AUSTRALIA'S COMMERCE

Otago Daily Times, Issue 24450, 8 November 1940, Page 8

AUSTRALIA'S COMMERCE

NEW MINISTER'S POLICY (From Our Own Correspondent) SYDNEY, Nov. 1. Sir Earle Page, Minister for Commerce in the hew Federal Cabinet, gave indication of his policy when, in a review here, he advocated reorganisation of farming and manufacturing production and removal of impediments to trade, particularly with the United States and the Netherlands East Indies. . , ■,. , "The economic front in Australias war effort is just as vital as the military, naval and air effort," he saia. "Australia's wool, wheat, butter and minerals are being used as Britain's shock troops against the enemy Butter as well as guns' should be our slogan. We must make a more positive contribution. There is too much lethargy in dealing with bottle-necks in production. There are two phases to proper economic co-ordination of our resources —internal organisation of our farming and manufacturing production, and removal of impediments to foreign trade and conclusion of economic agreements with creditor nations. , ~ " Internal planning must prepare the way for post-war reconstruction as well as provide the maximum economic war effort. Finance must be geared to meet not only the present emergency, but also the needs of readjustment. Aspects requiring immediate attention are: Complete planning of farming production to meet home consumption needs and to supply Britain with goods previously obtained from European sources; development of mineral resources, especially aluminium, magnesium, tungsten and copper; and industrial development to be planned for conversion to post-war needs, especially the establishment of a machine-tool industry. Australia's development is parallel to that of the United States. For our future, therefore, we must not only increase internal purchasing power but we must also obtain new markets. An outstanding example is that of the Netherlands East Indies. They have the advantage of accessibility of markets, a population of 65,000,000, and a vast natural reservoir of wealth with which to pay for Australian imports. .From that source Australia obtains two-thirds of its petrol and tea. most of its flax and hemp, and, taken in conjunction with Malaya, most of its crude rubber. Yet Australia has a continuous adverse balance with the Netherlands East Indies, and its exports to that market represents only a fifth of its imports. "The necessity for a new trade agreement with the United States is even more urgent. That country ha--lost its markets throughout Europe and the Orient. It can now turn only to the 21 American Republics with any confidence. It cannot maintain domestic stability without foreign trade. Now is the time for a realistic approach to this front. "Australia must also prepare to transfer both labour and capital from war industries to. the production of consumer goods, heavy industries, commercial aviation, automobile manufacturing and accessories, and housing. Otherwise, we will have an army and Air Force returning to the form of an army of unemployed. Along that road lies not only industrial chaos, but also national disaster. Now is the time to avert that catastrophe."