NO STATE MONOPOLY

Dominion, Volume 30, Issue 190, 8 May 1937, Page 11

NO STATE MONOPOLY

Manufacture and Trading in Arms GOVERNMENT STATEMENT (British Official Wireless.) (Received May 7, 5 p.m.) Rugby, May 6. In a White Paper issued to-day the Government stated the decisions it has reached after consideration of the report of the Royal Commission on the private manufacture Of and trading iu arms, which was made last autumn. The commission stated that it was unable to recommend, while present conditions obtain, that the promotion of a general State monopoly should be accepted as part of the international policy of the country. The Government accepts that conclusion. The Government likewise accepts the conclusion of the commission against the proposal for the prohibition of private manufacture in the United Kingdom and the substitution of a State monopoly. In the international control of the trade in arms the Government is unable to accept suggestions in the commission’s report for the modification of British amendments to the United States draft proposals submitted to the Disarmament Conference in November, 1934. The White Paper indicates that, while it is the main object of the Government’s foreign policy to improve the international situation so that progress may bo made with the international limitation and reduction of armaments, in the present unfavourable conditions the Government doubts the wisdom of pressing forward with isolated aspects of the problem. Nevertheless, it considers the question of publicity for national defence expenditure might be examined further and it is prepared to accept the draft’convention referred to if the other principal Powers do likewise. “Goes a Very Long Way.” The commission's proposals for a Ministry of Supply are rejected. The Government is also satisfied that its procedure for the control of profits in arms manufacture is adequate and has decided against the adoption of the particular recommendations of the commission. Finally, the recommendations of the commission as to export, control are only partially accepted by the Government, which is unable to agree that the existing administration of the export licensing system, which the commission characterised as negative, should be more positive. The Government, however, proposes to discontinue the issue of open general licences in respect of military aircraft and bayonets, swords and lances. It does not consider it necessary to insist upon the complete cessation of the trade in surplus arms. The existing practice of export control, the White Paper emphasises, goes a very long way toward realising the commission’s desires.

The report of the Royal Commission on the private manufacture of and trade in arms was issued at the end of October. and declared that the most effective available means of removing or minimising objections to private manufacture and trade would be limitation by international agreement. The commission held the establishment of a universal system of State monopoly to be impracticable. but recommended that the Government should assume responsibility for the industry, organise and regulate it. and obtain the necessary collaboration between the Government and private industry. It was also recommended that public officials (whether serving or retired) should not accept appointments .with armament, firms save with the permission of the Minister in charge of the department in which they were serving or had served.