PLANS FOR FUTURE RECONSTRUCTION

Southland Times, Issue 24759, 2 June 1942, Page 5

PLANS FOR FUTURE RECONSTRUCTION

(8.0.W.) RUGBY, May 29. The views of industrial leaders on future reconstruction are set out in a report to the Board of Trade by the Federation of British Industries. The report stipulates that peace-loving nations must take a permanent interest in curbing aggression, otherwise the economic structure will be founded on quicksand. New methods and a positive policy will be needed for the changed economic conditions and the present Allied co-operation is the starting point for wider international cooperation. The immediate post-war task will be to provide for the stricken countries, followed by a re-creation of economic

systems with a view to achieving world prosperity. A common policy between Britain and the United States is essential and close contact must btl maintained with Russia and China.

The basic principle of reconstruction will be increased world purchasing power and although some regulation of production may be necessary, control and restriction cannot form the basis of prosperity. The Government should immediately adopt the policy of building adequate reserves and control of industry should continue after the war as long as necessary. Further permanent control will be in collaboration with industry. The danger of stifling individual effort and private enterprise must be avoided.

The report emphasizes the importance of prosperity in the agricultural industry and the need for a sound policy. Industry is prepared to reconsider the implications of industrial organization, but the Government must define a definite attitude towards trade associations and pursue a consistent policy towards them. Special importance is attached to the stability of exchanges and future financial policy being based primarily on the interests of industry and commerce. The Government should fully consult industry.