BRITAIN AND DOMINIONS WILL NOT LIGHTLY SURRENDER THEIR EMPIRE PREFERENCE

Wanganui Chronicle, 4 October 1947, Page 5

BRITAIN AND DOMINIONS WILL NOT LIGHTLY SURRENDER THEIR EMPIRE PREFERENCE

AMERICAN OPINION HAS NOT YET FULLY REALISED THAT (N.Z.P.A.—-Reuter—Copyright.) Received 7.30 p.m. LONDON, Oct. 3 “Anglo-American discussions at Geneva over a draft tariff agreement have reached a deadlock not because Britain or the Commonwealth generally is unbending in a defence of Empire preferences, but because there are signs that United States opinion has not fully appreciated how the Commonwealth prizes these institutions. ’ ’

This is stated by “The Times in a leading article.

It adds: '“At no time have tariff concessions offered by the United States appeared substantial enough in terms of additional trade to justify the elimination of any large number of preferences. America seems to have insisted that even the reduction was not everywhere enough and the elimination of many preferences was required. In many respects the United States proposed no more than roughly a return to the 1922 tariff, which was itself considered very high. It is hardly likely that the Commonwealth representatives, particularly those of the United Kingdom, would feel they were offered rasonable exchange. The United Kingdom is more taan ever unwilling to sacrifice, without due recompense, something which, at any rate, keepf her closer to her own kin and assures her of an element of stability and security in an uncertain world.

"There is ground for believing the effect of the 1932 Ottawa agreemeits was not to restrict tota; woild trade, but possibly even slightly to increase it. "When the agreements were due for revision in 1937, however, there was little desire to expand them. Commonwealth countries found 'hat the United Kingdom, though a good market, was not really an expanding market for primary products, and the United Kingdom tound that preferences on manufactured goods were being, to some extent, nullified by tariffs erected for the protection of infant industries in the Dominions. The uaturad course was to maintain preferences but not increase ties. Undertakings to reduce preferences are regarded, with ample justification from past experience, as a real sacrifice.

"It may not he easily mtelli’iDle why American opinion should see nothing but good in a European Customs Unio„ and nothing but evil in customs links within the Empire, but Britain will be none the less willing to n.ake concessions to that opinion for the sake of amity if she cannot dispel it. There is, however, a limit to the real and material sacrifices which can be made in the cause of conciliation. The Commonwealth is asked to embark on the "elimination” of a system which, though it may not have produced miracles, is not cheaply valued and is serving, in some degree, as an anchor when economic storms threaten.

“It must oc clear that the Empire cannot be asked lightly to give up such a proud and prized possession, nor will the States of the Commonwealth easily believe any suggestion that the small measure of mutual preference they now enjoy has had any damaging effect on world trade as a whole in the past, or can threaten any such effect in the future. In fact there can be no retreat from the general principle which has been propounded all along—that if any considerable part of the empire preference system is to be abandoned, it can be only in return for tar. concessions which offer the certain prospect of substantial and expanding markets elsewhere.