EMPIRE'S INDUSTRIES.

New Zealand Herald, Volume LXVII, Issue 20519, 21 March 1930, Page 16

EMPIRE'S INDUSTRIES.

PLAN OF UNIFICATION.

PRODUCTION AND MARKETING.

MR. BALDWIN'S PROPOSALS.

'.'l am convinced that the proper method of approaching this question of the unifying of the British Empire lies primarily through tho industrial sido," said Mr. Stanley Baldwin, in a policy speech at a Conservative meeting in London. "I have been working for some time, with some of my colleagues and with friends outside, to see what can bo done to rationalise Imperially, and not only to rationalise domestically. "Every' effort, in my view, should be made without delay to bring about arrangements between tho industries — not tho politicians, the industries—in this country and the corresponding industries in the Dominions and in India. It is no answer to Bay that the Dominions' industries are competitors with our own. Amalgamations, cartels, working arrangements are made every year between keen competitors in the same country and even in different countries. Provided that tho proposed arrangement is a business proposition from which British and Dominion industries will profit, the fact that they compete should not deter such arrangement. Competing industrialists find it convenient to get together in order to get more pooling arrangements to provide a market. In inter-Imperial arrangements I look for-that, but for much more. As a first step I want to see conferences between representatives of selected industries such as steel, cotton and wool in the United Kingdom and representatives of those industries in one or more of tho Dominions.

Allocation of Markets. "It should be their object to see whether the representatives Of the industry could arrive at an agreement which would cover some, and if possible all, the following matters: —(1) As to the lines and types of production which Dominion industry may fairly manufacture exclusively for its own market and an agreement as to the lines and types which British manufacturers should sell in that market. From both of these would come proposals for the adjustments of safoguniding and the necessary mutual preferences. (2) As to the assistance which British industry could afford in technical advice and in finance, and possibly in the supply of skilled labour and agreement for combined research. "If agreement could be reached on these broad lines it might be possible, further to provide selling arrangements in the export markets. British steel makers have now agreed that oxport from this country should" be managed by a joint export committee. Why should not such a national agreement be expanded into an Imperial arrangement ? There is every inducement for manufacturers to combine to sell. It is necessary for that purpose to give continuous service. That meatus skilled salesmen on the spot. Only, the healthiest firms can afford it and the cost, prohibitive for a single firm, is within the compass of a combination. Combined selling of this kind could be aided by our trade commissioners and by the commercial diplomatic service pursuing a common Imperial policy, and such an arrangement would encourage the establishment of common standards throughout the Empire; a matter of great importance, and the closest co-operation between the appropriate standardisation authority throughout the Empire ought to follow.

Adjustment of Tariffs. " Such combination would lead to combination for a supply of raw materials, a great deal of which in a great many industries exists inside the British Empire, and in facing the cartels and trade combinations, whether of America or Empire, the Empire industry could act and speak as a unit, whilf* in framing commercial treaties, wherever there was an Imperial trade arrangement the Governments of the Empire could act gether," Mr. Baldwin continued. "In order to amplify and fortify such agreements the Empire Governments would be invited to adjust their duties and mutual preferences, arid the increased trade which we might hope to see between tho component parts of the Empire would stimulate the trade of the Empire in all other commodities. At a time when foreign countries aro seeking to subsidise and to protect their mercantile marine, it is to the interest of British shipping to support a policy which will lead to an increase in tho carrying trade between one part of the Empire and another. It is most important that nothing shall be done to diminish tho value of the limited preference which we accord to tho Dominions. It is necessary that no European commitments should be made which will prevent us from extending the policy of preference in order to supplement and fortify inter-Imperial trade agreements. " We can only advocate a policy of inter-Imperial agreements such as has been outlined. We shall take active steps to promote a series of trade conferences in order to bring about such agreements. That, I think, would lead to an ideal I have always desired to see, such a facilitation of the unity of the Empiro as exists in these islands, and the unity of these islands. It may be possible for industries in tho Empire to move about to whatever point may be best adapted for production, whother that point be ih Canada, Yorkshire, Scotland or Australia. No scheme of Imperial unity is complete without the inclusion of India. I cannot but feel that if India herself realises—and she must herself realise first—how much she may have to gain with regard to certain industries, common both to that country and ourselves, she will not be behindhand in consulting with us and possibly—may I say probably ?—in time may oven be as eager to join in Imperial co-operation as any other part of our Empire.

Great Victory Predicted. "Of safeguarding 1 am confident," said Mr. Baldwin in conclusion. "It is the only remedy that has not yet been tried to any considerable extent. It has been successful boyond all criticism in the limited sphere in which it has been employed. It has not yet had a chance of showing what it can do. Whether thb day may come when the British Empire may become a unit in tho sense that the United States is; whether it may bo guarded by one tariff with a vast 'area of free trade within, I know not. Those things ar.e in tho distant future, byt of one thing I am sure, and that is that, proceeding step by step, tho course I have recommended to-day is the safest and tho surest to take if we wish to reach the common goal of the united Empire which lies before all of us, and dream the dreams and see the visions that have always inspired, sometimes in a higher degree and sometimes, I am sorry to say, in a less, those who follow the banner of the Conservative and the Unionist Party. I have only this to say in conclusion, that if you will stand firmly and united behind me in this fight, and on this programme, there i 3 nothing that can stop us from a great victory within the next twO years."