THE PRIME MINISTER'S VIEWS

Evening Post, Volume CXXIV, Issue 27, 31 July 1937, Page 8

THE PRIME MINISTER'S VIEWS

(To the Editor.)

Sir, —There are two matters dealt with by the Rt. Hon. the Prime Minister since his return to New Zealand concerning which, with your permission, I would like to offer some observation's, viz., (1) His attitude towards economic appeasement and peace, and (2) his "bunkum" speech.

1. Economic Appeasement and Peace. —No one listening to Mr. Savage could help being impressed with his sincerity but sincerity of itself will not save or make a nation. . Sincerity born of simplicity and lack of knowledge will not carry us very far along the road to permanent betterment. His views on economic appeasement and peace, j when considered in the, light of his attitude towards the proposed United Kingdom-United States trade treaty, must have caused consternation, if not amusement, among those' present. He expressed the opinion that disputes between nations that lead to war have invariably had an economic basis and that concerted, national effort should be made to remove the economic causes of war. With this most people will agree. Now, if ever there were economic causes which might lead to war these are. the tariff and other barriers imposed on international trade which the more advanced nations are endeavouring to remove. These tariffs, quotas, etc., are the expression (in part at least) of that intense nationalism and selfishness which are so rife today. .■'■'■'

How did Mr. Savage put his theories into practice. Apparently he, amongst others, was asked his views concerning the proposed treaty. He tells us that "to be , asked to, agree to any agreement with another nation that would mean sacrificing the interests of their own people was expecting too much." And so the British Government, impressed with the state of "moral elevation" into which our worthy Prime Minister had lashed himself, found that he (like many of us) had feet of clay after all. If you can ■ grant me space, I think that an examination of the position might be of assistance. Mr. Savage's strong suits appear to be the employment of people, here and elsewhere, and the ■ increase' of purchasing power. There are two ways in which .purchasing power can be increased—viz. (a) by increasing nominal wages and (b) by reducing the cost of living. If some concession were made in Great Britain's restrictions on ■United States products it is fairly certain that the cost (in Great Britain) not abroad would be reduced which would increase purchasing power in the Home Country, leading to greater consumption there. Further, if, by means of such a treaty, Great Britain were to build up a greater export trade to the Unitdd States it would mean the employment of more people in Britain with an increase in purchasing power of all products (those of Now Zealand included). Moreover, if New Zealand showed itself willing to assist (and not to obstruct) the completion of such an agreement the United States Government would doubtless be willing to make more satisfactory terms with us. Just think what it would mean if we could get a market, even for one important line, in a country ;. with 100 000.000 people. I hope that Mr. Savage will go into this matter again. If he adopts the view suggested above he will, in any event, be looking towards the light/ "Bunkum."—Very little need be said about the "bunkum", speech. . No one who knows our gentle Prime Minister would accuse him of rudeness, but one can understand his hearers not taking such a generous view. Anyone with any knowledge of these matteis knows that such memoranda as that referred to by Mr. Savage on economics and foreign policy are Prepared by leading officials in the Foreign Office, Boaid of Trade, etc., probably amongst the ablest men in the world. Mr. Savage s friends in the Labour Party m Britain, when in office,, paid many tributes to their ability and efficiency. Was it after this "bunkum" speech that there was loud silence* and strained faces? One can understand the loud silence— the strained faces were probably indicative of amazement at such an.expression of opinion—l am, etc., . . STUDENT, .