SPAIN'S DILEMMAS.

Auckland Star, Volume LXV, Issue 239, 9 October 1934, Page 11

SPAIN'S DILEMMAS.

DIPPING INTO A CRISIS.

INTERNAL MARKET SLUMPED.

MADRID, September 2. Economic nationalism among lieT chief European customers has begun to take effect on Spain and she is dipping into an economic crisis just when the rest of the world is tentatively hinting that the worst is over. Exports for 1932 were not considered good, but the fresh fruit export figures for the first five months of this year showed but 00 per cent of the 1032 figures for the same period. Wines are the only bright spot, thanks to the United States. Considerable attention has been drawn to an article on economic difficulties on the peninsula and the world crisis in general by Spain's foremost economist, Don Joaquin C'hapaprieta. As far as the world crisis is concerned this writer concludes that only a temporary worldwide ban on all new inventions of a labour-saving character can hit at the root of the unemployment problem, which he says must first be dealt with before prosperity can be expected to come hurrying around the corner. Ais far as Spain is concerned, Senor Chapaprieta thinks it is time to say good-bye once and for all to the policy of concentrating only on the export markets and of not taking the slightest trouble to develop the home demand for fruits and vegetables. Spain's oranges can often be bought cheaper mi Manchester and Berlin than they can in Madrid. Spain advertises Europe's mildest winter climate, but in December imports roses from France. But while Great Britain and France are taking more fruits and vegetables from their own colonies and less from Spain the internal market has likewise -slumped heavily since the triumph of the Right in the last elections. As a result wages were cut as much as 30 or 50 per cent in agriculture, Spain's most important industry. These cuts, added to unemployment figures totalling slightly over '(500,000, although some 40 per cent of these are only partially unemployed, have restricted the home market. Spain is dabbling in the quota system and now has restrictions, on the importation of 24 articles, including cheese, motor cycles, and eggs. The motor cycle quota is made to please France and is '. a hindrance to the United vStates, whose powerful machines are most suited to the peculiar conditions in Spain, where towns are hundreds of miles apart and long mountain grades have to be negotiated, and have been until recently the most popular make in Spain. Holland tried to obtain a quota on radio, but this was declined as Spain is.interested in collecting taxes on as many radio sets as possible. But a 20 per cent tariff reduction was given to Holland on a number of radio parts.