BRITAIN’S RECOVERY

Evening Star, Issue 22085, 19 July 1935, Page 7

BRITAIN’S RECOVERY

TRADE AND INDUSTRIAL EXPANSION MR RUNGIMAN REVIEWS POSITION (British Official Wirel**«J Press Association—By Telegraph—Copyright RUGBY, July 18. (Received July 19, at noon.) In the House of Commons Mr Walter Runciman (President of the Board of Trade) made a survey of trade and industry, in which' he reviewed the effects of recent trade agreements and prospects of further industrial recovery. He said that the British trade figures

showed year after year and month after month continuous growth. There was still a long way to go to reach- the figures of 1929, but he approached the coming year in a spirit of restrained optimism. United Kingdom exports for the first half of this year reached £206,000,000, against £189,000,000 for the first six months of last year, and, taking the articles wholly or mainly manufactured, the increase was not only marked, but healthy. The first six months of this year showed exports in this class of £160,000,000, against £145,500,000 in the same period last year. Very, substantial increases had been recorded in the exports of the machinery and vehicles group and iron and steel, and even—in spite of the severe depression in Lancashire —in cotton yanis and manufactures. Among manufactured goods the most important successes were recorded in the machinery classes, covering every kind of machine.

Turning to Home trade, Mr Runciman recalled that a year ago he expressed the fear that it was almost reaching saturation point. He was glad to say that he had been unduly depressed in making that statement, for the Home trade ( had 1 , gone on steadily expanding throughout the whole year. The value of retail sales last year were actually 3 per cent, higher than in 1933. This expansion had increased at the same rate, during the current year, and sales in the first five months were very nearly 4J per cent, higher than in the corresponding period in 1934. Speaking of the effect of the tariff system on employment, Mr Ilunciman declared that the stimulus given by tariffs during the past three years accounted to a large extent for the prosperity of Britain’s internal trade, and a return in the same directions of her foreign markets as well. Tariffs not only provided employment at Home, but had also provided £20,000,000 for the Exchequer. The direct effect of the Ottawa agreements had come up to expectations, and the agreements had tended to stimulate Empire trade. Seventeen foreign trade agreements had been signed, and in 1934 British overseas trade had increased about 5 per cent. With British countries the rise had been about 12 per cent., and in the case of foreign countries with which agreements had been made the rise was 33 per cent.

FRUITFUL TRADE AGREEMENTS LONDON, July 18. (Received July 19, at 1.30 p.m.) Mr Runciman said that Russia far exceeded the undertaking giving Britain an increased quota of exports, and had chartered nearly twice the amount of shipping compared with last year. Sir Herbert Samuel complained that the Government failed to secure trade agreements and tariff reductions with the great nations. Colonel D. J. Colville (Secretary of Department of Overseas Trade), replying, said that in the first quarter of 19311 the British exports to countries with whom they had agreements increased by £4,498,000 —approximately 20 per cent., compared with the first quarter of 1933. Before the agreements trade jyith other foreigners had increased

only 71 per cent. The detailed exports under the Ottawa Agreement had risen from £100,000,000 in 1932 to £126,800,000 in 1934, including Australian, £20,000,000 to £26,300,000, and New Zealand. £10,400,000 to £ll,400,000. .