Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, TUESDAY, MARCH 7, 1939. BRITISH TRADE DRIVE

Poverty Bay Herald, Volume LXVI, Issue 19881, 7 March 1939, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, TUESDAY, MARCH 7, 1939. BRITISH TRADE DRIVE

Ample proof is available that Great Britain is determined to make vigorous efforts to revive international

trade, and the results of the discussions to be launched this: month will he watched with interest in all parts of the world. To Britain itself, an

expansion of trade is a vital necessity, hut since trade cannot flow in one direction only it is inevitable that olhei countries should share in whatever measure of success it is possible for Britain to achieve. As trade generally recovers, the economic position of the people must improve, and with improved economic conditions the possibilities of war are reduced. In recent years, the fear of war lias

done more to restrict trade than any other factor, and il follows that, to quote the words of the President of the Board of Trade, by striving to remove the fear of war, the nations can do more for prosperity than by all the tariffs, subsidies and quotas that human ingenuity can devise. Whatever their temporary effects, tariffs, subsidies, and quotas, since they increase the cost of production and of living, must restrict trade, and it follows that international appeasement must have as a corollary the removal of Ilio.se obstacles to trade which have provided such a serious obstruction to the exchange of goods.

Britain’s position lias been particularly difficult. In the first place, she is the world's largest trading nation so that she is most affected by trade restrictions. On top of that, Ik r individual industries have had to compete against the organised resources of totalitarian States, and she

has been reluctant to adopt, retaliatory measures even where she may have been in a position to do so. Now, instead of becoming a belligerent in economic warfare, she is seeking to ecuro peace by negotiation. The first slop was taken some time ago when the British and German coal industries reached an agreement for the regulaiion of competition in neutral markets. This is to he followed next week by discussions regarding export trades generally. As a preliminary, representatives of the- two Governments are lo meet in an effort to reach an agreement on broad principles, and following this the individual industries will confer to hammer out the details of an agreement

covering their own problems. This method, after all. is merely an endeavour to introduce into the international sphere those traders' organisations which are found in every country, and almost every community, •and which exist primarily for the prelection of mutual inicresls.

The negotiations will not ho confined to Germany but will extend later to the Baltic countries and, of particular interest, Russia, To some extent Russia is still an enigma in world affairs. Little, except of a propagandist nature from one side or the other, is heard of internal conditions in that vast country, and the position of the Soviet in international affairs has been uncertain and obscure. Certain it is, however, that her foreign trade, considering her immense resources and her vast population, is negligible, whereas before the war it amounted to nearly £300,000,000 a year. In 1932 it had again reached a fairly high level, but from then on there was a steady decline and by 1935 it had been halved. In 1937, the total was about £120,000,000, of which 25 per cent was with Great Britain, From the British point of view, however, the position was unsatisfactory. because Russia's imports wore valued at only about one-seventh the value of her exports and, on top of that, the trade was practically confined to Russian shipping. Since Britain is the Soviet’s best customer there should be some scope for adjustment. and the forthcoming trade mission, following as it does repeated evidences of improved relations between the two countries, should result in a more satisfactory position being obtained.

Unfortunately, political sympathies in the past have been allowed to influence trade negotiations. Not without reason, perhaps, there has been antagonism to trade negotiations with the Soviet, even as to-day there comes from some quarters opposition to trade with Germany or Japan. This altitude is manifestly wrong. Apart from anything else, it visits upon the innocent peoples of the countries concerned the sins of their politicians or militarists. More important still, it engenders that bitterness and ill-feel-ing and creates the economic distress that plays into the hands of the politicians and provides the excuse for war, A happy and contented nation will never make war and happiness and contentment are largely governed by the ability of the people to dispose of lire goods they produce in return for those which they need. At the moment, it would seem that Mr. Chamberlain's policy of appeasement has succeeded to an unexpected degree, but its success can be made 'asting' only if it is followed without delay by economic measures which will strike at the very roots of international unrest. This is the object of flic trade mission to Germany. If it is possible to secure an agreement between the two great trade rivals of Europe it is certain that the trade of both countries will benefit, that the way wilt be paved for negotiations with other countries, and that the economic position of the whole world will ultimately be improved.