Losing Her Grip

Sun (Auckland), Volume IV, Issue 1009, 27 June 1930, Page 11

Losing Her Grip

BRITAIN'S TRADE ISOLATION

Report By Economists

HAILED AS BLOW TO LABOUR POLICE

fl report which will exercise a far-reaching; influence, ti 1 Economic Committee of the General Council of tl Trade Union Congress in Britain expresses a doubt tin Britain’s policy of isolation in trade is any longer possibl though its traditional beliefs have hitherto" been along thelines. The report is hailed enthusiastically by Lord Koilie mere’s newspaper as a blow at Mr. Snowden's Free Trad policy.

British Official Wireless Reed. l-’.5 p.m. RUGBY, Thursday. The General Council of the Trades Union Congress today issued a longawaited report of its economic committee, which is composed of the most influential leaders of the Labour movement, including John Be rd, Ernest Bevin, Ben Tillett, Will Thorne and Arthur Pugh. The report says vaiious economic blocks had been considered, such as the United States of Eurox>e as proposed by' M. Briand, an Anglo-Amer-ican Alliance and an economic group of the British Commonwealth. Regarding the European group it is pointed ou, that countries in it would be competing against each other, since they’ manufacture, practically speaking, the same kinds of goods. An alternative to this method of grouping was for this country to maintain its position of isolation, making the best bargain possible with anyone and everyone. “That is our traditional policy,” the committee declares, “but is it possible to maintain it any longer? HEAVY COMPETITION “It lias to be remembered that other groups are actually’ coming into existence, and this being so, has the policy of isolation any chance of succeeding in the future?” As to a world economic unity, the committee says it would desire that, but unfortunately it could not be regarded as at present practicable. Discussing the pros and cons of the economic unity of tile British Empire, the committee says: “The facts .are that a block already exists in a tentative kind of way, that there are undoubtedly ties of sentiment that count still in the economic sphere, that supplies of raw material and of manufactured goods could be balanced, that the group is rich in raw materials and is, in fact, almost self-contained, that there is to a large extent a common language and that there is abundant opportunity for movements of population within the group. “It has further to be remembered that there is already to some extent a tariff bond within the Commonwealth in the form of preferences and other commercial discriminations applying both to the Dominions and the colonies.” CONSOLIDATING EMPIRE The committee declares that if a policy of the creation of economic blocks continues to be pursued by other nations, then the most practicable group from this country’s viewpoint would appear to be a consolidation of the British Commonwealth. Such a policy would in no wav affect detrimentally British support and participation in the work of the League of Nations; but rather the contrary. Britain would be in a better position to strengthen the scope ana authority of the league. “Naturally we should not be prevented by this policy from concluding European or other international agreements regarding the marketing of coal, steel or other commodities,” the report goes on. “The difference would be that we should bargain as a Commonwealth group instead of as Great Britain, and in many cases this would be a decided advantage.” The committee urges that the Imperial Conference should press for a full development of economic relations between the countries of the British Commonwealth, but it is vitally necessary to avoid antogonism either to European aims or American policy’. INFLUENCE OF REPORT It is suggested that regular Imper-

ial Economci Conferences should evolve an economic policy for the British Commonwealth independently of ! party’ politics. There should also be an inter-Com- ! monwealth economic secretariat to investigate the problems. The General Council of the Trades Union Congress has approved the report, which has been prepared with a view to the forthcoming Imperial Conference. The report may be regarded as an important development in the controversy’ which has been aroused by the campaign of Lord Beaverbrook and Lord Rothermere for Empire economic unity’. The declaration that “a policy of isolation is no longer possible” is used as a head-line in the “Evening News,” Lord Rothermere's newspaper, which declares: “The committee's decision is at complete variance with the free trade policy of Mr. Philip Snowden, Chancellor of the Exchequer.”