MUTUAL AID

Ashburton Guardian, Volume 70, Issue 260, 21 August 1950, Page 3

MUTUAL AID

NEW LABOUR SCHEME SUCCESSOR TO MARSHALL PLAN IN.Z.P.A.—Copyright) (Rec. 10.35 a.m.) LONDON, Aug. 20. The British Labour Party to-day proposed a long-term “world plan • lor mutual aid” to succeed Marshall aid in 1952.

The Government party executive, in a new statement of policy, said that Work on the plan should be started immediately “to attack poverty 1 everywhere in developed and under-devel-oped countries alike.” A statement entitled, “Labour and that new society” was issued for discussion at the Labour Party conference in October. The statement said that Labour would go ahead with the nationalisation of iron and steel. It warned that “the Labour Government will use its existing powers to take over concerns which fail the nation.” The statement said .that Labour stood by Britain’s rearming commitments. “The defence of the free world requires a combined effort to restrain the forces of aggressive imperialism. This demands military preparedness—ships, tanks, aircraft and efficient coordinated leadership.” Nevertheless, Labour would “continue to give full support to other United Nations who seek a real two-way understanding with Soviet Russia on disarmament and the control of atomic energy.” Stress was laid in the statement on the decentralisation of control in national industries, and the part that should be played in national affairs by local authorities. Strongest Defence Proposing the new plan for international aid, the party asserted that “rising standards of living are the strongest defence against infiltration by Communism and Fascism.” Wealthier nations, it said, had a moral ob : ligation to help under-developed countries, but they themselves would benefit from the plan. “An all-out attack on poverty wherever it exists will sustain production and the prosperity of industrial nations.”

The machinery of the plan would have to be worked out by all free nations taking part. “World trade has been supported and prosperity maintained during the past three years by generous help of the American people through Marshall aid. We do not expect all countries with which we cooperate to be socialist. All we ask is that they should have sufficient mastery over their own economic systems to fulfil their obligations in international planning.” - - The document gave a warning that Britain would not be able to hold its own in the world markets against revived competition from Germany and Japan unless'goods could be sold overseas at competitive prices. To win economic independence by 1952, Britain had to retain 'essential controls on overseas trade. She would expand to the utmost trade with the Commonwealth.

The statement added: “Commonwealth agriculture is complementary to our industry. It is therefore natural that we should seek closer economic harmony. Commonwealth producers want a guaranteed market and guaranteed prices so that they can plan ahead. They can only be sure of this if we are prepared to make hulk purchase arrangements with them in appropriate cases ”