POLITICS AND' ECONOMICS.

Auckland Star, Volume LXIV, Issue 18, 23 January 1933, Page 6

POLITICS AND' ECONOMICS.

' Seldom before in tlie world's history has there been such urgent need for common action between the nations to _ promote economic recovery, and the Governor-General, in his address to the Napier .Chamber of Commerce, rightly laid stress on the economic interdependence of all the civilised nations of the world and the urgent need for international action to save and restore the world's economic system. This common action, however, is being retarded by political rivalries and international jealousies, which have resulted in an attempt- at economic independence on the part of nations, in prohibitive tariffs which act as a barrier to world trade, and in large expenditure on armaments. All the schemes for the restoiation of the Danubian countries have been wrecked on the rocks of international animosities. The export surplus of the agrarian Danube countries amounts to over 4,000,000 tons, and this surplus could be absorbed by Italy, Czecho-Slovakia and Austria. This is not possible, however, because of political objections raised by, France and Germany, and suspicion of any economic union that might lead, to Italian predominance in the. States which formerly comprised the Austro-Hungarian Empire. Every effort has therefore been made to prevent any Customs union that might have political implications, though such union is urgently needed on economic .grounds. The true interests of the Danubian countries are subordinated to the jealousies of the larger Powers. The hostility existing between China and Japan is preventing the economic recovery of these two countries and hindering the return of. World confidence. The trade of Japan has suffered from the Chinese boycott of Japanese goods, and the internal position in China has been made worse by the inability of the Chinese at this juncture to devote themselves to urgent problems of financial and political reorganisation. In Ireland political interests have been allowed to overshadow completely the - economic needs of the country. The substantial gains to be won by co-operation with Britain have been set aside for doctrinaire ideas of a Republic. The causes of the present crisis are largely political. Many of the leading nations are pursuing a policy which is the very antithesis of the mutual help which is the only real road to world recovery. If they cannot abandon their national hatreds, distrusts and selfishness, then they will be compelled to see the international mechanism still further damaged and the economic and, financial world thrust still i further down, into chaos.