BRITISH TRADE SLUMP

Greymouth Evening Star, 9 May 1931, Page 7

BRITISH TRADE SLUMP

LOSSES IN FAR EAST PROPOSED REMEDIES [BY CABLE —PRESS ASSN. —COPYBIGHT.] LONDON, May 8. Grave warning to the future of British trade are contained in the report of a Trade Mission to the Far East under the chairmanship of Sir Ernest Thompson, including representatives of the trade unions, the Cooperative movement, and the engineering and woollen industries. The conclusions and recommendations, which are unanimous, point out that if the decline in Britain’s exports in the Far East continue, at the present alarming rate, the result must soon be bankruptcy.

The report emphasises that low price, rather than quality, is the first consideration of sales in the Far IJast. Britain’s goods are made more expensive than those of her rivals by higher wages, shorter hours, and heavy taxation. The report says that production costs must be reduced to a competitive level. This would entail a voluntary sacrifice on all classes in Britain, but it would be preferable to compulsory sacrifice due to a disaster. The shrinkage of the trade with Japan, says the report, is primarily the outcome of Japan’s ability to supply her own manufacturers. The decline in the trade with China is due to Britain’s products being dearer than the Japanese and German goods, and less .attractive than the American products. A special warning is issued in regard to Japan’s great and growing competition in the woollen industry. The British wool industry must reduce its prices to meet it. The Yorkshire wage cost per unit of production, it is said, is at least two and a-half to three times greater than the Japanese wage cost.

The report recommends the various export trades to form groups for cooperative marketing and Argentine trade is similarly hampered by high freights. SHIPPING FREIGHTS EXCESSIVE? ’ LONDON, May 7. “British ships are carrying British to New Zealand at freight that is from 50 to 125 per cent, higher than the freights for which British ships are carrying American goods from New York to New Zealand.” This charge is contained in the memorandum of a group of important British manufacturers, which has been submitted to the Board of Trade. This, says the “Daily Express,” is the first step in .a war between the British industrialists. and the British Shipping Conference. The Conference are blamed for thus blocking expansion of the British export trade. PRINCE OF WALES. [OFFICIAL WIRELESS.] Rugby, May 7. The Prince of Wales will next week address business men at a meeting arranged by the local Chambers of Commerce in Birmingham and Manchester. He will refer especially to his observations on his recent South American tour. At the week-end he will fly to the Midlands, where he will stay with Lord Ednam, who accompanied him to South America. It is expected, that he will make informal visits to several factories in the Birmingham and Wolverhampton districts. RUSSIAN ENTERPRISE (Rec. May 9, 9 a.m.) SHANGHAI, May 8. The Soviet invasion of Shanghai and the middle Yangtsze Valley markets is in earnest. Following two shipments of oil and consignments bf piecegoods the arrival of a shipment of Siberian lumber shocked the timber markets. The prices cannot be competed with and serious effects are expected from a continuance of Soviet dumping, on account of the tremendous building activities here.