RUSSIA’S “DUMPING” WAR CHALLENGE

Hokitika Guardian, 27 November 1930, Page 7

RUSSIA’S “DUMPING” WAR CHALLENGE

(N.Z. National Review). Russia’s “Dumping,” not merely of wheat, but of coal, oil, manganese; lumber, wood, pulp, and other products raises the ogre of an “irrepressible world conflict.” It looms up in the Press as desperate economic war by a “Soviet Government business enterprise, which outdoes in .size and scope anything the world has even iseen,” against all capitalistic States. Resides the .startling wheat barrage which staggered the world markets, news dispatches tell u,s of Soviet coal and lumber in New England cheaper than it can be had from other States or from Canada; Soviet wood pulp for newsprint paper in Atlantic coast cities—below cast of Canadian production; Sovipt apples cutting out Oregon, apples in Hamburg Germany; Soviet flax . ruining . production, in France; Soviet soap thrown into England; Soviet agricultural products flooding the neighbouring Baltic States.

What are the counter-moves like? United States anti-dumping laws are declared to fall shoi't of reaching such a foreign government business monopoly although Washington pressure under the wheat fright leads the Chicago Board of Trnde to ban as a “seriously objectionable new (level* opment,” the selling of grain futures upon their exchanges "by any foreign government,” Treasury Department embargoes on Russian goods, alleged products of convict labour, have been sought but not enforced, presumably, some say, lest certain Russian purchases in America might be jeopardised.

The clash between the Communistic regime and the American economic system is given a new turn to the Russian problem; . that at present “there is no law which reaches the agent of foreign government who may be 'engaged in operations that affect, adversely the markets in America nproducts.” , Renewed Congressional demand for ' Soviet embargoes is already heard, yet the “unloading of' Rfission products is taking place in many countries, anti, with the Russian Government .'controlling production,: and wage scales, it is possible for the Copiniunist regime to underbid the workmen of other countries.”

France ; is planning to revive the centui-yVoW “padlock” customs laws according to several cable correspondents. This authorises Government prohibition (100 per cent, ad valorem duty) of goods coming from a country whose economic policy is considered inimical. Russian cereals petroleum and coal, correspondents say, will be primarily affected. London messages play up proposals for establishing a quota system to meet the grain situation, and emphasise the Soviet trade “menace” as one of the big Empire trade problems to be dealt with by the current Imperial Conference.

Something like hysteria struck the League of Nations representatives assembled at Geneva when the Soviet wheat barrage came on.

The economic committee proposed 0 world conference on wheat, and for mnlly decided to “condemn the unhealthy practice of dumping.” Sweden fathered a resolution, hacked by seven others of the smaller European States, for League investigation of “favoured-nation” clauses and possible) antidotes for dumping. According to advices from Geneva to the New York “World” : “While on the surface Russia has been chiefly denounced during the Assembly, “The' World” is authoritatively informed that Czecho-Slovakia, Germany, Poland, and United States are regarded as equally culpabTe of dumping by many countries which are desirous of maintaining the greatest possible measure of free trade. “American dumping of machinery automobiles and industrial products is considered equally as menacing as Russian dumping of wheat, wood, hides, by several delegations here, “Czecho-Slovakia is charged with dumping glass products and sugar, while Poland and Germany, it is alleged, are both dumping cereals, rye and oats extensively. The Swedes admit that they themselves are guilty indirectly of dumpng certain manufactured products “Russia is not regarded as bad an offender now as islie might become should her five-year plan for the Industrialisation of the ocuntry be .successfully' carried through,”