TRADE COMPETITION OF LOW WAGE COUNTRIES

Chronicle (Levin), 7 November 1946, Page 9

TRADE COMPETITION OF LOW WAGE COUNTRIES

LONDON, Kov. 6. Profcssor H. A. Marquand in tlie Commons, winding up the debate on overseas trade, expressed the opiuion that some people were inclined to attach too much importance to the problem of competition from low wage countries, partieularly Japan. It would be some time before Japanese production would possibly increase to proportions which might be regarded as threatening. It must be remembered tliat the real wages of the ' Japanese could not be raised until they were given the opportunity to sell goods on the world market. Oue could not envisage a future where the Japanese were refused permission to export goods beeause it would eondemn. them to starvation. By so doing we would eondemn oursclves to levy subsidies. Referring to the danger Britisli industry might suft'er from a world depression, Profcssor Marquand said: "What we might have to anticipate in the near future is something like the sluinp of 1921." He was con/ident Britisli economy was now hetter prepared to resist the effeets of a temporary dex>ression and added that we should look forward to a wrorld depres' sion eoming on of a much rnore fundamental type tlian experienced in 1929, but exjiressed the opiuion that tuch a depression could not occur fot years owing to the aeuto woridwidc shortage of goo^s0 \