WARNING TO BRITAIN.

New Zealand Herald, Volume LXVIII, Issue 20868, 9 May 1931, Page 9

WARNING TO BRITAIN.

[DECLINE IN EXPORTS.

COSTS MUST BE REDUCED.

TRADE IN FAR EAST

COMPETITORS' ADVANTAGES

By Telegraph—Press Association—Copyright.

(Received Ma" 8, 9.35 p.m.)

LONDON. May 8

Grave warnings as to the future of British trade are contained in the report of the trade mission to the Far East, which was under the chairmanship of Sir Ernest Thompson nnd included reof trade unions, the cooperative movement nnd the engineering and woollen industries.

The commission's conclusions and recommendations, which are unanimous, point out that if the decline in Britain's exports continues at the present alarming rate the result must soon be bankruptcy. The report emphasises that a low price, rather than quality, is the first consideration for sale in the Far East. Britain's goods are made more expensive than those of its rivals by higher wages, shorter hours iind heavy taxation. Production costs must be reduced to a competitive level. This would entail n voluntary / sacrifice by all classes in Britain, but this is preferable to the compulsory sacrifices a disaster would entail.

The shrinkage of trade with Japan is primarily the outcome of her ability to supply her own manufactures. The decline in trade with China is duo to British products being dearer than Japanese and German, and less attractive than American goods.

A special warning is issued with regard to Japan's great and growing competition in woollen goods. British industry must be organised to meet- it. In Yorkshire the wage cost per unit of productions is at least 222' 2 to three times

nbove Japan's. The report recommends the various export trades/to form groups for cooperative marketing and investigation, with the bankers assisting to carry out, a moro agressivo campaign.

The British Government, the report nays, should make an advance toward the stabilisation of silver in China.