CUSTOMS UNION PROPOSAL

Press, Volume LXXXIII, Issue 25282, 6 September 1947, Page 9

CUSTOMS UNION PROPOSAL

LIKELY SUBJECT FOR EMPIRE TALKS REACTION TO MR BEVIN’S SUGGESTION (Rec. 9 p.m.) LONDON, September 4. Next week’s London talks with Dominion representatives on the dollar situation are likely to be the occasion tor obtaining reactions to the suggestion by the Foreign Secretary (Mr Bevin) at the Trades Union Congress comerence for an Empire customs union. Although Mr Bevin emphasised that he was speaking solely on his own behalf it s not thought possible that, in his position, he could put forward sqch an idea in an important public speech unless he knew the Cabinet was broadly in favour of his making the proposal. The difficulties in the way of such a union are complex, but as the present world dollar shortage has emphasised the weakness of small national economic units there is, at the moment, a greater likelihood than ever before that the proposal for the customs union, after preliminary soundings, will reach the agenda for the Commonwealth conference.

With the exception of the “Daily Telegraph,” which, as the chief Conservative organ, accuses Mr Bevin and the Labour Party of “claim jumping" and the Communist “Daily Worker,” which says that the suggested Commonwealth customs union is merely “Beaverbrook’s panacea of Empire free trade under a new name,” the general newspaper reactions to Mr Bevin’s Southport speech are favourable. The “Glasgow Herald” says that the possibilities of increasing trade within the Commonwealth are very great, but it should not be forgotten that the diversity of Empire fiscal policies defeated the Chamberlain tariff reform programme a generation ago and has been by no means overcome by the Imperial preference agreements made at Ottawa. Mention at Trade Talks

A spokesman for the British delegation at the international trade talks in Geneva confirmed that Mr J. Harold Wilson, the British Under-Sec-retary for Overseas Trade, informally mentioned .the idea of an Empire customs union to a meeting of Commonwealth delegates last week. It is understood that the Commonwealth delegates referred the matter informatively to their Governments. . -‘The reaction in Geneva to the British Foreign Minister’s proposal for a Commonwealth Customs Union is mild astonishment, coupled with some amusement,” says the Geneva correspondent of the “New York Times.’’ ‘‘lt is assumed that Mr Bevin has not followed closely the details of the British Commonwealth negotiations on tariffs during the last few months. Commonwealth countries such as Australia, New Zealand, and South Africa, not to mention Canada, have very substantial industries based on protection against British competition. It would be nice for Britain to get these barriers down, but so far she has not made much progress. ‘‘lf Mr Bevin were to pursue such a project, he would have United States support. The United States, however, would want an assurance that it was not just a new name for Empire preference—discriminatory tariffs—before proceeding to a real abandonment of trade barriers.” The Paris newspaper “Le Monde,” Jrtiich usually reflects French Foreign Office opinion, says Mr Bevin’s customs union plan would lead to a Britmh isolationist .policy which would fireatly endanger the Marshall plan. Australian Comment The proposals advanced by Mr Bevin have not been received enthusiastically ln official circles in Canberra. Government reaction to the proposal was summed up by the Minister of PostWar Reconstruction (Mr J. J. DedF l33 * . who said he could see quite mg difficulties in the way of such a abeing adopted. Mr Dedman aaaed that if the proposal were put +£ rW3r d. as an official suggestion by British Government it would be juuy considered by the Australian Government ®® vin ’s suggestion drew the disin Canberra that consideration act been given some time ago to a fain ose ? custor ns union between Brior European countries. Reports Proposal. however, were unfav♦iAable ’ P artic ularly as it involved fe^?eement ete scrapping of the Ottawa raJ* 0 From Sydney.—The vete-affo-J,Uler Canberra left Sydney this fnr c?5 0n in tow of the tug Rumania last « gapore- The tow is expected to mid ? v e weeks. The vessel has been timber 5 astern buyers.—Sydney. Sep-