BRITISH GOVERNMENT

Evening Star, Issue 22382, 4 July 1936, Page 15

BRITISH GOVERNMENT

MS BALDWIN DEFENDS POLICY REASOHS FOR REARMAMEHT (British Official Wireless.) Press Association—By Telegraph—Copyright RUGBY, July 3. (Received July 4, at noon.) Rumours that the Prime Minister (Mr Baldwin) is ill and contemplates an early retirement were emphatically denied by him in a speech last night. He was given a particularly cordial welcome from all parties when he entered the House of Commons in the afternoon, and a Labour member, putting a question regarding the Government’s knowledge as to the extent to which the German air arm had attained, said the Opposition jvas glad to see him back in his place. He also received a demonstration of loyalty and affection from London Conservatives at their centenary dinner.

In a vigorous justification of the Government’s policy Mr Baldwin said circumstances had proved that the sanctions imposed had not been swift enough in practice to effect what they all hoped might be possible. There came a point when further pressure might well have meant war, and once war was in progress no one knew where it would spread or when it would end. Last year, during certain developments in Europe, he was convinced that if this country were again to participate in sanctions she should do so with the knowledge that they might very likely leave war in their train, and must, therefore, prepare herself to fulfil her obligations under the Covenant in any circumstances. That was why Britain was now preparing in the event of it being necessary at any time to take obligations under the Covenant whatever might result. Until trade once more began to circulate and goods could be exchanged and paid for by the nations there was no permanence in security. Though they all knew they must go on quickly with rearmament, they realised the expenditure she was making on armaments was at the expense of her international trade. They had to emphasise the folly of such procedure in their conversations with foreign countries, for if protracted too long it might ruin her. The Prime Minister added: *lt is our strongest desire to bring together France and Germany, without whose collaboration no peace in Europe is possible. I still hope that in these next months we may see progress to the goal which we all desire.”

DEFENCE EXPENDITURE BUDGET DEFICIT PRACTICALLY CERTAIN. (British Official Wireless.) "RUGBY, July 3. (Received July 4, at noon.) The , third reading of th© Finance Bill for the current year was carried in the House of Commons without a division following a debate in which both Mr Neville Chamberlain and Mr W. S. Morrison took part, Mr Morrison, in introducing the third reading, said the fact that they were able to meet the heavy charges for defence with such slight additional taxation showed an amount of financial strength ip the country that was very impressive.

Mr Chamberlain, replying to criticisms of the Government’s reticence regarding its defence plans, said it had been perfectly straightforward in this matter. It said the programme was not one that could he completed in a single year. It must depend upon what other countries would do and what developments there may be regarding science and tactics, and it was bound to change as the years went by. Definite information had been given where it could be definite. “We are spending large sums of money to make this country safe and to fulfil our obligations. It is a fortunate fact that this new liability comes upon us at a time when we are far better able to bear it than w© were a few years ago.” If nothing happened to shake confidence he believed there was no reason why the country should not be able to support this liability, and at the same time support the rising standard of health. He could not agree with the suggestion that the rising expenditure on armaments would continue indefinitely.

Replying to criticisms that in the Finance Bill ,th© Chancellor should have risked a deficit rather than increase taxation h© replied that it was practically certain there would be a deficit. The only question was what would be its size. Supplementary estimates would have to h© introduced during the year.