Evening star., 1932-08-23
EMPIRE WAITING
| ANX|0USLY ON u. S.
Success of Ottawa Pacts
Hinges on Stand at
London Farley.
BY MERWIN III. BROWNE.

OTTAWA, Ontario, August % (N.A
N.A.).-America played no part in the
formation Of Empire trade agreements
at the Imperial Economic Conference
lust concluded here, but the entire
British commonwealth of nations is
looking anxiously to Uncle Sam to help
make them effective.
Out of the dozen agreements, with
which the Empire hopes to make itself
economically self-sustaining, new
realization has come. 1t Is that their
full force will not be felt. nor con-
f1dence and prosperity aroused within
the Empire. without an understanding
with the United States, whose foreign
trade is likely to be hit hardest
The Ottawa agreements have erected
O structure in which the preference
principle is the keystone, but II the
operation of that. principle is to bring
to the Empire the increased trade and
restored confidence longed for by its
leaders, there will have to be achieved
a stabilization of exchange and an in
crease in wholesale commodity prices.
Purposely, the Ottawa conference did
not attempt to deal with these two great
factors. realizing that their ramiflca-
tions far exceeded the far-fiung boun-
diaries Of the Empire These two fac
tors were left instead to be dealt with
by the world economic conference,
tentatively arranged for this Autumn.
U. S. Will Have Place.
When the world economic conference
comes Uncle Sam will not be forced to
stand outside the conference doors,
wondering what blows are to be dealt
to his foreign trade. He will have his
place, and his aid and advice will be
much sought and respected. 1t is not
insignificant that the invitation to
participate in the larger economic
gathering came from the leading par
ticipant in the Ottawa conference
Great Britain herself.
Many will wonder why Uncle Sam
should sit in conference and aid it
taking action which may result in a
loss of his foreign trade. 1t can be
justified, it Is suggested, on the ground
that although operation of the Ottawa
agreements may result in quick, i'm
some lines, II this results in increased
prosperity for the Empire units, they
will buy more from the United States
in lines not affected by the preferences
and America will be the gamer in the
long run.
Just how much American trade will
suffer If the Ottawa agreements reach
their full effect Is indeterminate at the
present time However, estimates have
been made that American foreign trade
running from s60,000,000 to 5000, ,000,-
600 will be seriously threatened.
President Hoover in his speech ac-
cepting the presidential nomination,
limited at future tariff dealings when
he said that while the United States
will not consent to war debt cancella-
tions, it might enter into some arrange
ment in such matter whereby the
United States would be guaranteed q
market for its goods.
Canadian Pact F0reseen.
If tariff deals are made by the United
States as a result of the World Eco
nomic Conference, competent observers
express it as their firm conviction that
at some time within the next five years
that is the length of the Ottawa
greements-Canada and the United
States will enter into commercial
treaty relationship.
So far as the United States trade
relations with Canada are affected by
the Ottawa agreement, the opinion Is
expressed that relaxation Of Canadian
customs administration barriers against
British goods. while maintaining them
against American merchandise, will be
more harmful to the trade of America
than the preferences to be put into
effect. These barriers include special
surtaxes and import taxes and the ar
bitrary valuation Of commodities for
duty purposes These are all piled on
top of the, regular tariff wall. and make
it just that much more difficult for the
American exporter to scale.
Copyright. 1882. bv North American News
paper Alliance. 1nc)