The Daily News FRIDAY, SEPTEMBER 5, 1930. EMPIRE RECIPROCITY.

Taranaki Daily News, 5 September 1930, Page 6

The Daily News FRIDAY, SEPTEMBER 5, 1930. EMPIRE RECIPROCITY.

The main economic issue affecting tlie British. Empire has for some time past been the subject of special debates by all political parties and others directly interested in the matter. It is chiefly the old controversy of free trade versus protection tliat has hitherto formed a formidable obstacle to the complete realisation that tl|e changes which have taken pllace throughout the world in consequence of tlic Great War necessitate a revision of trading ethics as they were when free trade was adopted in the Motherland. The doctrine of “other times, other measures” is now making headway, and even Labour as a body appears to be regarding this burning question from a new and more commonsense' aspect. According to a wireless message from Rugby, which appeared in yesterday’s issue, the Trade Union Congress, after defeating by 1,878,000 votes to 1,440,000 a motion to refer back a report of the economic committee, adopted the report, which suggested that it would be “in the interest of our own people and those of the Dominions to press for as full a development as possible of economic relations between the constituent parts of the British Commonwealth.” The reasons given for taking such action are such as to engage serious attention. It was urged that the maintenance of close relations with the rest of the world—always a strong plank in Labour’s platform—did not prevent that party from urging the creation of machinery and, if necessary, making formal agreements with the Dominions foi’ the further development of inter-commonwealth trade, also for the best possible distribution of economic activities within the British Commonwealth. While there was really little that was definite about the declaration, it was followed by the statement that “the policy suggested would not involve the surrender by any Dominion of any advantage or the favourable situation which it now enjoys.” The Dominions are not to be asked to give up anything whatever. The basis of negotiations would be as much to their advantage as to Britain’s.. What the main object of the report was can be, plainly ascertained from the observations of Mr. Bevin, namely/ to obtain a definite economic organisation of the Empire—an investigating organisation—whereby there teoiild be ascertained with what agricultural products the Dominions could supply the people of . the British Isles, and what manufactured commodities could be taken by the Dcffninions by way of payment. ' A liberal translation of such a scheme appears to be the implementing of a reciprocity agreement whereby Empire goods would receive favourable terms in the Old Country as against foreign godds, while British exports would receive similar treatment in the Dominions. Provided that economic agreements of a like nature were entered into between the Dominions the scheme outlined by the Trade Unions’ Committee would go far to consolidate the Empire as an entity, while strength to the bond dJ unity, though in all probability more serious difficulties would be encountered over an inter-Empire agreement than in merely a Brit-ish-Dominions arrangement. It may be recalled that in July last Mr. Stanley Baldwin, Leader of the Conservative Party in the Motherland, moved in the House of Commons, a vote of censure, which stated:—

That this House, believing that a return to prosperity can best be promoted by safeguarding the home market against unfair foreign competition and by expanding the export market by reciprocal trade agreements with the Empire overseas, regrets that the Government has reversed the policy of safeguarding, instead of extending it, and has arbitrarily excluded from consideration the imposition of duties on foreign foodstuffs devised to obtain equivalent advantages for British manufactures and agriculture in British markets and elsewhere.

It would seem that although the motion was defeated by 312 votes to 241 the Trade Unions’ Committee has virtually accepted the main principle enunciated by Mr. Baldwin. The previous suggestion put forward by Mr. Baldwin in favour of a referendum appears to have been relegated to obscurity, though it doubtless served a temporary purpose. Precedent, however, is hard to escape from, and it is well known that important issues in the Old Country have traditionally been decided at a general election, and there is every probability that the present fiscal policy will in due course come up for adjudication by the electors. For that reason it is not surprising that keen interest was aroused at the Trade Union Congress over Empire trade development, and that the report of the economic committee met with vitriolic opposition from the extremists. That might have been expected, but ..the main cause of satisfaction is tlie new outlook of moderate Labour regarding the only means whereby the circumstances now existing respecting the welfare of the whole Empire can be treated in 'order to overcome the evils which

are undermining industry, trade, commerce and the prosperity of the British Commonwealth of Nations. Sane Labour can accomplish much to improve present conditions, and it is a question of “Safety first.”