OTTAWA MEETING

Hokitika Guardian, 30 July 1932, Page 5

OTTAWA MEETING

BRITAIN’S SHARE ENCOURAGING DOMINION TRADE (United Press Association—By Electric Telegraph—Copyright.) Ottawa, July 29. '" Mr Baldwin 'said that he desired to draw attention to the favourable tar ff treatment Britain accorded to Dominion ! imports which compete with United 'Kingdom products. The' certainty or. outlook is Also important in trade. It is essential that the' manufacturer and importer shall be able to assess, with reasonable assurance the cost of an art'-. ’ : icle to tho consumer. Any aibitrary uncertain impositions, especially where, the ha's ’discretion to determine ; duties, cannot fail to restrict, and even prevent 'business. We desire also .to emphasise to our Dominion colleagues 'that Britain is so highly industrialised that it .is vital to the physical existence of her people to find ado-

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~ f/ quate markets for her products. Ac- ' tually more /than half Britain’s ex- • ' ' .ports go to foreign countries. Britain - W two and three-quarter million unemployed. Anything tending to check nßrita’ri’i fWfeigh'exports must leßSdit her pedjlle'b purchasing, ahd Swing power thus damaging the markets oh • which-. the Dominions largely depend : for oomumption of their products. The foregoing tables show, firstly, ' [Britain doing her share, in encouraging Dominions’ trade and industry. Secondi’y, Britain takes a very large -1: proportion of Dominion exports for many of which there would seem do >be no other available world outi'et. Thirdly, Britain has consistently facilitated the entry of thesd Dominion products 011 .the best possible terms, and with\the least possible interference by ' 'Government pol'cy of customs administration. • ‘•’. Fourthly, Brifcaih has been eager to > gjve ithe Dominiohs' extensive prefer-' ■ ence wherever she has' found it possible to .impose tariff. . Fifthly, Britain'thus helped the Do- ; • minions to build up a* substantial favourable visible trade balance. •- ’- It is a source of .legitimate satisfaction that the preferential a'ccess to the British investment market, which re'''suited from - ■ close association between -; Britain, and the Dominions has played I r.;,. a A': important part in the development / - the Dominion resources. Showing * the extent this factor has operated,' it ’ ‘was estimated that £3BOO millions out of British capital invested overseas • before the war,, was placed in Empire . -M'i,countries.).i<Although necessarily ‘there ; has been a diminution in tho flow of K • oversea investment. since the war, the • allotted to Empire countries has. substantially increased. Out of a total of 1401 million# invested between 1919 and 1931, no less than 848 million* hw bwa placed in Empire countries.

A COMPARISON OF IMPORTS..

AN IMPORTANT MEMORANDUM

Ottawa, July 29,

Mr Baldwin quoted a table of Britain’s retained imports, 1930, from Australia. Dutiable, before December, 1931, £4,660,000, representing 19 per cent,. Dutiable under' Import Duties Act or Horticultural Products Act, £13,500,000, representing o-r.o p~x cent. Not subject to duty, £20,820,000, representing 53.4 per cent. From New Zealand, dutiable before December, 1331, £BO,OOO, . representing 0.2 per cent. Dutiable' under Import Duties Act,, or Horticultural Products Act, £20,280,000, representing 53 per cent. 'Not subject to ' duty £19,930,000, representing 49.5 per cent. He pointed out that the proportion of imports from the Dominions enjoying free entry exceeded 90 per cent. Only British Indian imports were appreciably below. Hince Britain’s change in fiscail policy, only 30 per cent, of her foreign imports had been admitted free. Mr Baldwin continued: 'Regarding • British' exports to th e " four principal Dominions, there is to-day practically no free entry. Most preferences granted by Britain are total remission of the duty, payable by foreign goods. Th e following table shows the Domn on imports to 1930 Australia, from all sources £129.220,t OGJ; ivom : Ash© 'United Kingdom,

~*'51.241.000 ; from- -other British countries, £15,509,000; from foreign countries £5j,4'70,000.> •' New Zealand, from awl sources, .£42,663,000; from the United Kingdom, £20,223,000; from other British countries, £9,007,000; from foreign countries, £13,433,000. Th e following figures (all millions sterling) include bullion coin, also inetude re-exports:— Britain’s imports, 1930 ; From Canada, 38.7 ; from Aus tradia, 70.5; from New Zealand, 44.9;

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from South Africa, 62.1 ; from the Free Wtate, 43.1; from Newfoundland, 2.2 ; from India, 62; from Rhodesia, 2.3; total 315.8. Britain’s export. 1930 : T<> (Canada, 31.3; to Australia, 33 ; to New {Zealand, 18.7 ; to .South Africa, 27.7; to th e Free .State, 44.3 ; to Newfoundland, 0.9'; to India, 61.6, to Rhodesia, (2.6; total 220.1. Visible balances (dlus means favourable) ; Canada, phis <7.4; Aiwtrali i, plus 37.5: New ZOl- - plus 26.2 ; South Africa, plus 34.4 ; Free State, minus 1.2; Newfoundland, plus 1.3; India, minus 1.6; RhoV desin. minus 9.3; total visible balances in favour of the Dominions, 95.7. t>i pr- e figures reveal two noteworthy points; -Firstly, the visible trade balance -in .favour of the Dominions is .juwljv a, hundred millions sterling.

.Secondly, the Dominion imports from foreign countries amounted to nearly 350 millions. It is necessary to remember that the percentage duty is of great importance in assessing the value of preference. If it is to give material assistance, preference must not be so high as seriously to restrict importation. The British delegation urges upon the Dominions that the rates of duty should be so graduated as to give the British products ( a reasonable chance of competing on even terms. Also the duties against British products should l>° fixed for 1 protective purpose, no higher than is necessary to a fa'" 'Vim-e to a reasonably efficient Dominion -industry.