The Dominion. SATURDAY, AUGUST 26, 1944. TRANSITION FROM WAR TO PEACE

Dominion, Volume 37, Issue 283, 26 August 1944, Page 6

The Dominion. SATURDAY, AUGUST 26, 1944. TRANSITION FROM WAR TO PEACE

Certain features of the plan being developed in the Unite< States for a systematic change-over from war to peace production should not be overlooked in this Dominion. It was stated in a report from Washington dated August 22 that Mr. Donald Nelson the nation’s “production chief,” estimated that the surrender of Germany would necessitate the restriction of the current war output bj 40 per cent. Accordingly he is making preparations to enable industry to revert, to some suitable and proportionate extent, to civilian lines of manufacture in order that a sudden diminution of war needs and activities will not cause slump conditions, which may threaten to throw the whole economy of the nation out of gear. The United States plan, which embodies for a start, the resumption of the manufacture of some 79 groups of civilian items “undei a set of rules designed to safeguard war production,”, is based on the belief that to avoid a post-war collapse of domestic standards, something equivalent to the present volume of war production must be maintained. This means a very substantial programme of expansion in peacetime industry, as well as in public works and in every other avenue of civilian employment. In the case of the United States the task of adjustment will be exceedingly formidable. It is estimated that wartime industrial expansion represents 65 billion dollars’ worth of additional civilian production, and doubt is being expressed as to whether the most lavish post-war employment programme could enable such a quantity—and it is additional quantity, over and above the pre-war volume of production—to be absorbed. But the majority of other Allied countries face in some degree a similar problem, and New Zealand is no exception. Already there are signs of a slackening off in our required productive effort for certain war purposes. This, together with the marked reduction (by arrangement with Britain and our Allies) in the draw-off of manpower for war services, has caused an easing of the labour shortage. For the time being this is welcome, but as the process of transition from war to peace conditions gradually continues —and when that process is abruptly accelerated by the ending of hostilities in Europe—there will arise a situation in this country similar' in its way to that foreshadowed elsewhere. A strong, resourceful plan of employment and industrial development will be required to sustain the national prosperity and to find worth-while jobs for our returned servicemen. Where is this plan ? So far there is a disquieting lack of' evident appreciation that the transition from war to peace requires a plan. It is true there have been assurances without number concerning the rehabilitation of servicemen, but the whole process of rehabilitation depends upon the prior creation .of a sound industrial structure with ample room and opportunity for the free exercise of personal enterprise, initiative and expansion. Given that structure, rehabilitation —which is simply the transformation of a soldier into a combine producer-consumer—will be largely an automatic process. Men are not robots. Given the opportunity, and where necessary the assistance they have been promised, the servicemen will rehabilitate themselves. The real and urgent problem is that of creating and sustaining such opportunity. Continued delay in facing up to that problem may become very dangerous.