MR BALDWIN'S POLICY SPEECH.

Press, Volume LXVI, Issue 19889, 28 March 1930, Page 4

MR BALDWIN'S POLICY SPEECH.

SAFEGUARDING OF MANUFACTURES. UNIFYING EMPIRE TRADE. (Thou ovr own coßaßßPOin>jsjrr.) LONDON, February 13. In a speech at the Colisseum yesterday. Mr Baldwin outlined a policy which he maintained would give the Conservative Party victory within two years. The main part of his Bpeech was devoted to the burning questions of unemployment and the improvement of industries. "I am convinced," he said, "that the proper method to-day of approaching the question of the unifying of the British Empire lies primarily through the industrial side. ' I have been working for some time past, with some of my colleagues and with friends outside, to see what can be done to rationalise imperially, and not only to rationalise domestically. I regard this matter as of such great importance that I am going into it in some detail, for, familiar as I and some of my friends are with it, it is a new subject to most, and I am particularly anxious to have it examined candidly by business men in this country and by business men in the Dominions and in India. Every effort, in my view, should be made without delay to bring about arrangements between the industries—not the politicians, the industries —in this country and the corresponding industries in the Dominions and In India. It is no answer to say that the Dominions' industries are competitors with our own. Amalgamations, working arrangements are mado every year between keen competitors in the same country, and even in different countries. Provided that the proposed arrangement is a business proposition from which British and Dominion industries will profit, the fact that they compete should not deter such arrangement. Competing industrialists find it convenient to get together in order to get more pooling arrangements to provide a market. In inter-Imperial arrangements- I look for that but for much more. As a first step. I want to see conferences between representatives of selected industries such as steel, cotton, and wool in the United Kingdom and representatives of those industries in one or more of the Dominions.

"And it should be their object to see whether the representatives of tho industry could not arrive at an agreement which would cover some, and if possible all, tho following matters:— "As to the lines and types of production which Dominion industry may fairly manufacture exclusively for its own market, and an agreement as to tho lines and types which British manufacturers should,sell in that market. From both of these would come proposals for the adjustments of safeguarding and the necessary mutual preferences.

"As to the assistance which British industry could afford in technical advice, and in .finance, and possibly in tho supply of skilled labour, and agreement for combined research.

Combination in Selling. "If agreement could be reached on these broad lines it might be possible further to provide selling arrangements in the export markets. British steel makers have now agreed that export from this country should be managed by a joint export committee. Why should not such a national agreement be expanded into en Imperial arrange-* mentf There is every inducement for manufacturers to combine to sell. It is necessary for that purpose to give continuous service. That means skilled salesmen on the spot. Only the healthiest firms can afford it, and the cost, prohibitive for a single firm, is within the compass of a combination. Combined selling of this kind coald be aided by our Trade Commissioners and by the Commercial Diplomatic Service pursuing a common Imperial policy, and such an arrangement would encourage the establishment of common standards throughout the Empire; a matter of great importance, and the closest co-operation between the appropriate standardisation authority throughout the Empire ought to follow.

Agreements with Dominions. "Such combination would lead to combination for a supply of raw materials, a great deal of which in a great many industries exists inside the British Empire, and in facing the cartels and trade combinations, whether of-America or Europe, the Empire industry could act and speak as a unit, while in framing commercial treaties, wherever there was an Imperial trade arrangement the Governments o>f the Empire could act together. In orderto amplify and fortify such agreements the Empire Governments would be invited to adjust their duties and mutual preferences, and the increased trade which we might hope to see between the component parts of the Empire would stimulate the trade of the Empire in all other commodities. At a time when foreign countries are seeking to subsidise and to protect their mercantile marine, it is to the interest of British shipping to support a policy which will lead to an increase in the carrying trade between one part of the Empire and another. It is most important that nothing shall bo done to diminish the value of the limited preference which we accord to the Dominions. It is necessary that no' European commitments should be made which will prevent us from extending the policy of preference in order to supplement and fortify inter-Imperial trade agreements.

Position of India. "We can only advocate a policy of inter-Imperial agreements such as has been outlined.' We shall take active steps to promote a, series of trade conferences in order to bring about such agreements. That, I think, would lead to an ideal I have always desired to see, such a facilitation of the unity of the Empire as exists in these islands, and the unity of these islands. It may be possible for industries in the Empire to move about to whatever point may be best adapted for production, whether that point be in Caiiada, Yorkshire, Scotland, or Australia, and I have, for that purpose, kept before you India, because, though thero may seem no immediate possibility of such arrangements being made with that great country, no scheme of Imperial unity is complete without the inclusion of India. I cannot but feel that if India herself realises —and she must herself realise first —how much she may have to gain with regard to certain industries, common both'to that country and ourselves, shS will not be behindhand in consulting with us and possibly—may I say probably?—in time may even be as eager to join in Imperial co-operation as any other part of our Empire." Situation Grave. In another part of his speech . Mr Baldwin dealt directly with the question of safeguarding. "The situation is far graver than it was last June," he said, "it is graver

than it hasbeen at any time since the war, and it. calls for more drastic measures. The first thing to which any new Government most devote it' self, and to which I should devote myself ,if I were returned, is economy and the stoppage of fresh expenditure of any kind until employment is better and the revenue of the country is Increasing from improved trade. It has long been evident, and is admitted by all who know, that the. only hope of reducing taxation lies in an increased revenue derived from improved trade. It ia only out of an increased revenue that any further expenditure on objects, however desirable in them* selves, can be made, because industry cannot stand one more straw added to the burdens already existing and about to be piled on it in the next Budget. "The vulnerability of our standard of life is only too obvious, and we must have something with which we can fight, and this is the moment when the Government talk, not only of removing the McKenna duties, but of enter* ing into a tariff truce—or, in other words, continuing to hug our own shackles. I have been criticised often for too great complacence to the Labour Party in their international policy. That may be true or not, but in no circumstances will I, or those whom I lead, be a party to anything that might be done by the : present Government with regard to the making of a tariff truce. A tariff truce between this country and the world is a contradiction in terms. There can be no such thing. It is like a country armed with bows and arrows making arrangements with countries armed with modern artillery, that they will not add another bow and arrow to their armaments for two years. We have never used modern artillery; it is time we did. (Cheers.) We havetried out our gunß in a limited sphere, target practice, in safeguarding, and wa believe it to be a thoroughly efficient modern weapon adapted to the circumstances of the time, where the circumstances of industry vary so infinitely' as they do in this country."