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Hokitika Guardian, 14 August 1933, Page 4

An important development in British fiscal policy indicated in Air Runcimau’s reply to a question in the House of Commons, says the Times. Hitherto British Governments have consistantly advocated the unconditional clause in trade agreements; and they continued to puisne this policy oven after it had become clear that it no longer intended to promote the reduction of duties, but was indeed frequently a hindrance. Their insistence on this point of view, for example, has put almost insuperable difficulties in til© way of the projected tariff convention between Holland and Belgium, which, when it was first suggested, was generally welcomed as a promising step towards greater freedom in international trade. They now seem, however, to have realised that the bargaining power of a tariff is necessarily limited if concessions made to one country in. return for concessions on its part must be extended to other countries which make no return, One of the criticisms ol' the recent trade agreements has been that under the most-favoured-nation clause the benefits granted to Denmark, Germany. and Argentina must automatically he granted to every country with which we have commercial treaties. Air Runicman has now made ft clear that

tlie Government- “will certainly not l>e prepared to- continue indefinitely to accord full most-favoured-nation treatment to countries which show themselves unwilling to meet the reasonable requirements of this country in regard to the treatment of United Kingdom goods.” That is a much more reasonable attitude, and more likely to lower the walls now shutting our trade out of foreign markets.