The Gisborne Herald. IN WHICH IS INCORPORATED “THE TIMES.” GISBORNE, WEDNESDAY, MARCH 26, 1947. BRITISH EMPIRE AND WORLD TRADE

Gisborne Herald, Volume LXXIV, Issue 22289, 26 March 1947, Page 4

The Gisborne Herald. IN WHICH IS INCORPORATED “THE TIMES.” GISBORNE, WEDNESDAY, MARCH 26, 1947. BRITISH EMPIRE AND WORLD TRADE

ASSURANCES which will receive a warm welcome throughout the . Empire have been given in the House of Commons by several prominent speakers, including the President of the Board of Trade, Sir Stafford Cripps. Discussing the future of Empire and world trade, Sir Stafford declared: “We shall certainly not give away the interests of other Commonwealth countries in reducing the preferences enjoyed by them in the United Kingdom market. We are equally sure that we can count on them not to give away the preference's which we value in their markets.” These and other remarks indicating that Britain and the Commonwealth countries are to retain some influence in determining whether the concessions offered by other nations are a sufficient inducement to modify preference constitute the most forthright evidence j r ct officially released that the United Kingdom has no intention of being a nonentity or an economic plaything in the sphere of future trading. The statements on world trade could be appropriately linked up with the robust declaration by Sir Hartley Shawcross that Britain is no more dying to-day than she was in 1940.

It is true, however, that Britain must have wider markets than the Commonwealth and Empire can provide and that only by freeing existing international trade generally can she possibly hope to attain her export targets. There can he little question that postwar reconstruction, to be healthy, must rest upon a dynamic and expanding world trade. Not only is such a basis the best guarantee of peace and prosperity, but it must also be apparent that without it Britain, for one, would have little hope of maintaining her exports at the level necessary to enable her to meet her commitments. Gradual Tariff Reduction. In his Commons address Sir Stafford Cripps amplified statements lie had previously made in opening the Empire trade discussions. At that time lie declared with convincing directness that the policy of economic and financial restrictions led merely to “cumulative despair” and had been a powerful factor in bringing about war. Last year Britain and America agreed that the financial machinery for a world system of commerce, established in the form of the World Reconstruction Bank and International Monetary Fund, should be supplemented by a trade organisation designed to bring about the gradual reduction of tariffs and other restrictions upon the exchange of goods.

To hammer out this idea in a practical shape acceptable to the leading trading countries will be by no means an easy matter. Although Britain and the United States issued a joint statement of the principles on which they were agreed, a great deal will turn upon the definition of terms when the time comes for its practical application. The difficulties will be greatest when tariffs, cartels and other methods of trade regulation having a direct bearing on established practices and vested interests come to be amended. It is encouraging that the United States, whose own tariff policy was responsible for so much of the world’s troubles between the wars, should now be leading the way towards a reduction of trade barriers, although the political strength of American protectionists should not be underestimated. The success achieved will depend, above all, on the extent to which the United States herself carries into practice the principles laid down in the agreement. Position of the Dominions.

The countries of the British Commonwealth, however, whose external commerce represents about one-third of the ‘total international trade, can make a scarcely less vital contribution to the success of these plans, and it is in their interests to do so. Sir Stafford Cripps’ remarks regarding the benefits which a growing volume of world trade will bring to Britain apply to the Dominions as well. It is obviously desirable that different views should be reconciled as far as possible before the big conference in Geneva, Some of the Dominions are naturally inclined to cling to the solid benefits of Empire preference rather than the prospective benefits of the International Trade Organisation. It should be remembered, however, that the two are not incompatible. If the object of the organisation is attained and the total volume of world trade expands, commerce within the Empire is far more likely to increase than diminish.

The trade organisation plan is, of course, a long-range programme, and a system of preferences obtained by the lowering instead of the raising of tariffs could be a useful step towards the ultimate goal. Whether the maintenance of full Imperial preference is also consistent with the Anglo-American loan agreement is a different question, The latest statement by Sir Stafford Cripps, however, emphasises once again that Britain is not committed to a reduction of preferences unless other nations make comparable tariff: concessions. Certainly the Dominions should have no insurmountable difficulties in finding common ground with Britain if the framework being designed for future international economic relations guarantees ample opportunity for the. further development of Empire co-operation. But we are entitled to shape in Ihe benefits of a stable and prosperous world economy only if we shoulder our responsibilities.