The Otago Daily Times WEDNESDAY, MAY 26, 1948. WESTERN UNION AND US

Otago Daily Times, Issue 26781, 26 May 1948, Page 4

The Otago Daily Times WEDNESDAY, MAY 26, 1948. WESTERN UNION AND US

The particular advantages that might be expected to accrue to Great Britain, France and other nations pledged to, or desirous of participating in, Western Union are clearly discernible; so, also, are the merits of the close association of European nations that was formulated at Paris under the spur of the United States European Recovery Programme Act. In both these movements Great Britain has a leading—if not dominant—role, and is consequently expected to bear special responsibilities in promoting economic recovery and co-operation among .the democratic nations of Europe. The moment is opportune, therefore, for a careful examination of the United Kingdom’s special trade relations with the nations of the Commonwealth, with regard to the economic commitments which the British Government might be called upon to make to the countries of Europe. On the information that has been made available up to the present time, there appears to be valid cause to believe that the system of Im- * perial preference is due for con•siderable modification. Thik is not altogether unexpected and need not be considered alarming while the principle remains. Indeed, from a long-term view a stable and economically healthy Europe will be of the greatest benefit to all the nations of the British Commonwealth, because new markets will exist where none could be found before, but until that strong European economy has been contrived problems of adjustment in trade between the United Kingdom and the dominions are bound to arise. It will be recalled that the statement issued after the Brussels Conference on Western Union contained the prediction that the signatory countries might be required to contemplate “ certain changes in their economic policies, and in particular the development and reorientation of the pattern of production of the respective countries.” Commenting on this extract from the official statement, the diplomatic correspondent of The Times wrote recently that these changes might affect Great Britain’s need for raw materials from the dominions. The Convention of the Organisation for European Economic Co-operation also calls for a reduction of tariff banders among the signatory and other countries. Sir Stafford Cripps, replying to a question on the effect of these provisiorls, stated recently that he could give no categorical assurance that in some particular items “Australia would possibly not have such good opportunities 'as she had before, but by and large, the whole of the sterling area will benefit from the inception of Western Union.” With the lattes part of the statement all the dominions.in the Commonwealth will concur, and they are prepared to support the British Government to the full in its attempts to restore Europe to stability and prosperity. Yet the conditions created by new circumstances cannot be ignored, and the dominions are eager to confer with the Mother Country and one another on the problems that have been raised. . The calling of the projected Commonwealth Parliamentary Conference should, therefore, be regarded as a matter of urgency.