Diversified Comment on Customs Union Proposals

Otago Daily Times, Issue 26559, 6 September 1947, Page 7

Diversified Comment on Customs Union Proposals

Rec. 9 p.m. LONDON, Sept. 4. With the exception of the Daily Telegraph, which, as the chief Conservative organ, accuses Mr Ernest Bevin and the Labour Party of “claim jumping,” and the Communist Daily Worker, which says that the suggested Commonwealth Customs Union is merely “ Beaverbrook’s panacea of Empire free trade under a new name,” general press reactions to Mr Bevin’s Southport speech are favourable. “There is in this man the driving force we need if only he can be given the opportunity of exercising his qualities in the field where he is most at home. When he speaks to the worker, like calls to like,” says the News Chronicle. The Glasgow Herald says the possibilities of increasing trade within the Commonwealth are very great, but that it should not be forgotten that diversity of Empire fiscal policies defeated the Chamberlain tariff reform programme a generation ago and had been by no means overcome by the Imperial preference agreements made at Ottawa. The case for a Western European Customs Union was also very strong, and one should not necessarily exclude participation in the other. The Manchester Guardian says that if there was indeed no hope of a return to multi-lateral trade within a reasonable period, the creation of a Commonwealth economic system may be the only alternative to British dependence upon one or other of the world’s rival Power groups. The first American reaction published here came from Mr Robert Lovett, the United States Acting Secretary of State, who said that he did not see how Britain “ could have it both ways.” She could not be a member of both a Commonwealth Customs Union and also a European Customs Union. In the American view, she would be better advised to join the proposed economic union of Western Europe. Astonishment in Geneva A New York message says that reaction in Geneva to the British Foreign Minister's proposal for a Commonwealth Customs Union is mild

astonishment coupled with ■ some amusement, according to the New York Times correspondent in Geneva. It is assumed that Mr Bevin has not followed closely the details of British Commonwealth negotiations on tariffs during the past few months. Commonwealth countries, such as Australia, New Zealand and South Africa, not to mention Canada, have very substantial industries based on protection against British competition. It would be nice for Britain to get these barriers down but thus far she has not made much progress. If Mr Bevin were to pursue such a project, he would have United States support. The United States, however, would want an assurance that it was not just a new name for Empire preference discriminatory tariffs before proceeding to a real abandonment of trade barriers. Canberra Not Enthusiastic The proposals were not received enthusiastically in official circles, states a Canberra message. Government reaction to the proposal was summed up by the Minister of Post-war Reconstruction, Mr J. F. Dedman, who said he could see quite big difficulties in the way of such a proposal being adopted. Mr Dedman added that if the proposal was put forward as an official suggestion by the British Government it would be fully considered by the Australian Government. Mr Bevin’s suggestion drew the disclosure in Canberra that consideration had been given some time ago to a proposed Customs union between Britain and European countries. Reports on the proposal, however, were unfavourable, particularly as it involved the complete. scrapping of the Ottawa agreement. Dr Dedman explained that even an Empire Customs union would involve extensive revision and alteration of Australian tariff schedules. There would be considerable objection to this, it is understood, on the ground that the tariff schedules at present existing were designed to give to Australian industry sufficient protection to allow their expansion. Any action to remove this protection would threaten Australia’s capacity and contribute in a major way to the alleviation of Britain’s economic difficulties.