ECONOMIC WAR

Gisborne Herald, Volume LXVI, Issue 20116, 9 December 1939, Page 5

ECONOMIC WAR

BRITAIN'S POLICY INCREASE OF EXPORTS REDUCING RESTRICTIONS REPLY TO CRITICISM HAMPERING THE ENEMY (Elec. Tel. Copyright—United Press Asm.) (British Official Wireless.) Reed. /Noon RUGBY, -Dec. 8. The need for increased export 'trade to provide money for industry was reemphasised toy IMr. R. S. Hudson. Secretary (for 'Overseas Trade, in the House of Commons. Replying to criticisms regarding the maintenance of restrictions, -he said that as the war went on it Was likely that further restrictions would toe necessary. The Government would do it's best to ensure that they were as little burdensome as possible, but the country would have to realise that this was going to ibe a cash-and-carry war. In some articles there were bound to be shortages in the course of time, and in -the last resort the home demand would -have -to suffer. Mr. Hudson’s speech -brought to an end the House of Commons debate on the motion for the Address to the Throne, which was agreed to. Importance Recognised Speeches from the Government and Opposition benches yesterday recognised the supreme importance of the economic arm in -the present conflict, and- in the House of Lords, .where a similar -motion gave an opportunity for a -general debate, the same subjects -were examined. Lord iSamuel, while / expressing confidence in the administration of foreign affairs, and stating that the nation ias a whole was satisfied that the military side of the war was in safe hands, called for clearcut, firm, and effective direction from the Government on economic affairs. He said that a Minister of -the highest authority was needed in the War Cabinet to co-ordinate all the department's concerned, to take resolute and swift action, to remove controls that were unnecessary and -gravely interfered with the ex-port trade, and to guide public opinion. Controls Necessary The Lord (Chancellor, Lord Caldecode, replying, said that the’establishment of controls, ho-wever ill they might have -worked in the first weeks of -the war, was a necessary part of the system of fighting • the economic war successfully. The Department of Overseas Trade had been reorganised to centralise advice, and he urged that ’traders should themselves organise to minimise the multiplicity of inquiries. The Minister io.f Economic Warfare, he added, appreciated the advantages of buying goods to deprive the enc-my of their use, which had ‘been -suggested during 'the debate, and of developing trade -with certain countries in order to counter German influence as a -way of diverting supplies necessary to Germany for the conduct of the war.

In editorial comment on the economic warfare debates in tire House of Commons and the House of Lords, the newspapers welcome the disclosure of a 50 pCr cent rise in exports during November, but the general attitude reflects the opinion that more positive measures should be taken by the Government to ensure a uniform policy and a sustained and controlled effort to increase the export trade and remove the difficulties resulting from unco-ordinatcd departmental machinery.

Scheme of Supervision

The Times states: “Nothing was said yesterday which shakes the belief that the economic policy would be greatly strengthened if some one Minitser 'in the War Cabinet were given definite control of. die departments concerned with economic matters and if he were provided with an advisory body similar to the industrial panel created last year to smooth out practical difficulties encountered in the rearmament propramme.”

The Daily Telegraph says: “Most of tlie criticism has been directed against the controls and it can hardly be contested that they ought to be reduced to a minimum in number and delaying power, provided that they will still prevent goods reaching the enemy. But the removal of impediments is not all we require of an economic general staff. For the planning of export trade positive action is imperative—a strategy of advance.” The Financial News says that it is evident that all three parties agree that the export situation demands special co-ordination machinery and positive concerted action. BRITISH INVESTORS WAR FINANCE ISSUES GRATIFYING RESPONSE (British Official Wireless.) Reed. 9 n.m. RUGBY, Dec. 7. The Chancellor of the Exchequer, Sir John Simon, replying to a question in the House of Commons as to the amount of savings certificates and defence (bonds which tod 'been purchased, said the response to the offer to the small investor continued 'to be gratifying, and until Tuesday 13,250,000 saving certificate units had (been applied 'for. and over £11,250,000 worth of defence Ibonds had been sold, IN GERMAN PORT NAZI BATTLESHIP (Reed. Dee.| 9, 11 a.m.) COPENHAGEN, Dec. 8. The National Tidende says that the German pocket battleship Deutschland has arrived at a German port from the North Atlantic.