DRIVE FOR TRADE

Ashburton Guardian, Volume 59, Issue 47, 5 December 1938, Page 5

DRIVE FOR TRADE

COMPETITION IN EUROPE. A GERMrAN INQUIRY. BRITISH ATTITUDE UNCHANGED. (United Press Association—Copyright.) LONDON, December 3. A member of the German Embassy in London cal)ed on the Foreign Office and inquired of an official there regarding the significance of the speech made in the House of Commons on Wednesday by the Secretary of the Department of Overseas Trade (Mr R. IS. Hudson) regarding economic competition in Europe.

It was explained that the reference to the situation in South-Eastern Europe was cited as offering an example of the effects of competition subsidised by the German Government. It was not intended to indicate any modification of the British attitude as stated by the Prime Minister and the President of the Board of Trade (Mr Oliver Stanley) on November 1.

On that occasion Mr Chamberlain said: “Do not let us suppose there necessarily must he economic warfare between Germany and ourselves. There must be some competition. Competition is the thing we thrived on in the past. It is not in our interests to see any part of the world remain poor. If, by means of international trade between Germany and these countries, the economic position of these countries is improved, you may be quite certain we shall get our share of trade.’’ “The Times” devotes a leading article to Mr Hudson’s speech and to the reception of the speech in Germany. It makes the point that the conflict which some have affeefled to see between Mr Hudson’s speech and former declarations bythe Prime Minister and the President of the Board of Trade, that Britain had noqreason to look unfavourably on German economic expansion in South-East Europe, is due to a misunderstanding. “The Times” states “Methods which proved effective in ai part of the world where the British share of trade has not hitherto been considerable, could easily be extended to other parts where she is vitally concerned. Therefore, while nobody wants or could want to prevent the natural development of Germany in South-East Europe, British industry must be prepared against the wider impact of such methods. “The best 'way to avoid economic conflict with Germany is for British industry to be prepared to -fight, effectively if compelled to do so, to secure fair treatment.”

A (Press Association message says the City welcomed Mr Hudson’s announcement, particularly as it was followed by hints that rearmament finance will eschew increased taxation in favour of loans, thus indicating thie Government’s anxiety to maintain civil production and export trade. However, financial commentators doubt whether the purely internal efforts of the export industries will be sufficient in view of'the German State backing , the export drive..