Manawatu Evening Standard. MONDAY, MAY 18, 1936. MUSSOLINI’S MISTAKE.

Manawatu Standard, Volume LVI, Issue 142, 18 May 1936, Page 6

Manawatu Evening Standard. MONDAY, MAY 18, 1936. MUSSOLINI’S MISTAKE.

The Duce no doubt hoped that by proclaiming' Abyssinia a icoman Empire two days before the meeting of the League of Nations flint body would be faced with a fait accompli and would thereby be rendered impotent. The League, however, lias not been stampeded into any hasty action, and by adjourning consideration of the Itaio-Ethio-piau problem until June 15 the nations will have ample time to consider the subject in all its bearings. The adjournment was also necessary owing to the political transition in 1 ranee. A new

Government with M. Blum as the Prime Minister will take office on Jund 2, and the views of the new Government are not in accord with the Flandin Administration or the Laval Government. The two latter have shown an extraordinary sympathy with Italy, and the possibility, if not probability, of France forsaking Britain for Italy was the subject of many private discussions in the French capital. M. Blum has already shown that lie is not prepared to side with Mussolini; indeed he cannot do so for he is anti-Fascist, while Mussolini is the originator of Fascism.

In the meanwhile the economic sanctions imposed by the League will be maintained. The smaller Powers, members of the League, are in favour of their continuance, and sanctions have afaftected Italy. But sanctions cannot be maintained indefinitely, that is the economic brand of sanctions which at best are slow in action. If Italy is to be punished for her aggression there must be something more drastic and quick-acting than economic sanctions, and the alternative would appear to be military sanctions. Then the question arises whether the nations belonging to the League would agree to this and act up to the letter and spirit of military sanctions? The small Powers, that is Rumania, Yugoslavia, Greece and Turkey, would help, because they are not anxious to see Italy a dominant Power. The lead must come from Britain and France. Britain will not, if she can help it, play a lone hand, but if France would join in the way would be clear and the new Prime Minister of France may be glad of the opportunity of humiliating the Fascist chief'. If military sanctions are authorised the brunt of the operations would, fall upon Britain. France would have to protect her Italian frontier, but a part of her navy would be needed in the Mediterranean, to cut tlie Italian lines of communication with Abyssinia. For the rest Britain can be relied upon to dominate the Red Sea. The point is that the solution of the problem is still in doubt and anything even a big war may emerge from the trouble.

INDUSTRY UNEASY. Delegates from the New Zealand Manufacturers’ Federation waited on the Prime Minister and other interested Ministers, last week, to express their fears. It was pointed out that the increase in wages as contemplated in the Labour legislation would inevitably result in the costs of production rising, and therefore the selling- prices of the commodities produced by local industries, and the statements are irrefutable. The position of local industries will soon become unenviable if the proposed legislation is placed on the Statute Rook. Ministers claimed to have considered matters from all points for the Minister of Industries and Commerce, Hon. D. G. Sullivan, said to the deputation: “I don’t want the manufacturers to think that the Government had plodded along- in the dark. It is closely in touch with the situation and is not oblivious of the consequences of the course it is following.” No one will question this, but what is quite obvious is that the Government is quite unable, as any Government would be, to sense all the reactions and repercussions that are likely to follow. A member of the deputation in concluding his speech said: “We would like a guarantee to-day that we will be afforded some adequate form of protection, and we desire to know what is in the mind of the Government.” The adequate protection that the local industries have to-day is provided by the tariff and the high exchange. The industries have adjusted themselves to' these conditions and are apparently working smoothly. Now the Government intervenes and orders an increase in wages. It is computed by authorities that on the average in the costs of production wages account for at least 80 per cent. Wages are to be increased and therefore the costs of production increase, and the present protection thus becomes inadequate, unless the manufacturers are content to work on a basis of less profit. To do so would be to give to the employees at the behest of the Government their legitimate profits necessary for the conduct of the business which would be unfair and unwise. Their claim for adequate protection under the circumstance is quite reasonable. What can the Government do for the manufacturers? Unless the tariff is further raised or the exchange on London raised the manufacturers would not be adequately protected. The Government could, of course, adopt a system of import quotas, or license imports, but iiow would we stand in relation to the United Kingdom under the Ottawa Agreement? If we raised ihe tariff or the exchange or imposed import quotas that would be a distinct breach of the Ottawa Pact. Furthermore, such a gesture would jeopardise the negotiations that the Minister of Marketing intends to enter into with the British Government., Britain wants wider markets for her manufactured goods, and to raise our tariff would be restricting Britain’s market. Really one fails to see how the local industries are to be protected, and if they are not adequately protected not a few of them will be obliged to close their factories. Imports are increasing now and they will continue to increase and imported goods will undersell the local goods because the latter would be handicapped by higher costs. The manufacturers are in an awkward position, and the Government is impaled on the horns of a dilemma.