TRADE OF EMPIRE.

New Zealand Herald, Volume LXVII, Issue 20602, 28 June 1930, Page 13

TRADE OF EMPIRE.

LABOUR COUNCIL'S REPORT. ECONOMIC UNITY FAVOURED. BEST POLICY FOR BRITAIN. By Telegraph—Press Association—Copyright. British Wireless. RUGBY, June 2G'. The General Council of the Trades • Unions Congress to-day issued the longawaited report of its economic committee, which is composed of the most influential leaders of the Labour movement, including Messrs. John Beard, Ernest Bevin, Ben Tillett, Will Thome and Arthur Pugh. The report says various economic blocks had been considered, such as the United States of Europe, as proposed by M. Briand, French Foreign Minister, an Anglo-American alliance, and. an economic group of the British Commonwealth. Regarding the European group, it is pointed out that the " countries in it would be competing against each other since they manufacture, practically speaking, the same kinds of goods. An alternative to this method of grouping was for Britain to maintain a position of isolation, making the best bargain possible with anyone and everyone. " That is our traditional policy," the committee declares, " but is it possible to maintain it any longer? It has to bo remembered that other groups are actually coming into existence, and, this being so, has the policy of isolation any chance of succeeding in future?" As to world economic unity the committee says it would desire that, but, unfortunately, it could not be regarded as at present practicable. Existing Factors. Discussing the pros and cons of an economic unity of the British Empire, the committee says: "The factors are that the block already exists in a tentative kind of .way, that there are undoubtedly ties of sentiment that count still in the econoisiic sphere, that supplies of raw material and of manufactured goods couid be balanced, that the group is rich in raw materials, and is in fact almost self-contained, that tliero is to a large extent a common language, and that 'there is abundant opportunity for movements of population within the group. " It has further to be remembered that there is already, to some extent, a tariff ; bond within the Commonwealth in the ' form of preferences and other comj mercial discriminations applying both 1 to Dominions and colonies."

The committee says thai if the policy of the creation of economic blocks continues to be pursued by other nations, then the most practicable group from Britain's point of view would appear to be the consolidation of the British Commonwealth. Such a policy would in no way affect detrimentally British support and participation in- the work of the League of Nations, but on the contrary, Britain would be in a better position to strengthen the scope and authority of the League.

Bargaining as a Group. Naturally Britain would not be prevented by this pohcy from concluding European or other international agreements regarding the marketing of coal, steel or other commodities. " The difference would be that we should bargain as a Commonwealth group instead of as Britain, and in many case 3 this would be a decided advantage." The committee urges that the Imperial Conference should- press for the full development of the economic relations between the countries of the British Commonwealth, but says it is vitally necessary to avoid antagonism either to European aims or American policy. It is suggested that regular Imperial economic conferences should evolve an economic policy for the British Commonwealth independently of party politics. There should also be an interCommonwealth economic secretariat to investigate problems..

The Eeport Approved. The General Council of the Trades Union Congress has approved the report, which has been prepared with a view to the forthcoming Imperial Conference. The report may be regarded as an important development in the controversy which has been aroused by the campaign of Lord Beaverbrook and Viscount Rothermere for Empire economic unity. The declaration that "the policy of isolation is no longer possible" is used as a headline in the Evening News, Lord Rothermere's newspaper, which savs: " The committee's decisions are at complete variance with the free trade policy of ill". Philip Snowden, the Chancellor of the Exchequer."