(c) crown copyright
Catalogue Reference:CAB/24/224
Image Reference:0007
9 -? 9
*y6
DOCUMENT
R
E
351TAUT I G 11AJ3STY VS. GOVERNMENT)
13 THE PROPERTY OF H I S
To
208.1511 o
C A B I
I-T S . T ,
OH THE"PROPOSED
ill
1.
At
their
73
(5l)
Conclusion
as
soon
as
Committee
the
Ul
Meeting
3)
be
the
set
examine
to
males r e c o m m e n d a t i o n s
all
matters
to
Government
the
Committee
to
Ministers
2.
At
1931
Conclusion
Secretary
16)
the
for
should
in
as
75
the
United
to
in
(Cabinet
principle
include
that, .
a
s
the
Cabinet
following
(3l)
for
Foreign
Affairs
The
Committee
-
Appendix
Dominion
not
to
have
I.)
Affairs
to
Conference
the
Kingdom
the
on November
confirmed
State
has
as
invite
Conclusion
Committee
It
Ottawa
poliC2*
at
the
and
of
Conferencej
attendance
of
required,,
meetings
Cabinet
the
Cabinet
the
Foreign
2
the
of
Colonies.
for
1931
s
re-censtituted
to
authority
ad h o e
(Cabinet
of
3o
State
have
subsequent
and c o m p o s i t i o n
0,0. (31)
3rd
agreed
had been
relating
Majesty'a
State
Cabinet
up w h i c h
His
the
on November
C h a n c e l l o r o f the Exchequer
S e c r e t a r y of S t a t e f o r Dominion A f f a i r s
P r e s i d e n t of the Board^of Tr ade^
M i n i s t e r o f A g r i c u l t u r e and F i s h e r i e s
to
for
CONFERENCE
The
The
The
The
18th,
I M P E R I A L ECOHOHIO
irv^ne
Government
should
Ministers
other
7)
)QEY 270 c
s
4
the
with
and
the
been p o s s i b l e
the
considered
submitted
relative
to
to
Cabinet
above
Affairs-and
attend
1 1 t h and
terms
addition
the
for
meeting
the
79
(31)
of
reference
of
the
Secretary
the
of
the
of
Secretary
the
a Memorandum
them b y
November
State
of
Committee
(Paper
Secretary
main problems
of
likely
0
.2C3
to
arise
in
the
course
of
his
Dominions
and
subsequently
4.
The
Committee
of
the
Ottawa
questions
to
of
Imperial
policy
that
ensure
success
the
Secretary
designed
in
of
to
advance
visiting
Kingdom
wheat
this
would be
that
it
is
large
a fatal
blow
accordingly
should be
made b e f o r e h a n d
Conference.
The
mission
that
Conference,
prepared
to
England
the
has
he
his
do.
he
during
with
and wheat
it
is
be asked
what
is
essential,
should
be
fully
intend
to
Dominions
the
It
is
agreement
when
United
therefore,
aware
pursue
the
of
on
that
the
the
various
Memorandum,
to
one
the
circulated
(cn
and
will
Government
in
possible
the
to
of
certain
Department
Note,
it
the
of
E
5-.
With regard
DOMINION
WHEAT QJJOTA,Dominion "Wheat Q u o t a ,
Government)
to
on
measure
raised
place
agreement
failure
largest
which
took
the
the
policy
his
that
secure
leaving
in
itself.
to
the
the
Conference
Dominion A f f a i r s
each Dominion
Fisheries
to
for
before
matters
opinion
reach
and
the
Ottawa
mission
State
of
are
to
every e f f o r t
of
the
of
remitted
interests,
imperative
at
are
Conference
forthcoming
to
the
basis
the period
flour.
the M i n i s t e r
these
Minister
the
regard
of
to
In
of
of
matters,
Agriculture
Committee
of
observed
a Note
Office
of
the
quota
a
and
prepared
investigations
a possible
his
namely
which
Labour
for
Dominion
c o v e r i n g Memorandum
to
­
" I t should b e b o r n e i n mind t h a t t h e g e n e r a l
p r i n c i p l e s o f a q u o t a p o l i c y , w h e t h e r f o r Home
or Dominion wheat, have not y e t been c o n s i d e r e d
by the Cabinet.
I propose in the near future
t o c i r c u l a t e a d o c u m e n t t o t h e C a b i n e t on t h e
subjecbaerking f o r a u t h o r i t y , i f t h e g e n e r a l
p r i n c i p l e s of a q u o t a scheme a r e a p p r o v e d ,
to
discuss the p r a c t i c a l a d m i n i s t r a t i v e
details
c f a home s c h e m e w i t h t h e i n d u s t r i e s
concerned,
whose c o - o p e r a t i o n i s e s s e n t i a l t o s u c c e s s .
W h i l e , t h e r e f o r e , t h e Ottawa Committee
will
wish to give early consideration to the p o s s i b i l i t y
o f a quota f o r D o m i n i o n wheat and wheat f l o \ i r ,
it
3?
" T h i s Memorandum h a s now b e e n
P a p e r C P . 287 ( 3 1 ) .
circulated
to
the
Cabinet
see
' .'
\
j
important that d e t a i l e d i n v e s t i g a t i o n by this
Committee s h o u l d f o l l o w and n o t p r e c e d e t h e
d e c i s i o n b y t h e C a b i n e t and t h e s u b s e q u e n t '
d i s c u s s i o n w i t h t h e i n d u s t r i e s r e f e r r e d to. a b b y e . ^
i
s
1
6.
The
Australian
Imperial
to
Scheme
during
support
Conference,
a
the
scheme.
tion,
be
without
further
cussions
Scheme.
asked
for
the
should
required
7,
The
Committee
decision
to be
reached
Minister
of
to
Memorandum
should be
prepared
the
event
Agriculture
the
of
(1)
to
the
the
being
authorised
quuta
should be
8,
asked
the
for
the
the
the
guidance
of
of
Cabinet
on t h e
(see
State
for
Kingdom
it
the
all
dis­
the
never,
"Wheat
indeed,
centred
on
machinery
subject
State
paragraph
Government
for
State
for
Cabinet
above)
of
and ( 2 )
the
now
that
in
Affairs
Quota,
that
price.
Dominion
to
the
of
his
Affairs
line
-a H o t e o rjhe P r e s i d e n t o f t h e B o a r d o f T r a d e r e s e r v e s h i s
on t h e q u e s t i o n o f a D o m i n i o n " W h e a t Quota u n t i l h e has
an o p p o r t u n i t y o f c o n s i d e r i n g t h e documents w h i c h have
c i r c u l a t e d t o t h e C o m m i t t e e on t h e s u b j e c t .
R7
.
the
Affairs
paragraphs
as
the
of
5
are
Dominion
of
to
proposals
Dominion
Quota,
guarantee
the
to
i n p a r a g r a p h 13 ( l )
wheat
of
considera­
of
the
that,
5 and s u b s e q u e n t
Secretary
United
during
a Dominion Wheat
any
its
for
discussions
opinion
of
of
the
formed p a r t
nature
the
it.
raised
United
offer
without
stage
and F i s h e r i e s
Secretary
to
the
of
a Dominion
In paragraph
Memorandum,
by
The
at
committed
representatives
work
Secretary
that
price
and
are
question
offer
of
to
no
of
inclination
hand,
scheme
1950
regarded
view
an
and
the
had
their
other
the
of
and
with
as b e i n g
price.
be.
ended
- At
of
Canadian
opening
changed
forward
guarantee
a guaranteed
reply
the
the
informed, t h a t
regarded
that would be
the
was
The Dominion
Quota
at
and
examination,
had any
Quota
what
not
that
On t h e
Conference
had put
must
who,
disfavour,
Kingdom Government
but
reminded
had a d v o c a t e d T a r i f f s
with
the
such
termination
IAL
are
representatives
Conference,
the Quota
Quota
Cabinet
which
opinion
had
Been
he
should
take
course
the United
United
Kingdom
the
wheat)
are
with the
Secretary
are
agreed
cf
that
such t a r i f f s ,
accordingly
the
in
of
tariff
concessions
to
Committee
Committee
their
to
articles
will
the
principle
that
quotas
or
preferential
of
food
and ( v )
cf
questions
tcgether.
to
most
than
on
e.g.
for
13 ( i i )
of
Committee
does
not
rule
question
Committee
make
a
out
should
suitable
and
for
to
on
invited
possible
report
thereon
next.
this
by
the
the
as
Cabinet
United
The
subject
on a n y
a basis
in
for
summarised
in
paragraph
conveniently
be
way
discussion
examine
State's
in
of
articles
to
of
agree
Kingdom b y
necessary
Secretary
have
preliminary
3rd December
that
tariffs
admissible
can most
to
Cabinet.
concessions
is
the
Dominions,
assumption
questions
the
delay
recommendations
the
On t h e
it
a basis
The
this
as
articles
paragraph
to
take
exemptions,
as
mandate
answer
later
include
are
on
specified
(see
to
should p r o c e e d
principle
Committee
10.
the Dominions,
the
avoid
to
to
he
Memorandum).
appearing
not
next Report
important
without
in
proposed
what
affirmative.
Interdepartmental
the
he would h e )
tariffs
Government's
the
survey
whether
Dominions
State's
In. o r d e r
the
or
and. t h a t
be
(as
preferential
­ (with
the
9.
and
now p e r m i s s i b l e
discussion
vflNION
that
food
asked
Kingdom Government
tariffs
assumption
of
J-illF
8CUSSI OrTS
TH THE
when h e was
the
IS
Memorandum.
considered
with
three
( i i i )
(iv)
These
*5
ft* 0
K/ o ' U
11.
The
are
to he
onl3'
in
-
first
question
granted
return
for
specified
concerned,
or
result
a
quo
the
prineixole
Kingdom
ili-filr,
-whether
valuable
I2
of
from
other
have
With
U
the
without
prepared
all
by
Cabinet
to
E-,E. ( B ) ( 3 0 )
State s
to
the
the Empire
44p
a copy
of
which
The
political
and e c o n o m i c
dangers
policy
discrimination
Empire.,
In
this
discrimination
New Z e a l a n d
Agreement
Canada
13.
given
and New
problem
other
that,
different
the
rise
to
in
of
out
annexed
will
will
favour
recent
be
of
would
is
to
alSo
be
concessions:,
attention
in
of
favour
concessions
in
paper
the
Secretary
the
the
alternative
parts
of
the
remembered
Australia
that
as
feeling
the
against
Canadian-Au-straliau
considerable
the
part)
realise
in
to
Empire
that
to
different
it
the
voluntary
involved
United
question
arguments
sot
whether
concession,
the
a
Trado
between
Zealand,,
On t h e
Committee
the
has
in
of
Cabinet
connection
produce
the
is
between
by Canada
part
the
as
extended
concession
a whole
Memorandum.
of
to
of
maintained;
corresponding
system
as
is
Thethird
a
questions,
!
of
the
drawn
present
be
(including
make
these
specially
must
one
Empire
to
part
the
to b e
corresponding
to which
agreed
regard
maintaining
applicable
parts
also
is
whole
is
or­
and p a r t l y
observed by
which
a
on t h e
second, q u e s t i o n
concession
make
the
United Kingdom,
the Dominions)
for
concessions
voluntarily
discrimination
to
such
concessions
The
a
the
invariably
a concession
be w i t h h e l d
until
not
by
partly
U n i t e d Kingdom
Empire
would bo
pro
hitherto
(though
every
whole
io
quid
whether
voluntarily
Dominions
of
is
hand,
having
regard
Dominions,
could be
it
it
has b e e n
to
is
satisfactorily
the
represented
very
difficult
solved
on
diverse
to
see
the
to
the
needs
how
linos
tho
of
9 PC 9
/if O
suggested
the
in
in
t h e Memorandum
concessions
the
past,
to he
be
extend without
made b y
on a p u r e l y
connection
it
must
past
the
of
the
policy
very
14.
striking
Moreover,
not
to
be
generous
it
would
in
a particular
return
they
the
U n i t e d Kingdom w i t h
If,
however,
that
automatically
was
Dominion
opposed
that
the
the
any
long
immediate
same
such
range
products
that
in
some
see
to
giving
what
defend
applied
return
concessions
return,, e s p e c i a l l y
to
reference
in
the
cases
the Dominions
to
taxation
of
it
food
almost
if
it
the
much
could
he
receiving
The
they
that
Government
made
definite
the
necessarily
stuffs.
be
the
nothing
fact
the
outweighed
of
i f
quo
shown
would he
were
here
the
must
pro
Precisely
Dominion.
and. o b t a i n e d
of
from
certainly
were
Dominion
manufacturers
view
quid
secured
and
criticism
serious
it
home,
that
could
c o u l d b e made t o
who w o u l d
a particular
our
specific
unless
in
they
advantage
themselves.
at
concessions
of
any
thereby
to
con­
advantage
interests,
benefits
(as
tariff
if
for
the
answer
concessions
easier
obtain
to
concessions
produced
products,,
would be
substantial
the
own
in
open
In
their
advantages
have
to
special
corresponding
in
much
Interests)
could
disadvantage
to. d e f e n d
Imported
shown
to
considerations
easier
as
should
in
has not
be
Dominion
regard
Dominion
manufacturing
to
got
and w i t h o u t
difficult
and
that
on i m p o r t e d U n i t e d K i n g d o m g o o d s ,
that
should,
whole Empire.
gesture
certainly
own m a n u f a c t u r i n g
it
the
that
results,
against
show
namely
basis,
overlooked
of
cessions
annex,
voluntary
the M i n i s t e r s
their
its
the U n i t e d Kingdom
discrimination
this
any
and
Toe
these
Committee
questions
to
submit
the
the
Cabinet
following
conclusions
—
The Committee a g r e e t h a t d i s c u s s i o n s must
b e c o n d u c t e d i n t;..e f i r s t i n s t a n c e w i t h e a c h
D o m i n i o n on t h e f o l l o w i n g b a s l s ; ­
(1)
T h a t c o n c e p t i o n s by t h e U n i t e ! Kingdom
s h o u l d b e b o . l o . o o o d b y an a d e q u a t e
p r e f e r e n c e t o t h e U n i t e d K i n g d o m on t h e
p a r t of the Dominion c o n c e r n e d *
(2)
T h a t i t should, be e x p l a i n e d t o each
D o m i n i o n in turn t h a t i t was p r o p o s e d
t o o f f e r t h e c o n c e s s i o n made by t h e
U n i t e d K i n g d o m w i t h r e g a r d t o any
a r t i c l e to o t h e r Dominions
(if
i n t e r e s t e d in t h e a r t i c l e ) but o n l y
in exchange f o r a corresponding
ade q u a t e p r e f e r e n c e .
(3)
Thar i n the e v e n t of f a i l u r e to s e c u r e
s. c o r r e s p o n d i n g a d e q u a t e p r e f e r e n c e f r o m
a Dominion d e s i r i n g to r e c e i v e the U n i t e d
Kingdom c o n c e s s i o n , abandonment o f
the
c o n c e s s i o n in r e s p e c t o f t h a t Dominion
would ho t h e f i r s t r e s u l t , b u t i n
that case the whole circumstances would
h a v e t o h e r e v i e w e d a g a i n , and c o n c e i v a b l y
the o r i g i n a l arrangement might have to be
abandoned o r m o d i f i s d ,
The Committee f u r t h e r a g r e e t h a t the
r e s u l t s of a i l the d i s c u s s i o n s in accordance w i t h
t h e a b o v e p r o c e d u r e s h o u l d b e r e v i e w e d by t h e
O t t a w a C o n f e r e n c e ; and i f i t w e r e f o u n d t h a t t h e
r e c i p r o c a l mutual c o n c e s s i o n s were g e n e r a l l y
s a t i s f a c t o r y , t h o s e c o n c e s s i o n s should be con­
s o l i d a t e d i n t o a s i n g l e m u l t i l a t e r a l r o c carmen&­
a t i o n by t h e C o n f e r e n c e ,
IFF
CESSIONS
M THE
UNIONS,
16.
In
the
Secretary
assumed
he
paragraph
of
that
State
for
"(a)
to
for
on
tho
concessions
Boards
(c)
we
of
on
lines
the
In
the
Board
in
order
of
respect
ferences
the
expert
are
in
cernedj
exaiaination
schedules
together
and g e n e r a l
direction
nature
of
recent
changes
their
special
U
The
mentioned
further
with
Customs
therein
to
the
by
the
the
at
a
the
very
tariffs
and
certain
of
dealing
the
the
commodities
tariff
of
pre­
assistance
con­
proposes
date
with
the
the
Dominions
to
various
volume
5
the
effects
trade
to
schedules
Trade
broad
ether
above
associations
early
of
(a)
These
trade
Board
trade
of
Customs
Kingdom,
of
of
features
rhic
mention.
Committee s
T
in
of
and
Report
would be
memoranda
of
a
attainment
increased
United
Committee
the
schedules
the
the
in
the
of
President
Import
Committee,"
trade
and the
respective
tariff
submitted
Dominions
to
3.8
23)
the
of
Dominions
co-operation
prepared
new o r
the
furthering
of
circulate
merit
of
each
course
of
suggested
Cabinet
which
the
he
Purchases
industrial
have
to
that
Dominions %
idea
facilitate
Trade
of
in
to
further
the
any
0,0,(30)
previous
with
said
I ) ,
that
favour
scheme
(Paper
17,
out
(Appendix
visit
matters
from
in
his
obtain
and Bulk
are
of
basis
to
we r u l e
Memorandum
Dominion A f f a i r s
discuss
we h o p e
(b)
his
the purpose
could proceed
Prune M i n i s t e r s
12 o f
the
Report
to
recommendations
pre ceding paragraph
be
submitted
to
the
&n t h e
will
be
Cabinet
matters
embodied
in
due
in
a
course.,
m
RT
D3
BULK
HASE.
V
19,
As
that
regards
the
Purchase
to
the
was
to
be
The
paragraph
of
the
discussed
of
by
this
based
the
agree
ruled
out
from
regards
(c)
of
paragraph
Information
of
the
the
on I m p o r t
Boards
idea
of
this
should
for
any
with
that
As
be
offering
were
recommend
20.
will
Kingdom
Imperial
kind
it
economic
and
Donference
found
on
recalled
of
Bulk
1930,
subsequent
but
examin­
impracticable .
Committee
be
16 a b o v e ,
United
Dominions
arrangements
ation
of
possibility
advantages
that
(b)
256
Import
conclusion,
Boards
and
and B u l k
accordingly
Purchase
consideration.
16
above,
Cabinet,
the
the
Committee
attach
Inter-Departmental
ITIONo
Committee's
(Appendix
of
I i ) .
industrial
)NIES
PRQ­
21o
?0R-
Committee
The
which
be
Report
no
for
case
account
colonial
able
the
will
are
any
notice
would
involved
those
to
at
we
at
driven
exhausted,
to
Many
granting
unless
the
in
to
be
other
as
on
when
receipt
or
of
and
other
trade
hand
when
materially
have
in
to
that
a
the
loss
of
preferences
they
revives.
Treasury
agrse­
French
such
risk
over
reasons,
will
additional
assistance
trade
in
the
Congo
possible
cannot
the
the
preference
are
Report.
Empire
various
Nigeria
of
scheme
this
international
Colonies
increased
In
a
reminded
regards
any
of
Colonial
years.
they
has
for
by
taken
that
Treasury
their
the
can,
according
accorded;
in
suggested
precluded
five
Co-operation
furtherance
Colonies
goods
preferences
seek
lines
areas
least
have
already
the
arrangement
condition
such
are
are
before
present
give
for
British
also
in
the
large
such
of
financial
Colonies
be
for
retaliation.
depressed
be
are
Industrial
favour
on
State
example,
a period
a year's
beyond
of
there
making
give
revenue
Committee
preference
for
Inter-Imperial
co-operation
that
from
Basin
The
Secretary
given;
ment
on
Some
grants;
their
Improves-,
may
of
others
balances
91: n
22,
In
theee
for
the
two
questions
23,
the
Colonies
cf
The
for
a
Secretary
decision
on
of
the
State
following
principle:-
t h a t i t s h o u l d he open t o him t o ask
f o r p r e f e r e n c e s on c o m m o d i t i e s i m p o r t e d
i n t o the U n i t e d Kingdom from the C o l o n i e s ;
and
(2)
t h a t t h e g r a n t i n g o f any such r e q u e s t
should not n e c e s s a r i l y he dependent upon
the grant of r e c i p r o c a l concessions by
the Colonies concerned,
The
Committee
the
therefore.,
being
asked
the
(l)
position
that
of
circumstances
of
the
agreed
that
Colonies
is
Dominions
to
insist
upon, a s t r i c t l y
Committee
(I)
and
that
on any
as
essentially
it
would be
arrangements
reciprocal
recommend t o
regards
the
(2)
above,
different
impracticable.
with
the
basis,
Cabinet
­
That the S e c r e t a r y of S t a t e f o r the
C o l o n i . e s s h o u l d b e a t l i b e r t y t o make
suggestions to the Chancellor of the
I k : c h e q u e r wihn r e g a r d t o p r e f e r e n c e s on
commodities imported into the United
Kingdom from the Coloni.es whether t h o s e
c o m m o d i t i e s a r e now s u b j e c t t o C u s t o m s
D i t i e s or iiot
3
(2)
That the acceptance of
under ( l ) above should
b e made d e p e n d e n t u p o n
r e c i p r o c a l concessions
concerned^
10
­
from
any s u g g e s t i o n
not
necessarily
the grant of
by the Colonies
Colonies
The
may
he
Oonclusicns
summarised
Dominion
(a)
(I)
(ii)
as
Wheat
(I)
KQconrniendatiort-sr-otf t h e
follows
Quota
Cornmittee
:-
£paragraph
7).
S u b j e c t t o t h e d e c i s i o n to be r e a c h e d by
the
C a b i n e t on the
proposals of
the
Minister
o f A g r i c u l t u r e and F i s h e r i e s
(see paragraph 5 of this Report)
the
U n i t e d K i n g d o m G o T e r n m e n t a r e now p r e p a r e d
.
t o o f f e r a, D o m i n i o n Tvhoat Quota, xv
Tariffs
in
the
United
Kingdom.(paragraphs 0 & 9 )
The G o v e r a m e n t s mandate does n o t r u l e
o u t p r e f e r e n t i a l t a r i f f s , and a c c o r d i n g l y
the S e c r e t a r y of S t a t e f o r Dominion
Affairs
s h o u l d p r o c e e d on t h e a s s u m p t i o n
that
p r e f e r e n t i a l t a r i f f s on a r t i c l e s
jof^too&
1
--
v
" "
J
CwTtli b r ' wT£hWt^sp Sci f i e d * * x ­
e m p t d o n n . e * g . w h e a t ) a r e now p e r m i s s i b l e
p r i n c i p l e ns t i b a s i s f o r d i s c u s s i o n
with
t h e D o m i n i on s.­
(ii)
Tariff
(c)
(i)
See,
in
The C o m m i t t e e ^ s r e c o m m e n d a t i o n s a s t o t h e
. a r t i c l e s vshich a p p e a r t o b e m o s t
suitable
for possible tariff
c o n c e s s i o n s to t h e
Dominions w i 1 1 be embodied in a l a t e r
Report to the C a b i n e t .
Discussions
with
the
Dominions
(paragraph
15. ) .
D i s c u s s i o n s must be condaicted in t h e
first
i n s t a n c e w i t h e a c h D o m i n i o n on t h e
following
basis.
(1)
T h a t c o n c e s s i o n s by t h e U n i t e d K i n g d o m
s h o u l d b e b a l a n c e d b y an ^ d e g h a t o '
p r e f e r e n c e t o t h e U n i t e d KingWJui on
the p a r t of the Dominion c o n c e r n e d .
(£)
That i t s h o u l d be e x p l a i n e d t o each
D o m i n i o n i n t u r n t h a t i t was p r o p o s e d
t o o f f e r t h e c o n c e s s i o n ma.de b y t h e
U n i t e d Kingdom with r e g a r d to
any
a r t i c l e to o t h e r Dominions
(if
i n t e r e s t e d "in t h e a r t i c l e ) b u t o n l y
in exchange f o r a corresponding
a d e q u a t e prc?fcranuw.
T U
x
/
j
In the event o f the S e c r e t a r y of
State
f o r Dominion A f f a i r e b e i n g a u t h o r i s e d to
Quota, t h a t q u o t a
o f f e r a Dominion
tfheat
s h o u l d be vsithout aay g u a r a n t e e o f p r i c e .
Preferential
(b)
and
however.,
foot^o/te
at
­
bottom
of
page
3.
(3)
(c)
(ii)
Tariff
That in the e v e n t of f a i l u r e t o s e c u r e
a corresponding
adequate-' p r e f e r e n c e
from
a Dominion d e s i r i n g to r e c e i v e the U n i t e d
Kingdom c o n c e s s i o n , abandonment of t h e
c o n c e s s i o n in r e s p e c t of t h a t Dominion
would be the - f i r s t
r e s u l t , but in
that case the whole circvmstances
w o u l d h a v e t o b e r e v i e w e d a g a i n , and
c o n c e i v a b l y the o r i g i n a l
arrangement
might have to be abandoned or m o d i f i e d .
The r e s u l t s o f a l l t h e d i s c u s s i o n s i n a c c o r d a n c e
w i t h t h e a b o v e p r o c e d u r e s h o u l d b e r e v i e w e d by
t h e O t t a w a C o n f e r e n c e , and i f i t w e r e f o u n d t h a t
the r e c i p r o c a l mutual c o n c e s s i o n s were g e n e r a l l y
s a t i s f a c t o r y , thosa c o n c e s s i o n s s h o u l d be
consolidated into a single multilateral
reoom­
m e n d a t i o n by t h e C o n f e r e n c e .
Concessions
(d)
from
the
Dominions
( p a r a g r a p h s 16 - 1 8 ) .
I t i s hoped to o b t a i n f u r t h e r t a r i f f
concessions
recommendations
from the Dominions.
The C o m m i t t e e s
r e g a r d i n g c o m m o d i t i e s o n w h i c h new o r i n c r e a s e d
customs t a r i f f p r e f e r e n c e s in each of the Dominions
would be of a s s i s t a n c e to t h e e x p o r t t r a d e of t h e
United Kingdom, w i l l be comprised in a f u r t h e r
r e p o r t t o b e s u b m i t t e d by t h e C o m m i t t e e t o t h e
C a b i n e t i n due c o u r s e .
:
Import
Beards
and B u l k
Purchase
( p a r a g r a p h 19 ) .
Any i d e a o f I m p o r t B o a r d s a n d B u l k P u r c h a s e
should be r u l e d out from c o n s i d e r a t i o n .
(.j2)
Industrial
Co-operation
(paragraph^2Q)j:.
(f)
A p p r o v a l should bo g i v e n f o r t h e f u r t h e r a n c e
of
a scheme o f I n t e r - I m p e r i a l i n d u s t r i a l
co-cperation
on t h e l i n e s s u g g e s t e d i n t h e R e p o r t
(Paper
0.-0.(30) 28) of the I n t e r - D e p a r t m e n t a l Committee.
Colon!es
and P r o t e c t o r a t e s
(g)
(i)
(ii)
Tariff
Preferenceparagraph
The S e c r e t a r y o f S t a t e f o r t h e C o l o n i e s
should
b e a t l i b e r t y t o make s u g g e s t i o n s t o t h e C h a n c e l l o r
o f t h e E x c h e q u e r w i t h r e g a r d t o p r e f e r e n c e s on
c o m m o d i t i c s i m p o r t e d i n t o t h e U n i t e d Kingdom from
t h e C o l o n i e s , w h e t h e r t h o s e c o m m o d i t i e s a r e now
s u b j e c t to customs duties or n o t .
T h e a c c e p t a n c e o f any s u g g e s t i o n u n d e r ( i )
above
s h o u l d n o t n e c e s s a r i l y be made d e p e n d e n t iipon t h e
g r a n t o f r e c i p r o c a l c o n c e s s i o n s by t h e C o l o n i e s
concernsd.
Signed
on
behalf
of
the
j ;
Hi
THOMAS.
C h a i rman ­
2,
Whitehall
23rd
25).
Gardens,
November,
1931.
S .Y/...1..
Committee.
hM
COPY NO,
C C , (3.1)
C A B I N
COMMITTEE ON THE PROPOSJED. I M P E R I A L
' ECONOMIC CONPERENCE"AT""OTTiifAT
QUESTIONS
PGR THE' CONFERENCE,
Memorandum "by t h e S e c r e t a r y o f S t a t e
Dominion A f f a i r s
for
;
1,.
In
view
decision
that
Economic
Conference
the
Cabinet
I
of
the
should
main p r o b l e m s
likely
M i n i s t e r ' a announcement
visit-the
at
Committee
Prime
Ottawa,
should
to
Dominions
it
is,
give
arise
in
I
in
advance
think,
early
his
of
the
desirable
consideration
connection
of
with
the
that
to
the
Ottawa
Conference,
2.
at
the
It
will
Imperial
unacceptable
Tariffs
the
proposal
of
a
that
the
economic
2.950 m a i n l y
10^ i n c r e a s e
suggestion
(to
for
discussions
centred
on Mr.
in p r e v a i l i n g
a wheat
quota
which however
the
put
U, K
;
t
Bennett 's
General
forward
by
Government
committed).
3.
These
at
a meeting
agreed, upon,
questions
but
to
Kingdom,
U.K, -lo
that
other
of
held
the
existing
of
or
anal t h e
ma dp a s i m i l a r
wore
at
Ottawa
of
the
as
Africa
the
on b e h a l f
to
:
of
be
of
the
to be
in the
U.K,
. M.
i ­
mutually
United
accorded by
reduced for
tho
Union
0
the
a
suggested
of
South
rL,.M G o v e ^ a m e n t
the p r e f e r e n t i a l
the
:
sf
considera­
U.K. r e p r e s e n t a t i v e s
margins
t h e ^outcome
regards
date
would net
representatives
South A f r i c a
further
H.M,Government
Empire
pending
for
on a
preferential
decla.rati.on
accorded by South
adjourned
adjournment
on b e h a l f
parts
3 years
Conference,
of
the
be
before
made a d e c l a r a t i o n
Union
for
representatives
was n o t
period
remembered
Conference
and on t h e
UoK.
tion
be
in
margins
Africa
the
4.,
Immediately
Conference,
a
Cabinet
adjourned
meeting
Ottawa.
3y
were
UpKo
might
of
what
he
the
respect
of
by
to
Ac
be
Cabinet
the
other
to
position
was
Committee
from
U.E.
one
the
and,
on
and
the
tariffs,,
Dominions.
Committee
the
at
on t h e
than
the
for
held
detail
to
Imperial
its
the
As
a
various
reached before
the
to
increased
especially
been
bodies
Cabinet
concessions
which might
detailed
each
lists
Dominion,
preferences
or
were
of
lower
to
the
bEK.
circulated,
or
are
in
British
be
available
Committee
at
an e a r l y
economic
advantages
course
course
of
for
of
in
preferential
These
Chambers
and w i l l
in
commodities
welcome
of
be
lists
of
circu­
Commerce
and
consideration
by
date.
which
might
be
offered
U,K.
decision
the
was
principle
(ii)
be
Cabinet
Dominions,
relation
regards
(i)
was
the
offer
the
prepare
obtainable
advantages,
the A s s o c i a t i o n
present
the
if
in
to
to
the
consider
to
up
Section
advantageous
economic
have
similar
B.
to
following
the
which
would be
lation,
the
of
the
in
understand
other
most
set
reference
concessions,
work
from
preparation,
I
was
of
Election;-
obtainable
duties
of
economic
a s regards
A.
termination
Economic
in a p o s i t i o n
sub-committees,
General
the
effect,
would be
hand,
result
in
the
Committee
terms
economic
Dominions,
other
of
their
required,
hand what
after
question
r e a c h e d by
involved
The
examined,
of
the
quota
previous
was
examined but
Cabinet
on
the
no
question
a
possibility
but
a wheat
of
arrangements
Import
of
Boards
this
kind
and Bulk
were
Purchase
thought
to
impracticable.
( i i i )
suit at ion
Further
with
the
detailed
consideration
Imperial
Economic
was
Committee
given,
in
and the
con­
chief
of
industries
concerned,
industrial
co-operation
on t h i s
by
the
subject
present
(iv)
of
country
Empire
a
sense
sider
the
Marketing
in
of
of
which
no
expected
regards
of
to
doubt
the
the
I
o n my v i r . i t
with
cular
I
the
that
at
ought
should
propose
take
to
7.
(assuming
to
when
take
The
as
(though
that
and
in
at
our
I
the
to
only,
of
I
we
our
on
on
con­
of
particular,
able
to
tariff
shall
be
attitude
as
certain
have
the
the
to
in
most p a r t
in
articles
certain
raw
Empire.
to
of
us,
w h i c h wo may b e
rate
s h o u l d he
(as
to
disadvantages
the
ought
as
changed
open
probably)
of
indeed
am a s k e d
is
reason
less
the
predecessors,
and
any
this
etc.
Conference
in possession
the
Cabinet,
basis
guidance
of
before
start
o n w h i c h my
conducted.
their
shall
views
be)
I
In
as
what
to
talks
parti­
the
course
line
we
tariffs.
tariff
acceptance
possibility
products
It
for
that
parts
Ministers
to
the
consideration:
be
Ottawa
tariffs,
I
to
conducted by
concessions
Bominions,
be
to
from
for
the
Committee,
the
open
will
if
sure
Dominion P r i m e
I
any
oversea
feel
to
Election,
excluded
that,
define
from
Cabinet
consideration
now b e e n p r o f o u n d l y
advantages
Bominions
and
6.
for
Empire
campaigns
has
the
and p o s s i b l y
materials
O.C.(30)28)
guaranteed p r i c e s ,
wan n o t
preferential
food,
(Paper
given
certain
General
merits
there
concessions,
of
publicity
it
previously
from
inter-Imperial
available
had been
situation
policies
obtain
understand
sales
the
on t h e i r
is
of
and a R e p o r t
Board,
The
result
question
Committee.
b y means
5.
a
I
the
Consideration
increasing
as
is
to
of
question
the
is
presumably
principle)
one
would'have
which
to
be
discussed
in
relation
to
the e f f e c t s ,
a
whole,
to particular
in relation
ofthe imposition
commodity.
Indeed,
be
would presumably
of
the e f f e c t s
Empire
likely
with
such
that
preferential
offer
9.
First,
concessions
on t h e p a r t
voluntarily
and p a r t l y
been
proposed
situation
such
wholly
at
X
the Imperial
which have
in
that
entry
i n our
should be
case
to
opinion
in
aonnec­
would
of
food
or
with
in
quotas
or
raw m a t e r i a l .
the
Dominions,
arise.
concessions
to be
in return
t h e Dominions
of
and t h i s
is
a
granted
for
specified
concerned,
quid pro
or
partly
quo?
g r a n t e d by the U.K.
true
Conference
different.
hitherto
decided
b y way o f
discussion
Economic
is
such
advantage
as have been
voluntary
now, h o w e v e r ,
discussions
it
as a result
preferences
as
as
examination
preferential
or only
of
tasks
detailed
on o u r p a r t
for
a r e such
structure
Ottawa.
that
questions
on o u r p a r t ,
Hitherto
with
a
on a n y a r t i c l e s
voluntarily
have
at
as a basis
important
for
reference
upon any
our e a r l i e s t
the greatest
concessions
tariffs
admissible
a tariff
commodities
Granted however
principle
several
upon
and with,
our economic
to arrange
a tariff,
to
to
of
one o f
the Conference
8,
are
of
products,
appeared
tion
commodities
also
of
In a l l
taken p l a c e
of
preference
1923.
the
between
The
economic
the U.K,
I am a s s u m i n g t h a t p r e f e r e n c e s o n m a n u f a c t u r e d g o o d s
of i n t e r e s t t o the Dominions ( e . g , m o t o r - c a r s )
will
b e d e a l t w i t h b y t h e G o v e r n m e n t when c o n s i d e r i n g t h e
general problem of manufactured goods.
cuid t h e
Dominions,
wrongly
(even
to
3
the
gratitude
to
the
why w e
clear
benefit
we
at
prepared
to
offer
oversea
to
not
Dominions)
must
he
discrimination.
as
and
paper
I
are
economic
in
Empire,
offered
the
of
are
U.K.
what
s
equal
and I
is
between
if
to
whole
annexed)
that
different
decide
prepared
in
offer
(b)
to
maintain
the
offered
to
the
Empire
arises
whether
whole
cf
be
to
(although
such
without
was p r e p a r e d
at
the
Imperial
in
political
alternative,
the
and
arguments
both
to
viz.
Empire.
(a)
to
make
ay­
dependent.upon
policy
hy
that
without
a concession
would be prepared
any
the
every
the
offered
Empire
for
my c o l l e a g u e s
principle
to
and
only
should
U.K.
Empire
own
return..
we
that
dangers
the
our
whether
think
parts
to
for
the
it
primarily
return
which
I
foresee
apparently
we
in
representatives
say
no
the
in
would r e f e r
concessions
question
the
for
9
we may b e
approximately
(copy
am b o u n d
Thirdly
concessions
the
the
cogent
discrimination
11.
to
44
he
concessions
that
arises
extended
a brief
Conference-
agreed
maintained
I
any
concessions
observed by
point
see
on
and n o t
he
On t h i s
I
designed
to
E.E,(B)(30)
circulated
as
advantages
invariably
is
far
question
to
we s h o u l d m a k e
are
s h o u l d he
the
prevail
so
real
substantial
hitherto
this
it
to
producer
receive
if
principle,,
paper
Empire
Empire,
that
apt
economic
the
idea
strongly
of
or
concessions
h a v e h e en
a debt
of
this
feel
w e may g i v e ,
concession
of
rest
and any
1923)
in
receive
the
in
that
Secondly,
concessions
the
defensive,
Ottawa
expect
to
the
allow
I
he
the
10.
by
the
allowed...itsel£ , - r i g h t l y
payment
to
should
we m i g h t
require
us
occasion.
benefit
on
overdue
owed by
perfectly
which
he p l a c e d
as
present
\J,Z* h a s
-proposed p r e f e r e n c e s
regarded
reason
the
make a
for
the
any
rest
of
concessions
discrimination.,
which
ore
corresponding
part
to
concession
is
(including
that
concession
should
make
to
am i n c l i n e d
mutual
might
part
of
in
to
so
offer
to
should
own a. c o r d
member
to
12.
those
come
in.
am a s s u m i n g
I
the Dominions
(a)
we h o p e
material
of
(b)
can
to
already
is
to
the
for
other
the
that
proceed
the
purposes
oariff
purpose
there
by
the
of
Import
we
concerned
of
those
of
their
reluctant
of
matters
my
concessions
we r u l e
out
any
idea
we
Cabinet
are
in
favour
co-operation
(Paper
0 . 0 , (.30)
Committee,
on
23)
of
will
Board
furthering
the
lines
submitted
of
be
available
Trade,
Boards and
a
scheme
suggested
to
the
from
or
preparation);
industrial
Report
visit
with
Bulk
Purchase"
(c)
were
that
further
prepared
the
not
to
which
likely
basis
of
the
Empire
discuss
on t h e
I
the
concerned
deprived
the
to
on
to
owing
concessions
for
of
was
if,
be
to
conclusion
made
cf
the
scheme
which had
persuading
in
a
Empire
us
this
a matter
aim at
Empire
to
agreed
a grievance
parts
which
Personally,
would be
obtain
(For
also
parts
Prime M i n i s t e r s
bhe D o m i n i o n s .
course
of
likely
with
to
hand,
other
other
have
of
Empire
return
ail
joint
respective
part
other
part
in
to
I
to
Any
any
the
themselves
concessions,
parts
ought
round.
of
any
offer,
find
other
importance.
we
as
On t h e
of
Empire
This
concessions,
concessions
willing
and
that
far
parts
unwillingness
whole
be v a l u a b l e
all
offer
those
all
the
concessions.
think
concessions.
the
also
concessions
prepared
until
difficulty
to
leady
withheld from
part')
corresponding
considerable
to
be
the
in
of
the
previous
in
O
J.3a
to
But
which
start
I
there
ought
remain
to
know
on my v i s i t .
(i)
Are
(presumably
no
the
These
we p r e p a r e d
without
Bearing
offers
certain
important-questions
mind
of
questions
to
offer
mind,
attraction
to
as
Before
I
are:­
a Dominion
any g u a r a n t e s
in
my c o l l e a g u e s
f?
of
wheat
quota
price)?
however,
that
any D o m i n i o n s
a wheat
except
quota
Canada
and
Australia
(ii)
may
tariffs
on
we p r o c e e d
articles
of
specified
exceptions,
principle
as
If
so,
what
(ill)
by
us,
a basis
articles
Generally
should
such
concessions
(b)
only
given
Is
the
concession,
must b e
by
tion
between
(v)
If
return
the
principle
corresponding
concession
would
a corresponding
part)
also
on
specified
1931.
be
basis
on
part,
or
(c)
a quid
pro
quo?
granted
If
not,
which
parts
on
the
our
of
he
of
are
the
the
only
other
valuable
should
ape
from
also
to
the
parts
the
Empire
to
enter
discrimina­
Empire?
to
prepared
withheld
all
to
oversea
are
by
oversea
lead
concessions,
is
any
we p r e p a r e d
would
part
Empire
until
be
whole
or
partly
otherwise^
the
that
our
or
to
offered
approximately
to
be
a
J.H.T.
granted
concession
make
whole
which
prepared
concession?
D o m i n i on s O f f i c e ,
to
the
and
in
purpose?
voluntary
(Initialled)
13th November,
the
that
concession
that
for
voluntary
of
without
Dominions.
maintained
corresponding
(including
the
concessions
result
or
be
several
of
(a)
(with
to
bargaining
-which o n e p a r t
with
the Dominions,
the
concessions
for
any
preferential
now p e r m i s s i b l e
conducted
for
as
are
selected
regards
be
that
raw m a t e r i a l s
wheat)
would be
extended
of
or
should be
as
assumption
discussion
discrimination?
a course
for
for
return
whether
upon
in
in
and p a r t l y
(iv)
without
e*g.
concessions
voluntary
U.K.,
food
discussions
any
equivalent
on t h e
a
Empire
the
to
make
P
[This D o c u m e n t is the Property of H i s Britannic Majesty 's G o v e r n m e n t . ]
[Printed
for
the Cabinet,
October,
1930.)
SECRET.
E . E . ( B ) ( 3 0 ) 44.
For the use of British Representatives only.
Copy N o .
^
Not circulated to the Dominions.
CABINET.
Imperial Conference, 1930.
TARIFF
BARGAINS
BETWEEN
THE
THE
UNITED
KINGDOM
AND
DOMINIONS.
MEMORANDUM PREPARED B Y THE I N T E R - D E P A R T M E N T A L COMMITTEE ON
ECONOMIC QUESTIONS.
Note
on Tariff
Bargains
between the United
Kingdom
and the
Dominions.
I n the R e p o r t of the Balfour Committee on Industry and Trade it is stated that
" the idea of reciprocal tariff bargains between Great. Britain and other E m p i r e
Governments . . . is quite alien to the modern spirit and practice of Imperial
Preference."
(Cmd. 3282, p. 23.) Similarly in the Report of the Committee on
Empire Trade of the Economic A d v i s o r y Council it is stated that " we attach
importance to the principle that inter-Imperial preferences, even if they m a y be
inspired to some extent b y the hope of obtaining reciprocal concessions, should,
none the less, represent the free gift of the country which grants them, and not the
result of a b a r g a i n . "
(E.A.C. (C) 48, p. 13.)
-
A s it has recently been frequently suggested that the best method of increasing
the United K i n g d o m share in the imports of the oversea parts of the Empire is b y
tariff bargains entered into at the Imperial Conference or otherwise between the
United K i n g d o m and the Dominions, it may be well to summarise certain
considerations which have to be taken into account.
(1) A certain number of specific tariff agreements have in the past
been entered into between one Dominion and another and between certain
Dominions and groups of Colonies, but no such agreement has ever been
made, so far, b y the United K i n g d o m . This is partly occasioned b y the
traditional economic policy of this country, but it is also no doubt due,
consciously or unconsciously, to a difference of outlook. W h a t e v e r may be
the case in theory, in practice the United K i n g d o m still regards itself as the
centre of the Empire, and consequently as not entitled, in the economic
sphere, to give differential treatment to any one part or parts as against
others. Specific tariff bargains with individualparts of,the Empire would be
inconsistent w i t h the maintenance of this principle. Indeed, as is pointed
out in the Report of the Committee on Empire T r a d e referred to above,
would they not tend to " introduce a disruptive factor into our Imperial
relations of a most dangerous kind ? "
(1652 C) 12 10/30
(2) W h e r e duties are imposed solely with regard to the interests of the
country which is taxing itself and any preference is equally determined b y
the same principle, there is no insuperable difficulty in removing the duty or
modifying the preference should the interests of the country demand it.
Thus even the United K i n g d o m preference on sugar, which is required b y
statute to be retained over a period of 10 years from 1925 if the duty is
maintained, can, inasmuch as it was not granted as part of a bargain, be
withdrawal at any time b y abolition of the duty. But if the rate of duty is
determined b y reference to the interests of a different community and as
part of a bargain, it cannot easily be removed or modified.* A n d in certain
cases, the rate of duty, instead of being helpful or at any rate innocuous,
might become positively disadvantageous.
(3) Whereas the United K i n g d o m now retains a privileged position in
so far as she enjoys benefits accorded to her spontaneously b y the Dominions,
would she not, if the policy of specific tariff bargains is adopted, be put on
the same footing as foreign countries which at the present moment have to
bargain for their advantages, and would not this process tend to acquire
momentum w i t h the lapse of time ?
(4) Further, as is pointed out in the Report of the Empire Trade
Committee, would hot any system of bargaining with the Dominions for
reciprocal tariff concessions be exposed in some degree to the danger which
attaches to ordinary tariff bargaining with foreign countries ?
This danger
is that, in anticipation of. the process of bargaining, additional duties are
apt to be imposed or proposed in order to make elbow-room for negotiating
mutual concessions. If, then, the course of the negotiations does not run
smoothly, the final outcome m a y be that adverse tariffs are higher than
they would have been if the process of bargaining had not been attempted.
(5) I t m a y be observed that one effect of the tariff bargain recently
entered into between Canada and N e w Zealand has been that the
denunciation b y Canadian farmers of the damage caused to them b y the
preferential entry of what is openly called " foreign " (i.e. N e w Zealand)
butter has been so bitter that the Canadian Government have been,
compelled t o g i v e notice of the termination of the Agreement as from
October 12th next, and N e w Zealand has retaliated b y increasing the duty
on Canadian motor-cars, f In the case of the similar agreement between
Canada and Australia the Canadian Government have been able practically
to nullify the benefits which Australia might have gained from the agreement
b y charging surtaxes on the ground that Australia has initiated a series Of
export bounties.
T h e above considerations have been drawn up with reference to possible
specific tariff bargains between the United K i n g d o m and individual Dominions.
T h e question then arises whether they would apply, or apply to the same extent,
to a system whereby preferential tariffs would be granted b y the United
K i n g d o m to the whole of the E m p i r e , without discrimination, in return for
tariff advantages granted to the U n i t e d K i n g d o m b y all other parts of the
Empire, or at any rate, the most important parts. On this point it is to be
observed t h a t —
(6) A n y such proposal would appear to carry with it the assumption
that e v e r y important part of the Empire would be prepared to reciprocate,
b y the grant tif a corresponding advantage to the United K i n g d o m .
In
so far as any part of the Empire failed to' do so, seeing that ex hypothesi it
cbuld not be excluded from the bargain, would hot those parts .of the
Empire which had made equivalent concessions f e e l a grievance ? A n d if
so, might they hot be unwilling themselves to give any similar advantages
in future "in return fdf Empire-wide concessions ?
:
' * c a s e in point is the Treaty between this country and Greece, vvhich prevents the United
Kingdom from giving the same preference on currants as On sultanas and raisins, and air analogous
instance (although in this case rio questions of tariffs is involved) is the Treaty between this country
and Portugal which prevents us frbrh allowing Australian heavy wines to be sold in this'country
as " port,"
f See Appendix.
(7) T h e practical considerations in the actual carrying out of any
such bargain are somewhat complex.
T h e concessions made by the
United K i n g d o m would (a) be conditional upon the grant of similar
concessions b y all other important parts of the Empire and (b) be extended
to all parts of the Empire. W o u l d not this involve the necessity, first, of
making an arrangement simultaneously with all parts of the Empire from
whom corresponding advantages were desired, and secondly, of postponing
its operation until it had been confirmed b y the Parliaments of all of them ?
Otherwise, if it came into operation immediately it had been confirmed by
one Parliament, might there not be at any rate a theoretical risk of other
Parliaments declining to confirm it on the ground that the benefits
obtainable under it already extended to them, and need not therefore be
purchased by concessions on their part ?
T h e considerations mentioned above relate to any system of bargains, either
bilateral or multilateral, between the United K i n g d o m and the Dominions.
Such a system, however, is not the only alternative to the unconditional grant
of tariff (or other) concessions such as has hitherto been the policy adopted
b y the United K i n g d o m .
Just as concessions granted b y the United K i n g d o m
can be granted to, and dictated b y the interests of the Empire as a whole rather
than any individual part of the Empire, so could not equivalent concessions
granted b y other parts of the Empire be governed b y a similar principle ?
T h i s would mean that economic discussions at the Imperial Conference would
be on the basis of contributions made by each - part of the Empire to the
economic interests of the Empire as a whole rather than on the basis of the
exchange of concessions between one part and another part. Discussions on this
basis m a y be a counsel of perfection. But would not such a principle, if accepted,
have important repercussions in the political no less than in the economic sphere ?
2, W H I T E H A L L G A R D E N S , S . W . I .
September,
1930.
APPENDIX.
N E W ZEALAND-CANADA TARIFF RELATIONS.
(1) So far as can be ascertained, there is no formal trade agreement between New Zealand and
Canada. A reciprocal tariff agreement between Australia and Canada was concluded in 1925,
and came into force on 1st October, 1925, under which, inter alia, the duty on Australian butter
was reduced to 1 per cent, per lb. (lower than the British Preferential Tariff rate). The Canadian Act
ratifying the Australia-Canada Agreement provided that the tariff concessions accorded to Australia
might be extended, by Order in Council, to any other British Country ; and an Order of Council of
26th September, 1925, extended them to New Zealand.
:
(2) New Zealand has reaped a very real advantage in Canada from this, and indeed, so far as
butter is concerned, far more advantage than Australia. (The attached figures show clearly the
effect on the growing import trade in butter. Import has grown enormously, from less than 100 tons
in 1924-5 to nearly 20,000 tons in 1929-30, practically all from New Zealand at the Treaty duty.)
The Reciprocal Agreement, and its extension to New Zealand, was criticised both in Australia and
Canada at the time, and Canadian criticism has recently gathered weight, criticism being particularly
levelled at the accord of the special preference to New Zealand butter, etc. The Canadian farmer
prefers wheat growing and alternatively can sell his products more profitably to United States buyers
in the form of milch cows or as desiccated milk or casein. But the depression from which he is
suffering has led him to resent the cheap import -of New Zealand butter and this, therefore, became
an important factor in the recent Canadian election : to quote the words of a Conservative oratoi
in Quebec (before the election)—
" Mr. Bennett will ride to victory on a Canadian cow ; and Mr. King will slip out on
a pat of New Zealand butter."
: w ­
(3) The Canadian Tariff duties on butter were increased by the Tariff revision of May, 1930,
and further increased by the more recent revision of September. This revision did not, of course,
affect the Treaty duty, and New Zealand butter continued to pay that duty (1 cent, per lb.). But.
Canadian complaints were growing more and more bitter. Thematter was discussed in the Dominion
Parliament in March, and a motion was passed for the withdrawal,, at'an early date, of the Order in
Council extending the Australian concession to New Zealand and for the negotiation of a commercial
treaty between Canada and New Zealand for the regulation of trade between the two Dominions on
a preferential basis.
(4) An Order in Council was issued, dated 6th June, 1930, withdrawing the " Australian duties "
concession from New Zealand as from 12th October, 1930. Negotiations for an inter-Dominion
Agreement were put in hand, but no definite information seems available as to these negotiations.
It is, however, certain that, on 21st August, New Zealand withdrew the British Preferential Tariff
rates from Canadian motor-cars and accessories, and made such articles dutiable at the " General "
Tariff rates applicable before the July revision of the New Zealand Tariff. The effect is as
shown below :—
Duties on Canadian Goods.
Prior to
August.
Motor vehicles
Plus, if with body
If the body exceeds £200, the duty on
the value of the body in excess of
£200 is
Tyres and tubes
Engines for motor-cycles and vehicles
Since
August.
12!%adval.*
13f%
i, *
7i%
12i%
121%
35 % adval.
. 15 %
,,
,, *
,,*
,,*
71%
35 %
35 %
,,
,,
New " General "
Tariff Duty.
49 % ad val.*
20 %
..
..**
101 0/
/O
49 0/
10
49 0/
/o
II
II
,,
*
*
*
* Includes the surtax leviable.
(5) The importance of the matter to the trade of both countries is obvious. In the year 1929-30
Canadian imports from New Zealand amounted to 16J million dollars, no less than 13 million of this
(80 per cent.) being in butter ; and the Canadian exports of motor-cars, etc., to New Zealand are
between 6 and 7 million dollars. The difficulties of the position are well set out in the following
extract from a recent despatch from ELM. High Commissioner in Ottawa :—
The view taken in the Department of External Affairs is that this is the most awkward
question that has arisen in their commercial relations for some time, and that with so many
anxious hopes centred upon the impending Imperial Conference, it could not have developed
at a more unfortunate moment. It is felt that New Zealand should not expect to be an
exporter of agricultural products to Canada, whereas Canada can justly claim to compete on
a fair basis as an exporter of cars to New Zealand. In the one case it is a native industry
which is being protected, in the other it is not. While Canadian automobile exports represent
under one-third of her total exports to New Zealand, the butter exports of the latter represent
almost seven-eighths of the exports to Canada, and to this extent the damage to Canada might
be considered less serious than that to New Zealand. On the other hand, the negligible value
of New Zealand exports to Canada, apart from butter, makes it virtually impossible to effect
a compromise by concessions on other products.
C A N A D A . - I M P O R T S OF, A N D D U T I E S ON, B U T T E R SINCE 1924-25.
(1) Imports of Butter into Canada.
-
Total imports
Of which from :—
New Zealand
Australia
United Kingdom
United States of America
Other countries
1924-5.
1925-6.
1926-7.
1927-8.
1928-9.
1929-30.
1,000 lb.
1,000 lb.
1,000 lb.
1,000 lb.
1,000 lb.
1,000 lb.
;
198
7,029
7,190
15,627
25,610
41,919
163
2,343
2,486
2,063
74
63
4,905
801
1,418
59
5
13,624
572
1,325
104
2
24,731
222
610
47
39,744
857
1,128
177
13
— -
—
11
24
;T.
(2) Duties Leviable on Butter Imported into Canada.
General Tariff
Duty.
1924-5 ..
..
1st October, 1925 (Agreement)
May, 1930
September, 1930
..
' ..
4 cents per lb.
4 ,,
: 7 ,,
,,
f
14 ,,
British
Preferential Duty.
Duty on Australian
and New Zealand
Butter.
3 cents per lb.
3 ,,
4 ,,
,,
t
8 ,,
B.P.
1 cent per lb.*
1 ,,
1 ,,
,,
* Anti-dumping duty has, however, been applied to Australian butter, owing to the introduction
of the Paterson levy in Australia.
t If any country imposes a higher duty on Canadian butter, then butter from that country is to
pay a similar duty on import into Canada.
,S DOCUMENT I S
J
G.
THE PROPERTY OF H I S
BRITANNIC
MAJESTY'S
GOVERNMENT. )
C R B T.
(50)
S8o
COPY NO.
C A B I N E T .
COMMITTEE ON PROPOSED I M P E R I A L
AT
ECONOMIC
CONFERENCE
OTTAWA.
S i x t h Report o f the I n t e r - d e p a r t i a e n t a l
Preparatory
Committee on Quotas f o r C o m m o d i t i e s o t h e r t h a n Wheat,
I m p o r t B o a r d s , B u l k P u r c h a s e , and t h e O r g a n i s a t i o n o f
Channels of Trade.
' " -
REPORT ON I N T E R - I M P E R I A L
INDUSTRIAL
CO-OPERATION.
SUMMARY.
1.
The
"before
Inter-departmental
them
the
co-operation,
objective
for
to
with
be
attaining
subject
it.
summarised
2.
regards
be
to
the
the
great
United
gress
of
and
Their
as
reference
the
views
advantage
alike
and o f
Kingdom were
encouraged
to
take
of
a
economic
sound
access
other
3,
to
goods
the
precise
advantageous
subject
method
may
be
in
which
Dominion
of
the
an
by
is
of
market
in
given
and
of
works
that
the
pro^­
in
the
the
pro­
Dominion
the
of
United
for
return
of
would
trade
interest
in
respect
it
and g e n e r a l
produced by
being
that
industry
active
airy D o m i n i o n
can b e
basis,
conclusion
on
freer
supply
of
goods.
As
regards
immediately
policy
in
the
manufacturers
the
duction
to
industrial
if
e a t ens i o n
the
had
Industrial
the
Dominions,
or
on
their
the
starting
most
have
follows;­
Obj a c t i v e ,
Kingdom,
Committee
inter-Imperial
particular
attained
briefly
As
of
Preparatory
practicable
would be
respect
Method,
of
for
they
conclude
that
the
course
for
giving
agreements
for
co-operation
individual
industries
more
effect
between
to
to
those
this
be
made
engaged
or
proposing
to
or
engage
any
one
the
co-operation
Dominions
the
more
of
in
the
The
two
action
outlined
(A)
organisations
entered
organisation
binding
undertakings;
concerned
declaration
of
give
to
"Yith
have
taken
chat
place
mental
Committee
namely
those
Electrical
all
those
organications
principle
ices s
to
other
is
between
and
in
is
which
course
formal
general
to
of
of
speak
and
to
into
give
in
of
some
similarly
principle,
policies)
implement
the e x i s t e n c e
acceptance
then
industrial
contemplated
enter
by
the
and a
favourable
considera­
to f a c i l i t a t e
schemes
(within
intended
informal
important
to
of
and
industrial
power
the
the
Iron
give
and
Steel,
Chemicals,
of
the
acceptance
co-operation,
to
Inter-depart­
industries,
(l)
(5)
representatives
indicated
of
discussions
British
the production
the
consulted
Imperial
(A),
and A p p a r a t u s
cases
effect
the p o s s i b i l i t y
of
industrial
of.
and
to
In
the
wi1ling­
it.
early
In
action
definite.
As r e g a r d s
condition
"cave p r e p a r e d
subject
be b r o u g h t
the
three
industry
the p o l i c y
the
to
and
representatives
of
this
to
condition
branches
Committee
them,
put before
their
so
of
industries
by
the
in
6,
on
of
all
not
do
of
(E)
to
plant
three
of
the
pirineiple,
engaged
(2)
of
with
respect
able
co-operation
general
regard
co h e
willingness
any p r o p o s a l s
effect
5.
their
their
in
nature
vary
U n i t e d Kingdom
as
competent
Governments
of
the
into
Domir-* o n w i t h w h i c h
scope
in
particular
similar
the
and
­
constituted
any u n d e r t a k i n g
to
in
pre-roquisiies
existence
for
tion
The p r e c i s e
industries
to he
authoritatively
any
Kingdom
made.
appear
so
United
would n e c e s s a r i l y
the
essential
the
the
Dominions.
and
ware
4,
in
envisaged
concerned
agreements
thorn
set
/
(see
out
(5)
a preliminary
paragraph
under
the
(B)
be
3
C
It
of
Intet-departmental
draft
Report)
approved,
of
a
resolution
which,
they
should
suggest
might .
*5 n
forward
at
7.
it
Ottawa
The
would
he
adduce
setting
advantageous
if
out
to
their
give
expressed
these
referred
to
in
the
willingness
is
suggested
Committee
Associations
set
and
out
with
in
(and
a view
the
their
opinion
passage
were
certain
of
such
in
a
others
where
their
of
the
authorised
such
making
the
taken
declarations
should
which
of
policy
to
active
place
the
have
this
he
approach
a crmrse
seems
declarations
Report.
position
inter-Imperial
with
make
a
industries
The A s s o c i a t i o n s
5 have
that
of
take
that,
17
by
of
Conference.
to
he
paragraph
the
readiness
should
to
are
policy
paragraph
to
the
Delegation
declarations
it.
it
securing
of
of
Committee
Kingdom
to
practicable)
lines
in
effect
their
and
approved,
consideration
approval
co-operation
discussions
nature,
the United
authoritative
industrial
steps
the
Inter-Departmental
resolution
to
for
on
the
A
R E P 0 R'T".
I.
The p r o p o s a l
lo
has
teen
or.,
t o use a b e t t e r
has
found
ricn
vaguely
with
(a)
put forward
called
concrete
The Prime
second Plenary
"Inter-Imperial
empress ion
in three
Imperial
Minister
Session
various
quarters
the " r a t i o n a l i s a t i o n
term,
the recent
from
of
f o r what
o f Empire
industrial
statements
industries
co-operation
mode
in
connec­
Conference,,
of Australia,
i n h i s statement
the Conference
at the
on t h e S t h O c t o b e r , 1930
said; ­
" A t t h e o p e n i n g o f the C o n f e r e n c e , I r e f e r r e d t o a
much, m o r e i m p o r t a n t w a y i n w h i c h 3 o u r t r a d e c o u l d b e
assisted,,
A u s t r a l i a i s t o - d a y i m p o r t i n g between £40
and £ 4 5 m i l l i o n w o r t h of manufactured g o o d s f r o m f o r e i g n
c o u n t r i e s ' . " whicK' a r e " o f a t y p e T h ' w h i c h G r e a t Bri. t a i n
c o u l d compete,,
I s t a t e d t h a t my G o v e r n m e n t w o u l d l i k e
t o s e e t h a t £45 m i l l i o n s h a r e d b y Empire i n d u s t r i e s which,
i n e f f e c t , w o u l d l a r g e l y mean a d i v i s i o n b e t w e e n t h e
A u s t r a l i a n and B r i t i s h manufacturer
The method whereby
s u c h a n o b j e c t i v e c o u l d b e r e a l i s e d must b e f o r t h o s e
e n g a g e d i n t h e i n d u s t r i e s in b o t h G r e a t B r i t a i n a n d i n
A u s t r a l i a t o determine,,
I should l i k e t o see methods
o f c o n s u l t a t i o n e v o l v e d b e t w e e n o u r i n d u s t r i a l i s t s with
a v i e w t o making such a l l o c a t i o n s o f t h e supply o f
A u s t r a l i a s r e q u i r e m e n t s as w o u l d b e n e f i t b o t h p a r t i e s , ,
I f c o n s u l t a t i o n s of t h e t y p e w h i c h I h a v e in m i n d t o o k
p l a c e a n d l e d t o u n d e r s t a n d i n g s a n d a g r e e m e n t s , my
Government w i l l most s y m p a t h e t i c a l l y c o n s i d e r t o what
e x t e n t it can a s s i s t t o b r i n g , t h e p r o p o s e d a l l o c a t i o n s
into effecto
A u s t r a l i a i s f i r m l y determined t o e n ­
courage her secondary i n d u s t r i e s and t o w i t n e s s
their
d e v e l o p m e n t ; we r e c o g n i s e
h o w e v e r , t h a t t h e r e a r e some
t y p e s o f g o o d s f o r w h i c h t h e e i i s e o f o u r m a r k e t d o e s not
y e t j u s t i f y t h e e s t a b l i s h m e n t o f manufacturing plans,.
I f B r i t i s h i n d a s t r y w i l l c o - o p e r a t e w i t h us in t h e
d e v e l o p m e n t o f o u r i n d u s t r i e s , , w e , o n our- p a r t y w i l l do
e v e r y t h i n g i n our power to help you t o secure the l i o n ' s
share o f our import t r a d e
r
0
5
;
u
(b)
I n a memorandum
and A l l i e d
Dominion A f f a i r s
but
in fact
that
coxmsunlcated b y t h e B r i t i s h
Manufacturers'
for
Association
for possible
not so submitted;
"Inter-Imperial
rT
to the Secretary
submittal
t o the
the Association
industrial
Electrical
relations
of
State
Conference,
express
the
opinion
could be improved and
9 *y o
fa i u
strengthened
(i)
The e l a b o r a t i o n o f a s y s t e m o f p r o t e c t i o n w i t h
I m p e r i a l p r e f e r e n c e s w h i c h would a l l o w such
c o - - o p e r a t i o n t o t a k e p l a c e w i t h o u t pos s i b i l i t y
o f i n t e r f e r e n c e f r o m f o r e i g n c o u n t r i e s and p e r m i t
o f t h e e x c h a n g e o f B r i t i s h and Empire p r o d u c t s
n e c e s s a r y to mutual economic advance."
The F e d e r a t i o n
British
recommended
steps
Preparatory
for
should be
Empire
thingsi
The c l o s e c o - o p e r a t i o n of i n d u s t r i e s i n G r e a t
B r i t a i n and i n t h e D o m i n i o n s w i t h a v i e w t o
correlating B r i t i s h experience with Imperial
trade,
so t h a t i n d u s t r i a l d e v e l o p m e n t i n t h e E m p i r e
shall
he g u i d e d s c i e n t i f i c a l l y ,
sho rid be c a r r i e d out
w i t h t h e minimum o f c o s t and o f w a s t e , and h a d 1
conform to the highest standards of e f f i c i e n c y
in
p r o d u c t i o n and m a r k e t i n g .
C o - o p e r a t i o n on t h i s
b a s i s should render p o s s i b l e the
effective
u t i l i s a t i o n o f t h e immense e c o n o m i c r e s o u r c e s o f
t h e D o m i n i o n s and. E m p i r e a s a w h o l e , and. i n t r o d u c e
a regime of g r e a t l y a c c e l e r a t e d economic
expansion;
( i i i )
the
three
The e x a c t assessment o f i n d u s t r i a l
possibilities
w i t h i n e a c h o f t h e U m p i r e m a r k e t s and t h e i r v a l u e
f o r B r i t i s h and I m p e r i a l P r o d u c t i o n ;
(ii)
(c)
through
the
British
Committee
consideration
taken
industrial
of
to
Industries,
for
of
rationalise,
production",
and
the
that
as
in
Imperial
a report
Conference,
Conference
far
elaborated
as
to
"that
possible,
this
as
follows:­
" I t must be a d m i t t e d t h a t e a c h D o m i n i o n w i l l
d e v e l o p to a g r e a t e r or l e s s e r e x t e n t
its
manufacturing i n d u s t r i e s .
The F e d e r a t i o n t r u s t s
that each Dominion w i l l only f o s t e r those
industries
w h i c h a r e e c o n o m i c a l l y s o u n d , and t h e r e f o r e i n t h e
l o n g run of b e n e f i t t o the country c o n c e r n e d .
At
t h e p r e s e n t t i m e t h e r e a r e u n d o u b t e d l y many i n d u s t r i e s
i n v a r i o u s p a r t s of the Dominions which are economi­
c a l l y unsound, i n c a p a b l e of c o n t i n u i n g without
s u b s t a n t i a l a n d e x a g g e r a t e d p r o t e c t i o n and w h i c h
a r e i n r e a l i t y a c h a r g e upon t h e community
r a t h e r than an a d v a n t a g e t o i t , and a h a n d i c a p u p o n
t h e p r i m a r y p r o d u c e r , , u p p n whose s u c c e s s the
p r o s p e r i t y of the Dominions depends.
The
F e d e r a t i o n w o u l d u r g e t h a t the v a r i o u s Dominions
should c o n s i d e r the e x t e n t to which uneconomic
i n d u s t r i e s a r e i n e x i s t e n c e and s h o u l d s o s h a p e
t h e i r p o l i c y as n o t a r t i f i c i a l l y t o m a i n t a i n i n
e x i s t e n c e such uneconomic i n d u s t r i e s .
The o b j e c t
t o aim s t should be the r a t i o n a l i s a t i o n o f Empire
p r o d u c t i o n , by which each Dominion should
m a n u f a c t u r e what she can w i t h a d v a n t a g e m a n u f a c t u r e ,
and f a c i l i t a t e t o t h e u t m o s t the i m p o r t from G r e a t
B r i t a i n and o t h e r p a r t a o i ' t h e E m p i r e o f t h o s e
m a n u f a c t u r e s w h i c h she i s n o t c a p a b l e o f p r o d u c i n g
economically.
To a c h i e v e t h i s , i t i s
essential
t h a t i n d i v i d u a l i n d u s t r i e s i n G r e a t B r i t a i n and
the Dominions should t o g e t h e r e x p l o r e the
p o s s i b i l i t i e s of r a t i o n a l i s i n g their production.
W i t h o u t such mutual e x p l o r a t i o n o f the q u e s t i o n
w i t h i n i n d i v i d u a l i n d u s t r i e s ; p r o g r e s s w i l l be slow
and p r a c t i c a l r e s u l t s f e w and f a r b e t w e e n . "
2.
The
statements
as
quoted
Kingdom
exception
Members
of
concerned
form
of
that
the
the
as
on
But
the
it
governing
to
running
paragraph
of
the
warrant
be
be
the
able
market
in
with
through
may b e
which
the
with
duties
such
of
near
like
of
the
set
out
which
policy
and
works
certain
of
commodities
the
of
attempts
of
in
produced
unless
not,
of
itself"
to
has
produce
Dominion
and w e r e
not
and e q u i p m e n t
as
home
other
by
the
obtainable.
Dominion
production
to
to
in
have
and
enlarged..
magnitude
the
assisted
been
and
such
particular
size
even
of
regard
started
sufficient
such
generally
lines
due
trade were
future,
recognised
constantly
promoting
the
that
own r e q u i r e m e n t s ,
been
in
Governments
promote
development
have
export
the
fully
without
the
develop
degrees
be
of
other
efficiently
their
will
effectively
have
also
that
to
by
to
in varying
extent
by
Nations
action
is
pursued
y
felt
suitable
demand
methods
assistance
establish
the
recognise
manufacture
the
been
of
such
It
Und.ertah.ings
compete
the
of
factors,
mass p r o d u c t i o n
tariff
that
erection
to
to
capable
lines
possibilities
to
desire
such p r o d u c t i o n
economic
for
or
deem most
are
often
fully
Commonwealth
increasing
haphazard,
likely
to
an
has
the
development.
contended
commodities
and
may
certain
development
been
they
range
is
to
industries,
Dominions
meeting
that
by
argument
preceding
taken
British
economic
carrying
to
the
of
industrialists
can b e
manufacturing
of
in
line
follows:Unitcd
no
general
countries
high
Even
manufacturers
been
financially
uneconomic
place
unsuccessful.
production
an u n d u e
Dominion,
but
manufacturers
the
demand
getting
result
is
progress
3,
the
thereby
an
the
are
In
that
the
is
costs
also;
of
demand
in
check.
supplying
for
An
of
to
not
the
even
general
Dominion
when
of
Dominion
the
industry
This
economic'
the
of,
only
restrict
production,,
the
from
particular
the
to
possibility
instruments
the
but
expansion
of
effect
this
of
of
and
at
the
or
products
adjuncts
but
of
the
is
the
goods
to,
high
has
duties
the
to
this
has been
solely
The
by
value
preferences
regard
in
many
accorded
manufacturers
is
by
fully
for
their
cases
the
manufacturing
of
is
check
upon
results
upon
It
of
works
the
from
goods
to
the
from
is
cases
in
main
true
casual
the
existing
United
they
have
that
caused
the
individual
to
the
the
own
but
kept
directly
upon
growth
manufacturers
endeavouring
Dominions
realised,
the
Kingdom
duties
establish
in
primary
industry
policy
of
prices
a result,
a number
manufacturers
movement
the
Dominion.
in
economy
high
only
which
industrial
of
as
not
tariff
from
development
in
assisted
Dominion
other
the
nascent
time,
suffer
indirectly
ill-advised
only
the United
high
the
for
not
hand
of
upon
artificially
the
market
which
effect
same
of
other
means
also
of
Kingdom
interests..
branches
demand
existence
directed
The
all
by
economic
Dominione5
adverse
production
Dominion
production
encouragen
the
on t h e
the
Kingdom
scale
the p r o d u c t s
restriction
tariff
they
the
adverse
of
in
its
and
tend
two-foldo
industries
United
in
in
economic
case
but
the
consumers
that
resulting
duties
of
limit
themselves
customs
disadvantage
particular
industries
general
the
prices
production.
Dominion
enhance
the
especially
concerned
further
to
of
upon
concerned,
and
on
to
high
and h e a v y
burden
are
The
also
in
a number
of
unsystematic
doubt
that
been based
4.
The
therefore,
of
the
policy
as
on a n y
that
the
works
produced
by
that
in
respect
in
of
be
of
United
for
in
these
the
the
United
of
return
on a s o u n d
freer
supply
access
of
other
to
no
not
scheme.
premises
is,
advantage
Kingdom
were
starting
is
have
alike
and
the Dominions
Kingdom
the
There
great
the p r o d u c t i o n
Dominion
the
to
an
preference
consistent
progress
interest
of
of
drawn from
would
to
development.
or
and t r a d e
of
subordinated
systems
general
it
Dominion
given
the
and g e n e r a l
an a c t i v e
been
local
conclusion
manufacturers
being
of
a whole
industry
industrial
take
instances
of
if
the
encouraged
or
to
extension
Of g o o d s
which
economic
basis,
the Dominion
the
in
any
can
be
by
market
goods.
II.
5.
If
the
principle
Inter-departmental
immediately
be
for
to
industries
between
in
the
them
the
in
end
steel
outstanding
all
of
basis
or
(including
under
i n which
of
that
term
or
and
cf
the
of
any
an u n d u e
users
to
one
to
would
engage,,
or more
cf
engineering
are
of
in
burden upon
the
of
which
some
or
commodities
on a s o u n d
of
it
individual
industries,
range
the
most
effect
production
possible
the
accepted,
proposing
in
the
a certain
imposing
that
respect
branches
be
giving
important
soon become,
and w i t h o u t
in
for
engaged,
are
and g r e a t
may
consider
Kingdom,
There
the Dominions
already,
made
those
examples,
enunciated
course
be
United
Dominions.
iron
Committee
practicable
agreements
thus
is
economic
consumers
products
of
tho3
? v
!
industries
for
the
in
the
size
view
the
of
possibility
production
Go
the
-
of
relevant
adventages"
the
of
between
one
interests
conditions,
a
sufficient
manufacturing
any
industrial
respect
the
to
by
the
supplies
range
particular
Dominion
careful
of
of
a given
establishment
of
and
area
standards,
end
and s u i t a b i l i t y
labour..,
The
of
that
products
to
the
fall
into
(i)
(ii)
( i l l )
7
the
as
C
the
main
industry
would probably
surveyed
would be
be
found
groups:-..
t h o s e w h i c h do n o t f a l l w i t h i n e i t h e r o f t h e t w o
p r e c e d i n g c a t e g o r i e s , and w h i c h i t w o u l d t h e r e f o r e
be e c o n o m i c a l l y U n d e s i r a b l e f o r t h e Dominion to
a t t e m p t to manufacture i n a f u t u r e which can
reasonably be f o r e s e e n ,
regards
result
of
Kingdom
for
the
the
( i ) ,
development
to
conference
and
category
reservation
regards
three
such e x a m i n a t i o n
of
those which w i t h i n a reasonable p e r i o d of t i m e might,
g i v e n t h e r e q u i s i t e c a p i t a l and t e c h n i c a l k n o w l e d g e ,
e n t e r i n t o : c a t e g o r y ( i ) ; and
United
possibly
of
adequacy
measured
T h o s e w h i c h a r e a l r e a d y b e i n g m a n u f a c t u r e d w i t h more
o r l e s s e f f i c i e n c y i n t h e D o m i n i o n , o r c o u l d b e so
m a n u f a c t u r e d f o r t h w i t h , and as t o w h i c h t h e
economics o f p r o d u c t i o n would be l a r g e l y
improved
by the r e s e r v a t i o n o f the Dominion market f o r the
Dominion output;
The
Dominion
result
the
of
efficient
scale
world
when
all
"comparative
raw m a t e r i a l s
within
and
examination
concerned
existence
of
existence
warrant
and
on an u p - t o - d a t e
by
plant
of
that
in
only
including
production),
practicable
demarcation
vary
of
available
determined
factors,
in
hinds
beyond
similarly
line
climatic
demand
whilst
would o b v i o u s l y
of
other
home m a r k e t
export,
could be
part
of
the
would not be
which
another
the
of
The p r e c i s e
case
on
purpose
n
and
category
industry
the
(ii);,
the
in the
co-operation
acquiescence
Dominion
geographical
between
industry
reasons
in
of
an a g r e e m e n t
or
in
Dominion might
of
the
the
merely
industry
of
the
former
in
be
the
practical
whole
part
market,
of
undertaking
it;
as
to
as
or
97
Q­
to i Q
similar
as
co-operation
conditions
purpose
time;
to
as
appeared
maize j o i n t
regards
Dominion
consumption,
duty
on
the
be
such
as
to
would be
if
the
were
So
to
Dominions
is
establishment
in
particular
not
duties
low
to
must
by
Kingdom
a Dominion,
and t e c h n i c a l
onl3
r
possibly
of
trade
also
be
this
rates
last
preference,
of
of
within
of
of
which
nature
of
the
joint
the
trade
undertakings
existing
lines
has
marketing
Empire
with
of
financial
to
these
the
respect
their
assistance
of
the
tie
vary
Kingdom
with
industrial
or
United
or
foreign
or
action
(A)
The
thus
two
essential
outlines
pre-requisites
appear
to
of
the
new
indeed
agreements
any
countries,
I I I0
9,
case
manufacturers
development
in
in
on both
or
Dominion but
the
the
of
necessarily
might
(action
In
0
quantum o f
industries
It
in
United
years.
adopted.
in
the
encourage
British
industrial
United
to
a
the
the
the
to
manufacturer
in
and
time
British
interests
envisaged,
to
that
should
preference
the
on
soon
respectively
advantageous
or
from
so
products
efficient
effective
for
between
co-operation
proceeded),
respect
the
the
Dominion e n t e r p r i s e s
already
foreign
and
representation
of
works
participation
joint
that
a term o f
concerned
subsidiary
the
production
situation
form
thus
policy
the
differentiation
duties,
for
of
such a c t i o n
sufficiently
and
and
precise
Dominions,
the
additionally
manufacturing
the
give
preferential
The
of
( i i i ) ,
should he
British
stabilised
warrant
concerned
substantial
it
to
establishment
reviews
and t h a t
of
the
category
Government
Kingdom p r o d u c t s
really
in
course
of
be i ­
t h e e x i s t e n c e i n t h e U n i t e d Kingdom o f
industrial
o r g a n i s a t i o n s (whether a s s o c i a t i o n s or combines)
so c o n s t i t u t e d and r e p r e s e n t a t i v e o f such a
p r o p o r t i o n o f the i n d u s t r i e s with which they are
concerned as to be a b l e to speak a u t h o r i t a t i v e l y
f o r t h o s e i n d u s t r i e s and t o i m p l e m e n t any u n d e r ­
t a k i n g e n t e r e d i n t o hy them, and the
existence
i n a n y D o m i n i o n w i t h w h i c h s u c h c o - o p e r a t :i o n
.1s c o n t e m p l a t e d o f some s i m i l a r
organisation
competent to e n t e r into similari.y b i n d i n g arder­
t a k i n g s ( u n l e s s t h e number c f i n d i v i d u a l
enter­
p r i s e s i n t h e Dominion i n q u e s t i o n i s so l i m i t e d
that each could take part in the n e g o t i a t i o n s ) .
In view of the e x t e n t t o which i n d u s t r i a l
enter­
p r i e e s i n t h e D o m i n i o n s ; e v e n more t h a n i n the
U n i t e d Kingdom., a r e d e p e n d e n t f o r t h e i r
finance
upon, t h e b a n k s a n d o t h e r f i n a n c i a l
institutions,
i t would b e advantageous i f the co-operation of
t h e s e c o u l d be e n l i s t e d , ,
(Ii'5
10.
The f o r m a l a c c e p t a n c e by t h e G o v e r n m e n t s c o n c e r n e d
o f t h e g e n e r a l p r i n c i p l e , and d e c l a r a t i o n o f
their willingness to give
favourable
c o n s i d e r a t i o n t o any p r o p o s a l put b e f o r e them
to f a c i l i t a t e
(within the scope of t h e i r
general
p o l i c i e s ) schemes i n t e n d e d t o g i v e e f f e c t
to
that p r i n c i p l e , provided that they are
satisfied
t h a t s u c h p r o p o s a l s a r e f r a m e d by r e s p o n s i b l e
and r e p r e s e n t a t i v e b o d i e s and c o m p a t i b l e w i t h
t h e g e n e r a l economic i n t e r e s t s of t h e i r
respective
St a t e s ­
The
increasing
by
the
of
and
large
formation
with
of
staffed,
large
have
(a)
United
each
case
Which
are
industries
are
of
and
Kingdom
(I)
(ST
is
in
one
interests
and
(c)
in
respectively
which
(1)
are
the
of
more
they
the
are
of
These
on t o
the
dealing
and by
the
number
discussions
namely
(2)
those
engaged,
Electrical
were
plant
selected
a more
or
less
Dominions;
(b)
participating
in
that
Kingdom m a n u f a c t u r e r s
Federation
for
Those
of
are
in
associations
authoritatively
concerned.
Rational
well
Inter-departmental
and c o m p r e h e n s i v o
speak
an
concerned,
a considerable
Steel,
of
to
is
policy
informal
already
United
to
purpose
the
some
and
strong
a position
with
in
carried
or
met
associations,
industrial
Chemicals.
1
being
industries,,
Iron
already
organised
in
British
trade
express
general
had
is
U n i t e d Kingdom
consolidations
extent
development;
the
the
accordingly
each
substantial
for
of
important
and A p p a r a t u s
as
Representatives
production
because
far
requisites
comprehensive
questions
three
in the
these
so
of
industries.
Committee
of
extent,
formation
organised
with
first
the
associations
Iron
and
*) o n
c
6 O 'J
Steel
Manufacturers.
Manufacturers
(S)
Association;
Chemical
Manufacturers
Limited,
is
a
In
the
11.
Committee
years
between
the
There
have
dustry
case
of
informed
ago
been
in A u s t r a l i a ,
Canada;
the
where
a more
have
in
that
Electrical
the
Imperial
principle
In
the
been
United
have
between
the
Tata
interests
with
the
so
far
of
co-operation
was
a member
as
to
the
submitted
of
lines
last
Association
to
the
wholly
of
the
the
the
General
by
it
might
Electric
the
British
Secretary
of
Prime
Minister
of
Australia,.
an a c t i v e
Interest
in
manufacture
Company,
were
for
the
South
and
economy,
the
action
The
possibility
this
by
country
Sir
Hugo
in
Australia
tentative
in
are
Commonwealth,
suggestions
memoranda
and A l l i e d
concerns
has
membership,,
when
out
The
intelli­
Manufacturers
Dominion A f f a i r s
British
in
and
set
Electrical
State
in
interests
Mission;
follow
to
Australia,,
electrical
in­
friendly
in
on f u e l
and
in
concerned.
Industries,
the i n d u s t r i e s there
JXickham E c o n o m i c
which
year
to
made
and
statistical
work
in
British
industry
actively
Important
Electrical
almost
between
is
engaged
India;
Dominion manufacturers
with Australian
Chairman
as
the
relates
discussed
Hirst,
of
in
new
a valuable
conducting
case
already
msnufacturers
initiated
4
the
with
being
gence
admit
Dominions.
present
has
to
the
at
is
which
decided
this
co-operation
effort
established
and i s
with
are
Federation,
sex vice
to
accepted
interests
been
the
as
National
taken
British
Industries,
Eederation
Kingdom and
Government
In
of
Inter-departmental
demarcation
discussions
definite
and
of
Union
12.
Allied
Chemical
the
National
which, t h e
recently
and
Association
and S t e e l ,
the
British
collectively
Africa,
(3)
which
Iron
informal
negotiations
relations
and
(of
industries
production;
British
member),
are
several
the
and
to
already
and
as
taking
regards
9a
that
to
country
appoint
the A s s o c i a t i o n
a Committee
U n i t e d Kingdom
jointly
or
with
here.
present
Africa
it
is
interests
and
in
same
in
course
respect
more
as
of
is
one
regard
of
considerable
of
financial
interests
operation
are
As
3
Industries
-which
its
it
Canadian
taking
not
very
is
its
demand r e a c h e s
an e c o n o m i c
Imperial
of
are
only
also
possibllitles
facture
of
Dominions
any
fine
have
of
the
y
is
the
possi.bi3.ity
becomes
admitted
that
owing
the
to
United
the
States
of
its
in
co­
assist
have
India,,
though more
for
an advantageous
of
the
products
so
at
local
which
Similar
Canadian
as
­
in both
is
a
in
some
which
as
are
cases
interests;
Company
remote,
position
the
manufacture
has
at
certain
soap m a n u f a c t u r e ;
of
as
developments
the
There
with
acts
soon
manufacturing
where
Chemical
Company
and which
and South A f r i c a
respect
chemicals,
Imperial
s
Canadian
to
organisations
in
take
possibilities
in a
point
industries
a sa3.es
demarcation
and o f
proposition.,
a n d may b e c o m e p o s s i b l e
present
to
situation
information
policy
in Australia
Chemical,
a like
Industry
interested
mann.facto.re
place
Chemical
technical
and
is
difficult;/
South
possibilities;
There
and the
in
financial
ready
is
at
hopeful,,
the
largely
or
be
industry
there
"but
will
it
the
has
development
Canada;,,
therein.,
regards
agent,
to
becomes
Canadian
exchanges
aan.es
Company
the
to
industry;
political
In
of
problem
South A f r i c a
in
0
when t h e
whole
Government
the A s s o c i a t i o n
magnitude
13
nor
the
with Australia
settled;,
position
that
readiness
Australia - either
interested
India,,
the
manufacturing
possible
event
of
its
representative
examine
New Z e a l a n d
may b e c o m e
that
to
representatives
electrical
indicated
thoroughly
industry
Neither
an
has
regard
to
some
regards
of
amoun
and
there
the
manu­
the
raw
materfu
hj U
14u
In
ell
industrial
of
the
and
their
to
it.
action
is
net
felt
that
at
United
authoritative
of
case
of
be
way
place
the
industry
be
with
putting
forward
are
prepared
the
expected
to
well
the
the
give
there
in
be
the
in
the
for
branches
of
Dominions.
the
exaarple
three
have
Committee
principle
of
and
an
advantages
the
Kingdom
at
to
by
the
Ottawa
British
other
as
in
industry
consultations
general
an
while
which
any
in
by
and
behalf;
with
the
of
industry
respect
effect,
their
served
corresponding
United
great
possibility
organised
its
no
which
of
in
follow
be
Inter-Departmental
which
to
the
reductions
position
to
to
would
the
cotton
Dominions
tariff
industries
a.s o n e
the
nor
the
Government
is
give
representatives
cotton,
there
to
particular
would
industries,
of
in
in
acceptance
co-operation,
power
and,
the
their
industry,
b e made on
appears
His Majesty'a
Conference
to
of
their
of
sufficiently
Nevertheless,
warrant
may
not
case
be made,
by
important
taken
the
in
stage,
Kingdom
of
industrial
purpose
present
importance
might
indicated
definite,
shipbuilding,
obtained
15.
very
is
all
branches
so
statement
sufficient
agreement
to
the
In
Kingdom
do
no u s e f u l
depressed United
shipbuilding.
representatives
consulted
to
other
interviewing,
the
Inter-Imperial
In
Committee
the
of
willingness
early
most
cases
organisations
principle
effect
of
these
(u)
branches
opportunity
offers.
IV.
16.
the
As
regards
Committee
condition
have
prepared
this
subject
resolution
on
therein
approved,
at
be
Ottawa
for
the
they
(B)
set
out
in
a preliminary
which,
suggest
consideration
of
should
might
the
paragraph
draft
the
be
of
a
policy
brought
Conference
9,
outlined
forward
as
follows:­
Bra^t^. Rogo,3.Ta^ion ' t o
n
be
broJight
for^a^^a^Ot^gja.
( 1 ) Tho I m p e r i a l C o n f e r e n c e r e o o r d s I t s b e l i e f
that
i n t e r - I m p e r i a l i n d u s t r i a l c o - o p e r a t i o n i s an i n t e g r a l
p a r t of the i n t e r - I m p e r i a l economic c o - o p e r a t i o n
which
i t i s the object of the Conference to promote.
( 2 ) By i n t e r - I m p e r i a l i n d u s t r i a l c o - o p e r a t i o n
is
meant m o r e p a r t i c u l a r l y such a m e a s u r e o f
co-operation
b e t w e e n t h e v a r i o u s p a r t s o f t h e Coimnonvre&lth a s w i l l
e n s u r e t h a t t h e i n d u s t r i a l a c t i v i t i e s o f each p a r t ,
w h e t h e r i n t h e c o n d u c t , e x t e n s i o n and t e c h n i c a l
improvement cf e x i s t i n g i n d u . s t r i e s , o r in the
e s t a b l i s h m e n t o f new i n d u s t r i e s , s h a l l b e
correlated
w i t h those of o t h e r ps.rts in a l l c a s e s where t h i s
c a n b e d o n e t o t h e common a d v a n t a g e .
(3) I t should, in the opinion of the Conference,
be t h e o b j e c t o f such a p o l i c y t o s e c u r e t h e b e s t
d i v i s i o n o f i n d u s t r i a l a c t i v i t i e s among t h e
several
p a r t s o f t h e C o m m o n w e a l t h and t h e o r d e r e d
economic
d e v e l o p m e n t o f e a c h p a r t , w i t h a, v i e w ; t o
ensuring
t h e maximum e f f i c i e n c y
a n d e c o n o m y o f p r o d u c t i o n and
distribution within that part in relation
to t h e
maximum p o t e n t i a l e c o n o m i c d e v e l o p m e n t o f
the
Commonwealth as a w h o l e o
(4) I t i s further the opinion of the Conference
t h a t t h e p r e c i s e n a t u r e and e x t e n t o f t h e
co-operation
to b e a c h i e v e d i n any p a r t i c u l a r i n d u s t r y can b e s t b e
w o r k e d o u t by c o n s u l t a t i o n b e t w e e n t h o s e e n g a g e d , o r
p r o p o s i n g t o e n g a g e . , i n t h a t i n d u s t r y i n any two o r
more p a r t s o f t h e Commonwealth.
( 5 ) The C o n f e r e n c e t h e r e f o r e recommends t o t h e
v a r i o u s i n d u s t r i e s t h e d e s i r a b i l i t y o f making a r r a n g e ­
ments f o r such c o n s u l t a t i o n a t the e a r l i e s t
possible
date:
but i t r e c o r d s i t s b e l i e f
t h a t such c o n s u l t a t i o n
t o be f u l l y e f f e c t i v e ,
should be conducted between
responsible persons or bodies adequately
representative
o f t h e i n d u s t r y i n e a c h p a r t o f t h e Commonwealth
concerned,
( 6 ) The C o n f e r e n c e f u r t h e r recommends t h e Government
c o n c e r n e d t o f a c i l i t a t e and a s s i s t s u c h
consultations
by a l l a v a i l a b l e m e a n s .
( 7 ) The C o n f e r e n c e f i n a l l y recommends t h a t , w i t h o u t
p r e j u d i c e t o t h e i r l i b e r t y t o d e t e r m i n e t h e i r own
g e n e r a l economic p o l i c i e s
the Governments of
the
Commonwealth s h o u l d g i v e s y m p a t h e t i c
consideration
t o a n y p r o p o s a l s w h i c h may b e d i r e c t e d t o w a r d s
giving
e f f e c t to the p r i n c i p l e s e n u n c i a t e d in t h e t h i r d p a r t
o f t h i s R e s o l u t i o n e n d may b e p u t b e f o r e t h e m b y
responsible bodies representing similar
industrial
i n t e r e s t s i n t h e p a r t s c f t h e Commonwealth
affected,
as the r e s u l t of the c o n s u l t a t i o n s r e f e r r e d to in
t h e f o u r t h and f i f t h p a r t s o f t h i s
Resolution.
s
9.Q
17.
it
The
would be
resolution
position
Imperial
active
advantageous
if
to
industries
the
the
place
have
to
a
out
nature,
give
be
approved,
and
the
following
effect
with
their
it
is
(and
a view
declarations
approval
to
referred
others
to
in
be
where
their
by
certain
policy
of
readiness
paragraph
to
that,
make
taken
declarations
the
to
such a c o u r s e
making
take
with
10 h a v e
should
authorised
inter-
to
The A s s o c i a t i o n s
suggested
ffh-ould
the
and t h e i r
it?
to
of
willingness
Committee
Associations
practicable)
their
co-operation
expressed
this
that
in
discussions
of
opinion
United Kingdom D e l e g a t i o n w e r e
authoritative
the
of
such a
setting
steps
securing
are
of
adduce
in
Committee
passage
industrial
which
these
Inter--Departmental
policy
approach
seems
declarations
on
the
lines:-
S u g g e s t e d D r a f t o f A u t h o r i s e d S t a t e m e n t s t o b e made
b y H i s M a j e s t y ' s G o v e r n m e n t on b e h a l f o f
representative
I n d u s t r i a l Organisations i n the United Kingdom.
The
industry, being of opinion
that the e f f e c t i v e u t i l i s a t i o n of the
industrial
r e s o u r c e s o f t h e B r i t i s h Commonwealth o f R a t i o n s a s
a w h o l e a n d o f e a c h i n d i v i d u a l p a r t t o t h e common
b e n e f i t can b e s t be p r o m o t e d b y c o - o p e r a t i o n b e t w e e n
the i n d u s t r i a l i n t e r e s t s concerned in the various
p a r t s o f t h e Commonwealth;
and b e i n g c o n v i n c e d t h a t t h e o b j e c t s o f such c o ­
o p e r a t i o n should be t o e n s u r e t h a t so f a r as p o s s i b l e ,
and w i t h due r e g a r d t o l o c a l c o n d i t i o n s , e a c h p a r t o f
t h e Commonwealth s n a i l d i r e c t i t s e f f o r t s m a i n l y t o
t h o s e b r a n c h e s o f i n d u s t r y w h i c h can be c o n d u c t e d on
s u c h a s c a l e as t o s e c u r e e f f i c i e n c y and e c o n o m y i n
b o t h p r o d u c t i o n and d i s t r i b u t i o n , and i n r e s p e c t
of
the products of other branches of industry
shall
s t i m u l a t e i m p o r t a t i o n from o t h e r p a r t s o f t h e
Commonwealth;
and b e i n g a l s o o f o p i n i o n t h a t t h e p r o g r e s s o f t h e
b r a n c h e s o f i n d u s t r i e s f i r s t r e f e r r e d t o above should
be aided by the c o - o p e r a t i o n ( t e c h n i c a l f i n a n c i a l
or
commercial)
of corresponding industries in other parts
o f t h e Commonwealth w h e r e t h e y a r e more h i g h l y
developed;
and "being f u r t h e r o f o p i n i o n t h a t , t h e n a t u r e and s c o p e
o f t h e c o - o p e r a t i o n most l i k e l y t o a t t a i n t h e o b j e c t
i n d i c a t e d i n t h e p r e c e d i n g p a r a g r a p h can be d e t e r m i n e d
i n the f i r s t i n s t a n c e o n l y by c o n s u l t a t i o n between those
e n g a g e d , o r p r o p o s i n g t o e n g a g e , i n any p a r t i c u l a r
b r a n c h o f i n d u s t r y i n any two o r more p a r t s o f t h e
B r i t i s h Commonwealth;
a u t h o r i s e d H i s M a j e s t y s Government t o d e c l a r e , on
b e h a l f of the
industry,
its
w i l l i n g n e s s t o e n t e r i n t o such c o n s u l t a t i o n s w i t h o u t
d e l a y a n d t o t a k e a l l o u c h s t o p s a s may b e w i t h i n
i t s power t o implement any a g r e e m e n t s r e s u l t i n g
therefrom.
1
The
A s s o c i a t i o n expresses the
hope that H i s M a j e s t y s Government i n the U n i t e d
K i n g d o m w i l l recommend t o t h e I m p e r i a l C o n f e r e n c e a t
O t t a w a t h a t t h e G o v e r n m e n t s o f t n e B r i t i s h Commonwealth
o f N a t i o n s s h a l l u n d e r t a k e t o f a c i l i t a t e and e n c o u r a g e
s u c h c o n s u l t a t i o n s so f a r as p o s s i b l e , and t o g i v e
s y m p a t h e t i c c o n s i d e r a t i o n t o any r e p r e s e n t a t i o n s w h i c h
m a y b e made t o t h e m a s a r e s u l t .
1