ANGLO-AMERICAN TRADE ACCORD.

Hawke's Bay Herald-Tribune, Issue 111, 27 May 1937, Page 4

ANGLO-AMERICAN TRADE ACCORD.

The cable reports we are receiving from the Imperial Conference, as well as from Washington, indicate clearly that as never before is there a desire on both sides to arrive at some mutual understanding with respect to Anglo-Ame-rican trade. NaturaHy, no doubt, but still perhaps rather short-sightedly, the first reaction to this on the part of the British oversea dominions has been a consideration as to how any such arrangement may affect the preferences which their own products have heretofore enjoyed on the British market. On this aspect of the proposals, as yet very much in the embryo state, the President of the Board of Trade, as reported to-day, has given assurance in the House of Commons that every care will be taken to safeguard intraImperial interests. Of mueh greater importance, however, even perhaps to the dominions themselves, will it be to arrive at an adjustment that will promote rather than prejudice the industries upon which Great Britain depends for her prosperity and the dominions depend for the best customers for their produce. It will be here that the main difficulties will arise in designing a comprehensive arrangement of real mutual benefit. Mr. Runciman himself was careful to stress this point so as to preclude the arousing ofl any oveta-sanguine expectations. What, with a view to many other aspects than mere trading advantages, has to be noted is the marked advanee which during the last year or two has been made towards an improvement in the general relations of the two countries and the two peoples. That this will be greatly facilitated by an extension of commercial interchange agreeable to both can scarcely be questioned. That this has been made at all possible is due to the change which President Roosevelt, ably seconded, or perhaps, to put it more properly, guided by his Secretary of State, Mr. Cordell Hull, has brought about in the American outlook on tariffs. ^ Prior to the advent of the Roosevelt Administration the United States Government had adopted and for many years maintained a system of import duties so high as to be almost exclusive of all bnt tbe raw materials required for the conduct of the couritry's own industries. At the same time, of course, American manufacturers have succeeded in pushing themselves well into foreign markets and even into those of the British dominions, their great opportunity coming while European industrial nations were immersed in the Great War. The economic depression that fell upon the world, an 1 in the ' end affected America as much as, if not more than, any other country, has completely changed the outlook there. Conviction has been carried that even a country so big and with such great resourees of its own cannot for all time live to itself alone. In the result there has already been a very marked modification in tariff policy, though the standard scale of duties still takes a high range compared with the British. It is all to the good that Congress, as never would have been thought of a few years ago, has invested the President with powers which enable him to go a long way without further consulting it, In the past tariffs were, in the main, the putcome of intrigue, wire-pulling and log-rolling, not to say bribery and corruption, among the big industrialists and financiers on the-one hand and congressmen on the other. Now, however, under the Trade Agreements Act, passed not very long ago, it lies with the President to negotiate internationai trade arrangements and in so doing to reduce, within specified limits, the rates of duty applicable. This gives much added hope for the success of the Anglo-American discussions that are now in train.