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Press clippings. U .S.-U.K. trade agreement. U.S.-U.K.-Canada agreements .
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h bjiUhi U.K.-U.S. Trade Pact Held Bad for Empire Cannock, Staffordshire, Eh land , December 5.—(C.P.-Havas.)^«Charg. ing that the development ' of Em- pire trade was being1 "whittled away" by the n iw Ary*lo-Ameri- can economic „]yjj.t,*'Lord Lloyd, vy League, to- accord was "a are going back Empijä^ trade policy." with* the United e i Kfrstona of Brit- ^ 'S speech t is not as if to remedy a balance adverse to the United SKftes. We bought from America much more.than they bought from us. The only moral I should like you to remember is the grave danger of having a vast empire and not taking the trouble and making the sacrifices necessary in order to be strong enough to keep it." EMPIRE TRADE LINK LOOSENED BYU.KrlLS.PAG? Compensation Planned fo Dom- inions !or Loss ol Preferences — — BOUND IVjARGIIpS MAY GO B.C. and M.S. Products Most Atfécted; Quebec Lumber Involved By F. C. MEARS. . (Gazette Resident Correspondent.) Ottawa, July 25.—Unofficial as- surance from London that Canada would be amply compensated in the new agreement with the United States for any losses that might follow Britain's concessions to na- tural products of the United States is further confirmation of reports that Canada with other Dominions would be called upon to release Britain from certain bound prefer- ences to facilitate the Anglo-Ameri- ' can treaty. Because the United States wants easier access to the British mar- ket for lumber, salmon, apples and pears, particularly, Canada is ex- pected,, though it will not be asked by Emftain, to release the United- kinäpflon^ from the bound margins on tjjSjif .prhducte. Even though this Dominion nfay Jpe assured of ample Compet^at'iôç.^sî«;h ^ weakening of the preferential Ving is bound to cause serious political trouble for the King Government, and it is no secret that some of the supporters of that administration are appre- hensive. c Bntisbf Colombia has developed such a/largdr and lucrative trade with' Britain/ijj lumber, and Nova Scotia, whili it has widened its European mfrkef foi apples, is still so largely fepefdeJ t on the Unit- ed Kingdom for m rèadj». Aarket, that the extreme eistéî-» a&d west- ern provinces will • ra^uire an abundance of compensation in the new deal with thf United States. Quebec and New Brunswick have sold a considerable quantity of lumber to the United States under the 1935 pact, but it would require a very substantial cut in the pre- sent American duty against certain kinds of B.C. forest products to even the account. Preservation of the Imperial pre- ference system will be a central issue when the new trade agree- ment with the United States is sub- mitted to the Canadian Parliament before the end of the present year. Australia has made it known it does not want to be prevented from making deals with foreign coun- tries^ but this is not interpreted as a willingness to imperil the prefer-j 1 ential system. Britain's- proposed deal with the 1 United States, Canada's new agree-: ment and the attempt of Australia 4 to make a separate pact with the United States, all profoundly in- volve the continued existence of the British preference, but there are evidences that Washington is not prepared to pay a high price for entry into that circle. Negotiations Hit Snag London, July 25—(®—Canada will, it is expected here, receive a United States market compensation for any variation as a result of the projected Anglo-American trade treaty in fixed preference margins on raw materials she now enjoys in the British market. These fixed preferences are a feature of the Anglo-Canadian agreement of February, 1937. They cover a line of export goods which the United States wants to share. But as the Anglo-Canadian agree- ment can only be varied by consent of both parties. Washington nego- tiations for an Anglo-American agreement tend towards a three- cornered understanding. The Associated Press said official quarters disclosed the negotiations for a trade treaty between the United Kingdom and the United States had struck a snag which necessitated hurried British consul- tations with other powers and some of the Dominions. The Associated Press quoted the sources as saying the differences did not threaten a breakdown in the treaty talks, but the points at issue were not disclosed. T h r e e - W a y J t e a t i e s A d \ a n c i n y \ S t e a d i l y ; i t c h e s A j r e D e n i e d Sask. Election yt teü as Real Reason Jpr Delay- in PresentiaE B u d g e t PACTS W l / f t l N MONTH Proba' tariff might on Aus From O i # O w u Correspondent OTTAWA^— Contrary to widely circulated^rumors The Financial Post understands that there have been vm serious hitches in trade treaty ̂ negotiations under way at Wasmngton since early spring. Work on the three-way agreements involv- ing the United States, Canada and Great Britain, it is understood, has been proceeding as anticipated. Negotiations will probably be con- cluded in about a month's time or not more than a couple of weeks later than was first expected. The three agreements, it is believed, will be announced simultaneously. The impending trade agreements are considered far the most ambi- tious attempted by any modern group of powers. Not only are the three principals nàmed involved, but also, because of the Ottawa Agreements, all the Dominions and the colonies. As a result practically every move being made at Washing- ton has had to be referred back to the distant Dominions. Two typical cases would be rais- ins and corn. On both products it is common knowledge that United States desires to regain at least a portion of the old important export to O&hada. Following Jfre Ottawa Agreements the bulk olf JhA.rais/ns uset in this country Aa^i torcfyiJjm Australia and, wtoeftH»/äflable. Most of our cotn imports from Sfuth Africa. Before Canada can pefmit any reduction in present tariffslit is necessary to get consent from Aus- tralia anij South Africa. for a lower .itdd States ower its duty wool and on some other product in which South Africa is especially interested. Such steps may be taken formally in agree- ments later to be negotiated be- tween Washington, Canberra and Capetown, but in the meantime in- formal promises will have to be ac- cepted or some triangular arrange- ment made through the United Kingdom. In any case negotiations of this kind are complicated and take time. Many (J. S. Concessions On fish, lumber, base metals, cattle, dairy products and other major items in which Canada is in- terested in securing more favorable United States tariff treatment, The Financial Post understands t h a t there has been little trouble. Bather the difficulty has hinged around compensating concessions on our part and particularly on items on which this country has given bound preferences to the other Dominions. There have, it is believed, been certain timely complications, -unfore- seen when negotiations first started. Chief of these would be the current United States depression and the drastic decline in certain prices since the agreements were mooted. It would not be possible to let every temporary price fluctuation inter- fere in trade parleys or no agree- ment could be concluded, but the change in the U. S. general business picture has undoubtedly increased the pressure of certain American interests against any tariff change. Criticism is now developing in Great Britain where some alarm has been expressed over falling exports. The fact that Congress is still in session is believed also to have em- barrassed 'American negotiations. Much has been heard in Congress »bout the dangers of lowering the trade bars at this juncture. Discounted by Hull This criticism is known to be dis- counted by Secretary Cordell Hull and his subordinates. They claim that actually there is bound to be less business disturbance when tar- iffs are adjusted during a period of slackness and low prices because then even a small tariff is usually prohibitive. This view, however, is not generally appreciated and as a result the present business depres- sion in United States has produced the worst possible psychological re- ception for the negotiations. It is generally agreed that the American depression and a similar more moderate trend in Can- H United Kingdom will un- doubtedly minimize the "immediate j effects of the trade agreements. Sweeping progress, it is believed, will be made in breaking down tar- iff barriers, but full benefit will not be obtained without an independent improvement in business itself. Although apparent for weeks that there was no chance of negotiations being concluded in time to combine the announcement with a May bud- get, delay at Washington has been the official reason for postponing the budget. The Saskatchewan provincial elec- are considered far the most ambi- tious attempted by any modern group of powers. Not only are the three principals nâmed involved, but also, because of the Ottawa Agreements, all the Dominions and the colonies. As a result practically every move being made at Washing- ' ton has had to be referred back to the distant Dominions. Two typical cases would be rais- ins and corn. On both products it is common knowledge that United States desires to regain at least a portion of the old important export to G&tiada. Following Jpe Ottawa Agreements the bulk om |b.e<»raisins usefi in tfiis country Aa^t lorr i^ îa im Australia and, whefrfc^Aable. Most of our coirn imports from S#uth Africa. Before Canada can permit any reduction in present tariffs fit is necessary to get consent from Aus- tralia and South Africa. Probajayiin excj^igc for a lower tariff CaydTa,Vynitdd States might b | f i l l i n g to lower its duty on Australian wool and on some other product in which South Africa is especially interested. Such steps may be taken formally in agree- ments later to be negotiated be- tween Washington, Canberra and Capetown, but in the meantime in- formal promises will have to be ac- cepted or some triangular arrange- ment made through the United Kingdom. In any case negotiations of this kind are complicated and take time. Many U. S. Concessions On fish, lumber, base metals, cattle, dairy products and other major items in which Canada is in- terested in securing more favorable United States tariff treatment, The Financial Post understands t h a t there has been little trouble. Rather the difficulty has hinged around compensating concessions on our part and particularly on items on which this country has given bound preferences to the other Dominions. There have, it is believed, been certain timely , complications, unfore- seen when negotiations first started. Chief of these would be the current United States depression and the drastic decline in certain prices since the agreements were mooted. It would not be possible to let every temporary price fluctuation inter- fere in trade parleys or no agree- ment could be concluded, but the change in the U. S. general business picture has undoubtedly increased the pressure of certain American interests against any tariff change. Criticism is now developing in Great Britain where some alarm has been expressed over falling exports. The fact that Congress is still in session is believed also to have em- barrassed "American negotiations. Much has been heard in Congress about the dangers of lowering the trade bars at this juncture. Discounted by Hull This criticism is known to be dis- counted by Secretary Cordell Hull and his subordinates. They claim that actually there is bound to be less business disturbance when tar- iffs are adjusted during a period of slackness and low prices because then even a small tariff is usually prohibitive. This view, however, is not generally appreciated and as a result the present business depres- sion in United States has produced the worst possible psychological re- ception for the negotiations. It is generally agreed that the American depression and a similar though more moderate trend in Can- ada and Otii ted Kingdom will un- doubtedly minimize the immediate effects of the trade agreements. Sweeping progress, it is believed, will be made in breaking down tar- iff barriers, but full benefit will not be obtained without an independent improvement in business itself. Although apparent for weeks that there was no chance of negotiations being concluded in time to combine the announcement with a May bud- get, delay at Washington has been the official reason for postponing the budget. The Saskatchewan provincial elec- tion on June 8 cited in some quarters as the real reason. It is general knowledge that the Dominion Government is sharply divided in its tariff sympathies. Many western Liberals, headed by Hon. J. G. Gardiner, National Min- ister of Agriculture, have been out- spoken for lower duties, particu- larly on farm implements, automo- biles and textiles. More has been heard of this sort of thing in the Prairie Provinces than elsewhere and especially in the Saskatchewan campaign. On the other hand there has been nothing remotely approaching tar- iff reduction promises from the con- servative wing of the Government as represented by the Prime Minis- ter and Finance Minister Dunning. So long, however, as there is no budget announcement before the election in Saskatchewan there is no open split in the federal ranks, no embarrassment for the Liberal spokesman in the provincial field. Because the budget has not been brought down and is now not ex- pected before the Saskatchewan election, it is taken for granted that there will be little ammunition in it for the hard-pressed Liberal forces of Messrs. Patterson and Gardiner. What tariff changes Mr. Dunning will announce will prob- ably follow conservative lines, pos- sibly some suggestion of reduction on farm implements by reducing the rate on cream separators, the only item in that line above the general 7%% level. P.Q. Issue Successful Earlier expectations that the Pro- vince erf Quebec loan, offered yes- terday 4n the New York market, would/xi» a distinct success were amp}/ reamtét in the actual re- sult,' as the sfndi^àte was able to announce thé' rapid -oversubscrip- tion of the issuS and the price went to a premium in the early trading. At the, close the new 3Vi's of '53 were qiiotei at 1005« bid, against an offering .price of 100. In view of the fact that, according to the prospectus, proceeds of this issue are to be u-ed qply "to reimburse the consolidât!» revenue fund of Quebec for püt jexpenditures in- curred mainly Ar T»ad/* construc- tion, unemployment rejerAoloniza- tion and public work«," trfcre n^w arises the question as to 1-hat the Province plans to do in respect to the $10,000,000 maturity in 3 per cent, bonds on September 1. The assumption is that the provincial authorities will recognize the in- expediency of reUirnina- to the m/r$pt in this connection, and thst the maturijy vyill/be taken care by a temporary bankiijg ac- commodation. >»« j M O E AGREEMENT E A n g l o - Amei Hampered By Antagon- ism To British Goods P R O G R E S S SLITGGISH LONDON, May 21—(U.P.)—'The projected trade agreement between the United States and Britain ap- peared last itfght to be doomed to a much narrower scope than orig- inally was visualized. Britisl/anticipation of important tariff Concessions by the United States has been dulled by the Am- ertfàn recession. ji'The major obstacle to a far- reaching commercial pact, accord- ing to British opinion, has been met among the New England and Southern textile industries, where the business slump has provoked sharp opposition to opening United States markets to Lancashire's cotton goods. i Hjrtie of one of Bl i ta in i l |as t proiiiarous industries LL^Wcasnire hasKbfen a jPfincjùalAgliî>porter of thé eifert) HA àiafe to terms with Washington."he factories converg- ing on Manchester have aspired particularly to lower American duties for their bestf qualify cotton j manufacturers «pad! ' Lancashire from EglptJanlVottan. U.S. textile producer! Io\s' have succeeded in quashinjAtlflp British hope. The vaftie"of British exports of cotton piece goods to the United States in 1929 totalled £2,200,000, compared to £700,000 in 1937 and Lancashire industrialists hoped at least to recoup this loss. In the same years British wool textile exports to the United States have dropped from £3,900,000 to £1,- 800,000 while cotton yarn fell from £600,000 to £300,000. SLUGGISH COURSE After P r e s i d e n t Roosevelt's White House conference of Wed- nesday with Secretary of Agricul- ture Wallace and Francis. B. Sayre, assistant secretary of state, it was believed here that Anglo-American relations would pursue a sluggish course and make no appreciable progress, at least until Congress recesses. This circumspection, it was be- lieved, would be due to a desire to avoid giving Congress opportunity to take action which might further tie the Administration's hands in reaching an accord with Britain. American refusal to meet Brit- ish desires on cotton goods, which was a hard blow to advocates of a broad, deep trade agreement, was of the greatest importance because it involves a commodity to which Britain attaches a high value. But further pronounced discouragement was felt here because of American disinclination or inability to revise downward the Hawley-Smoot Tariff for the benefit of other United Kingdom and Dominion products. In zeal for some sort of agree- ment one waggish high United States official is said to have re- marked: "We must sign a trade ac- cord with Britain even if it involves only rhubarb." However figuratively meant, the idea of "rhubarb across the sea" seems to Britons a slender link be- tween the' two English-speaking empires. According to a pamphlet of the Royal Institute of International Affairs imports from the United Kingdom of 60 dutiable commodi- ties, of which it has been a prin- cipal supplier to the United States, have fallen since 1928 by an aver- age of 73.5 per cent. That a sub- stantial part of this setback may be recovered is now a vanishing British hope. I t has finally been learned th'at Australia will play an extremely minor role in the proposed pact. It was surmised that American re- luctance to reduce what Britons consider a crushing tariff on wool apparently h'as. cast Australia for the role of almost silent partner in the forthcoming agreement. T U B I k ( ß w s r t f r FOUNDED JUNE 3, 1778. THE GAZETTE is printed and published by the GAZETTE PRINTING COMPANY, LIMITED, ot which John Stuart Miller is Secretary, at the Office, 1000 St. Antoine Street, Montreal. Tele- phone HArbour 2241. Private branch exchange connecting all departments day and night. Ottawa: 17 Central Chambers, 4B Elgin Street. Fred C. Meats, Chief of Bureau. Telephone 2-8787. Quebec: 94 Grande Allee. Ewart E Donovan, Chief of Bureau. Telephone 2-1323. Toronto. 2: 1511 Metropolitan Building. Allan B Wilgar, Representative of Advertising Depart- ment . Elgin 9907. London. England: Miss Elizabeth Montizambert. 18 King's Court, King's Road. Chelsea, London. S.W. 3. F. A. Smyth. Representative of Adver- tising Department, 34-40 Ludgate Hill, London. E.C. 4. Telephone City 2784. N e w York: Room 802, 19 West 44th Street. Gilman, Nicol l and Ruthman, Representatives of Adver- tising Dept. Telephone Murray Hill 2-9049. SUBSCRIPTION RATES City Del ivery: $12.00 per year; $6.00 six months; $1.00 per month; 25 cents per week. Mall Subscriptions outside city zone in Canada and U.S . : $9.00 a year. Great Britain and all British Possessions abroad: $9.00 per year. Continental Europe, the Orient, etc.: $24.00 per'year. Members Audit Bureau of Circulations. MONTREAL, FRIDAY, FEBRUARY 25. The great successes of the world have affairs oj a second, a third, nay—a fiftieth t —John Morley. CANADA, THE U.K. AND U.S. The Minister of Trade and Commerce has repeated the Government assurance that in the negotiation of a new trade agreement with the United States there is no reason to fear that Canadian industry will be ruined. It would be, of course, more helpful if Mr. Euler had said that industry in Canada will not be harmed. A great deal of damage can be done and rrs.any people can be thrown out ofy employment without the absolute ruina- tion of indus^y . However, Mr. Euler seems to be ful ly aWare of the importance of the Dorrtinion'i external trade as the foundation of domestic prosperity. Between 15 and 20 per cent, of the Dominion's productivity, he says, depends upon'iforéign markets. The proportion is probably larger but whether that be so or not it fails to express ful ly the range of domestic business activity which lies back of these percentages. Mr. Euler says that the Government is proceeding upon the principle that a f reer exchange of those goods most freely produced by each country concerned is to the advantage of both. Un- fortunately, the successful application of this principle involves serious difficulty by reason of the fact that both countries are large producers of similar products. It is generally assumed that this new agreement with' the United States is intended to compensate the Dominion for such sacri- fice as this country is obliged to make in a revision of the Canada-United Kingdom agreement in order that Great Britain may effect a reciprocal trade agreement with the United States. The Ottawa-Washington and the London-Washington negotiations appear to be proceeding concurrently, a condition of things which may or may not be in the best interests of Canada. No one can say what the actual outcome of the London- Washington negotiations will be, and with- out some reasonably precise knowledge of that outcome it is obviously difficult for Canada to determine the proper scope of revision in respect to this country's agree- ment with the United States. A British trade delegation consisting of nine experts has arrived in the United States for the purpose of negotiation, and its chairman, Mr. Arnold E. Overton, Second Permanent Secretary of the British Board of Trade, has said that while the problem is a difficult one he is confident of reaching an equitable agree- ment. In the meantime, strong opposition to the proposed agreement with Great Britain is developing, largely in New Eng- land, and there is what Secretary Hull de- scribes as " a veritable barrage of sinister " propaganda . . . designed to wreck the most " important policy which our country can " pursue to promote its economic well-being " and peace." The general basis of the sug- gested agreement with Great Britain is an exchange of American primary products for British manufactured commodities, and one of the complaints made is that United States industry, already troubled with a severe domestic recession, is in no position to face increased competition at the hands of British industry. Secretary Hull's principal problem will be that of placating the alarmed industrial- ists of his own country and even a measur- able success in this regard may not insure the ultimate acceptance of his agreement. Realizing this, he and his assistants are making a determined effort to consolidate support among American agriculturists. The Secretary of Commerce has published a sur- vey of Anglo-American t rade over a period of years and in this survey the value of the British market as an outlet for American fa rm products is emphasized. Approximately one-half of United States exported edible animal products went to the United King- United States manufacturers " may be able " to offset losses they incur because of the "increased entry of British goods into this " market through additional tariff conces- " sions that they can obtain in the new Cana- " dian treaty." Naturally, with this consid- eration in mind, the Journal of Commerce sees an advantage in the concurrent negotia- tions, and, to the extent in which this is a correct American view, the Canadian manu- facturer stands to lose. witn tne united btates there is no reason to fear that Canadian industry will be ruined. It would be, of course, more helpful if Mr. Euler had said that industry in Canada will not be harmed. A great deal of damage can be done and rpan^ people can be thrown out of employment without the absolute ruina- tion of indusVy- However, Mr. Euler seems to be fully aware of tHe importance of the Dominion's external trade as the foundation of domestic prosperity. Between 15 and 20 per cent, of the Dominion's productivity, he says, depends upom foréign markets. The proportion is probably larger but whether that be so or not it fails to express ful ly the range of domestic business activity which lies back of thesê percentages. Mr. Euler says that the Government is proceeding upon the principle that a f reer exchange of those goods most freely produced by each country concerned is to the advantage of both. Un- fortunately, the successful application of this principle involves serious difficulty by reason of the fact that both countries are large producers of similar products. It is generally assumed that this new agreement with* the United States is intended to compensate the Dominion for such sacri- fice as this country is obliged to make in a revision of the Canada-United Kingdom agreement in order that Great Britain may effect a reciprocal trade agreement with the United States. The Ottawa-Washington and the London-Washington negotiations appear to be proceeding concurrently, a condition of things which may or may not be in the best interests of Canada. No one can say what the actual outcome of the London- Washington negotiations will be, and with- out some reasonably precise knowledge of that outcome it is obviously difficult for Canada to determine the proper scope of revision in respect to this country's agree- ment with the United States. A British trade delegation consisting of nine experts has arrived in the United States for the purpose of negotiation, and its chairman, Mr. Arnold E. Overton, Second Permanent Secretary of the British Board of Trade, has said that while the problem is a difficult one he is confident of reaching an equitable agree- ment. In the meantime, strong opposition to the proposed agreement with Great Britain is developing, largely in New Eng- land, and there is what Secretary Hull de- scribes as " a veritable barrage of sinister " propaganda . . . designed to wreck the most " impörtant policy which our country can " pursue to promote its economic well-being " and peace." The general basis of the sug- gested agreement with Great Britain is an exchange of American pr imary products for British manufactured commodities, and one of the complaints made is that United States industry, already troubled with a severe domestic recession, is in no position to face increased competition at the hands of British industry. Secretary Hull's principal problem will be that of placating the alarmed industrial- ists of his own country and even a measur- able success in this regard may not insure the ultimate acceptance of his agreement. Realizing this, he and his assistants are making a determined effort to consolidate support among American agriculturists. The Secretary of Commerce has published a sur- vey of Anglo-American trade over a period of years and in this survey the value of the British market as an outlet for American fa rm products is emphasized. Approximately one-half of United States exported edible animal products went to the United King- dom last year, nearly 30 per cent, of exports of inedible animal products, 25 per cent, of edible vegetable products, 45 per cent, of inedible vegetable products, about 20 per cent, of textile fibres and manufactures, etc. " Thus," says the New York Journal of Com- merce, " the farmer has the largest stake in " the conclusion of a successful trade treaty " with Great Britain," and " the Government "wi l l doubtless emphasize this in explaining " t h e additional tariff concessions to Canada " that promise to form an integral part of " t h e negotiations with Great Britain." An- other point made by Secretary Roper's stat- istics is that British purchases of American products have been falling in relation to the general increase in American foreign trade. The trade balance in favor of the United States has been rising, and the Journal of Commerce concludes that material conces- sions must be offered by the United Stales if substantial benefits are to be derived f rom a new trade treaty, and they will have to take the form, chiefly, of lower duties against British manufactured goods. The rest of this comment is of particular interest to Cana- dians. The Journal of Commerce suggests that United States sacrifices be made to fall in part on the American farmers, who must see that they have more to gain in the British market than they may lose through increased imports of Canadian cattle, cheese, cream and lumber, etc. At the same time, ANGLO-U.S. TREATY FACES IMPAIRMENT European Events Likely To Be Of Little Help At Washington OTTAWA H O P E F U L •j ! jl Enlarged Agreement With Canada Expected By Officials OTTAWA, Feb. 25—(Star Special by Ätaff Correspondent)—Effects wjrfch may be indirect and intang- ible but little helpful to the Anglo- American trade pact, or the revised trade agreement between Canada and the United States, are foreseen in some quarters from the develop- ments in Europe this week. The British Government's plans for "appeasement" are thoroughly un- derstood and appreciated here, but it is already indicated in Congress that the reaction there is not so good. É î r th j less^ the belief at Ot- s iM^agreements will be d-"Between Great Britain and litejl States afid oil larger between C a n a d a / and the .States. 3S MAY BE LONG It is being noised about that the Easter adjournment of Parliament this year will extend from April 13 to May 4f wfeh the plan that soon after rtsumAion, the j budget., in- cluding'the rew tfktieiagreerrvents, will be presetted. J Tjferç—i? àlso the idea t h a i PrçXjieti King and Hon. C. A. »unning, Minister of Finance, ma j l go to Washington to sign up whatever is to be signed. For this, obviously no definite plan can be made until it is known what comes of the negotiations. British representatives are in j Washington already for the rea- son that their "schedule" is three weeks ahead of that of Canada. But Canadian negotiators will be present at probably the end of March to keep an eye on public hearings tixed for April 4 and ex- pected to last for ten days. After that the bargaining will begin. The negotiations are des- cribed as most intensively inter- locked in three ways—the modifi- cation by Canada of the Ottawa agreements with Great Britain will depend on what compensating concesions will be made by the United States. In turn, this will be influenced by what Great Britain outside of the Ottawa agreement is. prepared to do for American trade and what the United States is ready to concede similarly on j-eciprocal lines. While the disposition at Wash- ington is reported to be very hope- ful of agreement, it is known that United States authorities are scrup- ulous against taking definite steps in advance of the public hearings and the attitudes they may dis- close. NEWJTORK, F * . 21 I B (A.P.) — A grqi<f)«>f nine British experts, headed by Arnold S. Overton, sec- oiyf peripançnt secretary o£ the British Board of Trade, arrived on the linsr Queen Mary today to negotiate' a' trade treaty between the United States and Great Britain. "I need not stress, the import- ance of this task," said Overton. "The discussions involve not only the • United Kingdom and the United States relations, one of the largest and most diverse relation- ships in the world, but also trade between the United States on the one hand and that of Newfoundland and other members of the British Colonial Empire. "It is bound to be a difficult pro- blem, hut ;:we are confident that the meetings will be held in an at- mosphere Of good will. We look forwstra" to reaching an equitable agreement, fair to both countries, whidi jvill increase prosperity be- tween our two countries and the world in general." Other members of the delegation, which left at once for Washington, were F. Grant, N. E. Archer, J. A. Stirling, G. L. Watkinson, W. E. Rhydderch, J. C. Forrester, T . H . Hammond! and Miss H. V. Lupton . U. S.'Moratorium Asked on Trade Agreements 'WASHINGTON, Feb. 21— U.P.) — Representative Bates (Rep.- Mass.) called upon - the\ Govern- ment today, to "dec la jLa morato- rium on all trade agreement nego- tiations until we find employment for millions of men and women seeking jobs." Protesting against any possible tariff reductions on articles manu- factured in Massachusetts in the proposed reciprocal agreements with the United Kingdom and Can- ada, Bates said that the woollen and worsted, cotton cloth, shoe and leather, and hat industries "al- ready have felt the brunt of for- eign competition." El E E de Treaty Change May^ Ruin Stability S fecial r Cable by 3. E. T(e" Star's Resident Corresy DON, Feb, 9^The danger that ^Iterations i&tme U. K. - U. S." trade] treaties j i r a y adversely af- fect Imperia^Cruit growers and dealers wa^br lugh t tö the {atten- tion or tire President of the Board of Tagäe, R i g h t Hon. Oliver StaiiJey, yesterday. deputation from the Empire Fruit Council/ which is represen- tative of dealers in Britain and all the Dominions, told Mr. Oliver and officials f of the Board that tariff concessions to the United States would upset the Empire- wide system of regulating the tim- ing of shipments to Britain unless America is willing to accept the system too. The deputation emphasized that the Americans view Britain merely as a surplus market, and should not be allowed to obtain a position here where they could cause in- stability of prices. New Anglo-American Trade Negotiations Do Not Mean Scuppering of Preferences LONDON, Jan. 29—(From J. E. Poole, Resident Correspondent) —With formal negotiations for an Anglo-American trade agreement about to begin an<J the preliminary investigations fmd contacts com- pleted, an important change in temper is observable in British in- dustrial quarters, which were at first inclined to adopt a definitely hostile attitudé. In every industrial quarter today it is admitted that such an arrange- ment, provided sacrifices and bene- fits are fairly balanced and the principle of Imperial Preference is maintained, would go feu- towards aiding world economic and indus- trial stabilization. Overseas observers who may be nervous lest Great Britain may prove too ready to emasculate the Preference system in order to se- cure a trade agreement should take heart from public statements by Ministers and permanent offi- cials on that subject. Discussing this matter recently, the Rt. Hon. Malcolm MacDonald declared: " I can assure you that at every stage of the discussions we shall keep in close touch with the Dom- inions and other parts of the Em- pire concerned, and that there is no question of the abandonment of the principle or the practice of Im- perial Preference " Then, ag, Hon. Euan Secretary in the co Canadian declared:! „ "These negotiations United States do not abandonment of th< perial Preference sential y d idtegr? policy or jGi&w. B] Dominions! the Rt. liamentary oil Trade, 'es« to\|Jfe îmerce with the iean the of Im- an,«s- of The id the In fact, in almost every public speech by Ministers or leading fig- ures in the industrial world this note is paramount when the An- glo-American trade negotiations enter the field of discussion. This does not mean, however, that every phase of the negotia- tions will not be exposed to the sharpest scrutiny on this side of the Atlantic as will be the case in the Dominions and in Canada in particular. Indeed, the powerful Federation of British Industries and the Association of British Chambers of Commerce have each presented a powerful plea to the President of the Board of Trade, the British equivalent of the Can- adian Minister of Trade and Com- merce, urging that British indus- try and commerce be placed in exactly the same position as Am- erican industry and commerce &od be given full information of any proposed reductions of the British tariff on American imports and bave the opportunity either as in- dividual industries or through the medium of some such body as the Import Duties Advisory Commit- tee, so that industry and com- merce here may be placed in a pos- ition to make a full investigation as to the effect of the proposed changes upon the various sections which may be concerned and to enable them to present their case for consideration before any alter- ations reach what becomes a vital stage in negotiations. Of the value of Imperial Prefer- ence as between Canada and Great Britain, Sir Geoffrey Clarke, C.S.I., O.B.E., declared at a Canadian gathering that the momentum be- tween 1936 and 1937 was little short of amazing, for while in the former year the money value of Anglo - Canadian trade reached £75,000,000—with the exception of Anglo-American trade, the great- est between Britain and any for- eign country—it would by the end of the present year attain at least £90,000,000, and with this he cou- pled the statement that while in the past there had been some criti- cism of Canadian treatment and of dumping in the British market by a few Canadian industries, in- dustrialists as a whole were now satisfied, realizing that the propor- tion of imports as between a nation of 45,000,000 consumers and one of a bare 11,000,000 was a fair one. It would have been well could trade pessimists in Canada have heard what the two trade experts Jföd to say in condemnation of v*hat they termed the "slump psy- chologists" and Stock Exchange rear-mongers as contrasted with the actual facts of the industrial outlook here. Both declared there was not the slightest excuse for the slump talk prevalent in a few quarters, and Reginald McKenna, the financier, in a speech this week went even further and said that such talk was almost a crime, pointing out, incidentally, that those who dwelt so mournfully upon the possibility of a recession following upon the completion of Great Britain's rearmament pro- gram, forgot, ignored, or failed to realize that the expenditure and rearmament was a minor factor in comparison with the country's trade total. TARIFFS THERE TO STAY Captain Wallace in the course of the address referred to previously made the significant statement that the tariff was now stabilized and, he might almost insist, a perman- ent thing in the policy of this country. The National Union of Manufac- turers in reply to a request from the Board of Trade for their view on an Anglo-American trade agree- ment, welcomed the idea of such an agreement, provided it means equal privileges without injury to Imperial Preference, but delivered a mild warning against undue haste or the linking up of what should be a purely business ar- rangement with the idea of its po- litical effect upon the two demo- cracies. Among the problems which they urge should be kept in mind by the British negotiators are, 1—Any concession which the United States may grant Britain in return for concessions Britain makes will, under the most-favor- ed-nation clause be extended au- tomatically to other countries which give us nothing. 2—American interests, under American procedure, have early information of any proposed con- cessions which affect them, and will have opportunity of expressing their views. 3—It would be a great relief to all business men throughout the country if they knew that some leading business men with experi- ence of important international trade arrangements had been se- lected by the Government to as- sist the Government representa- tives in the negotiations. One of the most vital weaknesses of every trade treaty with the United States, which I have not seen referred to here, either by Ministerial speakers, industrialists or theorists, is the fact that the ex- pectation of life of every such ar- rangement with the United States is limited almost wholly by the complexion of the Administration succeeding the Government which makes the treaty—Canada has had sufficient experience of this to rea- lize how difficult this question may become before a worth while Anglo-American trade treaty is possible. The practice in Great Britain Is so different—Oppositions assuming the reins of government almost in- variably maintaining all such ar- rangements with foreign countries for the term of years agreed upon in the treaty instrument that I fear that the British negotiators may, unless "they are put wise" overlook this point. An Empire Economic Union booklet urges the erection of an Imperial consultative and advisory body, urges that Great Britain and the Dominions act more in unison in trade negotiations with foreign countries and declares: "The Most-Favored-Nation clause In our treaties should be de- nounced, and replaced by a more conditional form." ANGLO-U.S. TRADE The British Committee of the In- ternational Chamber of Commerce welcomes the possibility of an An- glo-American trade treaty holding that co-operation between t h e United States and the British Em- pire is of great and urgent import- ance. The Association of British Cham- bers of Commerce argues that in view of the large balance of trade in favor of the United States, such tariff reductions granted by the United States should have some relation to this balance — Britain buys from three to four times as much from the U.S., as the latter takes from Britain, — and they also urge that British concessions to the U.S., should be closely examined by Bri- tish interests before the British Government is committed. The Federation of British Indus- tries also urges that British inter- ests be given opportunity to state their case. An important and possibly diffi- cult matter is the position of agri- culture with respect to the forth- coming negotiations. In this the Central Chamber of Agriculture at a recent meeting passed a resolu- tion insisting that there must be consultation with the industry before any concessions detrimental to British agriculture were embod- ied in any trade treaty with the United States, and the resolution was carried unanimously. This bodes trouble for the British negotiators since agriculture here looks upon itself as an abused and neglected stepchild of the Govern- ment, despite large number of boards set up to assist it and the numerous subsidies which it re- ceives from the taxpayers' pockets. The leaders of agriculture in Bri- tain are among the most vocal men in the country and they are likely to prove a thorn in the flesh of the negotiators if the farmers think that American produce is likely to cut too deeply into their markets. Nevertheless, I believe that the Government is determined to use its powers of negotiation to the full to bring about a satisfactory Anglo- American arrangement and will undoubtedly expect British indus- try, commerce, and agriculture, to share in any reasonable sacrifices necessary, especially in view of the attitude newly announced of the various Dominions, themselves vitally concerned In outlets for agricultural and other natural re,-1 aources. T H E G A Z E ' CANADIAN GROWERS FIGHT TARIFF CUTS Ontario, B.C., Nova Scotia Plan Joint Protest on U.S. Concessions Ottawa, January 26.—KB—British Columbia and Nova Scotia apple growers and Ontario's vegetable growing industry are threatened by changes now being negotiated in the Canada-United King4on^ and the Canada-United States trade treaties, the Canadian Horticultural Council was told today. M.-V. McGuire, Vernon. B.C., Cryg CaldutellvKentville. N.S., and : E. J. Atkin, Ledmington. Ont., ax- pressed fear over possible tariff changes and Caîdwell was named chairman of a committee to com- bine the many tariff resolutions be- fore the council and present a single one tomorrow. Caldwell said loss of much of the preference on apples in the United Kingdom market would ruin the British Columbia industry as 50 per cent, of its product was ex- ported there. Caldwell said 90 per cent, of Nova Scotia's apples were exported and whole communities would be ruined by loss of, or major reduction of, the British preference. Atkin said the vegetable grow- ing industry had suffered most in the Canada-United States trade treaty and less protection now, either through tariff reductions or elimination of "added value" clauses or dumping duties in the treaty, would mean the vegetable industry in south-western Ontario "would be wiped out." A resolution from the British Columbia Fruit Growers' Associa- tion asked that "the secrecy attend- ing negotiations (concerning the United Kingdom trade treaty) be lifted sufficiently, if possible, to know the extent tc which it is af- fected and that opportunity be given for full representation to a properly - constituted government committee." Another resolution from the Bri- tish Columbia growers asked the Government be petitioned against I the removal of tariffs and dumping duties on fruit and vegetable im- ports from the United States. George Mitchell, Thornbury, Ont., said the whole character of the Georgian Bay farming region had been changed by the United King- dom trade treaty. Hundred-acre or- chards. planted on the strength of the British apple preference, were common. "We'll have 150,000 barrels of ap- ples this year," said Mitchell. "New orchards are just coming into pro- duction. What will we do with them all if we lose this preference? Plantings would not have been so extensive had we not been assured the prsfernce in Britain was to be maintained?" FOR THE TRADE TREATY BANK presidents are not always yfery specific in their recommendatioo^when addressing the world at their annualj^eetings. But J. A. McLeod, president of tüe Bank of Nova Scotia, in his speech at ^Halifax this morning, plumped for a speciJSÙr thing, for the conclusion of an Ajtklo-AnieöCan trade treaty. He followed th^, argmirents of important financial^and edpnomio^feuthorities in both countriel.\ In jan effo'yirto unchoke the chan- nels of wol'ld traaç Vhe initiative lies chiefly with the\ greéc creditor ftations, Great Britain andlt^e/Wr&ted Stales . \ Sjach, on its own account Was àeen doing what i t can. England hasVtrran^pm»nts wjth members of the s t e r l i n y \ l o c . V h a United States has developedms sYstem of reciprocal agreements on its / «ue . Consequently, an agreement be- tweeo/the two nations would help greatly to ïowér the barriers against trade all over the wdrld. The price, Mr. McLeod points out, is willing concessions from both sides, and from the Dominions, including Canada. And the prosperity of this Dominion depends to an overwhelming extent on its external trade. Improvement in Canadian business during 1937 v/as reflected in the rise in current loans show* by the Bank of Nova Scotia. H. F. Patterson, the general manager, pointed out that the rise of $5,653,000 meant the bank had had to add «under? four million dollars to its sécurité holdings during tlje year, in spite of increased deposits and sharply lower call loans. The result carile in increased profits. 5 Stanley Insists Anglo-U.S. Pact Is Not Political But tommercial Lond Oliver Board, at Li Angl was mer« Dei sions import! portan " import; Gover office tried dustriSlü en ce to States of politii "I'm criticize said Stanley, (Wirelessito fhe New \ 5 , January 24.—The tanley, president oiWthe sted in^pipeech that, rade FERDINANjrklJHN, JR. Trade, i: ool toda , ican 'litical otivi the ashi: s ta j f of math d in'|i U] coming ^agreement nainly com- nswer] s hen allay __ Stanley tiqjsms from in- dfalso by infer- in the United entanglement, n some quarters " because I'm told it is not going to be a trade agree- ment, bur that it is a political agree- ment to which the industries of this country are to be sacrificed. That is complete nonsense. "I do not deny for one minute Times and The Gazette.) that any friendly intercourse with the United States or any sign to the world of any common interest and friendliness between the Unit- ed States and ourselves is bound to have the highest political im- portance. But this is a trade treaty. These negotiations are entered into on both sides because we both be- lieve we can, in a commercial treaty, contribute to the commercial prosperity of our two countries and the world in general." Stanley admitted that there were many difficulties in the way. but predicted the negotiations at Wash- ington would succeed. British dele- gates, he asserted, could "bring back a trade treaty which will stand on its own le.es and bring increased benefits to this country and the United States—a treaty which will lead to a greater flow of trade be- tween us. and be an example which may do something to lower restrictions throughout the world in general." This Week f TAWA^Jan. (StarJpecial staff C * r r e s | o n d e n y ^ - The inion GrwprnS()èn^R waiting ar from msÉhina^n about the Vrade tteaky. ^Announcement, nefcolil' accoma upon w conside. OTTAWA AWAITING ! TRADE PACT ACTION Notice of "Intention" May- Come From Washington, t, intention" to errtpnt will be ist |f»the things jshaAges will be tong time com- ing* It i l not ' expected definitely this week, prd^ably on Wednesday or Thursday, iii which event it will synchronize with the opening of Parliament. Following the formal proclama- tion of an agreement being "con- templated" the notice of "inten- tion" had been expected before Christmas. It failed to come then and is yet to materialize, but no doubt it is impending. Many dif- ficulties, it Is said, are in the way, mainly the involved processes which in the United States precede such announcements. Most meticu- lous preparation is called for. Formal negotiations will be reached after delays prescribed for written submissions and for oral representations by interested par- ties. Hearings of this character relat- ing to the proposed Anglo-Amer- ican pact are to occur about the middle of March. Those in regard to Canada will come later, probably in April, and will be conducted in Washington. U.K.-U.S. Political Pact Rumor Called Nonsense LIVERPOOL, Jan. 24 — (C.P.- Havas)—Commercial interests will not be subordinated to political considerations in the impending negotiation» in Washington for an Angf$-A»fëriean trade treaty, Rt. Hoà. Oliver Stanley, president of the Board, of Trade, promised in a speech Viere today. While admitting difficulties, Mr. Stanley predicted an agreement beneficial to both countries would be completed. "In the next few weeks," thé Minister saia, "we are entering ugori the most important stage of tfle mostj important! negotiations for Ihe most important trade treaty which' t.h®. Gctyernment, in •its seven years in office, hag under- taken. "I am criticized in sQme quarters because, I am told, this is not going to be a trade agreement, but a political agreement to which the industries of this country are to be sacrificed. That is complete non- sense. "I do not deny for one minute that any friendly intercourse with the United States is bound to have the highest political importance, but this is a trade treaty. "These negotiations are entered into by both sides because both be- lieve we can, in a commercial treaty, contribute to the commer- cial prosperity of our two coun- tries and the world in general. "That is what our negotiators will think when they leave this country in a few days time for America. They will find many difficulties in the way, but I be- lieve they will succeed, and I be- lieve it is possible for them to bring back a treaty which will stand on its own legs, which will bring increased benefits to this country and the United States, which will lead to a greater flow of trade between us and will be an example which may do something I to lower restrictions throughout the world in general." TEXTILES QUESTION TREATY Manufacturers See Little Benefit for Canadians in U.S.-U.K. Pact _ (Special to The Gaïetteû Toronto, January 11. —.,-Reports that various branches of ttfe textile industry in Canada suchr as wool- lens, silk hosiery and rïyon fabrics, wiij benefit by 'toe projected Unit- ed i States-Unite& Mngdom trade agreement is noV^aken; «seriously by t}ie textile indifctry heap. Spokesmen of^tne ktexft» indus- try in CanadaMvho «ave examined the list of .tsyßff items released by the Department of State, Washing- ton, poin^Äu%that although Can- ada wilL^et any^ariff rates that may b^^iven tp the United King- dom, Jne manufacturers in Great Britajffi will get any business going because of their \pwer wage costs bo^fi for direct and indirect labor than are paid in Canada. It is true, they point out, that woollen goods produced in Canada are superior and cheaper than in the United States, and that this is also true of some rayon fabrics and other textile products, but on the other hand British prices are still lower than Canadian mill prices due to the difference in wage levels between Canada and Great Britain. Facing equal tariff rates the British manufacturers can substan- tially undersell the Canadian man- ufacturer. A. V. Young, of Hamilton, chair- man of the Primary Textiles Insti- tute, commenting on press reports that various branches of the textile industry in Canada, including wool- lens, silk hosiery and rayon fabrics, •will benefit by the projected United States-United Kingdom trade agree- 'ment said: "These reports are not .taken seriously by the textile in- dustry here and we cannot under- • stand why such erroneous reports are being circulated. •"With British textile manufac- turers," he continued, "continually increasing their sales in Canada in • competition with Canadian manu- facturers and United States textile manufacturers in the middle of a depression, with idle machinery and stocks they cannot sell in their home market, and which they are attempting to dump in Canada, the absurdity of reports of the trade agreement benefiting Canadian tex- tile manufacturers is self evident." T E N T H WÇt p m r t r m l S l u t : "Canada's Greatest Newspaper" Founded in 1869 The Montreal Daily Star is printed and published at 241-245 St. James Street, West, Montreal. by I the Montreal Star Company, Limited, Montreal, I E. R. Whitrod, Secretary-Treasurer. Subscription Rates JUail subscriptions in Canada, Great Britain and Newfoundland — $6.00 per annum. United States — j $7.50 per annum. BRANCH OFFICES FOR ADVERTISING, ETC. C A N A D I A N - ONTARIO, 390 Bay Street, Toronto; M. W. McGillivray, Advertising Representative. EASTERN CANADA, exclusive of Montreal, 241-245 St. James Street, Montreal; A. J. Binnie, Advertising Representative. UNITED STATES— .WESTERN DIVISION—435 North Michigan Avenue, Tribune Tower, Chicago; J. E. Lutz, Advertising Representative. EASTERN DIVISION—110 East 42nd Street, New York City; Dan A. Carroll, Advertising Representative. EDITORIAL OFFICE; 1205 News Building. E. 42nd Street. New York City. GREAT BRITAIN, IRELAND AND EUROPE— Roam 228. Grand Building. Trafalgar square, London W. C. 2, England; E.« C. Slater. Advertising Representative. EDITORIAL OFFICE: 30 Bouverie St.. Fleet St. London MONDAY, JANUARY 10, 1938 ;I A NATION'S HEALTH — IS A NATION'S WEALTH A TRADE TREATY WHOSE TROUBLES ARE JUST BEGINNING T F the Anglo-American trade treaty ever gets born, it will be a miracle. Our American friends have certainly committed themselves to "doing it the hard -wj/tjf." Under the old system, a treaty d | this sojf" was negotiated and thert subnuttèd t o ^ o n g r e s s for approval. That « a s t^ie-'praopce in 1911. The practical àesult \ v a s thaJ^only the in- terests which weje deftaitels^isked for sacri- f i ce ! fay the t r ea ty werejürousAl against it. aterests we might evè rovisio! OLJRof t h e (Tope f b e | by thA gen of direct by some increase so much noise: for under the British system a Government can make a treaty and put it into effect without awaiting either the sanction of Parliament or the approval of the interests most concerned. * • * # ( * # The trouble with the whole thing is ' that some of the negotiators in all the Capitals concerned—not excluding our own—regard it as a veiled political treaty. Even when they know themselves that it will have practically no political effect, they imagine that the "totalitarian" Powers in Europe understand conditions in our democratic communities so little that they will believe that it has. These misled negotiators of ours thus think that the Dictators can be fooled. The aforesaid Dicta- tors know that a trade treaty in Europe would really have political effects; so they are expected to see a political rapprochement in an Anglo-American trade treaty. But they are not likely to be so ignorant of our relations. A trade treaty with us, even while being negotiated, would be more apt to be like the schoolboy's definition of a bridge— "a span that divides the two banks of a liver." If all democratic peoples can be got to see a little sense and join in a political "parallel- ism" under certain challenging circumstances, that would be a splendid thing, and we in Canada would be all for it. But why mix it up with a long wrangle over trade concessions ? they^reseitt V 's tc4i \ the American <publishe|\a l i s t 6f articles which Midered" at?\p%ssibilities for "con- ib a treaty to be framed. This l i s t ^ almost certain toY>e much broader than the li3t of articles finllly included in the treaty, and it cannot possibly be narrower. The consequence must surely be that power- ful interests will be stirred up to oppose any treaty at all on the ground that they "may" be hit, when if it were positively known that they would not be included in the treaty they might be at least quiescent. * * * * * * There is evidence already of trouble in the American Senate. This was bound to come from a number of sources. The proud Sena- tors have probably always resented the change made when their treaty-ratifying powers were circumscribed by an act in 1934 which gave to the Administration power to negotiate certain trade treaties within fixed limits without requiring Senatorial ratification. But when this was done, the Senate and indeed the whole Congress had been sandbagged into docile submission to the Roosevelt policies. They swallowed anything sent down from the White House, often without time to so much as chew it. Today, however, there is a new spirit in the Senate. They stood up to the omnipotent President over the Supreme Court case and beat him. Secretary Hull probably could not now get his blanket powers to negotiate trade treaties, if the thing had to be done over again. At any rate, the Senators are already demanding that any new trade treaties be submitted to Congress before being completed. This point would probably not be urged if there were little or no public pressure be- hind it. The Senate would not make a fight if they did not think it would be popular. This is election year and they would not care to risk tarnishing their shining success of last year. But the Administration has just A TRADE TREATY WHOSE TROUBLES ARE JUST BEGINNING T F the Anglo-American trade treaty ever gets born, it will be a miracle. Our American friends have certainly committed themselves to "doing it the hard Under the old system, a treaty qf this s o ^ was negotiated and theii submitted tojfCongress for approval, f h a t « a s tfie pradfrce in 1911. The ! practical Result thaJ^only the in- terests which w « e defhiitely^isked for sacri- f ice! by the treaVr' werejRrousrfd against it. Other finterests we\e oujrof the fcofee of direct fire, and might evefUlope k) b e l e l t by some of the'; provisions J ^ t y ' thik genV: \ increase Undqj' i th^^rese ik ® ' s t e * \ the American Governrrfcn_yrublishe^i1bst 6f articles which will be 'dpisidered" af^Lplssibilities for "con- cessioner in a treaty $e1fe to be framed. This l i s t j e a l m o s t certain toVie much broader than the list of articles finally included in the treaty, and it cannot possibly be narrower. The consequence must surely be that power- ful interests will be stirred up to oppose any treaty at all on the ground that they "may" be hit, when if it were positively known that they would not be included in the treaty they might be at least quiescent. * * * * * * There is evidence already of trouble in the American Senate. This was bound to come from a number of sources. The proud Sena- tors have probably always resented the change made when their treaty-ratifying powers were circumscribed by an act in 1934 which gave to the Administration power to negotiate certain trade treaties within fixed limits without requiring Senatorial ratification. But when this was done, the Senate and indeed the whole Congress had been sandbagged into docile submission to the Roosevelt policies. They swallowed anything sent down from the White House, often without time to so much as chew it. Today, however, there is a new spirit in the Senate. They stood up to the omnipotent President over the Supreme Court case and ! beat him. Secretary Hull probably could not | now get his blanket powers to negotiate trade treaties, if the thing had to be done over again. At any rate, the Senators are already demanding that any new trade treaties be submitted to Congress before being completed. This point would probably not be urged if there were little or no public pressure be- hind it. The Senate would not make a fight if they did not think it would be popular. This is election year and they would not care to risk tarnishing their shining success of last year. But the Administration has just published what is likely to become now a list of autômatic enemies to any Anglo-American Trade Treaty at all. They have summoned these dealers in a thousand articles to appear and show reason why they should not have an inch or two cut off the tops of their heads. * * * * * * Then there are those Senators who would dearly love another spectacular rebuff for Roosevelt. If he could be blocked again, if his Democratic supporters could again be split prestige might be finally shattered. So we have all the ingredients .of a very pretty fight. In Canada, we need not become unduly alarmed over our conceivable share in s the "potlatch" until i t has been accepted by the two principals, the United States and Great Britain. In Great Britain, things are by no means all lovely. The Federation of British Indus- tries is very much perturbed over the pros- pect. I t fears that the commercial side of the business may be submerged by the political, and that — to quote the Financial News of London — "the British Government, in its intense political desire to regain Anglo- American co-operation, may agree to some- thing which would require important conces- sions from British industry but which would bring no corresponding benefits." This oppo- dicion in Great Britain, however, will not make MONTREAL, MONDAY, JANUARY 10. When a man mistrusts his resolutiojr. 'it it iood generalship to retire—G. J. Whfte MeL- QilLe. U.K.-U.S. NEGOTIATIONS. Apart f rom publication of the list é t commodities in regard to wl^ich the Ujjlred States will consider g ran t in g conceaplcns to Great Britain under a reciprocfel tr^öe agree- ment, Secretary f u l l ' s announcement of Friday last contains very litÜB that is new. That such a list would beJSsued was made kfeown in the prel iminagF announcement of Nove nber 18 and it j<Cs stated then that t raders and others ijarferested in the commo- dities 50 listed w e j € to be gi^çn opportunity ammittee for list given out : " iay is suffi- j ford opportunities 6ry broad plane, tha% there is no under- ssions on all or any of ^numerated. A great many important lines of British manufac ture and export are included in the list, but they con- stitute only a basis of discussion, and this applies equally to any supplementary listing. According to the official statement, "Some "of the products listed may not be the sub- " j e c t of any concession under the terms of " the agreement, and the import duties on " those items which are included in thé " agreement, as finally negotiated, may or " may not be changed." It will be observed f rom this that, except as indicating the scope of negotiations, the mere publication of this list of British export products does not disclose the intention or disposition of the United States Government in any precise degree. Nevertheless, the length of the list has some significance. To what extent it will be preserved in the agree- ment which is to be negotiated will depend, naturally, upon the number and importance of the reciprocal concessions which the United Kingdom is prepared to.give, or is able to give. The stability of the agreement will depend upon the latitude which is left to the United States in subsequently altering the import duties established under the agreement. It is scarcely to be expected that British representatives will consent to a one- sided latitude of this kind and will not retain an equal freedom of action in respect of im- port duties applicable to United States pro- ducts. Any agreement negotiated upon this basis will not have in it the element of per- manence which is usually considered essen- tial as a trading foundation. Neither Canada nor any other of the British Dominions is really being excluded f rom these pending negotiations. It is more correct to say that they have no part in them since they are in control of their own rela- tionships and are completely independent in regard to them. There seems also to be a minimum of accuracy in the interpretation of Secretary Hull 's t rade policy as affecting the Ottawa agreements of 1932. That the British Empire by those agreements en- deavors to enclose itself within a wall of Empire preferences as a means of attaining economic self-sufficiency is a suggestion sin- gularly remote f rom the actual facts. So is the statement that the first breach in this wall was made by the United States in negotiating the existing reciprocity treaty with Canada. It was a cardinal principle of the Ottawa agreement that, while intra- Empire preferences were being granted, the channels of t rade with non-Empire countries were being neither closed nor obstructed. That this principle was something more than an expression of policy was demonstrated in the Canada-United States agreement itself, which made no breach in the British prefer- ential arrangement , but which enabled the United States and Canada to trade upon a broader and mutual ly more profitable basis without in any way interfering with the Dominion's commercial relationship with the United Kingdom. It was the boast of the King Government that in negotiating the reciprocity agreement with the United States all Canadian benefits under the Canada- United Kingdom agreement had been pre- served. It has been stated repeatedly by members of the British Government that the negotiation of an agreement with the United States will not mean abandonment of the Empire preference principle. There ought to be no misunderstandings upon these points, whether in Washington or anywhere else, if the pending negotiations between the United States and Great Britain are to be conducted in an atmosphere most conducive to a suc- cessful issue. SENATE REVOLT LOOMS TO HALT ÄNGLOILS, PICT hi lade TharçCongress iiven Greater Voice in Agreements ANGLO-U.S. PACT SITUATION WASHINGTON—Senators of both United States political parties united in demanding that Con- gress have more voice in treaties generally and the prospective pact with Britain in particular. Some of the concessions announced "for consideration" were denounced. Meanwhile the State Department exerted all its influence to popu- larize Hfe p^ct and make its pro- visions and possible advantages familiar to the Unjted States pub- lic. :..»•. ß : m LONDON—Agreement t i tween the U.S. and the Dominions was held to be crux of tihe Anglo-U.S. treaty problem, în the current Bulletin of International Affairs. It was pointed out that the Do- minions jWould be directly affect- ny important concession nightimake to the United fYestfrday the Govern- ced that the British experts would sail (d States February 1. month? iniprepara- efore formal negotia- April. y Senators Balk at Treaty- Washington, January 9.—(®—Sen- ators of both major political par- ties today stood behind a demand that Congress be given a greater voice in formation of United States agreements, the next of which .will be with the United Kingdom, its colonies, mandated territories and Newfoundland. Twenty-four hours after the New Deal Administration had announced a long list of articles to be consid- ered for concessions in the pro- jected pact with the London Gov- ernment, Senator O'Mahoney, Wy- oming Democrat, proposed Saturday the passage of legislation to prevent any proclamation of a trade agree- ment from becoming effective until 30 days' notice of its terms had been given to Congress. Senator Connally (D.-Texas) and Senator Bonç (D.-Washington) sug- gested the legislation should go further and require submission of treaty terms to Congress before j agreements were completed. O'Mahoney added protest at in- clusion of woollen goods in the list of commodities to be considered for negotiating the agreement with London. He said the wool in- dustry even now was facing "disaster." He had been given assurance by the State Department, the Senator continued, that concessions would not be made on any commodity if it would damage any field of agriculture. In this, the Depart- ment had kept "the letter" of its agreement. Meantime, the State Department, headed by Cordell Hull, father of the New Deal reciprocal trade pro- gramme, issued a statement credit- ing a portion of the $1,499,566,000 increase in the country's commerce in the first 11 months of 1937 to the reciprocal policy. "There are definite indications that the trade agreements pro- gramme is helping to promote mu- tually beneficial trade between the United States and other countries," the Department said. Observing that it was not possible to separate completely the factors contributing to the general increase, the Department added: "It is significant not only that our exports have gained relatively more to the agreement countries as a group than to non-agreement countries, but also that imports of American products into the agree- ment countries have generally in- creased more than have imports of the products of other countries." TRADE INCREASE RESULTS. Statistics made public by the De- partment showed the total two-way trade with the 14 nations with which agreements were in effect during all of 1936, rose from $1,- 719,330,000 in the first 11 months of 1936 to $2,262,517,000 in the same period of 1937, an increase of 31.5 per cent. Trade with all other countries increased 35.5 per cent, during the same period — from $2,784,278,000 to $3,639,557,000. Exports to trade agreements countries expanded from $799,336,- 0C0 in the first 11 months of 1936 to $1,140,337,000 for the same pe- riod of 1937. or 42.6 per cent., while those to all other countries in- creased from $1,426,841.000 to $1,886,- 645,000, or 32.2 per cent. Imports from trade agreement countries amounted to $919.994,000 in the 1936 period, compared with $1.122,290,000, a rise of 22 per cent., while from all other countries the i m n n r f i n p r p a ç p w a s !ÎOd vmv r-or^f United States and other countries," the Department said. Observing that it was not possible to separate completely the factors contributing to the general increase, the Department added: "It is significant not only that our exports have gained relatively more to the agreement countries as a group than to non-agreement countries, but also that imports of American products into the agree- ment countries have generally in- creased more than have imports of the products of other countries." TRADE INCREASE RESULTS. Statistics made public by the De- partment showed the total two-way trade with the 14 nations with which agreements were in effect during all of 1936, rose from $1,- 719.330,000 in the first 11 months of 1936 to $2,262,517,000 in the same period of 1937, an increase of 31.5 per cent. , . Trade with all other countries increased 35.5 per cent, during the same period — from $2,784,278,000 to $3.639,557,000. Exports to trade agreements countries expanded from $799,336,- 0C0 in the first 11 months of 1936 to $1,140.337,000 for the same pe- riod of 1937. or 42.6 per cent., while those to all other countries in- creased from $1,426,841.000 to $1,886,- 645.000, or 32.2 per cent. Imports from trade agreement countries amounted to $919.994,000 in the 1936 period, compared with $1.122,290,000, a rise of 22 per cent., while from all other countries the import increase was 39.4 per cent., f rom $1,257.347,000 to $1,752,912,000. Fate Depends on Dominions London, January 9—(C.P.-Havas) —Conclusion of an Anglo-American trade pact depends "primarily on agreement between the United States and the Dominions," since the latter will inevitably be affected by every important British conces- sion to the United States, it is as- serted in the current issue of the Bulletin of International Affairs, published here Saturday. The Bulletin, fortnightly review of the Royal Institute of Interna- t i o n a l Affairs, published an exten- sive article on Anglo-American trade relations. It pointed out that the trade volume between the Un- ited Kingdom and the United States T H E G is greater than that between any other two nations except Canada and the United States. Since the two nations both strongly espouse the most-favored- nation principle, all reciprocal tariff concessions will automatically be extended to most other coun- tries, the article said. It was re- cognized, however, that the prac- tical importance of this clause is considerably diminished—particu- larly as far as the United States is concerned—by the habit of limit- ing concessions to goods of which the second party to the agreement i s t h e P ™ a i £ a l P r Q d ^ and fradéagreements w h i c h o t h e r c o u n t r i e s are n o t p r e a t - l 1 ? c , - n e l I a a e a g r e e m e n t s g . ly interested. Despite this, the Bulletin stress- ed that the indirect benefits flow- ing from stimulation of commerce between the world's two greatest nations would be considerable. In regard to the trade balance between Great Britain and the Un- ited States, the article pointed out that "although her merchandise bal- ance with the United Kingdom and the British Colonial Empire is fav- orable to the United States, when invisible items are added the bal- ance becomes definitely unfavorable to her." Examination of the probable con- cessions which the United States would ask led to the conclusion that "any important British con- cessions must inevitably affect the Dominions. "If the United Kingdom grants the United States concessions on— for instance—wheat, hams, timber and fruits, at the expense of the Dominions, the latter will expect in return concessions from the Un- ited States. DUTY ON AUSTRALIAN WOOL. "Australian wool exports to the United States have declined very considerably since 1929, owing to the extremely heavy American du- ties of over 90 per cent, ad valorem. "Australia would like concessions on wool and fresh fruit—the Aus- tralian season not coinciding with the American—and on wines and spirits, and if possible entry into the American meat market. In re- turn, she might remove her trade diversion measures, directed against American motor cars in particular. "New Zealand's most important exports to the United States are sheepskins, wool and butter. Can- ada would want reduced duties on milk and cream in particular. Wood pulp and pulpwood were guaran- teed free entry by the Canadian- American agreement of January 1, 1936, by which she also got some concessions on certain kinds of timber. "Conclusion of an Anglo-Ameri- can commercial treaty depends, therefore, primarily on agreement between the United States and the Dominions. The United Kingdom cannot increase her imports of agricultural products to any large extent, particularly now that she is committed to a policy of protect- ing home agriculture. "For her the chief consequence of the treaty would .therefore be diversion of certain of her imports f rom the Empire to American sources of supply. On the side of the Dominions there are signs that both the Canadian and Australian Governments are now strongly in favor of a treaty, partly because of its political implications but also because they have hopes that the Empire surplus of certain products might to some extent be absorbed by the American market. "On the other hand, it cannot be ignored that there are strong sec- tional interests in both Canada and Australia—notably the timber and f rui t industries in British Columbia —which are strongly opposed to any modification of the British pre- ferential tariff." Senator O'Mahoney put his pro- posal for filing trade agreements with Congress 30 days prior to their effective date, in the form of an amendment to the Trade Treaty Act of 1934, under which agreements with Canada and 15 other countries have been signed. "I am interested in the rights oi Congress to know what is being done before it is done," he said. Referring to the projected United Kingdom-United States pact, Re- publican Senator Bridges, of New Hampshire, asked O'Mahoney if he thought it "might make this coun- try a dumping ground for British goods." "The Senator ' from New Hamp- shire would like to think that, but I don't," O'Mahoney replied. The Wyoming Senator went on to say he thought the Roosevelt Ad- ministration was seeking, in good faith, to develop the commercial activity of the whole world. How- ever. it_was_no_^iQubt,in.his mind were in effect treaties, and he contended they should be subject to Senate ratification. Two veteran Republicans—Sen- ators Borah, of Idaho, and Johnson, of California—argued that the Sen- ate should have the power to con- firm or reject all trade treaties. Another Republican, • Senator Steiwer, of Oregon, said the State Department's list of goods to be considered in the coming negotia- tions with London officials whs an "all-inclusive list." He doubted that it was a reasonable effort to in- form persons producing the com- modities which might be included in the actual agreement, merely to include them in an all-inclusive list. Senator Borah then called for a "definite statement" of the com- modities which would be subject to concessions in the negotiations. The list issued by the State De- partment Friday contained more than 1,000 articles ranging from whisky and other alcoholic bever- ages to tooth-brush handles and party novelties. Persons interested in any of the commodities may file written briefs or appear; before a special committee which will open public hearings here March 14. An official British delegation of trade experts will come here early next month to begin discussions with American experts. U.S. Seeks Pact Support By HAROLD B. HINTON. (Special to The New York Times and The Gazette.) Washington, January 9.—Reper- cussions of the projected reciprocal trade agreement with the United Kingdom on domestic American economy and the probable reaction 6f the home public are occupying the attention of the State Depart- ment negotiators as the time draws near for actually coming to grips with their British colleagues on concrete questions of tariff rates. They are relying, to a consider- able extent, on the public hearings before the committee for reciprocity information, scheduled to start on March 14, to help them plumb pub- lic sentiment. In the meantime, considerable educational effort will be put .forth by the State Department. In addi- tion to the usual speeches by Ad- ministration spokesmen, specialists are arranging for radio broadcasts and other demonstrations intended to put the problem before the American public in a sympathetic light. George Fort Milton, publish- er of the Chattanooga News, whc is an old personal friend of Secre-' tary of State Hull, has been retain- ed as a special assistant to the Se- cretary largely for this purpose, and is now travelling about the country on this mission. The negotiators here feel that they have in their favor several good horse-trading points. Although two-thirds of the imports from the United Kingdom now enter duty free, and the law prohibits the transfer of articles from the free list to the dutiable list, an agree- ment to bind a given commodity on the free list for a definite period of years has been found, in other ne- gotiations, to have its trading val- ue. Similarly, the United States sells little to the Crown Colonies for which the United Kingdom will speak in the forthcoming negotia- tions. but it buys large amounts of raw materials, including rubber and tin, from them. Under the usual course of triangular trade, the money these colonies obtain from the United States for their raw ma- terials they spend in Great Britain for manufactured goods. The whole atmosphere, as it is foreseen from this side, will be one of trying to encourage comple- mentary and supplementary trade, to mutual advantage, between the two great commercial nations. U.K. Experts Sail Feb. 1 (Special Cable to The New York Times and The Gazette.) London, January 9.—The delega- tion of British experts to negotiate a trade agreement with the United S ta': ;3 is expected to sail on Febru- ary 1 so as to have plenty of time, to discuss the situation with Sir Ronald Lindsay, British Ambassador to Washington, before the formal negotiations begin in April, it was learned today. The Board of Trade will supply most of the consultants, but there will also be representatives of the Treasury, the Ministry of Agricul- ture and the Dominions Office. U.S. TREATY URGED BY LORD CAMROSE Press Peer Citls Accruing From Anglo- American Agreement • . V Paris, December |9-^C.P.- : tUnless the Way rç opened ^-American îomic apd is of the betWejen ir.»rt|i blbw maj fonjKtectlcal co the gfltot powe^ Camrrflfc. Briti The p%blisjajtr, w: mie IntSr^nionale Economyhrreview tional Oramber of pealed^o business sidesVH thé, Atlantij gotimions t&vard tl le stresse® 'lad "äs) An- oollaborat ancial oriblems by >poseyrade agree- e tvJo countries, a bjrdealt all hopes eration between cording to Lord jwspaÄ- owner, ting itt"Econo- (IntlVia tional resseS lac could result \Edr jility »nd iterna- ommïrce, ap- men on both further ne- iroposed pact, ntages which jforld prosperity and stab a advised both Bri- tish and United States manufactur- ers to be moderatae in criticism of an Anglo-American trade treaty. One difficulty facing negotiators, he added, is the fact that powerful interests have grown up in the United States behind the shelter of the protective tariffi For this reason, he said, State Secretary Cordell Hull, who has "the most extensive powers ever in- vested in an American Secretary of State to lower tariffs and negotiate treaties," will undoubtedly have a political battle on his hands. The difficulties are no less for the British Empire, since an Anglo- American treaty implies modifica- tion of the Ottawa agreements, which would have to be approved by each of the various Dominions, Lord Camrose added. But these difficulties should be considered in the light of the tre- mendous advantages which would accrue, not only to English-speaking nations but to all countries of the world, from the treaty, he said. II CI AL' i P O S T Broad Lines Trade Pacts Said Settlei Motor and tries Fear T sions I ius- lces- I'rom Onr Own OTTAWA,-? 1 attitude of ïede : Ward interests w a diesire lo the matter United Stat shuffle len> understand that: the ment "negotii b e t w ^ i the are Imle mor pondent on-committal ai t iori t ies to- ; e evinced i tations in ! Canada- ran trade ,o a prevailing on I parliament Hill teri&s pi the arrange- ,dy { sëttled and that :h are in progress •erniments concerned than mere formalities. Views Not Encouraged Consequently, the understanding in informed Federal circles is that what is to be is already decided, and that nothing effective can be done about it by interests who fear that they may be adversely affected. It is well known that already fruit interests from the Maritimes and from British Columbia have made known their desire to make repre- sentations as to their own position. Manufacturing and B. C. lumber in- terests have done likewise. The Government, however, has not en- couraged any group to make known its views. In theory at least the United States American procedure is dif- ferent with the Government notify- ing interests which might be affected and giving them an oppor- tunity to state their views. There is no requirement on the Govern- j menfs part, however, to act on these views. Meanwhile, the picture is chang- ing somewhat, so far as the current1 forecast of the proposals is con- cerned. The anxiety of the apple growers is tending to become a little i allayed by the persistent report that j the United States is to share the ; British preference only on a sea- sonal basis. Motor Makers Worried Qn the other hand manufacturing interests are becoming more con- cerned. Recent addresses by promi- nent motor executives, in which it was claimed that car prices in Can- ada were lower in relation to costs than in United States, are inter- preted in some quarters as indicat- ing fear of further tariff cuts. Any concessions to United States auto- mobile manufacturers, of course, might be offset by freer entry for Canadian cars into Australia. The latter country this week an- nounces abandonment of its licens- ing import scheme. This should pave the way for U.S.-Australian nego- tiations. Unfortunately, however, no change is contemplated for the present in import quotas for motor chassis, one of the principal items in the Commonwealth's trade with Canada. The Canadian rubber industry is also anxious about any tariff changes and more recently manu- facturers of silk stockmas who are doing a considerable export busi- ness with Britain and even, France. ALL DOMINIONS GET ASSURANCE ON PREFERENCE Chamberlain Reaffirms Devo- tion to Empire Trade Policy • —r- ANSWERS BUSINESS RAP British Industries Federation Had Presented Brief Against Anglo-U.S. Pact (Wireless to The New York Times and The Gazette.) London, December 9.—The policy of Imperial preference was stressed without qualification tonight by Prime Minister Neville Chamber- lain as the most important contri- buting force alike to the British Empire's growing prosperity and the "spiritual unity" of the United Kingdom and the Dominions. He spoke before an Empire Unity meeting attended by 3,000 persons as part of a programme designed to memorialize the life work of his father, Joseph Chamberlain. The Prime Minister notably om- mit ten/any mention of a trade t reat / /with the United States, but it wis obvious that one of the prin- cipal endeavors of his talk was to reassure the, Dominions that he does not contemplate sacrificing their interests in essentials for the sake of the proposed p£ct. Furthermore, h p speech might have been a reply to the Federa- tion of British Industries, which to- night issued — as the culmination of strenuous opposition to the An- glo-American trade talks — a statement sent tb the Prime Min- ister seriously/ questioning the value oî tréat» aâ"*'an advant- age to the UnijfedJKingdom. ; Telling a chierfljl audienae that he was here tt> proclaims "/a/th~.)n Empire unity and determination*" t<* pursue it further," Mr. Chamber- lain lauded the "great plan" of Im- perial preference culminating in the Ottawa Agreements of 1932. That policy, he said, had been "twice blessed," first by raising United Kingdom exports to the Dominions between 1932 and 1936 by 46 per cent., and imports simul- taneously by 41 per cent. Concur- rently, he added, citing other fig- ures, the United Kingdom's trade with other countries has likewise increased. "Now these figures," Mr. Cham- berlain said, "prove the truth of what we have always contended, that the increase in Imperial trade, instead of diminishing foreign trade, has added to the economic stability of the world and there- fore has proved to be a stimulus to the international exchange of goods. "The nature of our tariff was, of course, a necessary accompani- ment to the policy of Imperial pre- ference. This has enabled us to make a series of agreements with foreign countries under which we have been able to accomplish wide- spread reductions of tariffs, both directly and indirectly, through the operation of the most-favored-na- tion clause." The public statement by the Federation of British Industries, which has a strong but only a minor voice in Parliament with a maximum of 150 votes out of 615, raises four principal objections to the proposed treaty. These are based, first, on the dis- location of established trade chan- nels; second, on Britain's currently- abnormal industrial position due to the rearmament programme; third, on allegedly excessive United States tariffs that give Britain a bad bar- gaining position, and fourth, on the unstable condition of the dollar. Discussing the latter two points at length, the Federation statement says regarding tariffs: "The American tariff, which has been raised at least twice since the war, is one of the highest in the world. . . . "The view of the Federation is that in any trade agreement be- tween Great Britain and the United States, a country which sells us two and a half to three times more than she buys from us and whose customs tariff is one of the highest in the world, the first step must be a move by the United States to ad- just the trade balance by a sub- stantial reduction of her tariff." After mentioning the "danger" of an agreement whereby "the United Kingdom may become a dump- ing ground for a United States sur- plus of food and other agricultural produce" at the expense of Domin- ions exports to Britain, the state- ment points out the alleged danger of any agreement involved in "the unstable dollar." "The dollar today may be re- garded as an inherently unstable currency." it says. "To stabilize United Kingdom tariff levels, at a time when the relations of the dollar to the pound sterling is es- sentially unstable and liable to wide fluctuations, is fraught with peril. "In recent months the dollar has depreciated relative to the pound sterling. Currency depreciation nowadays is recognized as a con- venient way of securing a competi- tive advantage in world markets, both directly and by offsetting tariff Karriorç ister afejHojüly/ questioning the value of the t i / a t J as">n advant- age to the Unijed Kingdom. /jf Telling a chferffcl au (J; encré» that he was here tp proclaim^ "/a/th in Empire unity ând determination ta pursue it further," Mr. Chamber- lain lauded the "great plan" of Im- perial preference culminating in the Ottawa Agreements of 1932. That policy, he said, had been "twice blessed," first by raising United Kingdom exports to the Dominions between 1932 and 1936 by 46 per cent., and imports simul- taneously by 41 per cent. Concur- rently, he added, citing other fig- ures, the United Kingdom's trade with other countries has likewise increased. "Now these figures," Mr. Cham- berlain said, "prove the truth of what we have always contended, that the increase in Imperial trade, instead of diminishing foreign trade, has added to the economic stability of the world and there- fore has proved to be a stimulus to the international exchange of goods. "The nature of our tariff was, of course, a necessary accompani- ment to the policy of Imperial pre- ference. This has enabled us to make a series of agreements with foreign countries under which we have been able to accomplish wide- spread reductions of tariffs, both directly and indirectly, through the operation of the most-favored-na- tion clause." The public statement by the Federation of British Industries, which has a strong but only a minor voice in Parliament with a maximum of 150 votes out of 615, raises four principal objections to the proposed treaty. These are based, first, on the dis- location of established trade chan- nels; second, on Britain's currently- abnormal industrial position due to the rearmament programme; third, on allegedly excessive United States tariffs that give Britain a bad bar- , gaining position, and fourth, on the unstable condition of the dollar. Discussing the latter two points at length, the Federation statement says regarding tariffs: "The American tariff, which has been raised at least twice since the war, is one of the highest in the world. . . . "The view of the Federation is that in any trade agreement be- tween Great Britain and the United States, a country which sells us two and a half to three times more than she buys from us and whose customs tariff is one of the highest in the world, the first step must be a move by the United States to ad- just the trade balance by a sub- stantial reduction of her tariff." After mentioning the "danger" of an agreement whereby "the United Kingdom may become a dump- ing ground for a United States sur- plus of food and other agricultural produce" at the expense of Domin- ions exports to Britain, the state- ment points out the alleged danger of any agreement involved in "the unstable dollar." "The dollar today may be re- garded as an inherently unstable currency." it says. "To stabilize United Kingdom tariff levels, at a time when the relations of the dollar to the pound sterling is es- sentially unstable and liable to wide fluctuations, is fraught with peril. "In recent months the dollar has depreciated relative to the pound sterling. Currency depreciation nowadays is recognized as a con- venient way of securing a competi- tive advantage in world markets, both directly and by offsetting tariff barriers. "To attempt to stabilize the dollar-sterling relation at the pre- sent moment would appear to be equally perilous, so long as the United States continues to demand gold instead of goods to pay for her exports and her long-range fin- ancial and commercial policies con- tinue to be in a state of flux." Mr. Chamberlain in his address declared that partnership with the "other great democracies" of the Empire raised Great Britain from "the status of a fourth-rate power," and added that Britain would cling fast to the democratic form of government to which she had held for hundreds of years. "We hear much nowadays about rival systems of government, for which superior efficiency is claim- ed by voluntary subjection of indi- vidual liberty of speech, thought and action, to the direction of the state, or perhaps to a single man who is said to represent the State." I Britain did not wish to prescribe I to other nations the sort of govern- metn they should have, Mr. Cham- berlain said. "For ourselves we prefer, and we mean to maintain, that form of de- mocracy we have built up for hun- dreds of years, and which is best suited to the habits and ways of thought of our people. "We rejoice to find that in these great Dominions, too, are the same forms of democracy, untouched by Fascism and Communism, standing for the same ideal of peace, liberty and justice that we do ourselves. "We realize that by our partner- ship with these other great demo- cracies we are raised from the status of a fourth-rate power to be the heart of an Empire which stands in the front rank of all powers in the world." He urged even closer collabora- tion among the units of the Empire on matters of defence, foreign po- j licy and development of resources, and stressed the importance of! building up scanty populations with fresh blood. Tracing the Empire's growth in the past century, Mr. Chamberlain expatiated on the change from "self-governing colonies" to "self- governing dominions." By the changes embodied in the Statute of Westminster, he said, "we have freely recognized that, in spite of all differences, in the dangers to which we are exposed by our prox- imity to great centres of interna- tional complications, all are part- : ners in the Erhpire and completely j 7 I THE' MON ANOLO-U.S. TREATY PLANS DEFENDED No Abandonment Of Irf- perial Preference Idea Involved LONDON, Dec. 8— (C.f. Cable) — /vfêgotiations with tfie United States for a trade pact do not mean abandonment of Imofrial prefer- ences, Cap t j Euan Wallace, Parlia- ment Secretary^ to "the Board of Trade, declared at a luncheon of tlje Canadian Oh/mber of Com- merce in Great®ri ta in today. teefqre a gathering of many lead- ; ing business ôèujres of the Empire, Captain Waflaco paid tribute to the exoellein traäe relations be- tween Canjrda aflri thf United King- dom, mys attributed stimulated businass/vithin récent years direct- ly to tbra Ottaw a pgrçements and the '"Kanada Calling" campaign ; carried on , in Gifeat Britain by CaMàdian officials. SCORES NARROW VIEW He deplored as a "fallacious doc- trine" the'iviewpoint that trade im- provements effected by treaties be- tween nations had been achieved at the expense of other good custom- ers. It was the gospel of calamity ; howlers and prophets of doom, who revelled in slump predictions. He said he believed the recent Anglo- Canadian trade treaty would re- sult in tremendous benefits to both countries. Sir Geoffrey Clarke, president of the Associated Chambers of Commerce of Great Britain, al- luded to Canada as the "strongest pillar of the whole Empire," which v/as in a difficult position in re- spect to trade due to its close proximity to the United States. Replying to criticism of the dis- proportionate balance of trade be- tween Canada and the United Kingdom, Sir. Geoffrey remarked it was a logical state of affairs considering the difference of popu- lations. "I think the proportion of busi- ness is perfectly fair," he de- clared. "We should be thankful for the enormous advantages we have got*' NO SIGN OF SLUMP Sir Geoffrey said there was no sign of a slump in British business and that the slumpmongers would ! find difficulty in undermining the future, which looked particularly hopeful. Sir Hewitt Skinner, former president of the Canadian Cham- ber of Commerce in Great Britain, said the Ottawa Agreements had opened the way to business suc- cess. Even today, he added, there were British manufacturers who did not appreciate the importance of the Canadian market, and he urged them to devote personal ex- plorations to its possibilities. Hon. Vincent Massey, Canadian High Commissioner in the United Kingdom, and W. A. McAdam, act- ing agent general for British Co- lumbia, were among the guests. League Hopes to Avert New Economic Slump GENEVA, Dec. 8—(U.P.)—'The business decline in the United States and the slackening British armaments boom is stimulating ef- forts of the League of Nations to forestall a new economic depres- sion. The economic committee of the League has agreed to work jointly with the financial committee in seeking abolition of import quotas and foreign exchange control which is preventing more widespread im- provement in world trade. The economic committee will study the quota problem and pro- bably will ask countries which res- trict imports in this way to supply information as to what help they will require to enable them to abolish their quotas. The financial committee last week decided to investigate the ex- change control side of the prob- lem. Members of the financial committee will be asked to explain obstacles which prevent their coun- tries from abolishing this control, and what practical measures could be taken to enable them to do away with exchange control. Later the two committees may jointly elaborate on a practical program to do away with this kind of restriction on trade. The economic committee during the present session is also carrying one stage further the League's in- quiry into the raw materials prob- lem, studying measures to raise the standard of living throughout the world and discussing the con- vocation of a conference to discuss the problem of international migra- ; tion. I NEW TRADE PACT CALLED M O U S " Okanagan Valley Fruit Grower? Protest Pro- posed Changes KELOWNA, B.C., Dec. 9—(C.P.) ; —Possible changes in Imperial pre- : ferences such as had been rumored j would be "ruinous" to the Okana- gan Valley ;fruit district of British Columbia, F. A. Lewis of Vernon, KV-, pressent of the Canadian Horticultural Council, told a meet- ing of f h p t and vegetable interests here ye.jfefday. The ifteeting was attended by growefs' representatives and Board of Trade members from Kelowna, Vernon, Penticton and Oliver. "If there is an emergency," said | Mr. Lewis, "then we will be willing to stand our share of the respon- sibility, but we do object to having industries singled out, which seems to be the case in the matter of any changes in the Imperial prefer- ; ence." Mr. Lewis, reporting on the re- cent Horticultural Council meeting in Toronto, said: "It became more and more evi- dent from information available that the Dominion Government is contemplating an agreement to a change in preference with the Old Country which would eliminate 50 to 60 per cent of our preference on fresh fruits on the Old Country market. It also appeared that we would lose our dump duty on any alteration of the Canada-United States treaty." KING WIRED Mr. Lewis said the Horticultural Council had wired Premier King requesting an interchange of views with the Premier and his Cabinet. He said Premier King "could not agree" to such a meeting and re- ferred the prospective delegation to Finance Minister Dunning. Mr. Dunning was then in New York and a conference was impossible, Mr. Lewis added. "No one in Ottawa would tell us anything about what is contem- plated. We do not know what 10 fight against and can go only on surmise and rumored reports. Members of the Government will not discuss it. But we are certain the * action is definitely contem- plated. The Imperial preferences changes can not be made before next March, and three months must elapse before they are effec- tive. "We believe that the question is far bigger than the fruit and vege- table industry. It is bigger t h a i the Dominion of Canada. I believe it is tied in with the employment problem of the United Kingdom and entails an alliance of democra- tic countries. On the other hand some United States citizens ar? bound to fight any agreement, which they believe would tend to draw them into conflict with Europe." Major M. V. Maguire, Vernon, said lumbermen in British Colum- bia were contemplating a drive lor entire free trade in Canada if they lost their preference in Great Bri- tain, so that they would be able to purchase their goods at lower prices. À m. • y VOL. CLXVT. No. 292 r WANTS TRADE PACT BASED ON OTTAWA Prof. A. Newell Would Have U.K. and U.S. Retain Imperial Preferences SCOUTS ISOLATION FEAR Reviews American History to Show Country Ha*" Taken Its Share of World Responsibility Any Anglo-Arferican trade agree- ment that m a / be drawn up should be shaped jwithin the framework oft what \ J best in the Ottawa Ag^eemegns, in the view of Profes- sor- Arthur Newell, lecturer for the Association for % Anglo-American Undwretandingt who addressed tne Caiyraian Club at luncheon in the Wjndsor Hotel yesterday. he added, the proposed agree- ment could not be worked so that the sacrifice made by the domin- ions is brought into line with that made by American manufacturers and English agricultural interests, he would oppose the pact. However, he did not think it would be ne- cessary for the dominions to make a disproportionate share of the sacrifices — thef t would have to be sacrifices all along the line. Professor Newell did not agree, nor, he said, did all English people agree, that the Ottawa Agreements had been 100 per cent, successful. There was disagreement as to that, but anv trade agreement between the United States and the United Kingdom should take cognizance of Imperial preference along the lines on which it has been worked since 1933. On the other side of the picture was Secretary Hull with far-reach- ing claims, not merely political, not merely a democratic front against totalitarianism, but more than that: It was the first step in such an economic appeasement the world over as might indirectly lead to so- lutions of even the most far-reach- ing political problems. DENIES U.S. ISOLATIONIST. In discussing Anglo-American re- lations under the title "America Looks Abroad," Mr. Newell said that six years ago when he embarked on promoting a better understanding between the two nations he had then regarded it as "interesting and timely", whereas now he regarded it as "urgent and critical." Anticipating the comment of some people on both sides of the Atlantic, that the Americans were animated by a spirit of self-sufficiency and had the Monroe doctrine as their background, the speaker reviewed the history of the United States to rebut this idea of supposed isola- tion. He spoke of the fact that immigrants from all parts of Europe had been allowed to enter the country; the United States had ac- cepted European capital and sold and honored its bonds and stocks to all the world. It had also entered into the Spanish-American war in 1898 and had come out of it a dif- ferent nation. Also it had gripped the Philippines question and dealt with Cuba, and, taking a leaf out of the British book, had made the latter a protectorate. Then the building of the Panama Canal had been carried out and important n^val bases had been provided for the West Indies and on the other end for the Pacific, "since when we are no longer isolationists but part and parcel of the world" the speaker declared. Similarly in industry. Mr. Newell pointed out that the U.S. had turn- ed to various countries for raw ma- terials such as rubber, steel, nickel and other minerals. Also by buy- ing securities during the Great War when the other countries of the world needed money, the United States had become rich, and a creditor instead of a debtor nation. MONROE DOCTRINE GOING. With all these facts it was evident that the Americans had not been isolationists. Not all of them knew this, but there was an awakening. The Monroe doctrine, that old cor- nerstone of American isolation, which had held that the U.S. was the guardian of this continent and of the Latin republics, now seemed rather dead, especially following the recent congress in Buenos Aires, when the need of a new alignment on this continent was seen, in which there would be substituted a multi- lateral treaty whereby the integrity of this continent would be pledged. Canada's interest in this matter, the speaker suggested, lay especially in the danger of Fascist invasion, already appearing in the south, also in regard to tariffs, in connection with which last reference he made his allusion to the Ottawa Agree- ments. Col. Andrew Fleming presided, and at the head table with him and the guest speaker were Homer M. Byington of the U.S. Consulate, Prof. E. R. Adair, Hon. Gilbert Layton, Ross Macdonald, Gordon Small, J. H. Bonar, W. R. Allen, J. H. Alger. T. J. Coulter, F. B. Com- mon, K.C., W. G. Lasher. T. B. Dun- das, W. F. B. Henry, Alfred Pick, Col. T. S. Morrisey and John Pater- son. Lumbe r I n te re s t s Fear New Trade Pact Brit ish C o l u m b i a ! R e p r e s e n - t a t i v e s P r o t e i H l ? r o p o | A n g l o - U i^ l T r e a t y , / b u t M i n i s t e r s ^ r e S U é n t on " e t a i l s (StafâWriter^ané Gldbe'aW Mail.) O t t ^ a , 3.—Grate fears that the proposed, treaty Between the United J u n g f o n i and the British Sta te^^i l l disrupt the British mar- k e t s « British Columbia lumber are exffressed in rèpresentations made here by Pacifié Coast lumber inter- ests. Despite a tremendous geographi- cal handicap, British Columbia last year sold 665,000,000 board feet of lumber to Britain, while sales across the border to the United States in the same period totalled only 165,- 000,000. Loss of the rich British market would throw the lumber industry of the West Coast back to the early depression stage, with a heavy loss of employment. Because the treaty is in its nego- tiation stage, no Cabinet Minister here will act as spokesman concern- ing it, nor admit in any way that a concession is to be made concerning lumber. It is pointed out, however, that President Roosevelt is con- templating a large-scale home-build- ing program, and that, regardless of the trade treaty, British Colum- bia might well find her United States market greatly improved. With the Dominion Government determined on a policy of silence concerning all details of the treaty, 'înnîpeg Jobless Ask Double Relief For Christmas Winnipeg, Dec. 3 (CP).—A dele- gation of Women's Federation of Unemployed m e m b e r s today sought a double relief voucher from Winnipeg relief funds for Christmas, amount to an addi- tional <5ost of ?60,000 to the city. The request is being considered by the Manitoba Unemployed Ad- visory Board. the fate of this industry, and many others, will not be known until some time after Parliament meets. It is understood here, the treaty will be ready for presentation about the time the Budget is usually handed down. Canada Holds Key Position In Anglo-U.S. TradePârley Dominion Likely to Bprfefit Substantially From Three W i y Negotiations Now in Pro- gress —Ironing Qjrt IDifficulties lada holds! keyy^osition in tjfede négotiations now officially iced jmpend i ï f betwlei l Grekt Britain and United States. Practically n o t h i n ^ c a n be d4nd| without this country's approval. In all pfbMbilwy a f e w agreement between Canada and United States will Ââve to precede any Angjo/American pact. Fa r from^oeing merely an interested spectator, liable to be hurt , this Domùnon undoubtedly jtvill have the final word and may benefit substantially f rom any agreement reached between the two major world .powers. clearing the path for any agreement Canada may be aiding the îewhat wavering cause of world peace but in pursuing this lof ty and laudable course certain very practical advantages are not being overlooked. > Ottawa Agreements As a result of the Ottawa agree- ments of 1932 and the three-year ex- tension of those agreements this year, this country is in the position of a man who has an option on a very desirable piece of property but somewhat larger than required. That unused portion is sought by a third party who is willing to trade something of real value for it. The property in this case is the British market, largely for food products and raw materials. The third party, of course, is our big neighbor to the south. Total vilue of the property,concerned is not far short of $2 billions annually. By thf Ottawa agreements pan- ada was guaifrntAd fjfee eptry into the British ß mafket * and certain quotas v?hi<?h ia the càse of bacon at least Jhe has not been able to fill. United States with considerable sur- pluses looming in wheat, pork prod- ucts, fruit and lumber is anxious to get a buyer. Washington has pro- posed that Britain buy these things on the same • terms as has been granted yet t£> «1 ccepted it g fc ocminà the tariS world * d< pa; trac^ dai|glei harassed and object lesson Apparently United States and Great Britain are ready to talk busi- ness. They believe that something can be done to improve materially their present trading position, which briefly stands as follows: British Exports to U. S. (1936) whisky u i a a B P m m r ^ T o o o . m o Undressed lui s and SEfiis . . . . . . 22.500,000 Woollens . 14,500,000 Linen 13,500.000 Tin and p la t inum 12,200,000 Leather goods 4,000.000 Pr inted mat te r 3,500,000 Bur lap 3,000.000 Miscellaneous . 99,800,000 Total 200,000,000 U. S. Exports to Britain (1936) Raw tobacco 95,000.000 Raw cotton 78,700,000 Frui t 53,300,000 Meats 28.800.000 Oil products 28,300,000 Machinery 20,500.000 Lumber 14,800,000 Chemicals 12,600,000 Miscellaneous 10,790,000 Total . . 440,000,000 Canada's Position But talk is about as far as either country can go without approval from Canada. The Ottawa agree- ment gives certain definite conces- sions, particularly in regard to wheat, lumber, bacon and apples. These commodities, when produced within the Empire, enter Britain free. When produced outside, there is a duty sufficient to give any large- scale Empire producers a big ad- vantage. The United States Government, already under fire in certain quar- ters for trade agreements now in force, must get concessions for its own producers of the products named. Great Britain must get the consent of the various Dominions interested for any enlargement of present preferential treatment to include^ an outsider like United States. Of the Dominions, Canada is especially interested because her lines of surplus agricultural and lumber production and the harvest- ing seasons correspond almost iden- tically with those of United States. Both countries grow apples and pick them during the same months; both countries cut the same type of lumber; both normally have surplus wheat to sell in the fall; both have a surplus of pork products. Either the other Dominions do not produce these things at all, or they do so at a different season of the year and therefore would not come into direct conflict with United States exports. Of course, there may be some fric- tion between American producers of citrus and dried fruits and growers in Australia and South Africa, and there are a few other conflicting lines of minor importance. No major trouble, however, is antici- pated in ironing out matters of this kind. Other dominions depend to a much larger extent than Canada on the rrlarkets and other support of the Mother Country. They have not • —j: - . . „„wie that- nr*> in force, must get concessions for its own producers of the products named. Great Britain must get the consent of the various Dominions interested for any enlargement of present preferential treatment to include1 an outsider like United States. Of the Dominions, Canada is especially interested because her l i n e 3 of surplus agricultural and lumber production and the harvest- ing seasons correspond almost iden- tically with those of United States. Both countries grow apples and pick them during the same months; both countries cut the same type of lumber; both normally have surplus wheat to sell in the fall; both have a surplus of pork products. Either the other Dominions do not produce these things at all, or they do so at a different season of the year and therefore would not come into direct conflict with United States exports. Of course, there may be some fric- tion between American producers of citrus and dried fruits and growers in Australia and South Africa, and there are a few other conflicting lines of minor importance. No major trouble, however, is antici- pated in ironing out matters of this kind. Other dominions depend to a much larger extent than Canada on the rriarkets and other support of the Mother Country. They have not the trump trading cards that are in the hands of the authorities at Ottawa. To the latter it is abun- dantly clear that a price is willing to be paid. Price to be Asked That price undoubtedly will be a larger share of the United States market in exchange for larger and freer entry of United States prod- ucts into Great Britain. The present U. S.-Canadian agree- ment went into force on Jan. 1, 1936. It has an initial life of three years and would therefore operate until the end of next year. It was nego- tiated under special powers granted President Roosevelt shortly after he first came into office in 1932, by which he-could on his own-initiative- raise or lower existing tariffs by as much as 50%, These special powers gotlated it is expected that efforts were renewed at the beginning of his second term of office in 1936. •« Because this Canadian-U. S. pact coincided with a sharp rise in most commodities, a rise that brought them into trading range even over the pre-agreement U. S. tariff wall, and because also on certain items like newsprint continued free entry was merely guaranteed, there is considerable controversy on both sides of the line over the total bene- fit derived from the new agreement. In any case, however, trade between the two countries has grown rapid- ly in the last few years. Total of well over $800 millions for the fis- cal year ending March last is ap- proximately $100 millions above 1936 and $225 millions over 1932. But it is still less than two thirds of the total in the last full year before the United States raised the tariff in 1930. Present trade between the two countries is as follows: Canadian Exports to Britain Year Ended Mar 31, 1937 $ Fruits, mostly apples 6,300,000 Wheat 163,000.000 Other grains 6,000,000 Flour, grain products 17,030,000 Rubber products 4.COO.OOO Tobacco, raw 2,600.000 Canned vegetables 3,500,00t Livestock 2,800.000 Fish 5,300.000 Furs, raw 10.200.000 Lard 3.800.000 Leather . 5,300,000 Bacon 27,800,000 Other meats 3,500,000 Cheese, milk, etc 11,200,000 Textiles, raw 2,500,000 Paper 7.000.000 Lumber 28,800,001! Machinery, autos, hardware, pig iron, mill products, etc 13,000,000 Aluminum 8,000,000 Copper 25,500,000 Lead 8,000.000 Nickel 13.200,000 Platinum 8,000,000 Zinc 6.700,000 Chemicals 4,200,000 Miscellaneous 3,200,000 Total* 407,886,000 •Including other items not specifically listed. Britain's Exports to Canada Year Ended Mar. 31, 1837 $ Spirit 5,700,000 Tea 3.000.000 Vegetable oils 4,300,000 Other food products 5,000,000 Furs, leather, etc 5,000,000 Textiles 46,600.000 Printed matter 2,300,000 Machinery, boilers, hardware, bars, iron sheets, etc 18,000,000 Tin plate 8.000,000 Copper, aluminium, nickel prod. 6.078.000 Coal 6.754.000 China and glassware 4,200.000 Chemicals 6.900,000 Miscellaneous 6.950,000 Total* 129,624,000 •Including other items not specifically listed. 1930 Tariff Sufferers When the United States hoisted its general tariff in 1930, chief indus- tries to suffer in Canada were agri- culture, fishing and lumbering. Ex- ports in these lines slumped drasti- cally and there was considerable hardship. The Ottawa agreements of 1932 whereby exports to Britain were stepped up brought some relief, but not a great deal until the pound ad- vanced sharply in terms of Canadian money about the middle of 1933. The lack of a really big United States outlet, however, continued to be felt. The agreement with Wash- ington at the beginning of 1936 helped again, bringing still further markets for livestock, some classes of lumber and dairy products and potatoes. In any new agreement to be ne- will be made to widen the markets for such products and also to in- crease sales of fresh fish from the Maritimes. Wheat and other grains which went into the United States in considerable quantities previous to the 1930 tariff are not expected to be helped because the tariff on these commodities is already so high that a 50% cut, the limit within Roosevelt's powers, would not make any difference. Any further conces- sion in the other commodities men- tioned, however, would be of par- ticular importance because they would benefit a large section of Canada. Sectional Concessions If fresh fish and potatoes from the Maritimes were admitted freely by the United States, then there would be less objection on the part of Nova Scotia apple growers to sharing the United Kingdom market with the Americans. If more cream, cheese and butter and finished cat- tle were admitted from the central and western provinces, there prob- ably would be little objection to American wheat and pork products enjoying the sr.me privileges as Canadian in Britr.in. To Ontario and Quebec may be held out the special inducement of cheaper American coal, although Washing- ton is probably more anxious to get the duty removed on this product than Ottawa will be to grant it. To satisfy British Columbia may require a gcod deal of horse trading. A wider shingle market in the United States would help, but it is doubtful if the general lumberman along the Pacific and the apple grower in the Okancgan would be willing to trade such a privilege for tjis present protected market in the British Isles. Present indications, however, peint to the end of the boom in lumber exports to Britain. B. C. exporters already report a greatly lessened demand. The same report comes from the lumber ex- porters of the Baltic. The gradual slackening of housing constructicn in Great Britain is probably respon- sible. On the other hand, a housing boom in the United States might create a new outlet for lumber there, while cessation of hostilities in th-2 Orient is almost certain to be followed by more demand from that quarter. In either case the U. K. lumber market would lose some of its relative importance, and opposi- tion to a new three-way agreement between Cancda, the United States and Great Britain might disappear. Agricultural Products Much more than half of Canada's export to Great Britain is in agricul- tural products, largely wheat, meats, dairy products, fruit and canned goods. Wheat is admitted free from the Empire, with a six-cent duty to out- siders. Due to the different quality of Canadian wheat and its particular value for mixing purposes, it is in a different class from United States grain and it is doubtful whether there would be any great objection on western Canada's part if the tar- iff against the American product were removed. Baccn is in almost the same category. Britain is willing to pay a special price for a special quality. Canada produces this spe- cial quality, the United States does not. Moreover, though we have been trying for six year's to fill our annual quota allotted under the Ottawa agreements, we are still run- ning a third short. In return for greater outlets for Canadian cattle in the United States there probably would be no objection to permit- ting freer entry of United States pork products into Great Britain. Monetary Agreement Too In other major lines of export to Great Britain, aside from the lum- ber and apple situations already mentioned, there would seem to be little conflict. The bulk of Canada's industrial exports is made up of raw materials which the United States does not export. While greater shipments of goods between the three countries in- volved will be the main objective of the authorities interested, some monetary agreement is almost cer- tain to be included. Any such ar- rangement, however, may remain purely unofficial and unmentioned. It will be vital, however, or any downward revision of tariffs may have no effect. There will have to be maintained some very definite relation between sterling and dol- lars so that a pound of goods in one country can be exchanged for a pound of something equally valu- able in another. Canadian-U. K. Trade Present position of Canada's trade with Great Britain is as follows: U. S. Exports to Canada Year Ended Mar. 31, 1937 $ Fresh fruits 13,200,000 Raw furs 4,700,000 Cotton (raw and manufactured! 24,000,000 Silk, raw 4,000,000 Printed matter 9.600,000 Paper 4,900,000 Lumber 11.000,000 Automobiles 9,600,000 Automobils parts 27,200.000 Engines and boilers 7,500.000 Farm machinery 10,000,000 Other machinery 27.400.000 Steel sheets 10,900,000 Electrical apparatus 10,300,000 Coal 26.000.000 Petroleum . . . . 31,000,000 Stone 5,000,000 Chemicals 19.000,000 Miscellaneous 29,000,000 Total* 394,419.000 •Including other items not specifically listed. Canadian Exports to IT. S. Year Ended Mar. 31. 1937 $ Spirits 21,543.00« Grains and products 43,500,000 Livestock 15,000.000 Meats 3,000.000 Dairy products 1,700,000 Fish 12,100,000 Furs (raw) 7.400.000 Newsprint 90,000,000 Pulp 28.SOO.OOO Pulpwood 8.500,000 Shingles 6,400.000 Other lumber 14,200,000 Farm implements Gold, bullion, dust nuggets, etc Nickel Copper Silver Asbestos Stone Abrasives 4.400,000 Chemicals 8.700.00C Miscellaneous 9.GOO.OOO Total* . 1,900,000 81.000,000 23,600,000 3,000,000 5,800.000 7.000,000 5,600,000 435,014,000 •Including other items not specifically listed. T o M e e t T o d a y I n m T o r o n t o 50 Per Cent Reduction Planned, I s Latest O t t a y f Move Is ed Other CauadiaX ^rganiza- tiofris Are Expected to Join in Protests By H. W. PORTER KENTVILLE, Nov. 23 — Swinging into action along with Nova Scotia, Ontario and British Columbia apple in- dustries in an attempt to block reduction in the prefer- ence held by Canada over the United States growers and shippers, C a n a d i a n fruit growers and particularly No- va Scotians,^ were heartened here tonight -hy reports frthe Cc|"iadi^n Chkîn&r foff Agri- he tCfcncimSn Trades a iA Làtjkr Congress and pos- sibly tne^Canadian Manufac- turers Association may confer this week to digest the situa- tion and present their views inion iGovefffcnent. etine; iod; t h \ I ;ives of Na re- the tivl Columbia ence tomorrow. Latest reports f rom Ottawa which seem well authenticated are to the effect that the Domin- ion Government now proposes a reduction in the preference of 50 per cent, which instead of the $1.50 now enjoyed would mean but 75 cents. This move is opposed i n . the Annapolis Valley as strongly as tl 2_ corny lete wiping, out _qf the preference, however, and it is reported in Ottawa an at tempt will be made to "strike a bar- gain'' with the growers by split- ting the half and cutting the duction by one-quarter of $1.50. A n t h r a c i t e T a x WASHINGTON. Nov. 23— (AP)— I Representative Patrick J. Boland, of ! Scranton, Pa., reported today State Secretary Hull was "very much in favor" of negotiating with Canada to eliminate the tax on anthracite entering the Dominion. "The state department is 100 per cent for that," said Boland. "It's one of their major objectives." Boland saw Hull before going to a meeting of anthracite producers, mine workers and representatives of the federal and state governments who discussed sundry proposals for rehabilitation of the hard coal industry. P a r t of N e g o t i a t i o n s j OTTAWA. Nov. 23—(CP) —Pro- posals for lowered Canadian duty on United States anthracite, which a Washington despatch today said had been favored by Secretary of State Hull, will probably form a part of the negotiations which will open shortly for a new trade agreement between the two countries. United States anthracite entering Canada is now subject to a customs duty of 50 cents a ton as against free entry given hard coal from the countries of the British Empire un- der the preferential tariff. Anthracite imports during the calendar year 1936 amounted to 3,- 499,857 tons valued at $17,788,829. Of that total United States provided 1,701,000 tons valued at $9,959,785. Bulk of the remainder came from Empire countries. TRADE TREATY LIMITATIONS. There comes f rom Ngw York a statement by Eugene P. Thoroai, president of ,,the National Foreign Traqe Cdtmcil, Inc., JWiich is not calculated to ijhçrejlse Canadian en- thusiasm for the proposed t rade /agreement between the United Kingdom aßa the United States. Mr. Thomas envisages, as others have done, greater r e s u l t ^ h a n those which maylaccrue in the sphere ofltradfe telone. He goes on to spieak of amat h i deabilbes as the fundamenta l weakness of tjie Ottawa policy of 1932, n a m e b ^ its i failure to relate the underlying pnmciplfes|to Émpire trade rela- tions with i n e re® «£ tne world. At the World Economic Conference in 1933, he says, Great E n t a i n was unable to fu r the r the pro- ject ofr international co-operation in solving world trade p/oblems and this was the first international test of the Ottawa policy. " Events have shown that neither in respect " to the preferential principle, nor with re- " g a r d to the mechanism by which intra- " Empire t rade differences may be composed, " has it been possible to avoid the conclusion " that Mvision of the Ottawa agreements " goes/deeper than a reconcilement of the " differences that have arisen between " British' countries. The belief is more " general in British countries today that "revision of the Ottawa policy as a whole " is essential to the dévelopment of satisfac- " tory t rade relations with non-Empire " countries." 7 / . / j 2 j The changed'at t i tude of Canape, particu- larly the adoption of a more liberal and international outlook in regard to world trade, is noted by Mr. Thomas with satis- faction as foreshadowing the success of the United States-United Kingdom negotiations. A fundamenta l departure f rom the strictly nationalistic att i tude of the British Common- wealth toward other countries, based upon a discriminatory preferential system, appears to be expected, the preferential system being in conflict with the most-favored-nation principle and being unsuitable to the present world situation. Mr. Thomas takes it for granted that Great Britain " has removed this stumbling-block," or is about to over- come it. " W h e r e so much is at stake in " securing concessions for British goods into " the United States, it may be inferred that " the opening of negotiations indicates a com- "p le te understanding on all disputed points " between Great Britain and the Dominions." Greater liberalization of trade as between two countries which buy 28 per cent, of the world's imports and sell 24 per cent, of the world's exports will " h a v e important con- sequences for the rest of the world." In this statement Canada, particularly, and the rest of the British Dominions, are told what is expected of them, and why. It may not reflect the official Washington view or the official Washington proposal; never- theless, there is a suspicion that f rom some source, possibly British interests at Wash- ington, an attempt has been made to play upon Canadian sympathies. The argument is that the fur therance of peace and the unity of the English-speaking peoples are of more importance than any sacrifice which the Dominions may have to make. On the other hand, there have been assurances that these sacrifices will not be very substantial and that any resulting readjustment of trade will cause no serious disturbance. Broadly speaking, the granting of t rade concessions does not necessarily mean that trade will be radically changed. The ability of the United States to trade abroad is dependent upon its acceptance of goods f rom others, or gold, or its willingness to invest abroad. Recent years have stopped any desire to lend abroad. Washington is now reaching a con- clusion that no more gold is needed, which leaves the acceptance of goods as the means of payment for exports as well as the in- terest debt due by other countries. If the United States accepts more goods it will be helpful to world trade. It should ultimately reach a substantial unfavorable balance, off- set partly by tourist expenditures. If the United States does obtain conces- 1 sions it can only use them if it is prepared to accept more goods. United States ability to use concessions is absolutely dependent upon a willingness to accept goods. If the United States does not buy more abroad it will sell only those commodities which other countries require the most, such as automo- biles, machinery, petroleum, cotton, and goods which are not obtainable elsewhere in volume, ra ther than wheat, which can be secured f rom various sources. On a strictly commodity trading basis, the United States must buy more to sell more, and if it does not expand its imports it cannot expand its exports. Exports can only be developed up to the extent that other nations find them- selves in a position to secure United States exchange in payment, and United States ex- ports will go out of the country in the order of their suitability as determined by ' the foreign buyer, and in precise relation to foreign market requirements. All Industry Aroused By Treaty Talk Nova Sc^lign fruit-growers, trans- portation and other organizations, and buein|ss interests generally are organising theiy^ forces to protect the Province against possible losses whica may result f rom. an Anglo- Canacuan tr^fde agreement based on coi\cessj*hs, by Canada. Most definitely threatened is the apple industry, with its allied un- dertakings, whose products, accord- ing to ân Ottawa'vStatement not de- nied jnay lose the preference which alonf has sa-àed it in the British market. Directly and indirectly practical - the whole or the province is af- ted by the prosperity of the Annapolis Valley; if ruin there were aggravated by other concessions which would mean additional loss of traffic to the railways and ports, loss of sales to the coal miners, and a loss of markets to the recently- revived lumber industry, a recur- rence of condtions such as prevail- ed in the years immediately after the war is feared. B u l w a r k Is G o n e So far as Halifax itself is con- 1 cerned, the bulwark offered by the Harbor Commission in former days I has gone. In its stead is an Ottawa- i controlled, civil service body which 1 merely operates and does not act I on behalf oitthis port. Formerly it went out after business and strug- gle} against %ny move which would en Anger its \raffic. Now its hands areltied, both business and labor leaders were quick to poifct out. As for the railway^, itlwas said, little action on behalf ot Kie Mari- times could be expecfcd Kmuj/xhem. The yÇknadian Naflonât system, w hielt Ujbesindt sfrVe the Annapolis Valley,flips, ttvo' outlets in these provinces,1*-But it also has a third in Portlanfc, Maine, which it used until tariff changes and later, the Ottawa agreements, compelled by its pre- ferential rates, the «se b^-inland importers a id exporters alike of the ifecWtieal in HalfcaxfTuid pSaint Johft.j l i e flani|iail Najyfcna has, wês pqintèi| oi^t, large ary Berriton« in the midlan ited States which it always has hes- itated to antagonize in favor of Canadian interests. T h r e a t To P o r t s Loss of markets for apples nat- urally would mean the disappear- ance of shipments of fruit through the ports of Halifax and Port Wil- liams. This, those familiar with the industry declare, would be the out- come of the removal of preferences. Thus, directly. Nova Scotia port- workers by the thousands would suffer. Vigorous campaigns have been waged by Portland for years against the handling of Canadian business by Canadian outlets. Repeated re- presentations have been made to Washington that the United States should bring pressure to bear to have this country's preferential tariff structure altered to permit in- direct shipments of foreign and Em- pire goods from abroad into Can- ada via a United States port. First fruits of the campaign were seen last year in the nullifying of the direct shipment clause in pre- ferences to and from foreign coun- tries by making United States most favored nation territory. The Can- ada-United States agreement open- ed in this way the United States gateways to Central Canadian markets and a J arge volume of traffic, formerly handled through Saint John and Halifax, is now mov- ing that way, shipping men said. "We are afraid that this new agreement now being negotiated will nullify preferences that in- duce British and other Empire goods to enter this country via a Canadian port if they are to qualify for the lower Ottawa agreement rates," one ship firm representative j said. "We haven't forgotten the days when the White Star and Cunard liners made Portland their chief port of call, picking up and dis- charging the bulk of their Canadian freight there, with Halifax on the sidelines, handling only a few pack- ages." A d d i t i o n a l L o s s Such a loss, it was pointed out, would be in addition to that suf- fered by the lumber and apple in- dustries by loss of the preferences abroad. "We used to look to the Harbor Commission for help in getting and holding business and we supported them in every move they made to get traffic for Halifax." A union spokesman asserted. Officially, no compient was forthcoming from the waterfront workers' organization, but its members betrayed their worry. "Now we can't expect anything from the Board because there is no local control over it, and we op- posed the loss of that local control for this very reason. The proof that we should have something to say about the port when difficulties arise, is right here now." Exactly the same view was ex- pressed' by shipping interests when reports of the pending negotiations were made public. "The Harbor authority can't say anything" one veteran of the busi- ness declared. "It can't be expect- ed to protest under the circum- stances. Just a branch of the civil service, if it complains to Ottawa or attempts to press the case for Saint John or for Halifax, it will be told to mind its own business, manage the port and leave political matters • to the politicians. "This is not politics; it is business and it means dollars to every work- er in the Maritime Provinces," this shipping men asserted. E m e r g e n c y M e e t i n g On Friday an emergency meeting of the Board of Trade Council was held and it was decided to send a direct smpments of foreign and Em- pire goods from abroad into Can- ada via a United States port. First fruits of the campaign were seen last year in the nullifying of the direct shipment clause in pre ferences to and from foreign coun- tries by making United States most favored nation territory. The Can- ada-United States agreement open- in this way the United States vays to Central Canadian markets and a large volume of traffic, formerly handled through Saint John and Halifax, is now mov- ing that way. shipping men said. "We are afraid that this new agreement now being negotiated Will nullify preferences that in- duce British and other Empire goods to enter this country via a Canadian port if they are to qualify for the lower Ottawa agreement rates," one ship firm representative said. "We haven't forgotten the days when the White Star and Cunard liners made Portland their chief port of call, picking up and dis- charging the bulk of their Canadian freight there, with Halifax on the sidelines, handling only a few pack- ages." A d d i t i o n a l L o s s Such a loss, it was pointed out, would be in addition to that suf- fered by the lumber and apple in- dustries by loss of the preferences abroad. "We used to look to the Harbor Commission for help in getting and holding business and we supported them in every move they made to get traffic for Halifax." A union spokesman asserted. Officially, no comptent was forthcoming from the waterfront workers' organization, but its members betrayed their worry. "Now we can't expect anything from the Board because there is no local control over it, and we op- posed the loss of that local control for this very reason. The proof that we should have something to say about the port when difficulties arise, is right here now." Exactly the same view was ex- pressed' by shipping interests when reports of the pending negotiations were made public. "The Harbor authority can't say anything" one veteran of the busi- ness declared. "It can't be expect- ed to protest under the circum- stances. Just a branch of the civil service, if it complains to Ottawa or attempts to press the case for Saint John or for Halifax, it will be told to mind its own business, manage the port and leave political matters • to the politicians. "This is not politics; it is business and it means dollars to every work- er in the Maritime Provinces," this shipping men asserted. E m e r g e n c y M e e t i n g On Friday an emergency meeting of the Board of Trade Council was held and it was decided to send a delegation to Ottawa to see that no injury was done to these provinces through concessions granted by the Dominion to Britain or the United States or to both. "The Dominion Atlantic and the Canadian National may suffer loss of traffic; many port workers may be put out of employment; local business and subordinate indus- tries may be damaged by the loss of earning power in this com- munity. "No one should let the impression get abroad, that only the Annapolis "Valley will suffer and that the rest will escape. They can't do it, if apple and other preferences are lost." Organized miners also were be- coming aware of their danger. Rail- ways provide one of the major markets for fuel from the Nova Scotian collieries. "They all sell to the railways," one engaged in the industry for years stated. "The small mines would be hardest hit by any cur- tailment in railway purchases due to slack traffic brought about by diversion of business to United States lines-. "This applies to Springhill and that area, to Acadia and Greenwood and Inverness, to name only the outstanding mines. They were the first to feel the effects of a traffic pickup and they with the rail work- ers themselves would be the first to suffer if there is a decline." Aware of S i t u a t i o n There seemed to be a general impression that the Dominion Gov- ernment was aware of the situation and that economic blow which may be struck at the Maritimes and was preparing to attempt offsetting ad- vantages. "There will be concessions in the duties on fish, possibly," man engaged in that business for a generation said, "but I don't know what they will be to materially change the situation. "United States can grant conces- sions in Port Rico but what, after all, will they amount to? The quan- tity of dried fish produced here is far too small to influence world market prices. "Newfoundland sets the pace on this side of the water; the fish are produced more cheaply; wages paid the men are lower; the quality of the fish is different. "No matter what the duty is, Nova Scotia still will have to compete and I don't see very great possibili- ties for increased sales by this Province." Difficulties in the way of Y/ash- ington giving ground were seen. Many delegations have appeared at Tariff Board and other hearings in the United States capital in recent years objecting to any freer entry for Canadian sea products. Power- ful "Bay State" interests certainly would oppose reductions in tariffs and it is contended that, whatever the Dominion's intentions in the matter, the only way to make sure that full concessions are obtained for Maritime Provinces present their case or to see that some authorized body does so. Otherwise there is a possibility that at the last moment this concession fishermen to Nova Scotia will be let go by is for the latter, to get together and the board. . \ • Nova Scotians ON GUARD! — f — - A N E D I T O R I A L ""TRIANGULAR trade negotiations nOw in progress between Great Britain; the United States and Canada are bound to have far-rëaching effects upon the trade of f | i s country, g y And where/îïova Scotia is concerned, these effects coulcfcbe serious in the extreme—not only as affecting industry amf commerce, but as affecting trade in terms of traffic over Maritime transportation territory and through Maritime ports. ^Pfiiere is a great deal of talk just now about "prefer- ences"—but it should never be forgotten that the system of preferences that has been built up through the years, and to which this country has been a party, has not stopped with trade and tariff preferences as such, but has placed the ports and transportation lines and territory»of Canada in a distinctlyïjand, most valuable, preferred ^s i t ion . T JP to the y à t ^ r t h e s i g i / n V ^ f ^ R ^ ^ ^ ^ W i t e d States ^ trade agreement two years ago, all trade moving into this country under an almost bewildering system of agree- ments, and a great j^rceritage of the trade moving out of it under those aâ - eement | . had t@ pass jwer the territory and through the ^ o r ^ p f l t h i s D«ni juon . | But immediately our feglefmfnt wi t l / the United States came into effect, that preferred trafficr position was lost to Canada in relation to its trade with the entire world out- side the British Empire. And some Empire trade was similarly affected, as well. Why? Because, when we extended "most-favored- nation" treatment to the United States, that country became Canadian transportation territory for all trade moving to and from this country under most-favoTed- nation rates of duty. Hard on the heels of this 'came the Canadian action extending most-favored-nation t reatment to the British West Indies; and to the degree that West Indian products move to this country under rates of duty no lower than the most-favoted-nation rates, it can come into Canada through the ports and over the territory of the United States. ¥ Ii If l II 1 "yHESE actions and developments marked the beginning of the breakdown in our preferred traffic position, so laboriously built up over a considerable number of years in line with the demand for the routing of all Canadian trade through all-Canadian channels. We held our preferred position practically intact under the Empire trade agreements. But even that tremendously important position now would appear to be threatened through the triangular trade negotiations in progress between London, Washington and Ottawa. In order to facilitate the conclusion of a trade agree- ment between the United States and Great Britain, it is believed, the Canadian Government is prepared to abandon some par t of the preferences enjoyed by our own producers in the British market. The .apple preference, it is reported, may be lost in whole or in part. We mäy lose some or all of the lumber preference. And so the reports persist, with no definite word from Ottawa to set at-rest grave fears and apprehensions among the Canadian people. II IT If If f If W/E say, the people as a whole, because the loss of any ** part of preferences of this kind would not affect the producers in those industries alone: it would effect every- one. Imagine, if you can, what it would mean to this Province to lose the apple preference. The first to be most seriously and most directly affect- ed would be the producers of apples themselves. But that would be but the beginning. The whole community of the Annapolis Valley would suffer. All engaged in the production of materials in ancillary activities would suffer (in the production of barrels and boxes, as but one example). The railway men would suffer through any reduction of traffic. The port workers would suffer in equal degree. The miners, who produce the coal to supply the trains, would suffer. In fact, any adverse effects upon such a great primary industry would be felt directly or indirectly by every per- son in this Province .and in the sister Maritime provinces as well. It would, indeed, be difficult to exaggerate the serious- ness of action of this kind that would rob the f ru i t industry of any substantial part of the British preference it now enjoys. f . 1, Î: -1 . T 1 A S we say, the public must remember that in these mat- ters it is not only trade that is threatened, but trade expressed in terms of traffic, as well—because the prefer- ence is a double one: A Trade Preference; and A Traffic Preference. And this much is certain, to the extent that Canada abandons her preferred trade position in British markets under the Empire preferences, to a like extent will the preferred traffic position of this country in relation to that trade be broken down and destroyed. That much will be an inevitable result—to say noth- ing of any concessions the Canadian Government might make in response to the continuous United States demand for abandonment of the direct-shipment provisions entirely. These direct-shipment provisions have meant a great deal to Canadian ports and Canadian transportation lines and territory. As a result of these provisions, we had reached the point in this country where Canadian trade WAS mov- ing through all-Canadian channels. But, as indicated at the outset, the beginning of the breakdown came with the signing of the Canadian-United States trade agreement two years ago. And now, there is a growing fear that the whole system of Canadian trade-and-traffic preferences may be so revised and reshuffled that its effectiveness will be lost to this country and its people. 10 FOUNDED JUNE 3, 1778. THE GAZETTE is printed and published By the GAZETTE PHINTING COMPANY LIMITED ol * which John Stuart Miller is Secretary, at the Office. 1000 St Antoine Street. Montreal Tele- phone HArbuur 2241. Private branch exchange connect ing all departments day and night Ottawa: 17 Central Chambers. 46 Elgin Street Fred C. Mears, Chief of Bureau. Taiephone 2-8787. Quebec: 94 Grande Allee Ewart E. Donovan Chiei of Bureau. Telephone 2-1323. Toronto, 2: 1511 Metropolitan Building. Allan ß Wilgar, Representat ive of Advertising Depart- ment Elgin 9907 London. England: Miss Elizabeth Montizambert. If1 King's Cour* King's Road. Chelsea London. S.W. 3. F A. Smyth. Representative of Adver- tising Department. 34-40 Ludgate Hill, London E.C. 4. Telephone City 2784 N e w York: Room 802 19 West 44th Street. Gilman Nicoll and Ruthman. Representatives ol Adver- tising Dept. Telephone Murray Hill 2-9049. SUBSCRIPTION RATES City Del ivery: $12.00 per year: S6.00 six months: $100 per month; 25 cents per week. Mail Subscriptions outside city zone in Canada, and U.S : $9.00 a year. Great Britain and ail British Possessions abroad; $9.00 per year. Continental Europe, the Orient, etc. : $24 00 per year Members Audit Bureau of Circulations MONTREAL, MONDAY, NOVEMBER 22. You do not test the resources of God till ! you try the impossible.—Rev. F. B. Meyer. BENNETT ATTACKS TREATY. The principal difficulty about Mr. R. B. Bennett 's assault on thé Anglo-American t rade treaty is that therej is no treaty. The Conservative leader is aâsuming .tffat, as a result of the pending negotiations between the United States and Great Britain, Canada will lose its present preferential position in the markets of the Uniteü Kingdom. There is not very much as y s r w h i c h can be accept- ed safely as a fou^fa t ion for that assump- tion. The best ijfformation available indi- cates that "such .Sacrifices as Canada may be called upon tponake in facilitating the nego- tiation of y United States-United Kingdom treaty wiji not be as considerable or as seri- ous as .was believed when the project was ; first »looted. This ' information seems all the. mart; dependable in view of the obvious fact . tKat while Great Britain and the United ! States are endeavoring to get together by ! means of a commercial bridge, a commercial ! agreement is really hothing more than a means to another and very much more im- portant and desirable end. If Mr. Bennett is correct in believing that Canada will be called upon to pay most of the commercial cost of an agreement be- tween the United States and the United Kingdom he is justified in issuing the warn- ing uttered by him in Halifax and in exhort- ing the Canadian people to resist an enter- prise which will seriously imperil the econo- mic well-being of the Dominion. Further- more, there is some encouragement in the mere fact that in this respect the Conserva- tive leader is reaffirming the traditional policy of the Conservative party. Mr. Bennett makes it clear that he lacks con- fidence in the King Government 's solicitude for the interests of Canadian producers and manufacturers ; hence his advice that the people assert themselves. To some extent he is right. The King Government has made no secret of its disposition to lower the tariff v/herever and whenever an excuse can be found for so doing. It is part of the policy of f reer trade, a modern definition which the theoretical f ree trader uses for practical purposes. The fear which is in the mind of Mr. Bennett , that the King Government, if unre- strained by popular sentiment, would pro- bably go very much too far in sacrificing Canadian primary and secondary industries to this principle of f reer trade, is very general. Nevertheless, as has been observed before in these columns, our present Pr ime Minister is as good a politician as he is a statesman. No man knows better than he that the Canadian people have not given him an unlimited mandate in the field of tariff reduction, and that governments which read into a popular mandate something which has not been put there by the people themselves are required in due time to pay a somewhat painful penalty. Mr. King does not usually fall into an error of this kind. He knows his public as few other party leaders have ever known it since the days of Macdonald. He is fully aware that vigorous protests have already been registered against a surrender of exist- ing preferences in the British market, and he is not the man to ignore such protests. It may be taken, therefore, as a reasonable cer- tainty that what is to be really a series of t r iangular negotiations will not result in an agreement or agreements dangerously pre- judicial to the interests of this country. .Unwilling To I Surre Advantages For Anelo U.SL*Trea„ CANBERRA, Nov. h - Havas ) —Australia "camiot pected" to surrender her ages in the British market »„ , „„ , . assurances, of adequate compensa- tion in (dther directons Premier Lyons ^ec la red today in connec- tion. 'with the proposed Anglo- American trade negotiations. "It is wrong to assume that such an agreement means the abandon- ment of the principle of inter-pre- ference," he declared in a state- ment to the press. "Nothing was done at the Im- perial Conference to justify the suggestion that the Dominions ac- quiesced in the scrapping of the preference system. "The conference, however, re- cognized that the countries of the British Commonwealth depend on the world as a whole and that healthy growth of international trade is an essential step toward political appeasement. "The forthcoming Anglo-Ameri- oan discussions are an all-import- ant s te/fin tgejjHJwwtr of this high aim. the discussions af- fect ffif Ottawa agreements, they invotte difficulties to which Aus- traira is Very mifrh a)$ve." Financial Paper Stteipaf Need of Will to Agree LONDON, Nov. 22 — (C.P.- Havas) -r- The political importance vill to agree" demonstrat- îth Qreat Britain and the statep during preliminary negotiations f o r a trade agreement was emphasized today in an edi- torial in thé Financial News. "So ofteç have we seen the ini- tiative taken by totalitarian states that news of a major agreement between the twô greatest demo- cracies is highly encouf&aing and useful," the newspafèr s»id. "It 5s in this direction mdeeofthat lie the best prospects of mWntaining European peace." The newspaper added that last Week's announcement of formal negotiations between London and Washington suggests that President Roosevelt is following the line of policy laid down in his Chicago speech. A "die-hard" Conservative group meanwhile opened an anticipated counter-offensive. A report pub- lished by the Imperial Economic Union, headed by the former Do- minions Secretary, Leopold Amery, warned that "renewed efforts are being made in some quarters to use the discussions now in progress for an Anglo-American trade agree- ment as an excuse for an indirect attempt to discredü and weaken the tried and proved national Im- perial policy." WANTS FARSTERS GUARDED The report, entitled "The Fiscal- Situation Today," expressed the op- position of the economic union to any relaxation of Imperial trade preferences and demanded that "'British agriculture be safeguarded from undue competition" in any re- vision of the Ottawa agreements. The report also denounced the principle involved in the "most favored nation" clauses in commer- cial pacts with foreign countries. The Government was urged to re- serve all liberty of action for im- posing quotas on all products im- ported into Great Britain. Discussing the prospects of nego- tiations between Great Britain and the United States, the Sunday Times (Independent) said that the "political value" of any agreement strikes us as so considerable that for its sake Great Britain might be justified in driving a less favorable bargain than economic calculations alone would warrant." Economically, the proposed treaty was welcomed by the Sunday Times on the ground that it would pro- mote an expansion in international trade, which would not only benefit the participating signatories "but .would give a certain fillip to world trade in general." The paper remarked that conces- sions to the United States were likely to hit Canadian products, adding that "while we receive coun- tervailing advantage from the United States we should have our- selves to give some equivalent com- pensation to the Canadians." SEEN AS DESIRABLE Politically the change was viewed as even more desirable, and the editorial stressed that the best chance of surmounting the dangers now confronting democracy was for all countries, great and small, "to co-operate increasingly on a basis of practical and mutual aid." "The cult of anarchy and the re strictions should seek to supply its own needs," the newspaper de- clared, "is in motive a military conception. Pursued in conjunction with war talk and sabre-rattling, it could only lead the world back to conflict and disaster." Protracted delay in negotiations, the Sunday Times warned, would not only postpone the pact's ad- vantages but might wreck the whole project. „ B.C. Lumber Trade Makes Protest VANCOUVER. Nov. 22—(C.P.) — A delegation representing British Columbia's lumber industry yester- day met Hon. Ian Mackenzie and submitted to the National Defence Mmicinr its contention care must would reduce the Pacific Coast Province's lumber industry by one- third. Mr. Mackenzie made no state- ment after the interview but J. G. Robson who headed the lumbermen said it was "very satisfactory." "Unquestionably we have to face some change in the general set-up but we hope that it will not be too drastic," Mr. Robson said. Only Hope Held In U.S. Treaty BRIGHTON, England, Nov. 22— (A.P.)—Sir Arthur Willert. yester- day told a conference of the Liberal Party that Great Britain was too busy "playing first fiddle in the European orchestra" to do much more than back up the United States in the Far East." "And the Americans aren't going to do much," the former head of the Foreign Office News Depart- ment added. . Democracy may get its "final chance" in the proposed Anglo- American trade treaty. Sir Arthur said, because of the possibility Ger- many may wish to join. "If that should happen we would be able to make our terms to Germany," he said. » Britain Taking Definite Action LONDON, Nov. 22 — (C.P.) — Premier Chamberlain told the House of Commons today that the Government was taking "definite, The Government was urged to re- serve all liberty of action for im- posing quotas on all products im- ported into Great Britain. Discussing the prospects of nego- tiations between Great Britain and the United States, the Sunday Times (Independent) said that the "political value" of any agreement "strikes us as so considerable that for its sake Great Britain might be justified in driving a less favorable bargain than economic calculations alone would warrant." Economically, the proposed treaty was welcomed by the Sunday Times on the ground that it would pro- mote an expansion in international trade, which would not only benefit the participating signatories "but .would give a certain fillip to world trade in general." The paper remarked that conces- sions to the United States were likely to hit Qanadian products, adding that "while we receive coun- tervailing advantage from the United States we should have our- selves to give some equivalent com- pensation to the Canadians." SEEN AS DESIRABLE Politically the change was viewed as even more desirable, and the editorial stressed that the best chance of surmounting the dangers now confronting democracy was for all countries, great and small, "to co-operate increasingly on a basis of practical and mutual aid." "The cult of anarchy and the re- strictions should seek to supply its own needs," the newspaper de- clared, "is in motive a military conception. Pursued in conjunction with war talk and sabre-rattling, it could only lead the world back to conflict and disaster." Protracted delay in negotiations, the Sunday Times warned, would not only postpone the pact's ad- vantages but might wreck the whole project. » B.C. Lumber Trade Makes Protest VANCOUVER. Nov. 22—(C.P.) — A delegation representing British Columbia's lumber industry yester- day met Hon. Ian Mackenzie and submitted to the National Defence Minister its contention care must be taken in any revision of the Anglo-United States trade agree- ment or the province's lumber busi- ness would suffer. The delegation's ' submission was similar to the one it gave last Wed- nesday to Premier T. D. Pattullo, it claimed any proposal to admit United States lumber to the United Kingdom market on equal terms Unwilling To Surrender Advantages For Anglo- U.S. Treaty CANBERRA, Nov. '22 —k (C.P.- Havas)—Australia "canitot&>e ex- pected" to surrender hér èdvant- ages in the British market Without assurances of adequate compensa- tion in jdtiier direcfcons Premier Lyons/Teclared today in connec- t ion 'with the proposed Anglo- American trade negotiations. "It is wrong to assume that such an agreement means the abandon- ment of the principle of Inter-pre- ference," he declared in a state- ment to the press. "Nothing was done at the Im- perial Conference to justify the J suggestion that the Dominions ac- : quiesced in the scrapping of the preference system. "The conference, however, re- cognized that the countries of the British Commonwealth depend on the world as a whole and that healthy growth of international trade is an essential step toward political appeasement. "The forthcoming Anglo-Ameri- Can discussions are an all-import- ant stepr'in ügejaiwrotr of this high aim. ^Risofrf"5s the discussions af- fect m (I Ot/awa agreements, they tral)bt°, d ' h t o w h ' c h Aus. Financial Paper Stt-ei^er Need of Will to Agree LONDON. Nov. 22 — (C.P.- Havas) j - The political importance of the 'twill to agree" demonstrat- ed by both Qt-eat Britain and the United,4>tatep during preliminary negotiations if or a trade agreement was emphafized today in an edi- torial in thjf Financial News. "So ofteif have we seen the ini- tiative taken bv totalitarian states that news of a major agreement between the two greatest demo- cracies is highly encoufttaing and useful," the newspaper Äid. "It 5s in this direction jndeedf that lie the best prospects ST mllntaining European peace." The newspaper added that last Hveek's announcement of formal negotiations between London and Washington suggests that President Roosevelt is following the line of policy laid down in his Chicago speech. A "die-hard" Conservative group*- meanwhile opened an anticipated counter-offensive. A report pub- lished by the Imperial Economic Union, headed by the former Do- minions Secretary, Leopold Amery, warned that "renewed efforts are being made in some quarters to use the discussions now in progress for an Anglo-American trade agree- ment as an excuse for an indirect attempt to discredk and weaken the tried and proved national Im- perial policy." WANTS FARMERS GUARDED The report, entitled "The Fiscal- Situation Today," expressed the op- position of the economic union to any relaxation of Imperial trade preferences and demanded that "British agriculture be safeguarded from undue competition" in any re- vision of the Ottawa agreements. The report also denounced the principle involved in the "most favored nation" clauses in commer- cial pacts with foreign countries. would reduce the Pacific Coast Province's lumber industry by one- third. Mr. Mackenzie made no state- ment after the interview but J. G. Robson who headed the lumbermen said it was "very satisfactory." "Unquestionably we have to face some change in the general set-up but we hope that it will not be too drastic," Mr. Robson said. Only Hope Held In U.S. Treaty BRIGHTON, England, Nov. 22— (A.P.l— Sir Arthur Willert yester- day told a conference of the Liberal Party that Great Britain was too busy "playing first fiddle in the European orchestra" to do much more than back up the United States in the Far East." "And the Americans aren't going to do much," the former head of the Foreign Office News Depart- ment added. Democracy may get its "final chance" in the proposed Anglo- American trade treaty, Sir Arthur said, because of the possibility Ger- many may wish to join. "If that should happen we would be able to make our terms to Germany," he said. Britain Taking Definite Action LONDON, Nov. 22—(C.P.) — Premier Chamberlain told the House of Commons today that the Government was taking "definite, positive action" to solve world eco- nomic problems. He cited trade negotiations with the United States as an example. His statement replied to a ques- tion concerning the Government's intentions concerning a speech to King Leopold of Belgium last week appealing to Great Britain to take the lead in seeking world eco- I'M PAGE TWO THE HALIFAX HERALD, MO] Interests Of Province Must Be Paramount ' p H E demand upon all Nova Scotians today i$ "to jnfet con- ditions which are unparalleled in their seriousness in so far as the present and future well-being of <Hir Province is concerned". "This demand is a CHALLENGE. We must stand up to it and be prepared to give a lead which in its magnitude must exceed all previous efforts." Those declarations made • by F. W. Baldwin, newly- elected President of the Conservative Party in Nova Scotia, will be endorsed by $very citizen of this Province who realizes the seriousnôgs of conditions as they exist—and what must be done to meet and cope with them. Tf • ! \ 1 ! J A ND every sincere, and progressive citizen of this Prov- ^ infce will endorse heärtily and enthusiastically this declaration also1 made by Mr. Baldwin in his statement to the Conservative. Association here on Friday: "Partizanship must be put to one side if this task is to be undertaken/ Earnest and thoughtful men and women throughout this Province must align themselves behind the effort that Will have to be made to solve these economic problems. Where necessary, party lines must be disre- garded". For, as Mr. Baldwin pointed out plainly and com- pellingly, Nova Scotia "is brought face to face with prob- lems which in many instances are of a nature it heretofore has not been called upon to meet". And here is another declaration contained in that same courageous statement that should burn itself into the mind and conscience of every Nova Scotian: "A provincial political party no longer has any import- ant function to justify public support unless it is prepared to COME TO GRIPS with these problems and give the lead- ership which will rescue our people from these hard and distressing conditions. In a crisis such as this, party con- siderations must of necessity be relegated to a secondary place in order that earnest consideration of these questions may be made paramount." And these declarations, as Mr. Baldwin added, con- stitute, "not a 'whisper of death'—but a Clarion Call to Service". if IÏ I r i - t TN line with the resolution moved by Mr. Baldwin here on * Friday, a competent, representative committee of Nova Scotia citizens is to be set up to study the economic prob- lems of this Province, and to present their findings at a convention as the basis of a platform of policies for the development of the resources and possibilities of Nova Scotia for the benefit of all its people. The man who made those declarations and moved that resolution is one of the best citizens of this Province. He is sincere in his motives, constructive and progressive in thought and action. He is not concerned with political partizanship: he is concerned with the possibility of doing something lasting and constructive for Nova Scotia and Nova Scotians. Those declarations and that resolution, endorsed by the Conservative Association here on Friday, mark the open- ing of a NEW ERA in Nova Scotia public affairs. They commit a great party definitely and irrevocably to the doctrine that the interests of Nova Scotia MUST BE PARAMOUNT and must never be subordinated to partizan political considerations or exigencies. "Partizanship must be put to one side," as Mr. Baldwin declares, "if this task is to be undertaken". It is no secret to the people of Nova Scotia that political partizanship has been the curse of this Province for gen- erations; and if we know the temper and the demands of Nova Scotians, they are no longer content to see the inter- ests of their Province made secondary to the interests of political parties. »? »r f- f • H 1Ï U E R E , surely, IS a Clarion Call tolService. Here, surely, is a Hopeful Sign for the Nova Scotia people. And the Nova Scotia people will give their support to this effort in direct proportion to the sincerity, earnest- ness and honesty with which it is conducted and carried out. "BY THEIR FRUITS YE SHALL KNOW THEM". That is the maxim and the test the people of Nova Scotia will apply to this campaign as it progresses through the months and years that lie ahead. Nova Scotians realize most thoroughly that the only useful measure of the policies of any political party in provincial affairs is how practical, how progressive, how constructive and effective those policies may be when translated into legislative and administrative action. Provincial affairs are not national, Empire or inter- national affairs. Provincial affairs have to do with the practical every-day facts of existence—with the welfare of the people in their homes and working lives. Here there is no room for nebulous theoretical political policies. Here in the provincial field policies must be concrete, practical and workable. Of course, a few political partizans here and there will attempt to belittle these proposals and to lead the public mind away from the main issue. But the people of Nova Scotia at this date are not likely to pay very much atten- tion to such partizan tactics. They KNOW conditions in their own Province ARE "hard and distressing" for thou- sands deprived at this moment of fair opportunities, and in many cases, the bare essentials of life itself. s ( ö u s c t t c FOUNDED JUNE 3. 1778. THE GAZETTE is printed and published by the GAZETTE PRINTING COMPANY. LIMITED, of w h i c h John Stuart Miller is Secretary, at the Office, 1000 St. Antoine Street, Montreal Tele- phone HArbour 2241. Private branch exchange connect ing all departments day and night. Ottawa: 17 Central Chambers, 46 Elgin Street. Fred C Mears, Chief of Bureau. Telephone Queen 621» Quebec: 94 Grande Allee Ewart E. Donovan, Chief of Bureau. Telephone 2-1323. Toronto, 2: 1511 Metropolitan Building. Allan B. Wilgar, Representat ive of Advertis ing Depart- ment . Elgin 9907. London, England: Miss Elizabeth Montizambert, 18 King's Court, King's Road, Chelsea, London, S.W. 3. F. A. Smyth, Representative of Adver- t is ing Department, 34-40 Ludgate Hill, London, E C. 4. Telephone City 2784. N e w York: Room 802, 19 West 44th Street. Gilman. Nicoll and Ruthman, Representatives of Adver- tising Dept. Telephone Murray Hill 2-9049. SUBSCRIPTION RATES City Del ivery: $12.00 per year: $6.00 s ix months; $1.00 per month; 25 cents per week . Mail Subscriptions outside city zone In Canada and U.S.: $9.00 a year. Great Britain, and all British Possessions abroad : $9.00 per year. Continental Europe, the Orient, etc . : $24.00 per year. Members Audit Bureau of Circulations. MONTREAL, SATURDAY, NOVEMBER 20. Everyone does himself injustice who makes himself incomprehensible.—Bouverie Primrose. T H E N E W T R A D E T R E A T I E S . The trade treaty announcements eman- ating simultaneously f rom the three prin- cipal English-speaking capitals may be more important in their implications than in the actual readjustments of commerce which may result. It is stated definitely that Lon- don and Washington have agreed to negoti- ate what is described as an unconditional mostpfavored-nation reciprocal agreement, the first progressive step in this direction sincë 1815. Concurrently, the governments at Ottawa and Washington make known their decision to revise the existing Canada- U.S. reciprocity agreement, which went into effect at the beginning of last year, upon a mutually more liberal basis, one which, clearly, is intended to dovetail into the pro- jected U.S.-U.K. agreement. From recent official and unofficial statements it is possible to gather that in what is to be practically a three-way agreement, the principle of British preferences will be preserved and that whatever changes in practice are in- volved the cost to the Dominions as ex- pressed in surrendered advantages in the British marke t will not be serious. So far as Canada is concerned the apparent inten- tion is to offset such losses as may be sus- tained in relinquishing some of the bound margins granted by the United Kingdom under the revised U.K.-Canada agreement with some nearly equal concessions which the United States is expected to make in the proposed revision of the reciprocity pact. At the same time it is not suggested that Can- ada will get these U.S. concessions for noth- ing, that is to say that the Dominion will not be obliged to give nothing directly but will be accorded an enlarged market in the United States solely on account of what she stands to lose through modification of the existing preference in the British market . This, of course, is where the rub will be. The interests of all Canadian industry, prim- ary and secondary, are involved in the pro- ject, and while it is apparently the disposi- tion of the Ottawa Government to protect the pr imary producer as far as possible, there is as yet no indication of an equal concern for the fu tu re of the great manu- facturing industries of the Dominion upon which the country depends for the employ- ment of its labor. The King Government is understood to have pret ty well made up its mind not only as to how far it will go in clearing a path for the United States in the British marke t but as to the precise character and extent of the concessions which it is prepared to give the United States under a revised reci- procity agreement. A great deal will depend upon what these concessions are and the degree in which Canadian industrial pro- gress may be helped or hampered. All that Canadian industry and Canadian labor can do now in this regard is to wait and see, and hope for the best. From other fields of Canadian production protests have already been registered. British Columbia is par- . t icularly anxious to retain its market in Great Britain; the apple growers of Nova Scotia are also determined to retain theirs and in neither instance is there any consola- tion in the prospect of a wider United States market for Canadian fish—not a very lively prospect at the best if Gloucester influence can determine United States policy as ef- fectively as it has done in the past. Canad- ian apple shipments to the British market in the past season up to September 21 were twelve times greater than in 1936 and four times greater than in 1935, and, according to the Canadian Trade Commissioner in London, the present outlook for this t rade is promising, which information is not go- m o t « A TT_11 The King Government is understood to have pretty well made up its mind not only as to how far it will go in clearing a path ' for the United States in the British market but as to the precise character and extent of the concessions which it is prepared to , give the United States under a revised reci- | procit^ agreement. A great deal will depend upon what these concessions are and the1 degree in which Canadian industrial pro- gress may be helped or hampered. All that Canadian industry and Canadian labor can do now in this regard is to wait and see, and hope for the best. From other fields of Canadian production protests have already been registered. British Columbia is par- ticularly anxious to retain its market in Great Britain; the apple growers of Nova Scotia are also determined to retain theirs and in neither instance is there any consola- tion in the prospect of a wider United States market for Canadian fish—not a very lively prospect at the best if Gloucester influence can determine United States policy as ef- fectively as it has done in the past. Canad- ian apple shipments to the British market in the past season up to September 21 were twelve times greater than in 1936 and four times greater than in 1935, and, according to the Canadian Trade Commissioner in London, the present outlook for this trade is promising, which information is not go- ing to make the Annapolis Valley any more indifferent to the proposed new treaty. In its broad scope the enterprise upon which the British, United States and Can- adian governments are embarking is of world-wide significance. If it succeeds it will bring the English-speaking nations—Aus- tralia and New Zealand are to be included later on—onto common ground commer- cially. A new link will be forged between the British Empire and the United States. Where there is a common interest there is Ret only an opportunity for, but an incentive to common action. A political structure may easily be erected upon a commercial foundation, and this, we take it, is not only the thought in the minds of " the govern- ments concerned but the motive which they are seeking to realize. It may be the first step in consolidating the political and econ- omic strength of the English-speaking world for the preservation of democracy and the restoration and maintenance of peace. No one will say that such a goal is not worth striving for, not worth some sacrifice on the part of all the people concerned. Through it, the world may again become civilized. British Industry Hails Trade Treaty Project London, November 18. — (CP) — British industry tonight endorsed Prim« Minister Chamberlain's announcement to the House of Commons that negotiations were contemplated for an Anglo-Am- erican tçade treaty. Fdrecajts were heard in polit- ical cirSes -'that negotiations wouldi not .iJfe concluded before the en<$ of.<next March. Txey take the pllye of iniprmaï and ex- ploratory discussions in progress for some time. Champions of preferential trade among units o \ the Empire were disposed, The Associated Press reported, to: rriake necessary sacri- fices because of wider political possj)j)lities that might result an economic link among p-sgeaking countries. • • Lr t 2 1 ^ u i t r y generally ex- pecrecf to "proift under the reci- procal tfadKjrg#©emegt. although opposition was / thought likely from farmers if the negotiations tend.to place further burdens on them. Mr. Chamberlain'! announce- ment came tafteï I t ftionthl of preliminary'! di^usjfcorr among Great Britain the Uhited States, and the Dominions. T W E L V E T H E J t o t a l p a i l s S f u r . Canada's Greatest Newspaper" Founded in 1869 ^The Montreal Daily Star is printed and published at 241-245 St. James Street West, Montreal, by < the Montreal Star Company, Limited§ Montreal, i £. R. W hit rod, Secretary-Treasurer. Subscription Rates Jtalt subscriptions in Canada, Great Britain and Newfoundland — $6.00 per annum. United States — , $7.50 per annum. BRANCH OFFICES FOB ADVERTISING, ETC. CANADIAN— PNTARIO, 390 Bay Street, Toronto; M. W. McGillivray, Advertising Representative. Montreal,.. 241-245 Binnie, Advertising Michigan Avenue, Lutz, Advertising EASTERN CANADA, exclusive or St. James Street, Montreal; A. J. Representative. t t N l T E D STATES— WESTERN DIVISION—435 North Tribune Tower, Chicago; J. E. Representative. EASTERN DIVISION—110 East 42nd Street, New York City; Dan A. Carroll, Advertising Representative. EDITORIAL OFFICE: 1205 News Building, E. 42nd Street, New York City. GREAT BRITAIN, IRELAND AND EUROPE— Room 228, Grand Building, Trafalgar Square, London, W. C. 2, England; E. C. Slater, Advertising Representative. EDITORIAL OFFICE: 30 Bouverte St., Fleet St., London. FRIDAY, NOVEMBER 19, 1937 A NATION'S HEALTH — IS — A NATION'S WEALTH i ANGLO-AMERICAN TRADE NEGOTIATIONS * * R . CHAMBERLAIN'S formal announce- ment in the House of Commons yesterday that trade negotiations are actually on foot between the Governments of the United States and Great Britain is in itself a step Of first-rate importance. No such open state- ment w;ould be made if it were not already fairly certain that the two Governments know now that they will be able to reach an agree- ment. Whether they will be able to pilot it through the whirlpools of Senatorial criticism in Washington and of the Dominions fears of its effects on them is quite another matter. It has long been an open secret, of course, that such negotiations were in progress. They were ready for more or less loose discussion at the Imperial Conference last summer. It is impossible to doubt that the experts on both sides have pretty well explored already •what can and what cannot be done. But both Governments apparently think that the pre- sent time has some particular fitness for the formal proclamation of this coming together of these two great nations. No one really doubts that the timing at least is political. The Fascist nations have been putting on exhibition after exhibition of their solidarity. They have done their weld- ing of steel links in public with as much fanfare and fireworks as possible. It is cer- tainly high time that the democracies on the defensive should make some public demons- tration of their drawing nearer to each other in the face of common dangers. * * * * * * There can be no two opinions as to the supreme value of closer relations between the British peoples and the American people. If - these two mightiest Powers in the world to- day, with practically identical moral standards and a common passion for freedom and the application of Christian principles generally, could genuinely get together, come to trust each other at least as much as do the Fascist freebooters and so present a common front to the world, they could at least stop the par- ticular bandit raids that are today shocking mankind. It is equally certain that a trade agreement should help—if it is a good agreement. It should help especially in the United States. One of the most serious obstacles to any real political rapprochement between the British and the American Governments is the feeling of great masses of the American people, far injury to budding Interests in the Dominions as well as in the two "Mother Countries," they will become causes of friction instead of friendship. Such agreements cannot last, and the shock and pain of the subsequent rupture will do far mçre harm than their temporary establishment will do good. * * * * * * It is really lost time to discuss the subject in detail till we have the proposed agreements before us. We are all heartily in favour of the objectives. Canada could ask no greater boon of fate than that "the Empire to which she belongs" and her "good neighbour" which shares\with her this Continent should become the best of friends and act together in all world affairs. Danger of war between them disappeared long ago. Danger of misunder- standing died with the seal dispute. The next step forward would be the positive—not nega- tive—achievement of co-operation in fighting humanity's battle for freedom. But there are Canadians who feel appre- hension that they may be asked to make a contribution that cannot be measured in money—i.e., the abandonment of a dream, if you like, that has been instilled in them for decades that their future, in trade as in senti- ment, lies with the British Empire and not with any foreign nation, however friendly. Canada's boast and, indeed, her passport to importance as a nation is the fact that she is a member of the British Commonwealth. We hope that nothing will be done to dim this glory or to raise serious doubts in the minds of our perilously mixed population as to the value of British connection. A NATION'S HEALTH — IS — A NATION'S WEALTH importance as a nation is the fact that she is a member of the British Commonwealth. We hope that nothing will be done to dim this glory or to raise serious doubts in the minds of our perilously mixed population as to the value of British connection. ANGLO-AMERICAN TRADE NEGOTIATIONS m \ * * R . CHAMBERLAIN'S formal announce- ment in the House of Commons yesterday that trade negotiations are actually on foot between the Governments of the United States and Great Britain is in itself a step «f first-rate importance. No such open state- ment would be made if it were not already fairly certain that the two Governments know now that they will be able to reach an agree- ment. Whether they will be able to pilot it through the whirlpools of Senatorial criticism in Washington and of the Dominions' fears of its effects on them is quite another matter. I t has long been an open secret, of course, tha t such negotiations were in progress. They were ready for more or less loose discussion a t the Imperial Conference last summer. It ia impossible to doubt that the experts on both sides have pretty well explored already what can and what cannot be done. But both Governments apparently think that the pre- sent time has some particular fitness for the formal proclamation of this coming together of these two great nations. No one really doubts that the timing at least is political. The Fascist nations have been putting on exhibition af ter exhibition of their solidarity. They have done their weld- ing of steel links in public with as much fanfare and fireworks as possible. I t is cer- tainly high time that the democracies on the defensive should make some public demons- tration of their drawing nearer to each other in the face of common dangers. * * * * * * There can be no two opinions as to the supreme value of closer relations between the K - British peoples and the American people. If these two mightiest Powers in the world to- day, with practically identical moral standards and a common passion for freedom and the application of Christian principles generally, could genuinely get together, come to trust each other a t least as much as do the Fascist freebooters and so present a common front to the world, they could at least stop the par- ticular bandit raids that are today shocking mankind. I t is equally certain that a trade agreement should help—if it is a good agreement. It should help especially in the United States. One of the most serious obstacles to any real political rapprochement between the British and the American Governments is the feeling of great masses of the American people, far f rom the sea-board, that "England" is still the ' 'Public Enemy No. 1" of their school books and a country with whom it is wise to "sup with a long spoon." If the unmistakable facts of the market could bring home to these people that "England" is now a customer which gets them higher prices, they might be inclined to take a kinder view. For so desirable an end, the Dominions » might well be expected to sit down at a Common council table and see what can be done. Our Government in Ottawa obviously has this thought in mind when it opens simul- taneous negotiations with the Washington Government which are apparently to proceed ' side by side with those between London and .. Washington. The idea is suggested that there be a triple TU bargain—a bargain in which perhaps Canada is paid for surrendering some advantages in the British market by receiving an equivalent advantage in the American market. I t ought not, indeed, to be impossible for two such rich nations as the United Kingdom and the United States to arrange some triangular exchange which will protect our all too pre- carious trade recovery from disaster. But it should always be kept in mind that there is no use trying to build amity on dis- in content. Unless the agreements are carefully flrawn to avoid unnecessary or profitless mi V [BER 17, y 1937 TRADE PACÏ öl AS AID TO /ord Lukef Stress 's Need )f Ang|o-Afflerican A k f f d 17—(C.P.-Havas) - Ccraclusion^rln Anglo-American rade! • t r ea l#Jw |i contribution to world peafaAvass Urfeld today by Lord' IjiV^chaiipuuifcfc the British Natiofa^Jjommiltee[<• the Inter- nat iqaPVChamber of Icfcmmerce. Son between the British as cÄ greàt and urgent im- mce, not. only for trade, but the peacfe o{ the world," Lord ike said.aP the annual meeting of the comjnittee. In the name of all the undertak- ings represented on the committee, the chairman expressed "clear en- couragement to proceed with the negotiation of an Anglo-American trade treaty." "Here," Lord Luke added, "is an obvious opportunity to register something which can be called progress and conciliation in the face of the all too general tend- ency to foment dissension and con- lict. "We are glad that in this we are supporting the Prime Minister's own wishes." CHANGES LAID TO BRITAIN Referring to the need of other countries for trade expansion, Lord Luke said members of the committee were aware that im- portant changes in the structure of international trade had occurred as a result of three British moves. These were the adoption of a tariff, the break with the gold standard and the development of Imperial preference. Emphasizing the importance of realizing the implications and multiple effects of a national pol- icy, Lord Luke expressed hope that businessmen of other countries shared with those of Britain a feel- ing of responsibiliity regarding their actions. Changes in the world trade struc- ture, while making more complex the task of extending international commerce, at the same time made it more urgent. Increased world trade was needed not only as a buffer against depression, but also as a softener of political disturb- ances. "We, as businessmen," he de- clared, "can make our contribution to appeasement by urging and con- senting to the removal of economic contentions and difficulties." ANGLO-U.S. BLOC HELD AS POTENT FASCISM CHECK Home and Foragn Reactions to Proposai Emphasize Point GERMAN PRESS PROTESTS Totalitarian Capitals Fore- îe Sanctions Effective in Curbing Belligerency By F. C. MEARS. (Gazette Resident Correspondent.) Ottawa, November 21.—Both do- mestic and external reactions to the proposed London-Washington and Ottawa-Washington trade pacts are pronounced and significant. They indicate that the project for a vast triangular tie-up of the three great democratic communities is boundyto exert a tremendous in- fluenae upon the trend of inter- natyfiaji politics and trade, that their combined control of over 50 pan ceit. of the world's business and thirr possession of at least that proportion 'of tWb world's military and sea power .Should, if wisely ex- j ercised, havfe stabilizing effect upon the presenftitiistflrbers of the peace and checkAie mad career of those nations Ihink marching armies are a got>d cure for unem- ployment. Already the German press, whose opinions are instructed by the Chancellor, is protesting against the jjrospect of a more effective Angli -American economic bloc, aijd ! milar expressions may be ex- ict( i soon from Rome and Tokio, jtalitarian capitals realize that iritish Coi monwealth, the it |d States an France, with all rritories. w f l be mtffle closely erljfakinaof trade The tl h l r link®, that an ii4 treat ES added > t ü e \ ) r j e n t tri- partite monetary enable the d< nocratic should the need ever arise, to im- pose economic sanctions that would either prevent or stop a war. Lord Cecil in a radio broadcast from New York last week laid down a plan for dealing effectively with an aggressor. He seldom mentioned the word "sanctions," but his method of preventing or halting hostilities contemplated economic sanctions, and he declar- ed that the policy ol economic sane- ; tions in the case of the Italo-Ethio- pian fight did not fail, but assert- : ed that had the sanction's been maintained a little longer they would have succeeded. There is lit- tle doubt that London and Wash- ington and Paris have decided that the dictators' challenge to pacific- minded peoples, and their combined threat to the security of interna- tional trade can best be met by tightening the democratic triangle. There are certain to toe far ' reaching political reactions witnin this Dominion to the project for a triangular trade deal. Already the Conservative leader, Rt. Hon. R. B. Bennett, speaking ?' Halifax, made it plain his part; would make an issue of any proposal that would jeopardize the principle of the Bri- tish or Imperial preference, for it is expected at least three Domin- ions—Canada, Australia and South Africa—will be obliged to make certain preference concessions to facilitate the U.K.-U.S. pact. It was stated in London on Saturday that a member of the Chamberlain Cabinet would go to Australia to discuss this question in January. OTHER DOMINIONS' STAND. Australia may be asked to make some concession in meats and wool and South Africa might be expected to let American fruit compete with its oranges in the British market. Whatever those two Dominions see fit to do to make the larger deal possible will not necessitate their making pacts with the United States as is the case with Canada, but there is little doubt Australia and New Zealand will be fairly generously disposed if they feel they wil' get in return the aid of the United States in removing nightmares from the Pacific Ocean. Just because Canada's proposed concessions for the U.K.-U.S. deal involve releases of Britain from certain bound preferences and necessitate the early making of a new agreement with the United States, so that this country can ob- tain its quid pro quo actually in advance of the Anglo-American treaty, Canadian business and Canadian political parties will be deeply interested. Premier Dysart, head of the Liberal Government in New Brunswick, has given the pro- ject his blessing on the ground that any move that results in a larger exchange of goods between Canada and the United States is highly de- sirable. It is worth bearing in mind, though, that the bound margin on Canadian lumber and timber is of particular value to New Bruns- wick. That province's products have, ev-r since the making of the first important deal with Britain at the Conference of 1932, found a large and increasing market in the United Kingdom, even though the larger exports from British Col- umbia went to the United States, instead of to Britain. While any lessening of the shelter which Bri- tain has given to Canadian forest I products to make the U.K.-U.S. | troatv noRsihle would have little if ! lit to do to maKe me larger cteai possible will not necessitate their making pacts with the United States as is the case with Canada, but there is little doubt Australia and New Zealand will be fairly generously disposed if they feel they wil" get in return the aid of the United States in removing nightmares from the Pacific Ocean. Just because Canada's proposed concessions for the U.K.-U.S. deal involve releases of Britain from certain bound preferences and necessitate the early making of a new agreement with the United States, so that this country can ob- tain its quid pro quo actually in advance of the Anglo-American ; treaty, Canadian business and j Canadian political parties will be deeply interested. Premier Dysart, | head of the Liberal Government in j New Brunswick, has given the pro- ! ject his blessing on the ground that \ any move that results in a larger exchange of goods between Canada and the United States is highly de- sirable. It is worth bearing in mind, though, that the bound margin on Canadian lumber and timber is of particular value to New Bruns- wick. That province's products have, e v r since the making of the first important deal with Britain at the Conference of 1932. found a large and increasing market in the United Kingdom, even though the larger exports from British Col- umbia went to the United States, instead of to Britain. While any lessening of the shelter which Bri- tain has given to Canadian forest products to make the U.K.-U.S. treaty possible would have little if any effect upon the Pacific Coast province, it would certainly injure the industry in New Brunswick. Because of the large and lucrative trade provided by the 50 per cent, cut in the United States tariff on lumber and timber in the last re- ciprocal treaty with Canada, and because of the national defence policy of trying to make the Pacific coast safe from invasion, the Liberals are now confident of scor- ing an important political victory in the present by-election campaign in Victoria, B.C. For a time, they say, it seemed as if Prof. King Gordon, the C.C.F. candidate, who nearly defeated the late Hon. Simon Tolmie almost single-hand- ed, would make the grade this time, but the Government party declare they have been heartened recent- ly by evidences of popularity of their trade and defence policies. Hon. Ian Mackenzie, Minister of National Defence, is out there leading the Liberal fight and he is making the most of the trade treat- ies, his defence programme of $35,- 000.000 put through last session, and the prospect of a similar out- lay this coming session. On the issue of a new treaty with the United States, linked as it ulti- mately will be with the larger U.K.-U.S. plan, the Liberals express themselves as confident. No longer, they argue, can there be attempts to charge that truck and trade with the United States is treason to the British Commonwealth, for in this particular case the initiative was taken by Britain. They point to their renewal and extension of the pacts with Britain and the Anti- podes as an evidence of their de- sire to preserve in a tangible, econo- mic way the ties of the Common- wealth, but they also contend that the Commonwealth in the present world situation is not sufficient to take care of itself, that a close banding of the three democratic communities is necessitated by the totalitarian challenges. The Conservatives in the coming session are bound to protest vigor- ously against what they regard as a grave menace to a powerful economic and political organization constructed on the foundations of Imperial preference. They will contend that what may be called a commercial treaty between Britain and the United States is merely the exchange by Britain of tariff concessions from the Dominions for political support from the United States, in a new attempt by peace- ful means to make the dictators be- have. They will deny the wisdom of involving the Dominions in the Anglo-American deal. Australia Plans U.S. Pact By R. L. CURTHOYS. (Wireless to The New York Times and The Gazette.) Canberra, November 20.—It is learned here that when the Austral- ian Cabinet shall have been recon- structed next week, Premier Lyons will ask it to consider making over- tures to the United States for a trade agreement. Treasurer R. G. Casey, when he visited Washington on his return from the Imperial Conference, was informed that as soon as Anglo-Airierican discus- sions had reached a poi^it where announcement, 6f formal negotia- tions would be possible, explora- tory discussions between Washing- ton and Canberra would then be in order. All tbfcse negotiations, it is un- 1 derstotfd, will bear important re- lations to proposals emanating from the United Kingdom and Australia for ' revision of the Ottawa agree- ments, which will be effected next year. Urgently needed here, it is felt, are additional drastic revisions on wool duties, wherein graziers see Government opportunities of aid- ing them. It is also hoped that prohibitive United States duties on meat may be adjusted to allow of freer im- port from Australia. Fresh efforts will probably be made to find an outlet for Australian wines in the U.S. The feeling prevails that1 since American and Australian fresh fruit seasons do not coincide, I the Commonwealth could obtain | valuable fruit markets in the Unit- ' ed States if only the customs quar- antine restrictions could be satis- factorily adjusted. In reciprocity Australia would abandon trade diversion restric- tions, providing a large market for Ampriran manufactured ponds. Accord Expectc! Ear ly Next> Yéar Canada Unlilkek/to Lose Imperial Preferçflce Benefits MINIONS MAKE CONCESSIONS tain/and Hull Announce fotiations Contemplated r" LONDON^ Nov. 18— (U.P.)—Premier Chamberlain an- nounced in tifie House of Commons today that informal dis- cussions vg/m the United States on a reciprocal trade pact had reached Jfie stage where it is possible to announce that formal negotiations are contemplated. This announcement marks a definite step forward, " Mr. Chamberlain said. British financial quarters predicted that the agreement ® might be cpnduded, by next Replyiiig to a question by Clement R. Attleë, Labor leader, Mr. Chamberlain said: "I am very happy to be able to inform the House that informal ex- planatory discussions with a view to reaching an agreed basis for negotiation of an Anglo-United States agreement have now reach- ed a point where the Governments of the United Kingdom and the United States feel able to announce that negotiations for such an agreement are contemplated. # Says Announcement Marks Definite Step "As my Right Honorable friend the president of the Board of Trade indicated to the House in debate on the (Royal) Address, this an- nouncement marks a definite step. I feel sure the House will warmly welcome this further step towards agreement between the two Gov- ernments." Expectations that the treaty might be concluded by spring were held as a result of large conces- sions made by British Empire | countries which enabled experts of Britain and the United State^ to reach the basis of an agreement. Today's announcement by the United States State WfSWment likely foreshadows the start of formal negotiations, it was as- sërted. During the Imperial conference here last May several Dominions, notably Canada, Australia and New Zealand, strongly opposed the pro- posed Anglo-American pact if it involved whittling down the Im- perial preferences agreed upon at Ottawa in 1931. Private talks since the Imperial eonference, it was said, have modi- fied the Dominions' opposition, which was understood to have been confined mainly to Canada's un- willingness to make concessions on lumber, apples and fruits, which compete directly w i t h similar United States products. The South African opposition was said to have been brought about by reluctance to see South African raisins ex- posed to increased United States competition in the British market. The British negotiations delega- tion may be headed by Right Hon. Oliver Stanley, president of the British Board of Trade, it was said, although some, financial circles re- portedly were anxious to have as chief delegate some prominent public man not necessarily con- nected with the Board of Trade. Secretary Hull Makes Washington Announcement WASHINGTON, Nov. 18—(U.P.) —Cordell Hull, United States Sec- retary of State, announced today that the United States contan- plates negotiating a reciprocal trade agreement with Great Britain. The negotiations will be the most important -since the negotia- tion of trade agreement was initi- ated nearly four years ago. Great Britain is the United States' best Customer' afld exercises much in- fluence on world commerce and in- ternational political affairs. A trade agreement with the British Empire was considered a keystone of the reciprocal trade agreements program and an im- portant step in Hull's world peace program. Conversations between represen- tatives of the two Governments have been going on for months. So important have State Depart- ment officials considered the pro- posed treaty that they have shrouded the conversations with the greatest secrecy. Only yester- day they branded as "premature" published reports that announce- ment of intention to negotiate a treaty was imminent. With this denial was issued the decision to issue the preliminary announcement of intention to ne- gotiate had been reached by Brit- ish and American officials, and the Tannouncement was being mimeo- graphed in the State Department. i Asks Interested Persons Foreign Minister, to Washington, ! to confer with President Roose- velt. The London newspapers this afternoon anticipated Mr. Cham- WASHINGTON, Nov. 18— (U.P.) —Cordell Hull, United States Sec- retary' of State, announced today that the United States contam- plates negotiating a reciprocal trade agreement with Great Britain. .„ The negotiations will be the most important -since the negotia- tion of trade agreement was initi- ated nearly four years ago. Great Britain is the United States' best Customer' and exercises much in- fluence on world commerce and in- ternational political affairs. A trade agreement with the British Empire was considered a keystone of the reciprocal trade agreements program and an im- portant step in Hull's world peace program. Conversations between represen- tatives of the two Governments have been going on for months. So important have State Depart- ment officials considered the pro- posed treaty that they have shrouded the conversations with the greatest secrecy. Only yester- day they branded as "premature published reports that announce- ment of intention to negotiate a treaty was imminent. With this denial was issued the decision to issue the preliminary announcement of intention to ne- gotiate had been reached by Brit- ish and American officials, and the announcement was being mimeo- graphed in the State Department. Asks Interested Persons To Submit Suggestions Hull's announcement i n v i t e d "interested persons to submit sug- gestions as to the products thai should be considered. " T h i s preliminary announce- ment," it continued, "which is made with a view to obtaining suggestions from interested per- sons in the early stages of the dis- cussions, should not be confused with the formal notice of intention to negotiate, regularly gjven. The formal notice will be issued at a later date, after receipt of the proposals of the Government of the United Kingdom, at which time there will also be made public a list of products on which the United States will consider grant- ing concessions to the United King- dom. "The purpose of this preliminary announcement is to provide notifi- cation at the earliest possible date that negotiations are contemplat- ed, in order that interested par- ties may have an opportunity to suggest the import or export pro- ducts which, in their oppinion, should be included in the negotia- tions. "The United Kingdom is the largest foreign market of the United States. Our exports to that country in 1936 were valued at $440,122,000, and accounted for nearly 18 per cent of our exports to all countries in that year. "As a source of imports into the United States, the United Kingdom was second only to Canada in 1936, supplying about eight per cent of the imports from all countries. Im- ports from the United Kingdom in that year were valued at $200.385,- 000, as compared to $155,282 000 in 1935, and $329,751,000 in 1929. Preliminary Figures Show Further Recovery "Preliminary figures for the first nine months of 1937 indicate a still further recovery of our trade with the United Kingdom. The export figure represents a gain of nearly 16 per cent over that for the cor- responding period of 1936. A similar comparison of import figures for the same period shows a gain of 14 per cent." Hull said, the Ottawa agreements among British Empire countries had been one of the stumbling blocks in attempts to negotiate a trade agreement with the United King- dom. This difficulty has been sur- mounted, he indicated. During the next few weeks the chief activity will be suggestions by various American industries and individuals as to the products which should be listed in the pro- posed agreement. The listing of products, Hull emphasized, does not necessarily mean that tariff rates will be changed in any way when the treaty is concluded. It means that these products will be considered, he said. Treaty Seen As Part Of General Trade Readjustment Special Cable by J. E. Poole, The Star's Resident Correspondent. LONDON, Nov. 18—That there is more than meets the eye in the announcement of Premier Cham- berlain in the House of Commons of the progress of the Anglo- American negotiations for a trade treaty, may be found in the com ments appearing in London news- papers. These suggest that the Anglo-American treaty would be only part of a more general trade readjustment, which would be in the nature of an answer to the pact made by the totalitarian states. Some papers suggest that the democracies have decided that it is necessary to make a reply to the ability of Germany, Italy and Japan to unite in formulating a program for themselves. There has been discussion of ex- tending the Anglo-American talks to what is known as the Oslo group of nations and include Bel- gium, Holland, Sweden, Norway, Denmark and Luxemburg. In this connection it would be well not to look upon King Leopold's present visit to London as being altogether diplomatic in nature. The ten- dency of the day to link diplomacy more and more with trade has probably something to do with the Belgian Monarch's presence here. It may also account for the recent visit of Halvan Koht, Norwegian Foreign Minister, to Washington, to confer with President Roose- velt. The London newspapers this afternoon anticipated Mr. Cham- berlain's statement in the House by almost assuming that the trade pact was more than half-way achieved. Newspaper Headlines Show Interest Observed Sweeplines showed the interest displayed here. The Evening News said: "Britain and U.S. To Make Pact." The Star: "Britain and U.S. Mak- ing Pact." The Standard: "Trade Pact with America." The announcement did not. go without some opposition. L. S. Amery, Conservative Imperialist and former Cabinet member, in a speech to the annual meeting of 1 the Empire Industries Association, j said: "I can hardly imagine such an agreement as likely to revolutionize America's outlook on foreign af- fairs so that she will be willing to do battle either ior us or the League of Nations in Europe or the Far East. Such a treaty is desir- able in itself with any great coun- try but cannot have the slightest effect on the world's economic policy." Canadian Preference Unlikely To Suffer OTTAWA, Nov. 18—(Star Special by Staff Correspondent)—Regarded here as most interesting in Wash- ington dispatches today is the sug- gestion that the proposed Anglo- American trade agreement will be between Great Britain and the United States alone, and that, to any extent to which the British Dominions are affected, separate treaties might subsequently be negotiated. There have been some disturbing reports as to the effects upon the Canadian preference in the British market which an agreement be- tween the United States and Great Britain might produce. The Dominion Government has been made fully aware of these and. while it gives every encour- agement to. the idea of an Anglo- American trade pact, because of the broad effect hoped to be exer- cised in the world situation, there is reaso* to believe that the dis- position is not to relinquish any substantial benefits now enjoyed by Canada in the British market. Cer- tainly this would not be done with- out some corresponding concessions to Canada in- the American market. No reason is found here, how- ever, why it would not be possible to negotiate a treaty between Great Britain and the United States without interfering with the bound margins of Canadian preference at all. It is pointed out that when Canada negotiated a reciprocal trade treaty with the United States in 1935, it was specifically stipu- lated that the preference enjoyed by Great Britain in Canada under the Ottawa agreements of 1932 would not be adversely affected. If this is possible in the present in- stance, any objections from Can- adian interests would, it is thought, be removed. The general sentiment, it is believed, would be strong for an Anglo-American alliance, par- ticularly if it called for no material sacrifice on the part of Canadian producers. ANGLO-U.S. PACT ANNOUNCEMENT EXPECTED SOON British Envoy to Washington Confers With Hull's Aide CANADA, SALVADOJrSIGN A . / Agreement on M^t-Favored- IJation Basjr Announced bfEuter _ 1 By BERTRAM D. HULfN. (SpeciaXttf The Nlw York Times / and The Gazette.) Washington, November 17.— An- nouncement by Great Britain and United States that they contem- plate negotiation of a reciprocal trade agreement is expected mo- mentarily as a result of a visit by Sir Ronald Lindsay, the British Ambassador, to the State Depart- ment late today. He went there for a conference with Francis B. Sayre, Assistant Secretary of State in charge of the trade-agreements programme. While officials were close-lipped as to the significance of the Am- bassador's call, the accumulating evidence of recent days, with the discussion between the two govern- ments reaching a most active stage both here and in London, lends sup- port to the conclusion that a for- mal announcement is at hand. The agreement would cover the United Kingdom. When an announcement is made it will mark the climax of Secre- tary Hull's programme of liberaliz- ing trade relations among nations, for it has always been recognized that for the policy to be a real suc- cess Great Britain's adherence was essential. The impending step is of broad signilvcance, for it marks a policy more than a trade decision by the British Cabinet for close collabor- ation with the United States. Ex- perts of the two governments spent nearly a year exchanging views and suggestions on details of rates and commodities before the British Cabinet took the issue out of the hands of the Board of Trade a few weeks ago and gave it direct at- tention. Difficulties and objections within the Cabinet had to be reconciled, but with Neville Chamberlain, the Prime Minister; Captain Anthony Eden, the Foreign Secretary; Oliver Stanley, President of the Board of Trade, and others favoring it, the prospect became a virtual certainty that a favorable decision would soon be reached. CO-OPERATION IS KEYNOTE. It was reached broadly on the basis of a policy of co-operation with the United States, even if to negotiate a trade agreement would make necessary some modification of the Ottawa Agreements. That, policy of co-operation includes the United States, Great Britain and France. It is felt that there will open before both countries, as events un- fold, opportunities for collaboration in other economic fields, as the political relations of the two coun- i tries are even more closely cemented. In the field of trade an agree- ment will give strong impetus to the programme for lowering trade barriers, and yield benefits to each country, it is believed. It will presumably result in con- cessions by Great Britain to Ameri- can agricultural products, which will assure a larger world market for farmers of the United States and, as a result, presumably bring political support to Secretary Hull's programme from areas where it has been under severest attack. It will, on the other hand, pro- vide for concessions to Great Bri- tain for her manufactures and thereby increase her participation in the American market. These two prospects seem assured, for the path to an agreement, un- like most of those that have pre- ceded it, has b.een well explored. From this standpoint, an announce-1 ment that the negotiations is con- templated will carry more signifi- cance than heretofore on some other agreements. The normal procedure, however, is expected to follow. Further study will be given to the issues. After announcement has been made that the negotiation is contemplated. Hearings will be set for American interests to be heard before the Committee for Reciprocity Informa- tion. With these preliminaries out of the way, the real negotiation will begin. While it might fail, the ground has been so thoroughly can- vassed that that prospect is ex- tremely remote. U.K. ALONE AFFECTED. How the negotiation may affect the British Dominions has not been indicated. Reports have been pub- lished that the negotiation might contemplate a broad agreement for the Empire, rather than for the United Kingdom, or that it might be followed shortly by separate agreements with Australia, New Zealand and South Africa, and even a new agreement with Can- ada to replace that in operation. While the Hull programme has always contemplated agreements y and The Gazette.) Washington, November 17.— An- nouncement by Great Britain and tyfe United States that they contem- plate negotiation of a reciprocal trade agreement is expected mo- mentarily as a result of a visit by Sir Ronald Lindsay, the British Ambassador, to the State Depart- ment late today. He went there for a conference with Francis B. Sayre, Assistant Secretary of State in charge of the trade-agreements programme. ! While officials were close-lipped as to the significance of the Am- bassador's call, the accumulating evidence of recent days, with the discussion between the two govern- ments reaching a most active stage both here and in London, lends sup- port to the conclusion that a for- mal announcement is at hand. The agreement would cover the United Kingdom. When an announcement is made it will mark the climax of Secre- tary Hull's programme of liberaliz- ing trade relations among nations, for it has always been recognized that for the policy to be a real suc- cess Great Britain's adherence was essential. The impending step is of broad signilvcance, for it marks a policy more than a trade decision by the British Cabinet for close collabor- ation with the United States. Ex- perts of the two governments spent nearly a year exchanging views and suggestions on details of rates and commodities before the British Cabinet took the issue out of the hands of the Board of Trade a few •weeks ago and gave it direct at- tention. Difficulties and objections within the Cabinet had to be reconciled, but with Neville Chamberlain, the Prime Minister; Captain Anthony Eden, the Foreign Secretary; Oliver Stanley, President of the Board of Trade, and others favoring it, the prospect became a virtual certainty that a favorable decision would j soon be reached. CO-OPERATION IS KEYNOTE. It was reached broadly on the basis of a policy of co-operation with the United States, even if to negotiate a trade agreement would make necessary some modification of the Ottawa Agreements. That policy of co-operation includes the United States, Great Britain and France. It is felt that there will open before both countries, as events un- fold, opportunities for collaboration in other economic fields, as the political relations of the two coun- tries are even more closely cemented. In the field of trade an agree- ment will give strong impetus to the programme for lowering trade •barriers, and yield benefits to each country, it is believed. It will presumably result in con- cessions by Great Britain to Ameri- can agricultural products, which will assure a larger world market for farmers of the United States and, as a result, presumably bring political support to Secretary Hull's rogramme from areas where it has een under severest attack. It will, on the other hand, pro- vide for concessions to Great Bri- tain for her manufactures and thereby increase her participation in the American market. These two prospects seem assured, for the path to an agreement, un- like most of those that have pre- ceded it. has been well explored. From this standpoint, an announce- • ment that the negotiations is con- templated will carry more signifi- cance than heretofore on some other agreements. The normal procedure, however, Is expected to follow. Further study will be given to the issues. After announcement has been made that the negotiation is contemplated. ' Hearings will be set for American interests to be heard before the Committee for Reciprocity Informa- tion. With these preliminaries out of the way, the real negotiation will begin. While it might fail, the ground has been so thoroughly can- vassed that that prospect is ex- tremely remote. U.K. ALONE AFFECTED. How the negotiation may affect the British Dominions has not been indicated. Reports have been pub- lished that the negotiation might contemplate a broad agreement for the Empire, rather than for the United Kingdom, or that it might bfi followed shortly by separate agreements with Australia, New Zealand and South Africa, and even a new agreement with Can- ada to replace that in operation. While the Hull programme has always contemplated agreements with all governments, it is believed that developments with respect to the Dominions will require more consideration before active meas- ures can be taken in respect to them. I The possibility of trade agree- ment with the United Kingdom was first explored seriously and in some detail more than a year ago and received impetus later ; from the visit here of Walter Run- [ ciman, then President of the British Board of Trade. But the latter's discussions did not proceed beyond the point of both governments de- ciding that an agreement would be desirable, which was considerably short of finding that a basis of ne- gotiation existed. The exchanges of views and sug- ges^gns _ among experts were then ' resumed but lagged seriously, with long gaps occurring, until Captain Eden declared a few weeks ago in the House of Commons that he hoped an agreement would be reached. That declaration, which repre- sented the attitude of the Cabinet and marked its direct intervention in the situation, resulted in the im- mediate speeding up of exchanges of official views, until a few days ago the discussions entered the ex- tremely active phase pointing to the imminence of an annOUnCe- mawl U.K., U.S. SPEED TRADE BARGÂÏ1 — • — \ f Agreement \ o n P o s j p i t y oî Arranginèsjre^ySought Negotiation^rtsA|itiveFliase in London^ Washington— Expect t Soon issue for the present is of a ü character, namely, whether BERTRAM D. HULEN. (Special to Thé !New York Times and The Gazette.) Washington, November 15.—Dis- cussions between Great Britain and the United States over whether it will be possible to reach an agree- ment to attempt the negotiation of a reciprocal trade agreement be- tween this country and the United Kingdom have entered an ex- tremely active phase. They are proceeding simultane- ously here and in London but have not yet reached a definite point. It is possible, however, that an an- nouncement may be made soon. The question was recently taken up directly by the Cabinet in London, whereas previously it had been handled by the Board of Trade. Since then there have been important} exchanges between the two go/ofnments with Secretary Hull giving his personal attention to thsSi since he returned last Fri- l day ftom a vacation in Pinehurst, N.C. The generali . the two governments feel that they would be justified in the light of all the circumstances oi officially an- nouncing an intention to negotiate. Should that be done, there would still bs the question of whether negotiations would result in a re- ciprocal trade agreement. While it is fully recognized that the present deliberations may re- sult! ip a conclusion that it is in- advisable to attempt to negotiate a trade .agrstment at this time there is conSidrfable opümism in both capitals leading-to the belief that a favorable announcement may be forthcoming. Such an announce- ment would be mgiße qitker hejjp or in London, or sifiiulran%>usly ç in both capitals. The» formTïas not yet been considered. In the past few weeks London has been consulting the Dominions on the issues, which presumably would require some modification in the system but not the principle of Empire preference, in order to provide opportunity for some con- cessions to the United States on agricultural products. American concessions to Great Britain would full largely within the categories of manufactured products. A reciprocal agreement directed to these subjects would redound to ths advantage of the American far- mer while permitting the United Kingdom a larger cut-in on the American market. Broadly, however, it would be significant in its political aspect of pointing to closer collaboration be- tween the two great English-speak- ing countries, a collaboration, which, following the tripartite monetary agreements, could in time be expected to bear fruit in many directions. ANGLO-U.S. TREATY Failure of Washingtqjf To Issue Report Reveals Ü l S i f CANAI)& ÄFF] Ottawa OTTAMi, Nov. 13-%(S% Special by S ta i r Correspondi t ) — In the wealtt^of speculation, apropos of a t y ß e agreement between Great Bnfain and ®e United States in- volving Canada vitally the salient circumstance is that, officially, they have not yet "got to first base." If, after months of talk about it, they had arrived at anything defin- ite, then, bv the provision of the United States law, the fact would have to be promulgated. Their system is much more cau- tious and involved than are those of Great Britain or of Canada. Four essential steps are prescribed, and they need to be taken in public. First, there must be an announce- ment that an agreement is "con- templated." No such announce- ment has been made. Second, when the contemplated agreement approaches the form of actuality, there must be published a list/: of tire principal commodities of t i t t le -between the United States and jthe country with which the agreement is proposed. Suggestions about the plan are invited. Third, an announcement is next made, formally, of the intention to "negotiate" a treaty and of the list of commodities proposed to enter into it. ! I Fourth, a ('reasonable., titffe\ is then prescribed! j fo r j tnàprese l t a - tioit of <w*itt<n putmissitfh tod also a "reasonable limé" for oral h (Spr- ings1; Undoubtedly, there have been "conversations" and "exploration" but the suggestion abo^.t firrt ba^e not heing attained" is due to the fact that, of the four official steps prescribed, the initial one is yet to be taken. Announcement is lack- ing that an agreement is "contem- plated." UNHURRIED MOVES The subsequent processes disclose what an unhurried business it would be to conclude a treaty. Just how far the exploration parties may have got cannot De stated because at Ottawa probably only one statesman and one offi- cial really know and with that the vow of silence involves no pain. On the record, it is evident, however, that the progress is not very far. The practical economic question is whether these supposed influ- ences would justify the price to ne paid in any surrender, or modifica- tion, of the preferential system of the British Empire. If, on any such basis, an agree- ment should be concluded, with the Canadian preference affected, it would, literally be "over the dead bodies" of apple growers in the An- napolis and Okanagon Valley and also of Canadian lumbermen. So far as Nova Scotia apples are con- cerned, the situation, indefinite as it is, becomes one of embarrass- ment for Hon. J. L. Ilsley, Minister of National Revenue in whose con- stituency apples are the whole pro- ductive industry. Much agitation is being stirred up by meetings, in protests to Ottawa and to the Nova Scotia Government. Moreover, the British importers who take practi- cally the whole crop, are urged to "work on" the British Government at their end. And, out in British Columbia as Hon. Ian Mackenzie can testify, there is a similar condition among the apple growers and lumbermen. Reports of "substantial progress" being made may be true depending upon what the term means. When, however, it is not thought sufficient to justify even the most prelimin- ary of notices, namely that some- thing of the sort is "contemplated," the apprehension displayed in spots, may be wholly premature if not unfounded. CANADA STANDS TO GIVE UP MO IG B O M D MARGINS High Ottawa C i r ^ s Hold Political Gain to Empire Offsets.. EûpnoÀlic Cost By F. V. MEARS. (Gazette Resident Correspondent.) Ottawa, November 8.—Either the United States has greatly reduced its demands or Owen Stanley, pre- sident of the British Board of Trade, when he spoke in the House of Commons early last week, was indulging in "hope talk" over the proposed commercial treaty be- tween the two countries, for there is no evidence yet that the three Dominions most interested—Can- ada, Australia and South Africa— are ieady to hand over the keys and r^leaçe Britain . from certain inrfpofstantibojhd preferences. It was rec^nized at the Imperial Conference in June that little could be done' about a U.K.-U.S. treaty unless : ând until the three Dominions released Britain from the bopnd margins on such natural produc s as fruits, lumber, meats and w eat, and while the govern- mfen s f the Dominions admit great pair icEÊ advanUges might accrue to t ie ÏBritidh Empire from having the UratetJ States Jinkeji«4vith the Commabwpakh ;(n! ä_Jormil traue pact, they ialâo forefcèl seripus poli- tical danger for them£0lves|in mak- ing such a treaty possible! Premier Mackenzie King is be- lieved to be strongly persuaded that the political value of such an alliance exceeds the economic cost to this Dominion of profoundly dis- turbing the foundations of the Im- perial preferential system of tar- iffs. but opposition to this proposal has already been heard from British Columbia, New Brunswick and Nova Scotia. Primary producers in those provinces do not want to see their sheltered market in Britain jeopardized, even for the closer co- operation of the United States. Of the three Dominions. Canada would be called upon, if the pro- ject were to be undertaken, to pay the greatest price. South Africa would be required only to forego some of her British preference on oranges, and Australia might face partial loss of her meat and fruit business, but Canada would, as its share, be obliged to release Britain partially or wholly from the bound margins on such important commo- dities as aoples, lumber, wheat and certain meats. WEST DISLIKES PROSPECT. It may be suspected that the farmers of the Prairie Provinces would not relish the prospect of lessening the British shelter for their grain. A prominent Winnipeg paper has more than once lately- sought to clear the atmosphere for fiscal concessions that would facili- tate the United Kingdom-United States treaty, but it will be unable to convert its prairie readers, who are as vigorous protectionists when it comes to selling their products a^ they are low-tariff people when buying. Urging the political importance ol the United Kingdom and the United States being linked in a commercial pact, the moral effect it would have upon the situation in Western Eur- ope and upon Japan (Australia, it ù said, would welcome such an alli- ance to lessen the "yellow peril"), the Winnipeg paper advises against further .delay because, with the ap- proach of Congressional elections next year, local pressure in tha United States might make it diffi- cult for that Government to con- clude a deal with Britain. The United States, however, has been the prime mover in this pro- ject. Its eagerness has been mani- fest from the beginning, but the conversations in London last sum- mer made it clear that it is up to the Dominions to say whether or not the deal should go through. It cannot be concluded without a dis- turbance of the Imperial preference system, and the price for the deal will be paid only by the Dominions There is little that Britain itself can offer to the United States in the way of fiscal concessions. A sheltered market in Britain for natural products of the Dominions is to be traded for whatever politi- cal advantage might go to Britain from a formal pact with the United States. That seems to be the cen- tral feature of the proposed deal. Canadians favorable to the proposal say that this country might in the three-cornered negotiations get two or three concessions from the United States, such as a reduced duty on codfish and more generous quotas on Douglas fir (for British Columbia) and better terms of ad- mission for western cattle. It is also argued by the advocates of the scheme that as the British Commonwealth and the United States combined have more than one-half of the total foreign trade with Japan, a linking of the Com- monwealth and the Republic would make it possible, if deemed expe- dient, to exercise effective econo- fiscal concessions that would facili- tate the United Kingdom-United States treaty, but it will be unable to convert its prairie readers, who are as vigorous protectionists when it comes to selling their products as they are low-tariff people when buying. Urging the political importance oi the United Kingdom and the United States being linked in a commercial pact, the moral effect it would have upon the situation in Western Eur- ope and upon Japan (Australia, it is said, would welcome such an alli- ance to lessen the "yellow peril") the Winnipeg paper advises against further -delay because, with the ap- proach of Congressional elections next year, local pressure in the United States might make it diffi- cult for that Government to con- clude a deal with Britain. The United States, however, has been the prime mover in this pro- ject. Its eagerness has been mani- fest from the beginning, but the conversations in London last sum- mer made it clear that it is up to the Dominions to say whether or not the deal should go through. It cannot be concluded without a dis- turbance of the Imperial preference system, and the price for the deal will be paid only by the Dominions There is little that Britain itself can offer to the United States in the way of fiscal concessions. A sheltered market in Britain for natural products of the Dominions is to be traded for whatever politi- cal advantage might go to Britain from a formal pact with the United States. That seems to be the cen- tral feature of the proposed deal. Canadians favorable to the proposal say that this country might in the three-cornered negotiations get two' or three concessions from the United States, such as a reduced duty on codfish and more generous quotas on Douglas fir (for British Columbia) and better terms of ad- mission for western cattle. It is also argued by the advocates of the scheme that as the British Commonwealth and the United States combined have more than one-half of the total foreign trade with Japan, a linking of the Com- monwealth and the Republic would make it possible, if deemed expe- dient, to exercise effective econo- mic pressure upon the aggressor in the Far East war. Separately, they have both thus far declined to ex- periment with such sanctions against Japan. President Roosevelt has hesitated to invoke his neut- rality law. and the British Govern- ment has turned a deaf ear to the demands of the British people for a boycott of Japanese goods. There is another argument against any hasty measure by thisl ["Dominion to facilitate a trade deal between Britain and the United States. A year hence this country I will have to think about the re- newal of the reciprocal treaty with Washington, which became effec- tive on January 1, 1936, with three years to run. It is contended this country would be in a better posi- tion to bargain with Washington directly than indirectly through the three-cornered deal which the proposed U.K.-U.S. treaty would involve. The prospect that negotiations will attend the renewal of the Canada-U.S. treaty in the fall of 1938 is also cited as a reason why the King Government in the next few months should turn a deaf ear to the vehement demands from Western Canada, already heard in many quarters, for further substan- tial tariff cuts, with special atten- tion to the textile schedules. Prairie politicians are asking that these schedules be all put down to the intermediate tariff level. They will also make a drive for further cuts in the duties on certain farm implements. These same low tariff people from the West are pleased with the gains that went to them from the treaty with the United States, and yet if their present demands were met the renewal of that pact a year hence on terms advantageous as those of the fall of 1935 would be almost impossible. TREATY METHOD TO CONTINUE From the other side of the tariff argument there have come protests against the policy of tariff-making by treaties, but it has become ap- parent that unless some of the im- portant trading nations profoundly change their ways this method of facilitating international business will continue. It is complained that treaties have the effect of leaving the tariff tied at the top but not at the bottom, that either party to a pact may lower a duty but not raise the duty. This trouble began in 1932 with the many agreements concluded at the Imperial Conference in this city. It was a kind of fiscal policy which the Bennett Government found to be necessary to effect worthwhile agreements between the members of the British Common- wealth, and an illustration of its operation is furnished in an appli- cation now before the Tariff Board. A textile-company in Quebec pro- vince wants a reduction on the rate against certain goods from Britain which are raw material for that firm but which are finished material for other Canadian plants. The particular tariff item is one of the "bound" items in the Con- ference agreement with Britain. This duty may be lowered to help one Canadian firm but it could not be increased to aid some other Canadian plants. The fiscal rapacity of prairie farmers, the warranted anxiety of , natural producers in British Col- umbia and the Maritime Provinces for the continuance of their shelter- ed market in Britain, and the un- wavering opposition of the Eastern industrial interests to any distur- bance of the British preference system, all present an almost in- superable Dolitical obstacle to any steps by the King Government to facilitate the U.K.-U.S. proposed trade treaty. Canadians are not likely to consent to such' an econ- omic sacrifice unless it were to aid in extricating Britain from some grave political difficulty in Western Europe, and that situation T E N ) T H E "Canada's Greatest Newspaper' Founded in 1869 The Montreal Daily Star is printed and published at 241-24S St. James Street West, Montreal, by the Montreal Star Company, Limited, Montreal, £. R. Whitrod, Secretary-Treasurer. Subscription Bates JIail subscriptions In Canada, Great Britain and Newfoundland — $6.00 per annum. United States — •7.50 per annum. BRANCH O F F I C E S F O B ADVERTISING, ETC. C A N A D I A N - ONTARIO, 390 Bay Street, Toronto; M. W. McGillivray, Advertising Representative. ( EASTERN CANADA, exclusive or Montreal, 241-245 St. James Street, Montreal; A. J. Binnie, Advertising Representative. UNITED STATES— WESTERN DIVISION—435 North Michigan Avenue, Tribune Tower, Chicago; J. E. Lutz, Advertising Representative. EASTERN DIVISION—110 East 42nd Street, New York City; Dan A. Carroll, Advertising Representative. EDITORIAL OFFICE: 1205 News Building, E. 42nd Street, New York City. G BEAT BRITAIN, I R E L A N D AND EUROPE— Jtoom 228, Grand Building, Trafalgar Square, London, W. C. 2. England; E. C. Slater, Advertising Representative. EDITORIAL OFFICE: 30 Bouverie St., Fleet St., London. TUESDAY, NOVEMBER 9, 1937 A NATION'S HEALTH — IS — A NATION'S WEALTH CANADA A N D T H E BRITISH- AMERICAN TRADE AGREEMENT • p H E tariff negotiations that are undoubtedly * in progress between \ the BriU^B and American Governments are C r e ^ n g not a little perturbation ip Canada^^The general opinion seems to be that, i u f h e British Gov- ernment makes importaiwconcessions to the ai ted States, they n^rat be to gome extent a t \ the Expense of JBcal Canadian interests. Naturally, t h e s e ^ o c a l Canadian interests whiih now beiwi t greatly by preferred treat- ment ifi the J n t i s h m à r k e t a r e a s k i t r to what extent thar are to be treat* goats . " J r , ! If/xhe negotiations were t 4 be conducted Strictly on trade lines, there 'Would be little ground foc complàintA The British people have" every right to \rade"- where they can find the greatest profi t-*.nä so have we. But, fortunately or unfortunately, powerful political currents affect the discussions from more than one side. When we in Canada talk about pre- serving the Ottawa Agreements, we are not .only trying to keep what advantages we have in the British markets but we are also conscious of striving to maintain one of the as '.aticrificial strongest bonds that hold the Empire together. Ön the other hand, the statesmen who are t burdened with the anxious task of protecting this same British Empire against outside aggression are equally conscious that an enhanced trade with the United States should tend to bring these two great Anglo-Saxon countries nearer together in the international arena. This is a consummation most devoutly to be desired. It is just as important to the United States as to Great Britain, but the British are much more aware of it. There are millions of people in the British Empire who are as far advanced in understanding this t ruth as is President Roosevelt and, we fear, f a r too few of his fellow-countrymen. The danger is that when statesmen sit down to discuss trade agreements with their minds aflame with these mighty international issues, they are too apt to consider buying and selling and profits as incidental and the effect on national feeling as paramount. Statesmen are perhaps the wrong people to negotiate trade treaties. This job should be left to business men. But under our systems of government, in all three countries, we are only too likely to get neither. I t is often left to politicians. We are told that Australia is much more co-operation In world affairs. But they will first want to know that the sacrifices are necessary and, secondly, that the co-operation will be forthcoming. The attitude of the American delegation at Brussels, in the face of flat Japanese defiance and Mr. Eden's challenging pledge to go as far as Washington will, does not encourage us to hope that it will take any very practical form. Here is a case in which the ultimate perils of the United States are fa r graver than those of Great Britain, and yet Eden's challenge has not yet been accepted. Another point to be remembered is that it is necessary for every one of these demo- cratic governments to do nothing that will ensure their subsequent defeat at the polls on the ground that they have given too much away. Nothing could be worse than to build a splendid State policy on a blundering trade agreement that brought injury, irritation and resentment. I t would be a decided disservice to either Imperial unity or British-American amity for a government to identify itself with some long-visioned plan that alienated so many local interests that it lost the next elec- tions on this very ground. The Canadian, the American and the British peoples must be carried along, convinced and contented, in support of any idealistic programme. After all, there is no use talking nonsense about it. The United States is not going to fight any British war because the British peo- ple buy Oregon apples. The British Empire, on the other hand, is not going to fly to pieces because it is found that Mr. Bennett drove too good a bargain a t the Ottawa Conference. The partners in the British Empire dare not go separate ways while the highways of the world swarm with armed foot-pads. Nor will the Americans be long in learning that a com- bination of foot-pad nations, strong enough to carve up' the British Empire, will next gloat over the prospects of a f a t feast on the fabulous riches of North America. A NATION'S HEALTH — IS — A NATION'S WEALTH CANADA A N D T H E BRITISH- AMERICAN TRADE AGREEMENT *T"HE tariff negotiations that are undoubtedly in progress between \ the Br ig j tT and American Governments are -creailrig not a little perturbation ip Canada^^The general opinion seems to be that, iy/me British Gov- ernment makes importanJ^concessions to the ai ted States, they i ^ R t be to some extent a t \ the expense of JBcal Canadian interests. Naturally, these^local Canadian interests whiih now beiwi t greatly by preferred treat- ment in the^pi t i sh m ä r k e t a r e askiifc to what extent t h j p are to be treat&l as \mcrificial ia\.i< the negoti tions were to be conducted Strictly on trade lines» there Would be little ground for complaint.^ Tlje British people have every right to \radie" where they can find the greatest p r o f i t — * ^ so have we. But, fortunately or unfortunately, powerful political currents affect the discussions from more than one side. When we in Canada talk about pre- serving the Ottawa Agreements, we are not .Only trying to keep what advantages we have in the British markets but we are also conscious of striving to maintain one of the strongest bonds that hold the Empire together. Ön the other hand, the statesmen who are t burdened with the anxious task of protecting this same British Empire against outside aggression are equally conscious that an enhanced trade with the United States should tend to bring these two great Anglo-Saxon countries nearer together in the international arena. This is a consummation most devoutly to be desired. I t is just as important to the United States as to Great Britain, but the British are much more aware of it. There are millions of people in the British Empire who are as far advanced in understanding this t ruth as is President Roosevelt and, we fear, fa r too few of his fellow-countrymen. * * * * * * The danger is that when statesmen sit down to discuss trade agreements with their minds aflame with these mighty international Issues, they are too apt to consider buying end selling and profits as incidental and the effect on national feeling as paramount. Statesmen are perhaps the wrong people to negotiate trade treaties. This job should be lef t to business men. But under our systems of government, in all three countries, we are only too likely to get neither. I t is often left to politicians. We are told that Australia is much more ready than we are to make sacrifices in order to promote British-American trade. This is only natural. Australia's interest in a British- American "entente" is much greater than ours, in spite of the fact that we are nearer to the United States. Australia, is .one of the most exposed salients of the British Em- pire when we envisage the aggressor as Japan plus a conquered China. She will sorely need American support in her day of trial. And has it occurred to any one that all of Australasia with its pronounced Socialistic character and history is an ideal target for the new Triple Alliance of Communist "witch-hunters" if they should happen to find it suit their schedule of world conquest to a t tack these sparsely populated islands? A nation which can picture anti-Communist Chiang Kai-shek as a Communist menace would have no trouble in painting progressive Australia and New Zealand as nests of "red" revolution. * * * * * * We in Canada are all for American friend- ship. But we have never found that the way to win American friendship is to follow the example of the sychophantic school child who lays a big rosy apple—from the Okanagan or the Annapolis Valley preferred—on "teacher's desk." The Americans like people who stand Up to them and play the game. Canadians are undoubtedly willing to make t rade sacrifices to secure British-American pie buy Oregon apples. The British Empire, on the other hand, is not going to fly to pieces because it is found that Mr. Bennett drove too good a bargain at the Ottawa Conference. The partners in the British Empire dare not go separate ways while the highways of the world swarm with armed foot-pads. Nor will the Americans be long in learning that a com- bination of foot-pad nations, strong enough to carve up' the British Empire, will next gloat over the prospects of a fa t feast on the fabulous riches of North America. EMPIRE INTERESTS MUST BE GUARDED DTimes Comments On Pro- posed Anglo-U.S. Trade Treaty LONDON, 8—(C.P.-Havas) •—The necessity for guarding the Jnterests of "the Dominions in the proposed Anglo-American trade t reaty ^ a s stressed in an editorial !n Ipé Times todfy. The newspaper, said that there Is "every hope" that one of the main difficulties in the path of the treatjr—«the fact that some of the concessions mQst desired by the- United States would be at the expense of the Dominions—will be overcome in view of the goodwill iwhich exists on both sides. "It would be bad business to penalize our best customers with- out arranging that they should re- ceive adequate compensation by some three - cornered arrange- aient," the Times said. The newspaper underscored the reed for expediting discussions aimed at A the conclusion of the «ommerefïl J accord, declaring: "There mi no*rf£éd at this time to dwell u i^n tpe importance of seiz- ing evWry (opportunity- of extending the field of Arftglo-American co- operation." HAS PACIFIC INFLUENCE "It is impossible to exaggerate the pacific influence of inter- actional trade," the Times added. "'If coiHitries with a common lan- g u a g e / common traditions and commSn / outlook upon world affairs pstinot find some basis for economic/ jcajopelation between Ihemselvis,/ what j chance is there of securiligl aày gérferal agreement arr.ong countries5 divided ^ y all manner of öifflrericas and held «part by obduqate mutual fears land suspicions? » "It is true there are difficulties In the way which are only made the greater by the unfortunate persistence with which some critics jof this country put all the blame tfor delay on the British Govern- ment as if they were less eager lhan the American Government to facilitate an increase in trade be- tween the countries. "The plajn fact is that Great Britain already buys so much from the United States that she cannot lafford to buy more without the prospect that Americans in their t u rn will increase the comparative- ly small amounts of goods they yiow purchase from this country. "The present British tariffs are ïnuch lower than the American tariffs. Great Britain buys from abroad, per head of population, five times as much as the United States, and is purchasing from the United States more than 2% times as much as she sells to that country. British negotiators must be reluc- tant to see the exchanges between the two countries made even more ©ne-sided than they are already."
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