BRITAIN AND AMERICA

Wanganui Chronicle, Volume 80, Issue 137, 11 June 1937, Page 7

BRITAIN AND AMERICA

TRADE TREATY DANGERS CANADIAN LIBERALS DIVIDED U.S.A. MANUFACTURERS RAISE OBJECTIONS ECONOMIC HANDICAPS Telegraph—Pre«s Assnciafnn— Copyright) 1 Received June 10, 8 p.m. NEW YORK, June 9. The Ottawa correspondent of the New York Times says that Western Liberal leaders are strongly opposed to Mr. Mackenzie King's sanction of a revision of the Ottawa agreements requiring Dominion concessions in order to enable a trade agreement between Britain and America. Western primary producers are not convinced of the wisdom of making sacrifices to enable Mr. King to carry out his policy of promotion of world peace through a lessening of trade barriers. The indications are, however, that Mr. King will strongly insist. and this may result in a schism in the party. It is indicated that Canadian gold mining interests will be his ally. They fear that a reduction in United States price of gold might result unless freer world trade is initiated by a comprehensive treaty between Britain and America, assuring the United States prosperity. The New York Times political correspondent says that President Roosevelt and Mr. Cordell Hull are in danger of distinct embarrassment from a new opposition which is developing. American manufacturing interests are against only concessions on English manufactured goods which might be necessary under the treaty. American production costs have recently risen enormously, due to rises in wages and other labour concessions. Pressure has already been brought to bear on the Senate against approving of tariff reductions. There is a strong feeling that a trade treaty between Britain and America would be an immeasurable world stabilisation force and an assurance of peace, but pressure of immediate economic necessity may vitiate these aspirations. MINISTERIAL STATEMENTS POSITION BEING EXPLORED [ British Offi ial Wireless. ] RUGBY, June 9. During the House of Commons debate on the Finance Bill, both the Chancellor of the Exechquer and the President of the Board of Trade referred to the prospects of ar. AngloAmerican trade agreement. Their intervention arose out of a Liberal amendment proposing to limit to six months the authority given in the Bill for the continuance of Imperial preferences. The Liberal speakers urged that nothing should be done to interfere with the success of the efforts to secure a trade agreement with the United States. Sir John Simon explained that informal and exploratory work was being done to determine whether a basis could be found for trade negotiations between the two countries. Dominions had been kept fully informed, and there was no reason to think that matters would be facilitated by the limitation imposed in the amendment. Sir John submitted that it was plainly right in the circumstances to continue the stabilisation of the rates of Imperial preference for another 12 months. Mr Oliver Stanley expressed regret at the impression that there was necessarily an antithesis between the principle of Imperial preference and the possibility of a trade agreement with America. He did not think that an antithesis existed and an agreement with other countries need not necessarily impinge on, far less destroy, the policy of Imperial preference. Mr Stanley deprecated the idea that all of the impetus for an agreement came from America and all of the obstacles from London. The House of Commons, the country, and the Government were anxious in these exploratory conversations to find some basis for negotiations. In the practical difficulties were overcome and if negotiations took place and an agreement was arrived at, he hoped that not only Britain and the United States, but the Empire and the world as a whole would find solid advantages in expanding trade.