TRADE BARRIERS

Evening Post, Volume CXXIV, Issue 108, 3 November 1937, Page 9

TRADE BARRIERS

REDUCTION POLICY

BRITAIN'S DECLARED AIM

AVOIDING SLUMP

(British Official Wireless.)

(Received November 3, 10.40 a.m.)

RUGBY, November 2.

The Liberal amendment to the Address in Reply was debated in the House of Commons today.

The mover, Mr. D. Lloyd George, stressed the importance of freeing international '■ trade, securing an AngloAmerican commercial agreement, and preparing in advance for a recession in trade activity—the three leading points of the party's amendment.

Replying for the Government, the President of the Board of Trade, Mr. Oliver Stanley, said that not only did the general statistics of the country's economic, position fail to "indicate any imminence of slump, but a more detailed analysis of the prospects of individual industries also gave no such sign. In most industries there was no check or abatement in activity apparent.

In warning the House against exaggeration of the effect of re-armament upon industry, Mr. Stanley observed that in so far as re-armament had an effect upon production, it should be remembered that they had not yet reached the peak of expenditure, nor therefore the climax of whatever influence it might have on industry. • OF TRANSCENDING IMPORTANCE.

Regarding international trade, the Minister said that provided there was no worsening of the international situation he saw no reason to anticipate any serious reduction in the existing level of world trade, and-if there was a substantial relaxation in international tension they might look for a further sharp expansion of British exports.

He agreed that the freeing of foreign trade transcended in importance any other possible action that could be taken for the avoidance of a new economic depression, and for that reason the declared policy of the British Government was to play a part in an effort to reduce economic barriers.

In saying that, it was only fair to make it plain that the Government was not prepared to put itself in the dock on the question of tariff policy. The real and by far the most serious obstacles to international trade were not tariffs, which, however high, could be surmounted, but currency restrictions and c/uotas. Britain.had no currency controls, and no quotas on the import of industrial goods. Therefore, though she was anxious to< co-operate in lowering barriers, there could be no question of the Government abandoning the tariff system adopted five years ago, "which circumstances made inevitable and which had been amply justified.

Mr. Stanley went on to say that he believed great benefit would come from a trading agreement between Britain and the United States. The Government intended to see that an agreement, if made, would be fair to both sides, .