BRITAIN'S ECONOMIC POLICY.

Dominion, Volume 11, Issue 270, 3 August 1918, Page 7

BRITAIN'S ECONOMIC POLICY.

AN EARLY DECLARATION URGED STATEMENT BY MR. LLOYD GEORGE IF LONG WAR, STERNER TERMS FOR FOE

(Rec. August 3, 0.15 a.m.) London, August 1. The Press Bureau 6tatcs;—Replying to ft deputation of 200 manufacturers, introduced by Sir Edward Carson at the House of Commons, who urged an early declaration of the Government's economic policy, the Prime Minister, vivo was accompanied-by Mr. Bonar Law, emphasised tliat 6uch , a declaration .was being .delayed by war preoccupations. It' was also necessary to keep in' touch and be in complete accord with the Dominions and tlie Allies. Mr. ; Lloyd George said that the Government had beftn discussing tho problem with tho Dominions for the lost few weeks, and had had a discussion with the Allies before America entered' the war'. Hitherto America.had not expressed an opinion on'the Paris resolutions. It was vitally important that the policy of the United States and the policy of Britain should completely agree.- All he could say at present was that he was very hopeful, because tho inter-Allied agreement on these great problems meant that tho economic fate of the _ world would bo in tho hands of the Allies. The Prime Minister emphasised the necessity of securing essential industries against unfair attack and unfair competition. These industries were essential not merely from the commercial viewpoint, but from the viewpoint of national defence. Ho 1 did not doubt that they would reach agreement in this regard. No Government could avoid giving the earliest and deepest consideration to the matter. The longer the war lasted the sterner must be the ..economic terms' that would be imposed o'n the foe. Tho sooner the foe realised that tire better. We must be in a position to determine what would be fair conditions without having them imposed by the will of tho enemy. Ho agreed that immediately after peace there would be industrial dislocation. One of the great difficulties would be where and how to get raw material. Transport difficulties would also prevail during the first years of .peace. Thoso questions demanaed the most careful consideration, combined with a complete understanding with the Allies and tho Dominions. Mr. Lloyd George proceeded to say that no one over dreamt of continuing the present system of Government control after the war. • Mr. Lloyd George agreed' that thiscountry's strength before the war lay very largely in the ingenuity, selfreliance, adaptability, and resource of individual effort. At the same time thero was a lesson of the war wherein the State had done good work, assisting and encouraging industries, coupled with combined' effort among the industrialists. Magnificently as the business and industrial communities had shojvn their capacity to .orgnnise for tho war, ho quite agreed flint when tho war was. ever the present absolutely necessary .interference in business by the State must disappear. During the transition period they were not to get the raw material without considerable' 'Government interference. ■ They must also organise transport. . They had to see that the Dominions received a fair sharo of British manufactures. The Allies were also entitled to receive the assistance of Britain in the re-equipment of essential conditions in their industrial and national life. Perhaps a. business order might como from an enemy source more remunerative than an order from Britain, tho Dominions, or the Allies. .He thought they ought to see that tho people who were Sighting together should be served first. "Don't let us make the mistake of dissolving the partnership the moment the fighting onds," Mr. Lloyd Goorge continued. "Tho world won't come .right immediately after tho war. ■ If you dissolve tho partnership with .'ll these g;eat peoples, a partnership cenmuted with blood, there would, he men .quite ready tq tak'o advantage thereof, even ivlieu the war is over. Therefore, it is Vital that when the war is over and the transition period has come, when thero 'will not bo enough to go round, we in list keep tho partnership going to help each other to the end, so that brotherhood shall remain." The' Prime Minister deprecated tho revival of past controversies. "Let us consider tho problem anew. It is tho only way we can secure'absolute national unity. I shall bo vory much surprised if you are not quite satisfied with the Government's statement-whon.it is made, "but first we must get into closer contact with the Allies and see that lliore is no declaration that will in the least interfere with Allied concord, pood will, and eft-operation. Be assured it will be the chief concern of the Government to see that • the great industries whereon tho strength of. the country depends shall be developed and strengthened." Speech by Mr. Bonar Law. Mr; Bonar Law, who . followed, dealt with the question of control, and said the Government was-anxious to-abandon the war-time restrictions'as soon'as possible, and allow individual competition free play. Ho pointed out that'perfect freedom'ijt tlie end of the war would be impossible. To stop and play then would be to allow, he-fully believed,,a icowier,' perhaps organised by tho old enemies,.to arise, in almost all the staple raw materials. Olio of-the lessons of tho war was the. necessity of not only thinking of. the profits tho manufacturers could make, but the conditions of' tho men who worked for them. Tho war had rendered ono step easier, which was an immenso move forward in the whole conception of trade policy, namely, this Government's acknowledgment' that the principle that we were one Empire and of preference within the Empire- is established. Ha was convinced • that the whute country would endorse' the Government's deei-. sion. Ono of the lessons of the war was the necessity to produce, where possible, such things as wero esseutial to preserving the country's safety and' independence. Mr. Bonar Law believed that if the conditions of labour were to' be main--tained there must ht least be stability in the Home market. He emphasised that I Government consideration of this matter was difficult and complicated owing to tho fact that they must think of their Allies. Fortunately, a very, large, percentage of essential raw material was within t.lio Empire, and the question'of preference was going to be an immense advantage to the whole' Empire, because the Dominions' present policy of placing their produce at tho disposal of the Empire would continue after the war. He was confident the'statement which the Government would be able to make would not conflict with' tho views of any of the Allies, especially of" America, | whose good will was vital.