WORLD TRADE PROBLEM

Chronicle (Levin), 13 March 1947, Page 8

WORLD TRADE PROBLEM

Press Association

Farmers Scheme Practical Approach

By Telegrapn—

MELLINGTON, Mar. 12, Important programmes, which are considered to represent a practical approach to the prohderns- 'oTffee world % farmers, particu'larly.m relation to ' sitrpluses, !and the regulafion of world trade lin relati'on to pmployment, are-an-nounced by Fed'era-ted Farmers. j' The pfoposals for world action ,in marketing farm produce are to jbe submitted to the Intern-ationai Federation of AgrieplturaF Prodftcers '' Conf erenee at The Hague, HoMand, ancl to the Intern-ationai ' ■ Trade and Employment Conf erenee at Geneva. The vievvs on the expansion of internatiohal trade Sare to be p-resented at G'eneva. ; Tlie seven-p'oint pi'ogramme for the marketing o-f expo-rtabl'e farm produce : advoeates the estal)lishme«t x»f World Commodi-ty Distri-bution Councils by count^ies' esporting primary produce, 'for each produet or grousp of products entering materially into world trade. The- councils are to be producer con 'trolled, having the duty— by u'sing buffer stoeks and with* the l-iquidation of ' methods- of surp-luses — of ensuring that ipsiee levels on the world's marlcets are kept witliin "upper and lower limits ' ' ifor eaeh countiy conc-erned. ; "The disposal of surp-lus methods , should e-nvisage the buikling up of new inarkets,, where it is likely.that builtl 'ing up will result in a greater produe- ! fiion of weaith ainl an expansion of world trade," states the third point. Co-exristing with suf-h a scheme, the! /establishment of fan-n- ineome equal isa i tion accounts is rec.oinniended, the-accou-nts to be li'nanced and controllexl by the farmers, and liavi-ng the object ; o-f at-taining reasouable stabi-lity oi farm incohie in each eountry. Sucli 1 funds should be invested in the coun tries to which most of Ihe farm pro , ducts are exported, aijd should be in creased or disbursed according to the .need for preserving the stabil'ity oi : farm income in the eountries con eferned. This, it is claimed, wouhl en . sure that exehange funds abroad wouhl not deeh'ne, daring bad seasons iii the I exporting eountries. ■ , "The operation of both schemes, ' states the' sixth point, " would be de , pendent on stability of the val'ue oi money in the various eountries, and mainf aiuing a proper relationshrp botwreen Ihe farming industrie.? and the ! other indu-stries and services in ' / eountries concerned." The programme concludes by sVying that all nation parti'eipatr-ng in tlie o-rganisation .shoah. be enjoined to take measures to preserve the- health and fertiiity of tlie j soil, and to extend cultivated acreage j which may - be essential to provide J ■ necessaries and amenities to the in- J • creasing world population. Social Conseience Tlie 15 points in the programme to 1 be presented to the International Confercnce on Trade and Employment set out that an international organisation to expand trade' and commerce is well vvOrthy of sup-port. It should "foster the poJiey of encouraging nations to think of themselves as complementary to each other, and of using the skill of tlie people and the natural resources of the eountries concerned to provide for the people of the world as a whole the grealest niaterial benelit. "Until there is a stronger social conscieuce," states the programme, "it 1 would appear that a pollcy of 'full' employment is likely to defeat its own ends, and that, until all classes of the eommunity possess a greater sense oi social responsibilitv, 'high' employment would be preferable. " The programme subinits that there should be international agreement that domestic programmes to expaiul employment are consistent with the realisation of the purposes of 1'ibera! international • agreements. Uomestic programmes to expand employment ^hpuldAifbt-Viiindey •; the eXpansiojiy oi ^(tGd'-Hi'a-de. *> : *• :■

Living Standards "Freer world trade," the programme stated, "is in the interests of all coun tries, provided there are safeguarcL against the imposition on workers oi standards of living that are lovv, ac cording to Western ideas. There should be undertakings and pledges by coun tries party to the international agree ments that they will refrain from de preciating their currencies • and t h.ujrefrain from cufctrng their workers ' living standards. The aim should be to have nations undertake (,o ensure thar there is a eo-ordinated international pol'icy of production which wrl'l rfot interfere with fair competition. 'fCounti'ies without an ' rndusf ria potential ' should not endeavour t encourage large secondary industry There should be definite undertaking.'on the part of each nation that it wil' not seek to- maintain employmen, through measures which are likely t( create uneniploynient in other coun tries.

"The "whol'e position with regard tc tafiffs and their elimination should t» examined and dealt with, the overriding eohsideration beiiig that the welfare of each countrv as a vvliojfr must be the deciding factor, and -not the welfare of anv particular indiustry. Empire Preference "Empire preferences should not be lowered or abolished until there is a corresponding guarantee of advantage in world trade to the Empire eountries concerned. There should be no escape clause in any international agreement, An escape clause can nulltfy the whole proceedings and render useless an:, measures -f or the hetterment of trade. ' The' programme recomme'nds agreement that there wrll be ne complete' proTiibitiorl of any partieufar imported article by any eountry, and- that a por tion of the total con3uni-ption o-f any article should be imported to test tlfe ; eificiency of the domestic industry.. iThis should obtain until impdtt- and exehange eontrols are aLolisheu. Measur'es. to restrict the produetion of the main articles of food and iibres should not be countenanced. There shoiild be a diversion of surpluses which cannot be disposed of bj nornial

marketing te the hungry5 peoples of ihe world. . Kwrptuses should not be allowed . to- . depress good m&rkets, and there should : be a principle that they are the responsibilitv, not of exporting eountries ouly, but of trading nations as a whole. "The eountries party to the agree r. ment shfonld" give pledges that their finaiicia) policies will be ro designed as not to threaten, or continue tc threaten, the stability of #their currency, ' ' the programme conlinues Rubsidies, tariffs, import and ex cliange control' inu«t all be. consid'erec together, and must be considered a' evils to be- avoided. "The world should not be allowed tc "ontinue the war-p-rovoldng; trend oi autarc.hy. ** •The programme states that wher* there' is overprodirctfon of a commoditj the withdrawal of artificial stimulant: thould he uscd to divert surplus re cources to economic production. Re atrictsve . business practices should b discontinued by all. Governments partj to tbe agreement, and. tbe same re quirements should apply to all inter governmental agreements restrictinj i production. These should be vetoed.