BRITAIN’S TRADE.

Hawera Star, Volume XLV, 11 July 1925, Page 5

BRITAIN’S TRADE.

DIFFICULT TRANSITION PERIOD. ITS FUTURE PROSPECTS. BY CABLE—PRESS ASSOCIATION —COPY RIGIl'l • LONDON, July 10. A report on the position of, British trade, presented to the council of the Federation of British' Industries, took the economic staff of the federation eighteen months to compile. It reaches the conclusion that the present trade position of Britain has every appearance of -being permanent. Before the war the prosperity of British industry depended on continuously expanding the foreign trade. This meant the overseas investment of British capital on a large scale. Since the war, high taxation and increased expenditure on social services, which stimulates trade, but checks exports, together with the policy of raising the value of the pound sterling and the restriction of overseas investments, have all tended to check the export trade.

Industry has now to decide whether the post-war tendencies can be reversed. This means that cuts in the national expenditure to the extent of at least 15 to 20 per cent, and local taxation are essential, and the provision of mor e money for foreign investment is necessary. The country must decide whether to await readjustment through sheer pressure of economic necessity, unemployment and suffering, or whether to take steps to -stimulate home development. It cannot reasonably be hoped that the export trade will do more than pay for essential imports. ' The report concludes hv asking.: “Can the export trade be helped to divert a portion of its output to new home markets and adapt a portion of Cue productive capacity to new purposes ? Can mean, be devised to assist them to pass with a minimum of dislocation through a difficult transition period ?”

TRADE WITH RUSSIA

BTG ORDERS LIKELY. LONDON, July 10. The Caily Herald states that M. Rakovsky (the official agent ot tne Soviet in Britain) has returned Lorn Moscow prepared to place orders with British farms to the value of £15,001),000, of which £10,000,000 would be for agricultural and other machinery. Tills is due to a good harvest in Russia. The Herald asserts that it was the Government’s intention last week to send a peremptory note to Moscow, but the plan was abandoned after realisation that any action would hav e to be taken in isolation. An earlier plan of a joint note by the Powers, demanding the removal of the headquarters of the Third International from Moscow, broke down on Italy’s refusal to participate. Germany was also unfavourable, while M. Briand (France) was not prepared to embark on an anti-Russia policy.