EMPIRE TRADE

Hokitika Guardian, 1 August 1932, Page 6

EMPIRE TRADE

DOMINIONS’ MEAT DEMANDS,

WOULD ENGLISH PRICES RISE?

.(United Press Association —By Electric Telegraph—Copyright.)

OTTAWA, July 29

The following tentative but.authoritative British views regarding the outcome of the meat proposals have been secured :

While the exigencies of bargaining may impel Britain to accede a small , duty op meat, there are special considerations, apart from her extensive financial interests in Argentina, which make the British delegation reluctant to ■‘remove meat from the free list. •There'is no certainty that a ismall duty Would increase the price of meat to the British housewife, but it is noted that the price of butter has actual.y 'fallen .since the 10 per cent, duty was imposed and there has been no steady drop in the general market, but everyone hopes that the price's of primary products will .shortly have a natural rise, in which case the public would contribute the amount of the duty, however small, in the increased meat price. Britain might decide for the isake of the Dominions that it is worth while to increase the duties on butter, cheese and eggs' from the present 10 .per cent.-to 15 per cent. When it "comes to the question of removing .wheat and meat from the free list it provokes' discussion, because it affects the basic commodities. The ,slogan, Which, above all others, 'would excite' the British public against the ■Government would be, “They are taxing bread and meiat.” , -While the British Government might be able to persuade the public that they had gained sufficient concessions from the Dominions to justify such a duty, the British' delegation realises that within, say, two years there would b e bitter criticism because the natural increase i u prices in the interim would be blamed to the' removal df wheat and meat from the free list.

The’ delegation considers that it is pi-ohlematical whether the Dominions would gain any appreciable advantage from the ismall duty on meat even if, .with the marketing conditions continuing as at present, prices underwent a slight natural increase! The' view at present taken is that Unless the Australians and South Africans: could rapidly make enornious -improveTßerits in the quality ot their stock they would be asking the' British, consumer to curtail his consumption of the high grad® Argentine article and eat a larger quantity of an inferior article. It is logical that the British housewife would warmly resent coercion to buy inferior beef at a higher price. Such result—which the British Government would; hesitate to bring about,' knowing that it would cause iinwiimpewiling -«wißg»eif» piobUowopinion •—in' an industrial country like Britain, -might eventually, -turn 4 senti- . ment against Imperial preferences - as , being bought too dearly. As far- as the British farmer is concerned he already has'suffered greatly through ith 6 fall in lamb and mutton prices, . but the marked discrepancy always prevailihg between English fresh and imported meat 'means that he would practically be unaffected by any smaYduty imposed on th e foreign product. The whole crux of the Dominions’ • case, particularly: the Australian case, is that quantitative restriction would ( not actually, and need not, be permit- ■ ted to raise the pric e of beef to the | British consumer. Without a quota (Argentina is able to flood the British (market at all (seasons, even selling , be>lovi cost,. or at. least... undercutting' the frozen beef which the Dominions •'consider should have some protection. ‘They have made meat the strongest;' plank on their conference pr r gramme, realising that if the present conditions, are allowed to continue a great AusN tra'lian primary industry will be in 'a: hopeless state. 'Jf The principal Conference ■biisineu-s ijto-day .was the meeting of th e . CurCommittee,.' which continued, its discussions on the effect of the recent •changes in price levels and also the .instability of exchange rates. The heads of the • delegations will meet again to-morrow and further consider the Empire’s monetary problems.

The sub-committee likewise is meeting for preliminary examination -• of technical matters., The discussions' have riot reached a stage where Britain •has given a lead. While there is no question of dissention in the Conference, the speeches, some of which probably will be released to the newspapers early next week, indicate two well-known schools of thought. The first school considers that the Empire alone, representing a vast group of nations whose currencies are linked with sterling, might to some extent now succeed with a plap for raising price levels, and the second’ school is of thte opinion that the question is so wide that it would be a better plan to bring in all nations for the purpose of reviewing, and if possible adjusting, the world monetary-' problems, .. which necessarily are linked up with the Empire’s depression. This group believes that only international action can be effective.

There is no hint yet which line the Conference will take, but -Australia, isu|bscribing to the first school, still hopes that some progress towards & solution of th 6 current difficulties will be made.

... The 1 ' butter proposals have reached their third stage. The first was the Dominion agreement regarding their ■requests, the second was the reference of the proposals to the British delegations, arid the third was the discussion of, the details between the British and Dominion officials* who will next deal

with meat and fruit. The fourth stage will be further discussions between the British' and Dominion delegations, and the fifth Britain’s decisions. The -Sub-Committee on Industrial Standardisation discussed chiefly the steps the various Dominions have taken to carry out the decisions of the 1930 conference.'