TRADE OUTLOOK

Nelson Evening Mail, Volume LXXIII, 10 June 1939, Page 10

TRADE OUTLOOK

ENCOURAGING PROSPECTS

EFFECT OF ARMAMENT EXPENDITURE lU.P A.-Bv Kleeinr Telegraph-Oopyright! (Received 10th June, 10.35 a.m.) LONDON. 9th June. The trade outlook was debated in the House of Commons to-day when Mr Oliver Stanley, President of the Board of Trade, gave an encouraging account of the prospects. The last few months, he said, had shown a very marked recovery and the index of industrial production for the first quarter this year has now practically reached the level of the first quarter of 1938. While giving full weight to the effect of the rearmament programme on the recovery, one should not exaggerate it. There were a good many signs that the recovery was not so greatly due to rearmament expenditure as some people believed. British industry was still engaged in supplying normal requirements, and

there was as yet no general dislocation of industry. Speaking of what would happen when it was possible to reduce armament expenditure, Mr Stanley said that if a reduction came as a result of a sudden dramatic stroke then that very stroke would immensely increase confidence and make possible a revival in international and internal trade. “ENCIRCLEMENT” OF GERMANY Mr Stanley said that when we heard propaganda that Britain was determined to encircle Germany to beat her down and defeat her at every turn it was worthwhile remembering that he and Mr Hudson, Parliamentary Secretary for Overseas Trade, were on the point of going to Berlin to discuss methods for mutual improvements tn trade when the Germans themselves banged the door by their entry into Prague. In Germany there was an entirely new economy. It was hoped that the Germans would see it would lead to reduced standards of living and would themselves abandon it. Meanwhile, we must try to meet the problems presented. Referring to Anglo-Rumaniun trade negotiations, Mr Stanley said there was no desire on our part to exclude Germany from the natural markets which she enjoyed in the Balkans. “What we do say,” he added.” is that we are entitled to our fair share of trade there, and we are determined to maintain it. Only restoration of confidence would allow our trade negotiations with Berlin lo be resumed.”