BRITAIN’S ECONOMIC POSITION

Evening Star, Issue 23492, 5 February 1940, Page 7

BRITAIN’S ECONOMIC POSITION

THE SECDND PHAGE REACHED MORE GOVERNMENT INTERVENTION EXPECTED (British Official Wireless.) RUGBY, February 4. (Received February 5, at 11.30 a.m.)' Reviewing last week’s parliamentary debates, the ‘ Sunday Times ’ devotes an editorial to consideration of the economic position, which is described as having reached “ the second phase.’’ The first phase, the editorial suggests, consisted in the establishment of the necessary system of control whereby, vast quantities of needful commodities were advantageously bought by the Government, but resulting in unavoidable trade dislocation. That phase being accomplished, the editorial continues. the Government would have to consider means whereby adjustments would be made “ to free traders from obstacles, and in particular assist exporters.” These functions, the newspaper considers, are proper to the Board of Trade, no new Minister being necessary. That they will involve more Government intervention, the editorial thinks, will be certain, and in this it sees justification for an export council consisting of representatives of all interests, both official and non-official. Dealing with immediate considerations. the editorial says: “ The problem of the moment is to concentrate as large a proportion as possible of our purchasing, shipping, and manufacturing resources upon output, for two objects—war and export. That mean* controlling consumption as well as production. We have the warning of our mistakes in the last war. We must remember that some of the expedients which then saved us are no longer possible in the same degree. Neither at home nor abroad can we rely so much on borrowing. For our purchases in America we must pay cash down, and it will be increasingly so elsewhere. World trade in 1914 was accustomed to a credit basis. To-day the fashion is for barter. In order to buy we must sell.” Dealing with the necessity of avoiding the “ vicious spiral,” the editorial refers to the Chancellor of the Exchequer’s announcement of a weekly, £1,000,000 food subsidy,' and states:] “ The pegging of food prices is one such policy. Since December 1 it was prevented rising further, and so doing unquestionably helped to check the ‘ spiral.’ No prudent Government could have acted otherwise. But the burden it casts on the Exchequer is already heavy and cannot be increased indefinitely. Everything will be done to lessen the strain on food supplies, especially the prevention of waste. Rationing has a valuable effect in that direction, as well as in discouragement of superfluity.” GROWING GOODWILL ITALY AND BRITAIN

LONDON, February 4. (Received February 5, at 12.5 p.m.)’ Lord Halifax had a long conference with the Italian Ambassador (Signor Bastianini). There was a wide survey of topics. The ‘ Sunday Times ’ says no doubt Anglo-Italian goodwill is growing. The Italian Government has appointed a special attache to the London Embassy, to deal with shipping delays resulting from the British control measures* Some irritation is caused by the searching' of mails from Italy’s African possessions via the Suez Canal.

LEAGUE COMMITTEE TO MEET SEPARATING TECHNICAL AND POLITICAL ACTIVITIES (British Official Wireless.? RUGBY, February 4. (Received February 5, at noon.) A League of Nations committee, consisting of representatives of Australia, the Argentine, Turkey, Belgium, Hoiland, Norway, Portugal, Switzerland, and the United Kingdom, meets at The Hague next Wednesday. The work to be undertaken is necessarily of a preparatory nature, and no final or farreaching decisions are anticipated at this stage. The committee will consider reports on the best methods of separating the technical work of the League from its political activities, owing to a general feeling that the former has been unduly subordinated to the latter.