COMMERCE LOST

Poverty Bay Herald, Volume LV, Issue 17239, 21 April 1930, Page 9

COMMERCE LOST

TO FOREIGN RIVALS BRITISH TRADERS CONDEMNED NEED OF NEW METHODS. LONDON, March 1. Vigorous criticism of British commercial methods in dealing with South America is contained in the report issued yesterday, of the Economic Mission, headed by Viscount D’Abernon, which visited Argentina and Brazil last summer.

Slating that Great Britain has been “completely out-distanced by her rivals in new departments of trade since the war,” the report attributes this to : Inability to produce on a big enough scale ; Insufficient finance; High prices; Unsuitability lo South American needs; and Defective salesmanship. “Not only is recovery possible,” it is stated, "but wo can improve all past records.” Before that is done, however. British industry must thoroughly reorganise its methods. BRICES TOO HIGH. ■ Large classes in South America, states the report, are more than willing to deal with Great Britain, but this favorable position is not adequately appieciated in England. While we have excelled in railroad construction and shipbuilding, others have taken the place that might have been ours in aviation, road construction, and motor transport.

Discussing “our apparent incapacity to accommodate ourselves to local circumstances,” and a “persistent adherence to what Great Britain thinks good, to the exclusion of what .South America wants,” the report mentions thatin the first six months of last year Argentina alone imported 51,067 motor vehicles, valued at over £5,000.000, with agricultural machinery requirements on a corresponding scale.

“We grumble at what is detrimental,” the report continues, “without correcting it. Examples are abundant : Cable rates between London and Buenos Aires are 20 to 30 per cent, higher than those between New York and Buenos Aires. Tn postal rates we are at a similar disadvantage. Telephonic ■communication costs more between London and Argentina than between Berlin or Paris and 'rgentinn. Our mail steamers are four or five knots slower than the best Italian and German vessels, and the cost of shipping merchandise from the Continent of Europe is in many cases a good deal less than from British ports. “The impression is general that Great. Britain has not marie a skilful use of her influential, and. in some cases, dominant, position as a buyer of South American goods. Tn strong contrast with tho action of most other importing countries, we now allow South American produce free entry to our vast market, and have hitherto refused to listen to (hose who advocate Customs duties against foreign produce with a view to creating a. preference for goods from countries within the Empire.” British salesmanship, the report de dares, is defective in advertisement, service, show-rooms, and range of choice. “Prices will have to come down, and there is nothing for it but the screwing nn of the machinery of production and distribution to a point of greater efficiency, and whatever sacrifice and whatever discipline this may involve. Our own machinery and unenunlled oxpcrieice in distribution are being used to sell the goods of our competitors.”

Too manv British traders, it is pointed out. “(rifle” with the South American market, and compete with one another, instead of striviivr fo obtain the enormous amount of trade which is held liv their foreign rivals. Sometimes thev s<ar-elv seem lo know that it is there to Be obtained. The aliened fact that British mannfactmers do not cohere to dates (riven is said t-o be an important can'-o of the loss of orders. “Tim future lies with the large soil - intr unit.” the report concludes, “and it is essential that effective methods of co-oneration should he devised.” Besides Viscount D’Abernon. the o'lier members of the mission wore Mr. V ,r Howard Williams, Sir William Clare Lees, and Mr. Julian Piggott.