Nations and Tariffs

Sun (Auckland), Volume III, Issue 712, 11 July 1929, Page 9

Nations and Tariffs

WORLD-WIDE DISCUSSION Labour and Safeguarding GOVERNMENT'S HEAVY MAJORITY TARIFF questions are being argued all over the world just now. The House of Commons has been discussing Labour's attitude toward safeguarding. The United States has been receiving wild protests against the proposed Tariff Bill, one nation even hinting at a “general tariff war, with no quarter given or expected.” Surprise has been expressed in Canada at Mr. Snowden’s attitude toward Imperial preference. Lastly, the Chamber of Commerce Congress at Amsterdam has had secret conversations about tariffs and barriers, and the emergence of some decision of great importance is hinted. (United P.A.—By Telegraph. — Copyright) (Australian and N.Z. Press Association J (United ServiceJ

Reed. 11 a.m. RUGBY, Wed. The Conservative amendment to the Address-in-Reply was negatived in the House of Commons by 340 votes to 220. The Liberals voted solidly for the Government, and 40 Conservatives did not vote. The Chancellor of the Exchequer, Mr. Philip Snowden, in reply to a demand, that the Government policy in regard to the McKenna duties should be made clear, said: "We shall make no statement of what we may do in regard to the McKenna duties on motor-cars, clocks, musical instruments, etc., until the proper occasion comes—that is, when the Budget is opened.” “The Prime Minister’s statement in regard to safeguarding duties was explicit. When these duties, or most of them, run through their statutory period, they will not be renewed, and if, in the meantime, on a review of the financial position of the country and of all related facts, we come to the conclusion that it is desirable to propose that they should be repealed, we shall come to the House.” Regarding the Empire trade policy, 'lie said the Australian Prime Minister’s suggestion of a special economic conference was heartily welcome, and was being energetically taken up. In the course of the debate yesterday on the Conservative amendment to the Address-in-Reply, Mr. Snowden said the Government was most anxious to promote the closest trade relations with the Dominions and every part of the Empire, but it did not believe those relations could be placed on the best footing of mutual advantage by a system of preferential tariffs. least of all by such proposals as had been put forward with recklessness by Lord Beaverbrook. The late Joseph Chamberlain had stated that there could not be Imperial preference without a tax on food and raw material. To that policy the Government would never subscribe. He hoped that when he left office he would have swept away all food duties, including those on sugar and dried fruits. Preferences on them would naturally go too. Mr. Snowden said he meant to inquire into the difficulties of sugarproducing in the colonies and Dominions. but. he would not assist them by tariffs. PROPOSED ECONOMIC CONFERENCE “We have no intention of abolishing the Empire Marketing Board,” said the Chancellor. “We want prompt and very close commercial relations with every part of the Empire. We have held out the open hand. “We are at present communicating with the Dominions to see if it is possible to hold an Imperial Economic Conference, and to see what we can do to extend inter-imperial trade. “The development of trade with Australia, New Zealand and Canada must be slow. With India it Is different. There the purchasing power of the people has increased owing to the enormous addition to trade.” The size of the Government's majority after the first division in the House and the number of Conservatives who did not vote caused a stir in the lobbies. It is learned that a group of younger Conservatives deliberately avoided the division as an expression of displeasure at the way in which the leaders of the party handled the debate and the divided views they expressed. It was urged that the Conservative leaders should get together and settle their policy before the next election and in the meantime not expose their differences in public debate. MR. AMERY'S VIEWS Mr. D. S. Amery, ex-Secretary of State for the Dominions, expressed the opinion that Mr. Snowden did not appreciate what the trade of the Empire meant. The Dominions preference to Britain amounted to £14,000,000, and Britain’s preferences to the Dominions to only £2.000,000. Britain's best purchasers were within the Empire. Ninety-one per cent, of the British exports which went to countries within the Empire were manufactured goods. From the point of view of creating employment Britain could better afford to cut herself off from the whole of the outside world than from the Empire. Conditions today were infinitely I more favourable for closer Empire union than ever they were before. It might not be possible to secure complete free trade within the Empire, but steps should be taken to bring it nearer when the disposition to meet Britain half-way was stronger than ever. He appealed to the Government to approach the Imperial Conference with a free hand. TAXATION OF TRADE Mr. Walter Runc.iman (Liberal) said industry as a whole had gained little or nothing from the safeguarding duties. They had complicated industrial machinery and clogged up the warehouses and quays in some of the ports. It was most surprising that so many Conservatives still thought the volume of trade could be increased by taxing it. When industry depended on artificial assistance it was bound, I sooner or later, to have a catastrophe. The only way in which industry j could hold its own was by putting its | own house in order. Rationalisation : would be far more effective than any t temporary tariff. They all wanted closer trade with-

in the Empire, but many believed preferences would do more harm than good. If they had to proceed along the lines of taxation as a means of binding the Empire there would be a gloomy outlook for the future. He welcomed the Imperial Conferences. Mr. Runciman added that if European countries had lowered instead of increased their tariffs after the war there would have been more prosperity everywhere today. Hitherto Britain had never been satisfied with anything less than world trade and it was world trade she wanted today.

SURPRISED AT SNOWDEN

CANADIAN MINISTER ON IMPERIAL PREFERENCE BENEFICIAL RESULTS (Australian and N.Z. Press Association) (United Service) Reed. 0 a.m. VANCOUVER, Wed. “Canada has always been favourably disposed toward joint discussion of problems of mutual interest to the nations of the Empire, and will undoubtedly consider favourably any suggestion from Great Britain for an Economic Imperial Conference,” the Finance Minister, Mr. J. A. Robb, declared on Wednesday. “While I am out of touch with Ottawa, and am unaware *lr. Philip Snowden’s invitation ior an economic parley, I believe in the usefulness of such a gathering, and would apxirove.” The Minister expressed surprise at the reported declaration of Mr. Snowden against the preferential tariff policies, as existing within the Empire. Canada had always approved the preferential trade system, and the results to Canada and the Empire as a whole had been beneficial.

AMERICAN TARIFFS

STRONG PROTESTS LODGED BY MANY NATIONS

HINT OF GENERAL STRUGGLE

(Australian and N.Z. Press Association) Reed. 9.5 a.m. WASHINGTON, Wed. The Senate Finance Committee disclosed that 25 foreign Governments, including Australia, had protested about the increased duties proposed ■in the House Tariff Bill. Some of these Notes were couched in strong language, particularly the Austrian, which leaves' a suggestion of a “general tariff war, with no quarter to be given or accepted.” Spain threatens denunciation of the existing modus vivendi, under which trade with the United States is now conducted. Most embittered communications come from smaller nations, such as Switzerland, Denmark, Holland and Belgium. The committee had received no communication from several of the larger countries, in which it had been reported that resentment was especially keen. These included Canada and Argentina.

COMMERCE CONGRESS

A SECRET PARLEY ABOUT TARIFFS IMPORTANT DISCUSSION (Australian and N.Z. Press Association) LONDON, Wednesday. A message from Amsterdam says that possibly the most important part of yesterday’s proceedings at the Congress of the International Chamber of Commerce occurred secretly in the form of conversations relating to trade harriers and commercial policies. It is known that competent experts are gravely apprehensive of the reaction of tariff increases, such as those contemplated by the United States, upon the problem of meetingdebt obligations. The president of the chamber. Dr. Alberto Pirelli, was most active. He succeeded in inducing the delegates not to raise the issue in the congress publicly. A special correspondent of the "Financial News” says expectations are high that something of great importance may emerge before the congress ends. It debated the need for better industrial statistics.