RAW MATERIALS.

Auckland Star, Volume LXVI, Issue 216, 12 September 1935, Page 7

RAW MATERIALS.

BRITISH REFERENCE.

Conjecture as to Meaning of Sir S. Hoare's Remark.

COLONIAL SUPPLIES

(United P.A.—Electric Telegraph—Copj-righti

(Received 1.30 p.m.)

LONDON, September 11

Sir Samuel Hoare's reference to the free distribution of raw materials from colonial areas, protectorates and mandated territories, states a Geneva message, has aroused speculation as to whether the ultimate revision of certain mandates, involving France, Avill result, bringing up the question as to whether Germany should not be included as well as Italy.

Kef erring in his speech to the British attitude towards the League and to the sincerity of ideate that inspired it, Sir Samuel Hoare admitted that while that sincerity springs from enlightened self-interest it also springs from enlightened interest in what they believed best for all.

By way of illustration lie chose the question which, lie said, was exercising the minds of many people and. many Governments—the problem of the world's economic resources and the possibility of making better use of them in the future.

Abundant supplies of raw materials appear to give a peculiar advantage to the countries possessing them. It was easy to exaggerate the decisive character of such advantage, for there are countries which, having little or no natural abundance, have made themselves prosperous and powerful by industry and trade.

"Yet the fact remains that some countries, either in their native soil or in their colonial territories, ro possess what appears to be> a preponderant advantage that others less favoured view the situation with anxiety, especially as regards colonial raw materials.," he said.

Fear of Monopolies. "It is npt unnatural that such a state of affairs should give rise to fear lest exclusive monopolies be set up at the expense of those countries that do not possess colonial empires. It irs clear that in the view of many this is a real problem and we should be foolish to ignore it.

"It may be that it is exaggerated. It may be, also, that it is exploited for other purposes. None the less, ae a question causing discontent and anxiety, the wise course is to investigate it to see what proposals there are for dealing with it, to see what is the real peope of the trouble, and if the trouble is substantial, to try to remove it.

"The view of the British Government is that the problem is economic rather than political and territorial. It is the fear of monopoly, of the withholding of essential colonial raw materials, that is causing alarm.

"My impression is that there is no question in the present circumstances of any colony withholding its raw materials from any prospective, purchaser. On the contrary, the trouble is that they cannot be sold at remunerative prices. This side of the question wae investigated with concrete results by the Commission of the Monetary and Economic Conference which met in London in 1933.

Economic Investigation. "Its work was directed primarily towards the raising of wholesale prices to a reasonable level through the co-or-dination of production and marketing, but one of the stipulations of such action was that it would be fair to all parties, both producers and consumers, that it should not aim at discrimination against a particular country and tha, it" should, as far as possible, be worked with the willing co-oportion of consuming interests in importing countries. "This precedent may indicate a suitable line of approach to an inquiry which should be limited in this case to raw materials from colonial areas including protectorates and mandated territories.

"I surest that emphasis in the terms of reference should fall upon the free distribution of such raw materials anion" the industrial countries which require them, so that all fear of exclusion or monopoly may be.removed once and for all. "The Government I represent will, I know, be prepared to take its share in any collective attempt to deal in a fair and effective way with this problem that certainly is troubling many people at present and may trouble them even more in the future."

Interpretation Queried. The "Daily Telegraph" Geneva correspondent interprets Sir Samuel Hoare to mean that Britain contemplates an inquiry under League auspices, deciding whether the mere fact of British ownership of certain territories is factually any obstacle to the free distribution or their products.

It is anticipated Germany will eooner or later make formal representations on the subject of colonies. "The Times" states that the Foreign. Secretary expressed the views not only of the Government but of the nation. The passages of the speech likely to arouse the most attention referred to raw materials. The fear of a monopoly makes uneven distribution the cause of anxiety for many countries, yet the mere transference of colonies would not solve the problem any more than the colonisation of tropical territories can possibly accommodate the surplus population of the European countries concerned.

The League, however, offers an opportunity for scientific examination and suitable action.

British circles at Geneva , decline to amplify Sir Samuel Hoare's reference to .colonial raw materials except to regard it as a basis for a possible conference if the tentative suggestion thrown out makes any appeal to Italy.

LABOUR LEADER.

MR. LANSBURY TO RESIGN,

(Received 11 a.m.)

LONDON, September 11

The "News-Chronicle" says that all sections of the Labour movement expect Mr George Lansbury to resign his leadership before the Labour Conference at Brighton on September 30. Tins follows the differences of opinion regarding the enforcement of sanctions, including, the use of force if necessary, in the present Italo-Abyssinian dispute.