PRINCIPLES SETTLED

Evening Post, Volume CXXIII, Issue 121, 24 May 1937, Page 9

PRINCIPLES SETTLED

BRITAIN AND U.S.A.

TRADE AGREEMENT

EFFECT ON OTTAWA

DISCUSSION AT IMPERIAL •

CONFERENCE

United l'ress Association—By ElectrH Telegraph—Copyright. LONDON, May 22. The Australian Associated Prest Agency learns that after many months of intensive discussions at Washington and London, experts representing the British and American Governments have Virtually reached a stage at which the British Government will be able to submit to the Dominions next week the principles of the proposed Anglo-Ameri-can trade agreement. i This is likely to prove the' most important issue at the Imperial Conference. : ~- ■' ■■''... '.■ ■•>. ,< It is understood that America has asked Britain to reduce some of the existing protection on agricultural produce, while Britain has -sked America to explore the possibility of reducing some of her excessively higlil tariffs now preventing the normal vol-/ ume'of imports from entering the United States. >r America's demand affects some r ot . the Dominions' preferences incorporated in the Ottawa Agreement,, but British official quarters informed the Australian Associated \Press agency that there is no reason to expect; that America's requirements will necessitate drastic modification of the Ottawa Agreement to the detriment of the Dominions. j NEED FOR NEW MARKETS. British: delegates next week will stress -the point that the British market alone will not ultimately offer the Dominions an adequate outlet for their expanding output of commodities, thus compelling them to seek markets elsewhere. ■■-•■■ . ' • : ■:.■■■■ ': ." :. It .will'also be emphasised that ths Ottawa Agreement was signed in th« throes of a major depression and offered the Dominions a relatively stable outlet; whereas, with prosperity now returning, other buyers are appearing on the horizon, chiefly in Europe. These, however, will remain prospective so long as political and economic uncertainties continue. , The British Government '■frill, also impress on the Dominions' delegate* the tremendous importance of the closest co-operation between England and America in the face of^" European, dangers. "■;'.,,