WORLD TRADE PROBLEMS

Press, Volume LXXXIX, Issue 27040, 15 May 1953, Page 8

WORLD TRADE PROBLEMS

MR WATTS’S VIEW

“ WE SHOULD TURN AWAY A BIT FROM UJ3.” (New Zealand Press Association) NEW PLYMOUTH, May 14. His personal view that international trade problems, in particular the “dollar gap” and two-way trade with the United states are incapable of any short-term settlement and that “we should turn away a bit from the United States and attempt to make the rest of the free world independent,’ was expressed tonight by the Minister of Industries and Commerce (Mr J. T. Watts) in an address to the New Plymouth Chamber of Commerce. r ‘There is no short-term cut to convertibility of sterling to dollars, and it is only by the strengthening of sterling over a long period following the steps that are being taken now that the dollar problem will be solved,” he said. “It will not be solved by getting more dollars. It will be solved by making sterling a stronger international currency, by removing or lessening the desire of traders ana people in all parts of the world to convert sterling into dollars.’ 1 Economic nationalism was one of the causes of Australia’s difficulties and was one of the barriers to the multilateral freer world trade that he believed must come, but the effort by Britain in the last few months to liberalise trade with European countries was a move away from economic nationalism. Why was it that the United States officially pressed for multilateral and free trade, but in practice took actions that would not allow competition to operate and in fact shut out trade? The reason was that it was the United States Congress that mattered. Many thoughtful United States business representatives were in favour of lowering the United States tariff barriers, but these businessmen were not in Congress. There was a greater majority of businessmen and many more voters who were quite ready to reject a senator or congressman who voted for free trade.

The present Congress was slightly more protectionist than its predecessor, and no practical action had been taken either by the State Department or by Congress to assist other countries to sell more goods in the United States. Mr Eden and Mr Butler recently visited Washington to discuss the question, but the only action taken was the setting-up of a committee to report on what might be necessary to assist world trade and United States trade. ,

Mr Eisenhower’s Attitude In the last few days Mr Eisenhower had spoken of the need for a more liberal attitude towards two-way trade for the United States, but whether he could carry Congress with him was another matter. Mr Watts said it might be that when the Douglas report was received by the President it would make some impact on Congress. “If it does, there will be some liberalisation of United States trade practices,” Mr Watts said. “If it does not, and the indications point that way, then we in the sterling area and also the people of Europe will need to consider how to conduct our trade without relying on the co-operation of the United States." This would mean orienting the sterling area at any rate, if not Europe, into a way of international trade to promote their own production and expand trade within their own boundaries without relying on the United States. “It cannot be done completely, but it can be done to an extent that proteet# us somewhat from vagaries of the United States Administration,” he commented.