Plain Talk Ahead

Cramped by trade deficits and dollar shortages, most sterling area countries are hoping that something can be done to ease their troubles at the conference of Commonwealth Prime Ministers, which will be held in London in November. Canada, the only dollar nation in the Commonwealth bloc, seems more skeptical than hopeful. Preparing for the conference last week, Ottawa took the attitude of a rich cousin invited to a family reunion--sorry for the less fortunate relatives, wary lest they make an unwelcome touch.

Canada thinks that a close, critical look at the domestic policies of its Commonwealth cousins would show where a good part of the responsibility lies for the sterling area's ills. The government instructed Norman Robertson, High Commissioner to the United Kingdom, to put a discussion of those policies on the conference agenda. Explained one Canadian economist: "The balance of payment deficit must be stopped, and stopped permanently, and though it may sound hardhearted, that's something those countries have to work out for themselves." Canada, he added, expects countries like India and Pakistan to have deficits ("You can't tighten a belt over a shrunken belly"). But Australia, for example, has made mistakes ("They tried to expand too fast and lived beyond their means"). His advice for Australia, and also for Britain: "They can reduce the demand on their resources or they can increase their output . . . produce more or use less at home . . . find more things to export so they can find the money with which to import."

Ottawa's attitude was a far cry from its feelings at a similar conference in 1932. Then, weakened by a depression and with her exports lagging, Canada fought for preferential trade treatment within the Commonwealth. Now, riding a record boom in domestic production and foreign trade, Ottawa spokesmen are inclined to scold the sterling countries.

British officials in Ottawa have not accepted Canada's about-face without challenge. Snapped one last week: "Let [Canadians] look at our domestic policies. We might look at theirs too, and conclude that one reason Canada is doing so well is that it isn't pulling its weight. It hasn't even the guts to demand conscription." The family reunion promises to be a forum for some healthy plain talk.

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