DEBATE IN COMMONS

Greymouth Evening Star, 18 February 1937, Page 7

DEBATE IN COMMONS

CHANCELLOR’S SPEECH ' 4» WHY feOAN IS NECESSARY [bbitish official wibeless.] RUGBY, February 17. Tho two days’ Commons defence debate was opened by Mr Neville Chamberlain, who recalled that, when he announced last week the Government’s intention to take powers to raise by loan or from Budget surpluses £400,000,000 during the next five years, for the purpose of expenditure on the defence programme, Mr Attlee had described' the proposal as unprecedented in times of peace. The real justification of the proposal lay in the unprecedented conditions at the present time. The Chancellor of the Exchequer then referred to the vast increase in the cost of armaments. Since the close of the Great War, every country had been making every effort to increase its own striking power, by the invention and development of new weapons, new means of transport, and new equipment. Every new means of offence called for 'some corresponding development in defence, and he. hardly knew which was the more expensive of the two; but Britain, with its vast responsibilities and its multitudinous vulnerable points, could not, neglect equipment, either for defence or offence. It must equip itself at Home and along all its lines of communication with the newest methods of repelling attack, and it must provide itself with forces capable of being despatched wherever they were wanted. The White Paper showed where and how the cost of the defence programme would be incurred and details of the cost would be found in the estimates for the three services. If circqmstances changed so as to permit a reduction in the programme, the Government would be thankful enough to reduce it, but, just as conditions had changed to the disadvantage of Britain since the inception of rearmament, so they might change again, and they might find £1,500,000,000 was insufficient.

Defending the loan proposal, Mr Chamberlain pointed out that on the assumptions of the White Paper, £32,000,000 extra annually would have to come out of revenue, even if the loan powers were fully used, but if the loan proposal were abandoned, £112,000,000 extra would have to be found each year out of taxes. In his opinion, such an additional tax burden would cripple resources, and throw back the whole course of recovery, already so marked’. The amount of borrowing proposed, he claimed, was not excessive, in view of the fact that the taxpayer would still be bearing three-quarters of the total expenditure on defence. Reviewing the details of the financial • resolution before the Commons, the Chancellor said that the Treasury was authorised to raise money in any manner suited to the requirements of the particular time, and which seemed most economical, and he emphasised that three per cent, would be charged to the defence votes, and provisions for repayment within 30 years. Out of the defence votes were book-keeping transactions, which had no necessary relation to the terms or conditions on which the Treasury would' borrow this. Mr Chamberlain declared vigorously, amid Ministerial cheers, that it was a measure for the

PRESERVATION OF PEACE. Everybody knew that the British Empire stood for peace. It would never use its forces for aggressive purposes. It would always exert its influence topreserve peace, not only for itself, but tor all others as well. The (government knew from their own experience that British influence waxed and waned with British strength. The strength of Britain was rapidly gaining from day to day, and from week to week. This was, in itself, a steadying factor in international affairs, and was the greatest bulwark for peace in the world to-day. Convinced as the Government were that the great programme was essential for the safety of Britain, and a major factor in the safety of other nations, it was impossible for them to shrink frojn meeting it. No one, least of all a Chancellor of the Exchequer, could see the growing accumulation of burdens which armaments imposed, without a feeling of disgust and shame, that civilisation was preferring to break its own back, instead of trying to settle its differences by give-and-take, and turning its energies to pursuits which might bring prosperity and contentment to it. But, for the time being.at least, they could only set their teeth and go forward with essential measures. Peace, political appeasement, and disarmament were not obtainable by any one Power alone, but wherever and whenever the British could find others who shared their views, they would rejoice in their company, to seek a more fruitful, saner, and worthier solution.

LABOUR OPPOSITION Mr. Pethick Lawrence criticised the White Paper, and the Chancellor’s statement, on the ground that they- revealed neither a considered connection between the Government’s defence programme and its international policy, particularly in relation to the theory of collective security, nor any sign of real co-ordination of defence, or a firm conception of the essential strategic considerations such as would ensure efficiency in planning the defence of the country. The Labour Party would oppose the resolution because it proposed, instead of placing the burden on the broadest backs by appropriation, to impose by the inflationary influence of further Government borrowing, on prices a disguised tax, which would fall on those least able to bear it. For the Liberals, Sir Archibald Sinclair declared that while scrutinising the estimates carefully, they would vote for whatever armaments were necessary- for the defence of the . country and peace. The re-arming of certain Powers in Europe, though he thought the moral responsibility for it might well be found by history- io belong to the post-war policy of the victors in the Great War, left no alternative but to raise British defences to the necessary level. He, too, criti-

cised the loan proposals as economically unwise in the present phase of business recovery. He expressed doubts as to the effectiveness of the measures being taken to prevent piof? tpprin pv The debate continues. WHITE PAPER RUGBY, February 16. A. statement on defence expenditure, issued as a White Paper, says: “The formidable nature of the task confronting the British' Government is apparent. Since it was first embarked upon the conditions which govern its extent and pace cannot be said to have become more favourable, and for the present at any rate thefe would be no justification for any reduction or slowing down of the programme. His Majesty’s Government firmly believes that in the form in which it has been presented the programme is a contribution indispensable to peace, and one which it is the duty of the British people to make. The Government’s desire is to deal with all problems by elastic means susceptible of adaptation in the light of changes in world conditions, and of new needs caused by the intensive application of scientific research and invention. Recent years have witnessed an immense elaboration of fighting services. Moreover, the forces, once equipped, must be assured of swift and steady replacement in time of war. “While these necessities are common to many nations, the wide dispersal of British territories and the dependence. of Britain herself on supplies from overseas lay a special responsibility on the British forces—above all, on the British Navy—to preserve free communications. The modernisation of the defence of strategic points in various parts of the Empire is in itself a formidable item in the cost of the defence programme.”

EXPANSION DETAILS. (Recd. February 18, 8 a.m.) LONDON, February 17. The actual expansion of the British Navy under the new proposals will be three capital ships, in addition to two laid down last year, seven cruisers in addition to seven being laid during the current year, two aircraft carriers in the addition to two in the current year. The full expansion of the fleet air-arm to 450 machines will be held up till the carriers are completed. VALUE FOR MONEY. . LONDON, February 16. Declaring that a convincing case lifts been made out for the financial and economic principles of the Government’s defence proposals, “The Times” says in a leading article: —“It remains for the House of Commons to see that value is obtained for this vast expenditure and that no opportunity is lost of securing such a relaxation of international tension as will make the programme and its cost elastic in the right direction.”

RECRUITING CAMPAIGN. [BRITISH OFFICIAL WIRELESS.] RUGBY, February 16. Free hoarding ’space worth £20,000 has been placed at-the disposal of the authorities :byvtlte Brib ish Poster Advertising'Association in London and thirty-eight' ? couhties _in England and Wales for' the campaign for recruits for the Territorial Army. GERMANY IMPRESSED. BERLIN, February 17. . Britain’s proposed defence expenditure has startled Germany. “It is colossal,” said a Government spokesman. “Nevertheless, we do not deny Britain’s right to arm to any extent she deems necessary. We claim the same right.” Other German commentators question Britain’s need to arm so extensively, saying that Britain’s position is far less exposed than Germany’s. It is suggested even that an air attack would be less dangerous to Britain than to Germany, because enemy aeroplanes always take some time to reach the British coast, thus enabling more efficient defence measures to be taken.

ITALIANS AMAZED. (Recd. February 18, 8 a.m.) ROME, February 17. Italians are impressed by Britain’s determination to repair the armament deficiencies, and are amazed at the vast expenditure involved. Some critics declare that Britain and France are now leading the armaments race,to heights that poorer countries will be unable to follow without intolerably burdening their citizens, Italy’s response is expected on March 1. when the Fascist Grand Council meets to examine the entire military situation “in relation to its requirements.”

WORLD’S AERIAL COST. CHICAGO, February 17. Mr Howard Welch, manager of the Bendix Aviation Export Corporation, estimates that nearly 100,000,000 dollars will be spent in 1937 throughout the world on new aircraft. Eighty per cent of 28,500 new> units will be fighting aeroplanes. Less than a third of the United States output will be for war purposes; but military aircraft will predominate in. the rest of the world. The total of 28,500 units represents nearly half of the world’s existing supply of aircraft. The estimate is based on a study of 56 nations. HONG KONG MANOEUVRES. HONG KONG, February 17. A thousand troops from the Singapore garrison, a squadron. of flyingboats, and 25 warships * from the China station are participating in the largest, manoeuvres in the history of Hong Kong.