Fear Of Canada: British Trade Rift

Chronicle (Levin), 1 April 1949, Page 6

Fear Of Canada: British Trade Rift

Received Thursday, 9.45 p.m. OTTAWA, March 30. Reuter says ' the deterioration of Anglo-Canadian economic trade rola.tions is causing acute concern in Ottawa among Government officials wi.10 sa'y Canada' s position within the British Commonwealth is hecoming mere and more ohscure. Apart from sentimental ties Canadians in the past have found it good business heing a memher of the Commonwealth. Now they see trade barriers being raised against them in dollar short Britain "and other Dominions. As a result there "is some feeling' here that Canada' s relations with the commonwealth are hecoming alttiost' as involyed as1 those of Eire' and India. In the , field of trade she has found substitute mai'kets, * but there is no evidence tliat they are solid, and mauy officials in Ottawa regard them as poor substitutes for The old system based on inter-Oominoni^balth trading. Top ' level 'danadian • officials olf tlie record are u'sMg strong language about Britain 's trad6 pblicies. In calnier moments they will admit Britain s policy' is smart from Britain's standpoln't," but'itlfey'jsay if is cutting Canada adl'ift. Britain determined-to be selfJ sxifficient by '1952 ,is evidently deterrilined to eut her pnrchasefe from Cahada •at'Teas't to the level of her saies to Canada — and the Canadian- Government does not thlhk Britain is doing her ulmost to increase her saies to Canada. The newspaper Financial Post comments : 11 As the Bnited States, Canada and their Western European partners move closer together politically there is an ever-widening economic gulf sepavating them. Britain and West Europe must handle their affairs so that by 1952 their dollar problem will be licked. They have been encouraged to minimise their dollar purchases and increase trade with each other. They are doing so.,well at enlarging trade among 'themselves and their respective empires that they have built a-picket fence aroun'd themselves and pullod down a currency curtain over the Atlantic. This is really frightening

for 'Canada.'h'- - »•»»«»«;. »»■» f| The fact is that Ganada with a foot in both the sterling and dollar wofrlds has a far greater stake. propoi;tionately in world. ,trad,e than .any ojther couiitry. /Thrpe-quarters ,.. of Canada,,'s trad^. is with Britain, and the United 'States. Although the nation is prQSpefing, qfficials do not like the ..outlook -.for 1952 when the Marshall Plan ends. They feel that Canada can hold a share of the United States market, but wheat, which is Canada 's main expott produet, cannot be sold to the United States.