Europe’s Walls of Jericho

Dominion, Volume 23, Issue 45, 16 November 1929, Page 21

Europe’s Walls of Jericho

IN 1926 Sit Clive Morrison-Bell presented a striking comparison of the. tariff walls of Europe. Taking the height of Great Britain’s tariff wall as represented by the figure 6, he showed that goods going into ‘ Germany, had to surmount a wall as high as 15, while around Czechoslovakia the wall was 21 units high; Austria 16, Hungary 27, Roumania 18’ Spain 35, • Jugo-slavia 25, and Russia 43. « Mr. Graham, the President of the Board of Trade, has made a suggestion that European Tariff walls should remain stationary for two years while the scheme proposed by M, Briand for a customs union which, to all practical purposes, would be a United States of Europe, could be fully considered. “Whatever the practical outcome of these suggestions may be,” says the “Times” —“and it might perhaps be unduly optimistic to expect too much from them—they should at any rate help to keep before the minds of the various Governments the basic fact, which was so strongly urged by the World Economic Conference in 1927, that the present level of Customs barriers is too high and is seriously impeding the return of prosperity to Europe “The contrast presented by the ever-increasing production of the great Free Trade area of the United States and the comparatively slow recovery of Europe, with its seven thousand miles of new tariff walls built up since the conclusion of the War, is too glaring to be ignored. “The ideal of a United States of Europe so glowingly painted by M. Briand, however vague and difficult to realise in practice, will, at any rate, receive sympathetic consideration in this country, because of, the recognition which it implies of the economic interdependence or solidarity—to use the fashionable phrastn-of the nations of Europe upon whose prosperity a substantial proportion of our export trade must continue to depend.” “It is illusory to imagine,” asserts the “Scotsman,” “as has been suggested in France,' that America is merely waiting for Europe to organise herself into an Economic Union whereupon the United States will lower her tariff walls.

“M. Briand will not bring down the walls of Jericho with this trumpet call. Britain cannot enter into a Customs Union that would interfere with Imperial Preference. A? the same time, she is naturally interested in any scheme that might reduce tariffs. Mr. Graham proposed that an agree-

ment should be made not to raise the 'present tariffs for two years while a Conference would be held to see how existing tariffs could be reduced. “Such an agreement is scarcely practicable, because it leaves America a free hand to increase her tariff, while the States of Europe would, have no power of retaliation. It is a plan which would suit this country, but that will not make it acceptable to France and Germany. In the event of a Customs Union being formed, this country might be in a curious position. “Entitled by reason of her position as a Free Trade country to favourable treatment, could she, without belonging to the Customs Union, obtain more favourable treatment from Europe than America would? Such questions, however, are academic, for there is little prospect of a -European Customs Union being established. “M. Briand is to prepare a scheme for the consideration of the other countries, but it is doubtful if they will consent to the limitations on their sovereignty which a Customs Union implies. “It is long since,”. points out the “Star,” “the Economic Section o£ the League recommended the universal reduction of tariffs; the League itself has fought shy of that thorny problem. For the sake of world peace it is to be hoped that Mr. Graham’s blunt introduction of it will prove but the harbinger of real ipternational discussions. “It needs only his statement of the fact that there are 27 separate Customs divisions in Europe in an area little bigger than the United States to show the folly of such a system. From tariffs the President, of the Board of Trade passed to coal, and urged consideration of it on a European basis, and this, too, is good work. If Europe can be persuaded to deal with coal on an international basis, the way should be clear for a similar consideration of other economic problems.” . Referring to Mr. Graham’s suggestion, the “Spectator says “We sincerely hope that all the countries of Europe will take this holiday and spend it profitably. M. Briand’s idea of a United States of Europe is admirable in its implication of considering one another’s needs, but there is endless mischief in the notion of Europe as an economic unit enjoying Free Trade for itself but set about by a ring-fence of tariffs which would bring it into habitual conflict with the rest of the world. The best way is a European industrial concentration by means of international arrangements. Rationalisation is bound to overflow all national borders. It urgently requires guiding.”