 52 61.6 Rhodesia 2.3 2.6 Total 315.8 220.1 Air Baldwin then proceeded to quote the visible balances of trade in the case of each of the Dominions in the above order. In the following table “plus” means a visible balance of trade favourable to the Dominion, and “minus” means a visible balance of trade favourable to the United Kingdom:— Canada •• .. plus 7.4 Irish Free state .. .. minus 1.2 Australia plus 37.5 Newfoundland plus 1.3 New Zealand plus 26.2 India minus 9.6 South Africa plus 34.4 Rhodesia .. .. •• •• minus 0.3 Total, plus 95.7. TWO CARDINAL PRINCIPLES. Mr. Baldwin said that these figures reveal two noteworthy points:— Firstly, a visible trade balance in favour of the Dominions of nearly one hundred millions sterling; secondly, Dominion imports from foreign countries to the amount of nearly 350 millions. **lt 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 to seriously 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, that duties against British products for protective purposes should be fixed no higher than is necessary to give a fair chance to reasonably efficient Dominion industry. We desire to draw attention to the favourable tariff treatment Britain has accorded Dominion imports which compete with United Kingdom products. “Certainty of outlook is also important in trade. It is essential that the manufacturer and the importer shall be able to assess with reasonable assurance the cost of the article to the consumer. Any arbitrary and uncertain impositions, especially where the Executive has the discretion to determine duties, cannot fail to restrict and even prevent business. CRUCIAL POINT: FOREIGN MARKETS VITAL. “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 of Britain's exports go to foreign countries. Britain has 2| million unemployed. Anything tending to check Britain’s foreign imports must lessen her people’s purchasing and saving power, thus damaging the market on which the Dominions largely depend for the consumption of their products. The foregoing tables show:— “(1) That Britain has been doing her share in encouraging Dornin ions’ trade and industry. “(2) That 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'Britain has consistently facilitated the entry of these Dominion products on the best possible terms and the least possible intcr-fcreiw-e by Government policy or Customs administration. “(4) That Britain has been eager to give the Dominions extensive preference wherever she found it possible to impose a tariff. ‘*(s) That Britain has thus helped the Dominions to build up a substantial favourable visible trade balance. LOAN PREFERENCE AND ITS RESULTS. “It is a source of legitimate satisfaction ttiat preferential access to the British investment market, which has resulted from the close association of Britain and the Dominions, has played an important part in the development of the Dominion resources. Showing the extent to which this factor has operated, it is estimated that 38(10 millions out of the British capital invested overseas before the war was placed in Empire countries. Although necessarily there has been a diminution of the flow of oversea investment since the war, the proportion allotted to Empire countries has substantially increased. Out of a total of 1401 millions invested between 1919 and 1931, no less than 848 millions was placed in Empire countries.”