STEEL INDUSTRY

Evening Post, Issue 50, 27 August 1935, Page 4

STEEL INDUSTRY

EUROPEAN /• PACTT^ SIGNED

: A L great impetus; to^^tlie further pros : perity of' the • British^ steel/ industry; is liliely;?tofoUow,;theTsighmg," in London, ;'of. the agreement: 'between :t^; British Iron and Steel' Federation -; ;and ;th^;-.lrite^national^v.Steel{''Cartei,-;;-^says! the ;"Daily;Telegraphy"' \■'.-. IXdyUl -limit iron, arid steel imports in'- the"Uinted Kingdom-from,^Cariel'.'countries '■ Oto 670,000; the ■• i; fixst;' tyear;; .and .525,000, toris in;each: subsequent"yeaiSr-' compared "with;:2,Boo,ooo \^ tons'; in ; 1931 arid ;1,500,0p.0' tons ■ last "yeay^cenable^the British steel industry ito ■ \ direct ■Mploymmt'\ ; fpr-\4O,()M''l.nien';ah'd't:in-s direcf:empl6yment-for thousaiids more, .including 10,000 riuriers:;;j ;/; <~; k ..'■; ;:•

\"The ; ; :agreement';vtook";jTeff -August"B, the daj after;"the-provisional; . agreement into 'ob/May ■ B,Vexglred. i It iwill.'.'ruh for. five years.: with-an'-optionalibreak after v three;years. ', .^ All.Xtlie;.,: Europeab';' co\m^ies^Fvancey-'G'(^mwy'i';-6JelgiiurL -fp, pland, ['_ and :Lu3^erhb6urg^-are members;;of;ihe■;slee^Cartel.:;^;;■;>^.^;v;^;;H l^•"^He^•n|eSYspaper^s.^;in■aiMfcial■'',■.c6iires-■ ;pphdcn't:'writes:^Morei'Mp^ftant;:.tbaii. the! substantial reduction of -the; Bntish "steel;« imports secured by; the agreement ;'is'tls;'.eQect'-.':in'"'rei^a^gi'TOmp'eti£ib4 m'world markets.-: '^By;-the';'exporjt'-proI-•Yisibns.'it would 'appear, that ;the-prices ;'o^^irioh''"arid' I*ste^|a6'ducts^:iff--Oi6se 'tuaxkets 'willfbe ,'stebilise(& at:least.at an>ecpnomic. -leveL^v;^ 0- ■' : '■:'■ ■:■ -■ '■ ■ V'.^ ?vV :S

!; If such a'degree b^-stebilisatibh can bV'brbu'ght 'about;in:;aU.;thfe iion : 'steel'^^ producing countries.in}the: Cartel ;a 'focus }6f/economc',sfebi^ 'estabHshed=; wtiibh^niay ''\ tiay6^ar; taf; preaching: ria^uence.*M'restpring; cori'fi■den€e:;^on; whicK^alpne;"a;:;:; rdyivalr'^;of intefiiati6nalv trade can be'^ based.;',-* ::: J'

% jThere: isv^therefbr^grourid^fpr -hope that some-"measure1-of •■ the;.success ,of the ■ British .Iron ; and; Steel ••, Federatibn in "reorganisirig: the >; British ..industry will^attend; the; efforts 'of- the-member counta-ies'-df :the^^ Cartel, arid; "^particulEjly: those, which are largely dependent on .■ffieirexportmarkets.:." >■ -;; X!

. In the past they>haye" too: often been driven by. unregulated .■ competition to depress. prices;<to; a'xdeg^ee involving th eir; industries in economic difficulties. Further,: tMs\price.|;Repression,;: by creating a' f allirig price'leyel in /world markets' for.iron^^-and V steel, prioducts, destroyed confidence and,:'!;.; therefore) demand. .;•";';;/ '..':-'VV^"'; :-^i:'/ '.:'? v'--"ri.;i*%"