Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-02
BY WILLIAM HARD.

LONDCN, FEBRUARY 1.-The most i'm
portant thing here from the point Of
view OF the practical American busi-
ness man Is not the Naval Conference
but the campaign to establish what is
called empire free trade" This idea
Is that all British dominions and de-
penuencies. together with Great Britain
itself, should be fenced about with a
tarln wall, which would insure large
trade within the empire and drastically
exclude the importation OF goods from
all nom British countries.
Inc great promoters of this idea are
LORD Beaverbrook and Lord Rother-
mere, both big newspaper publishers.
Inc whole matter was brought to de-
Date IN the House of Commons last
wednesday by motion Of Conserva-
tive member. Mr.. Remer. He moved
mat his majesty's government In the
united Kingdom be urged to open ne
EQUATIONS with other governments in
the empire with a view to the formula
ton OF policy to secure that the pur-
CHASING power Of the empire be direct
ed primarily to the full employment Of
the inhabitants Of the empire"
r 4 *%
Figures produced by Mr.. Remer were
spectacular. The annual imports into
all parts OF the British empire are more
than $10,000,000 900. Of this $1,000. =
100000 Is from non-British countries.
The empire is getting badly beaten
within Its own domains by foreign i'm
portationS. In 1913 England sent to
1nola 5000 600 900 yards of cotton cloth.
Last year only 1900, 100000 yards of
cotton cloth We're sent to India. This
competition is felt especially strong
from Japan. Japanese cotton cloth IS
now sold In England in large quanti-
ties right under the eyes of the Eng
lish cloth manufacturers.
A vital international trade crisis is
thus revealed. Great Britain is losing
trade even in her own dominions and
the dominions are losing British trade.
In 1928 Great Britain purchased $1lO,-
100000 worth of wheat in Canada. In
1929 she purchased only 70,000, 900
worth. Meanwhile the importations of
whest to Britain from the Argentine
have almost doubled. In 1924 Great
Britain took $50, 900, 900 of wheat from
India. In 1929 she took almost none.
Overseas trade is essential to British
prosperity. Recent events have pre-
cisely reversed the British and Aneri-
can positions. Before the war the
British export trade was Is per cent
of the world total, while the American
export trade was IL per cent. Now
America has Is per cent Of the total,
while Great Britain has IL per cent.
1t Is pointed out here, moreover, that
America has a vast free trade area
within her own borders, protected by
a high tariff wall against all who are
outside.
There is an important crusade here
for reviving British world trade by
initiating the American precedent. A
large part of the Conservative party
here Is converted to the idea Of an
established tariff barrier around the
whole British empire with entirely free
trade inside. This free trade within the
British empire does not exist now. The
dependencies and dominions have tar
IFS operating against Great Britain as
well as against non-BritiSh countries.
Products of the dominionS entering
Great Britain are generally taxed the
same as foreign products. Many of the
leaders OF the Conservative party hope
to regain power in Britain by leading
the way to complete British imperial
economic unity.
This Is large and practical menace
to American world trade. 1t Is de-
signed especially to combat American
trade progress in the British domin-
ions. Comparing 1927 with 1912, the
British share Of exports to Australia
has fallen from 81 per cent to 43 per
cent, while the American share has
risen from IS to "a per cent.
The Conservative party here is In.
creasingly committed to deal counter
blow at America by uniting Australia
and all the other British dominions
with the same tariff barriers against
American and all other foreign trade
invasions.
This has already been done by the
French. France has tariff union in all
French territory in Asia and Africa.
Consequently, in Algeria 70 per cent of
the imports are from France and in
Madagascar the figure is 81 per cent
IL would be most momentous inter-
national business event If Great Britain
went over to the French system.
The leader of the British Conserva-
tive party, Stanley Baldwin, will dis
cuss the subject in the immediate
future. He leans strongly toward the
union tariff idea. The idea is strongly
resisted by Lloyd George for the Liberals
IN the House Of Commons and by
Chancellor Of the Exchequer Philip
Snowden for the Laborites.
4 4 X
Lloyd George maintains that Britain
now has 'the greatest international
trade In the world per head of popula-
tion," and says that this position would
be imperiled II foreign raw materials
entering Britain were taxed by the
tariff before being made into finished
goods for world export. Snowden says
the Labor government will give no
support to any proposal for putting a
tariff tax on manufactured goods enter
ing British dependencies.
Nevertheless the Labor government
of Snowden and Ramsay Macdonald
has taken steps to summon an imperial
economic conference of all British
dominions and dependencies in the near
future. This conference is to endeavor
to devise means of promoting prosperity
within the empire as q whole. Also,
the government here has established q
new economic advisory council" con-
sisting Of Prime Minister Macdonald,
Chancellor snowden, J. II. Thomas, the
lord prtyy seal and two other members