OTTAWA MEETING

Hokitika Guardian, 16 August 1932, Page 5

OTTAWA MEETING

NOT ACCEPTED

BRITAIN’S OFFER TO CANADA.'

(United Press Association—By Electric Telegraph—Copyright.) OTTAWA, August 15. An authoritative disclosure regarding the Anglo-Canadian negotiations gives details 'of an offer that Britain has now mdde to the°Canadian Premier, Mr 'Benhett'.' Wds' as follows: — (1) A cdiitihiirtion of ' the present preferences. (2) A preference on wheat of threepence per bushel. (3) A preference on copper of two pence per pound. (4) An additional ten per centum preference on lumber, totalling twenty per cent, of a duty on foreign timber ; with an assurance that, upon any Canadian complaint of .Russian timber dumping into Britain, the British Government will investigate it. These preferences are what Canada asked for.

an other respects Britain’s offer does not meet Canada’s requirements, Britain’s bffer to Canada concedes nothing regarding dairy products, meat or metals, except the duty of 2d per pound on copper. Britain refuses Canada any prefer-, ence on bacon at-present. • The foregoing British offer is made in return for preferences which Canada on a reconsideration of the original proposals, later offered. These include preferences on British iron and steeil -products, textiles, woollens, cottons, linens, leather goods and coal and also include Canada’s aspurance of “fair competition’’ all along the line for British goods. The British offer is also conditional upon Canada agreeing to grant to British manufacturers the right of appeal to the Canadian Tariff Commission. The idea of the setting up of which was cabled yesterday, with a view to securing this fair competition, and in that regard an earlier reported stated : The question of textiles . may be feolfvifed 'by establishing the Tariff Board for which Canadian legislation of 1931 has provided. Britain ds to be given a free opportunity to state Iher case from time to time as Canadian industries are before this Board for investigation. The Canadian -delegation have not yet accepted the ’British offer, which is not regarded as being the last word.

The Canadians have expressed to the British delegation their strong dissatisfaction at the failure of Britain tp give .more definite assurances regarding tbe control of itiissian diimp_ ilig of lumber and wheat into Britain. On tbe other ban 1, the British representative* have politely, but emphatically, declared that any continuiuicq of the preferences that Britain granted Canada under the December Tariff Act must be considered as being a part of Britain’s present offer and that these preferences will be cancelled if an agreement is not now reached

MONETARY COMMITTEE’S REPORT. INTERPRETATION IN LONDON. LONDON, August 15. The “Morning Post’s’’ City 'Editor ■says:—“The report of the Monetary Committee at Ottawa meets with the entire .'approval of the City of London, thouglhi it .still is a problem as to how to avoid credit facilities being abused by speculation. The Ottawa report Contains too high-flown recommendations for the stabilising of the Empire exchanges by the use of a common medium; nor is there any outright recommendation for a return to the gold standard, though this return is implied by the endorsement of Britain’s action in establishing madhinery for preventing any wide 'fluctuations in the gold value of sterling. “This is a recognition that sterling and the Dominions’ currencies should not fluctuate without any regard to gold, and is thus paving the way for their definite re-establishment when a satisfactory world standard is achieved by international action. The Ottawa recommendation should be capable of complete endorsement by the International Economic Conference in October. Summed up, they aim at the lightening of the burden of debt in all of the countries, by reversing the forces which have rendered their weight, in terms of commodities, an , intolerable one.’’

MR .BRUCE ON THE SUBJECT. IMPORTANCE OF THE REPORT

•OTTAWA, August 15,

Mr Bruoe sees importance in the currency report. “The British Government’s declaration that a rise in price levels is essential to Britain,. in effect says that the existing conditions of cheap money are the best contribution dhe can make towards increasing prices .and the policy of the past three months has been deliberately designed in this direction—namely,, the bank rate reduction, the conversion loan and the Bank of England’s policy of buying .securities in the, market, and thus getting more money available. It is a pretty satisfactory declaration. Regarding Sir Henry Strakosch’s and Sir George Schuster’s .statement of Indian policy, my views are weld known and can be interpreted as follows : Let Britain continue her present policy. H is a good starting contribution, and means much to Australia, which is faced witih a position in which she

practically cannot .pay her debts. Only recent good seasons have pulled her through.” Mr Bruce continued that the policy of .low interest rates had special significance for Australia, because it pvould 'give & chances of converting securities shortly falling due. Mr Bruce considers that Mr Chamberlain has gone a step further tihan his May speech in the House of Commons. The report removes the apprehension that Britain is likely to plunge back to gold before the conditions which necessitated her departure from it are remedied