BRITISH FOREIGN POLICY

Grey River Argus, 22 September 1937, Page 5

BRITISH FOREIGN POLICY

ECONOMIC ASPECTS Speech by Foreign Secretary [British Official Wireless]. RUGBY, September 20. In a speech at Geneva, to the League Assembly Mr A. Eden. (British Foreign Secretary) said Britain desired nations to have greater economic opportunities, raising the living standard, and would help to that end 'if a lasting settlement of world difficulties, including the indispensable condition of an arms agreement couid be reached. But well-being and standards of living would only be realised through economic co-opera-tion, and the fore-swearing of economic nationalism. He emphasised the importance of the consistent policy of the United States in favour of a reduction of trade barriers. He recalled the steady increase in the percentage of the world’s imports accepted by Britain, as a result of which the outside world was obtaining sterling at the rate of £292,000,000 more per annum from sales to the United

Kingdom. British and United States imports represented nearly 30 per cent, of the world’s imports. An agreement between them for which preliminary studies were in train, would, through the effect of the most favoured nation clause, have most important results for the world. The British Government always deliberately refrained from pressing its colonial preference beyond a certain point. “The British Government, as part- of efforts now being made, to effect economic and political appeasement and increase international trade by lowering tariff barriers and other obstacles, without prejudice to the principle ofjcolonial preference, would enter discussion with any Power for abatement, of particular barriers in non-self-governing colonial territories, where these can be shown to place undue restrictions on international trade. This offer was subject to reservations necessary to secure reciprocal advantages for colonial production, and meet competition of low costs producers.

“I refer not only to the British Colonial Empire, but Jo the United Kingdom itself,” he added. The tariffs applied in Britain since 1931 have not prevented expansion of imports. Now, when trade is recovering, we are prepared in the manner indicated to do our share in extending that recovery.” . No modification of the British or other colonial preferential system could adequately remove difficulties of countries which maintain exchange control. They found themselves at a disadvantage in obtaining imports of raw materials, owing to difficulties in paying for them, whether the imports came from colonial areas or elsewhere..

A re-armament programme was forced on Britain by deterioration of the International situation. Britain had 450,000 tons of warships under construction. Her last three naval programmes represented an expenditure of 130 millions sterling. The naval personnel was being expanded at a rate without precedent in Britain in time of peace. The Air Force was being expanded and equipped with formidable results. The Army was growing in strength with everincreasing momentum.

He said the League stood for the principle generally accepted in 1919, that war did not benefit either victor or vanquished. That remained the declared attitude of Britain, who believed war was wasteful and futile. There was no dispute that could not be settled by pacific means. Britain was determined always to seek such a solution. The British Government was ready at any time to join in an agreement for a reduction or limitation in armaments, but until that time must be prepared to be able to defend herself and the British Commonwealth and carry out her international obligations.

U.S.A. SECRETARY’S EXPLANATION. NEW YORK, September 20. Clarifying his broadcast, Mr. Hull said the United States must take a middle course between extreme isolation and aggression, and must supplement the present policy of isolation by contributing to encouraging conditions promoting peace. Otherwise the United States would ultimately be forced to protect and sustain themselves amidst a world ridden by war and force. He cited trade agreements as an effective means of binding together nations in an enduring peace.