Evening star., 1949-05-10

that way. Perhaps there was nc
sufficiently clear grasp early
| enough of the limitations which
our dollar shortage must impose.
However that may be. Canadians
have been disappointed that we
have not been able to take their
salmon or their fruit or their lum-
Der. in the quantities available
Maybe we can still buy some feed
stuffs for the pigs we ought to
have.
Dollar Problem Cited.
This dollar problem is teasing
question between us. and there is
still too wide a gap IN economic
thinking between Britain and
Canada. Even while accepting
our inescapable need to conserve
dollars, Canadians have not really
liked some of our bilateral arrange
ments with other countries. This
Is natural enough, for Canadians
would, of course. prefer to see the
earliest possible return to the old
triangular pattern of trade on
which the economy of Canada has
been based for so long. So. pre-
sumably, would we. But how is 1t
to be done? There's the rub.
/ In the 18th century. when Brit
ain was the greatest exporting
nation in the world. we did not
always take payment at once in
imports for our purchases. We
invested our surplus on the spot
and so it came about that we built
up large investments in many
lands and in every continent. If
the dollar countries were willing
and able in these days to follow a
similar course and invest in the
sterling area, this might prove of
real help to the problem of the
balance of payments. But Canada
can hardly be expected to do this,
because she has an actively ex-
panding economy within her own
borders and has need of all her
considerable savings for develop
ment at home.
Trade Difficulties Stressed.
4 The difficulties in re-establish-
ing any form Of multilateral trade
are certainly formidable at the
present time. But it should be
possible to establish some form of
wide trading agreement in which
we and Canada could share. per-
haps with some of the other do
minions and colonial territories.
If the 10 countries who were sig
natories to the Marshall Plan were
able to do something of this kind.
it should not be beyond the wit of
man to devise a like arrangement
within the family Of our own COM
monwealth. At any rate. the at
tempt should be made. unless some
better plan can be devised by
which Anglo-C Canadian trade can
thrive. again on q basis that gives
confident promise for the future.
In the meantime, we are driven
back to tedious reality. We can
not. over a period. buy more from
Canada than she can buy from
us. This Is all the more exasper-
ating since we are the natural
market for 20 many Of Canada's
products In food and timber, and
in raw materials. Canada has
been able to sell to the United
States some of the products which
she would have sold to US, but
there are others for which she has
no market except in Britain. On
any wide view this Is not q salts
factory state Of affairs. because
Canada's trade Is based on two
principal markets, the United
States and Great Britain, and it is
not to her interest that either OF
the two should fail TO play Its full
part.
Britain's Responsibility.
The unavoidable currency limi-
tation upon our trade with Can
ada places q special responsibility
upon us in Britain. We must not
make bilateral pacts with other
nations which result in selling to
them goods which Canada might
have bought from us. When /
was in Canada early In the new
year. our agreements both with
Poland and with the Soviet Union
came In for some criticism under
this head. The Canadians COM
planned that we had sold to these
countries tin plate that Canada
needed and could have used to
send her canned goods to US.
There may be reasons, based
on our shortage Of dollars. for our
having done this. but they are
not easy for Canadians to accept.
It is not always enough to have
good intentions. There are oc-
casions when 1t Is as important to
persuade your friends immedi-
/ ately that these are in fact well
/ founded. Our trade commission
ers, therefore. must always be
given full information at the time
when any of these agreements
with foreign countries are made.
Once q wrong impression is gained
lit is always difficult TO catch up
and correct 1t.
/ All these considerations have
to be seen against the background
of Canada's unstinted war effort.
Her aim then was to expand her
production to the greatest possi-
BILE extent and deliberately to
adapt her products to the British
market. 1t must be remembered,
too. that Canada has made gifts
and loans to Britain OF over
Es00. .o00. 900 ts3.600. .o00. .000l in
the last ten years. We In Britain
!, may well ponder what must have