ECONOMIC COHESION

New Zealand Herald, Volume LXXII, Issue 22099, 3 May 1935, Page 10

ECONOMIC COHESION

Every suggestion tending to secure greater economic cohesion throughout the Empire is to be heartily welcomed. The Association of British Chambers of Commerce suggests that a permanent preparatory commission should be set up to, study the interlocking interests of industry and agriculture and help to smooth out difficulties that arise in the practical application of the Ottawa agreements. The idea seems a sound one. No doubt its Birmingham sponsors are especially concerned with the economic conflict that exists and may increase through the development of manufacture in the Dominions under the shield of protection that contracts the market for British goods. When the Prime Minister of Australia arrived in England the Manchester Guardian criticised the "extremely high tariff" maintained by the Commonwealth on a wide range of British goods in spite of the promises of full opportunities of reasonable competition, but held, at the same time, that the British Government bad not been guiltless because of the wheat levy and the prospective restrictions on meat and dairy produce. Incidentally credit was given to New Zealand for her tariff revision, and the hope was expressed that Australia would abandon the policy of carrying on uneconomic industries. The article concluded : "It may be hoped that all the problems will be resolved both in a more liberal vein and in a less huckstering spirit than that which was displayed at Ottawa." Herein lies a strong argument in support of a commission, representative of every part of the Empire, to explore in advance the whole ground of trade questions. Inevitably when they come to the issue there will be wrangling for place and advantage with disappointment here and there, but if the ideal of economic cohesion is to advance with the years, the less that is heard of the "huckstering spirit" at conferences the better will the cause be served. This may in part be avoided if a permanent commission, sitting frequently, discussed long-range policy in an atmosphere undisturbed by immediate political influences. There the problems of competition in agricultural production could be threshed out and perhaps some differences could be reconciled. The British manufacturer would have opportunity of proving his case that a highly, protected industry in a Dominion was uneconomic, while the Dominion representative could point to the necessity of creating employment. At present the delegations come together without this kind of background, and the danger of friction is greater than it need be.