Imperial Preferences

Chronicle (Levin), 2 September 1946, Page 5

Imperial Preferences

Press Assn.-

WOULD BRING DISASTER

By Telegraph

-Copyright

Keceived Sunday, 7 p.m. LONDON, August 31. Disaster faces the Dominion and eolonial tobacco and eanned fruit industries if Imperial preference is eut, states the British Empire Producers' Organisation and Empire Tobacco Federalion, in a memorandum wliich it will submit to the Government before the Intemational trade talks. The niemorandum will list the eft'ects of tlie abolir tion or red'uetion ou each industry. tiugar: The loss of preference would inllict grave damage to the economy ancl development of large areas in Australia and Soutli Afriea and also reduce a number of Crown Colonies to a eondition in whieli they would require heavy annual g-rants in aid from the Mother Country. Also there would be sei'ious reaction to British exports by diminishing. the. purc.hasing power of niany of our best customers and it would be difiicult for the United Kingdom to meet her obligations to Aineriea. Wiues. and spirits: Since threequarters of the rum exported from the Colonies iinds a market in the United Kingdom and Canada (with two-thirds coining to the United Kingdom), the muintenauce of preference by Britain and Canada is vital. Canned fruit: The producers strongly support the Empire cantiers' claim that any eut in an already inadequate preference. would be disastrous to the oanning industry wliich is an integral part of Empire husbnndry. Dried fruits: Any reduction in preference wliich was received at OI tawa, would have very adver.se elfeet.s 011 Atislralia and South Afriea. Colfee: Assistance should be given Empire producers by overy possible means in ihe United Kingdom market1. Tobacco: Any further eut — for wliich the United .States may be expected to press at the trade eniplov nient confercnee next year — would be disastrous to ihe Empire. tobacco grovving industry, part icularly Central Afriea. Ou the oi her liand, if the vvay should be eleared for sm-li action, there was a strong case. for an increa.se in the present. sinai] margin of preference not only to safeguurd Empire growers but also to lessen the drain on the United Kingdom dollar resources, by stimulat ing the production of Empire leat' and cigars. The memorandum chKius that an nierease is desirable in the margins of preference on tobacco and wines and spirits to counteraet the elfect of lieavy wartime increases for revenue raising purposes, in duties on these products, whieli whittled awav the preference to a small fraction of the percentage formerly existing. An aeceptanee of the equality treatment clau.se would iuterfere with the freedom of Empire Governnients to make bulk purchase contracts embodying preferential priee treatment, with other Empire couutries.