IN THE LIGHT OF EVENTS

Dominion, Volume 37, Issue 201, 23 May 1944, Page 4

IN THE LIGHT OF EVENTS

Interviewed in London regarding the Dominion s plans for postwar reconstruction the Prime Minister is reported to have said : We are well aware in New Zealand that, though we can do much- by our our. own efforts, true prosperity can only be obtained by economic recovery on a world-wide scale.” That will be readily endorsee, i it was impossible to get the party which the Prime Minister now leads to realize the fact during the years of a world-wide depression. At that time Labour spokesmen contended that this country could virtually isolate itself from adverse economic developments overseas, a view which they have been forced to qualify when faced with the reSP< Th?wSe S r O vieOw which the Prime Minister has enunciated contrasts strangely with those formerly favoured by his party, lhere was a time 'when, speaking in Parliament, some of his co leagues claimed that it was possible to isolate or insulate New Zealand f om the effects of economic conditions in other countries. One membei, now a Minister, asserted that no Government could guarantee a supeiannuation scheme, or pension scheme, or establish other values when our people are dependent upon the income of the nation being determined by prices overseas.” Those prices were, of course, dependent upon the prosperity of the consuming markets and then, as nov. true prosperity could only be assured by the economic recovery on tbe worldwide scale to which the Prime Minister has referred. The hope is that this realization is itself world-wide. The events of the last few years have done much to drive home the lesson of interdependence and it is for that reason that so many people are hoping since that the unity, demonstrated in times of war will be as himly e-tab lished in days of peace. . ~ -. The Prime Minister told the newspaper representative tha i was for this reason-the need for international action-that he had taken part with particular interest m the discussions of post- vai economic policy at the conference just concluded in London- -to e can be no doubt that a firm understanding among the self-govem i g units of the Empire would constitute a powerful factoi in affecti & Agreement in a much wider sphere. Together they form a group capable of exercisjng widespread influence and, as they have■ subscri:> to the aims of the Atlantic Charter, and most of them have into definite agreements—in the lend-lease plan—for the lemoval ot barriers to international trade, the trend of the discussions in T-ondon, even if no definite commitments were made—and incidentally they were not the purpose of the conference-must be of the greatest ,mP °The C arme(l struggle which now seems to be moving toward the decisive hour, has demonstrated beyond all question the interdependence of the freedom-loving nations for the defence of their joint and individual liberty. But it also has brought a clearer realization that their economic prosperity depends upon mutual action and aid. Nothing more should be heard, at least in New Zealand, o any policy of insulation. Our economic stability must still depend upon the disposal of our surplus produce in overseas markets. Pheir strength will be our prosperity, leading inevitably to the creation of an increased demand here for local manufactures and he products of othei countries. It would be as well to keep prominently in mind the 1 rime .Minister's dictum that “true prosperity can only be attained by economic recovery on 2, world-wide scale.