EMPIRE AND TRADE

Taranaki Daily News, 22 December 1930, Page 11

EMPIRE AND TRADE

i ECONOMIC DEVELOPMENT.

- .EXTENSION OF PREFERENCES.

<r We are- satisfied that no one of the 54. units.. comprising the British. Empire, pursuing its own. individualistic wa 7 as a. relatively; small;economic unit, can achieve its highest destiny, and we are ‘equally satisfied that, with a concerted scheme of mutual help, th© British . Empire..can ; be-, made by far the greatest economic force in : the world,” said Sir Arthur. Shirley- Benn, chairman of the council, of, the : Federation of Chambers of.. Commerce of the British Empire, when, putting -before the delegations to the Imperial ■ Conference the council’s ideas PH the economic development of the-Empire and the functions of the proposed; general - economic staff;. ; gir- Arthur;, Been ;was accompanied by representatives of the council from all parts of the Empire, New Zealandbeing. represented by. Sir Alfred Bankart and-Mr.'B,-Jacobs. • The resolutions elaborated-were passed at the 12th congress, .presided over by the Prince of YVales. . . ?■?: ~? ; ? ’-■■■:. The congress had not been , blind to the practical difficulties to be surmounted, but: although they had been allowed to loom very large on the political horizon, they were, from a business point of view, susceptible to adjustment ;by. negotiators willing and determined to reach a settlement, Sir Arthur Benn said. : .?? ■ ; ? .I.?;'.

*The ultimate goal to which the congress, had looked was the economic unification of the Empire, but it realised that there were both valuable nascent industries in the Dominions which Would hot-survive' the removal of protective duties, and also that, even- in the case of established industries, the money levels of wages in the various countries of the Empire were so different that the sudden removal of tariffs would precipitate an economic crisis not to be contemplated. The unrestricted Competition which, in the last century, acted as a selective agency, had been superseded everywhere except in the United Kingdom by State action in the I form of tariffs and prohibitions, so that the State now determined what goods it should import and which* should be manufactured within its own borders. Unless, therefore, close co-operation for the common good took the place of parochial short-sighted-ness, the British Empire might find itself consisting of 54 isolated economic units, each unable, through lack of markets, to develop those industries for which., it was peculiarly suited, but ■ instead a multitude of* uneconomic and ( inefficient undertakings. It was clear that if’ effective co-oper-ation . was to take the place of unscientific action based upon what was supposed, in the'short view, to be in the local, interest, an Imperial general economic staff would have, to be set up. The federation, however, considered it essential, in view of the fact that no plan of development could have * the leaet prospect of success if it were liable to dislocation at every change of Government in any part of the Empire, that the.' question should be lifted outside the scope of, party politics, and that the ■ main* features of any plan drafted by. such an Imperial general economic staff, tf when, once appyoyed by the con- ■ stituent nations, should, by agreement, be made unalterable for a reasonable period, except with the consent of a majority of the contracting parties. The federation would like to see an agreement reached between the eight Governments. that no economic action likely to affect the rest would be taken without. the general economic staff first being consulted. Sir Arthur Benn said the Congress had reiterated its conviction that a wide extension of the system of Imperial preferences would be the most effective means of bringing about a * greater measure of Imperial economic cohesion. The methods of import boards and licenses appeared to the’ federation to have certain very great disadvantages, not present in the case of customs duties, without any compensating advantages. The federation was m entire agreement with the objections, to bulk purchases arid licenses set out in the general report of the research committee of the ..Empire. Economic Union. The federation did not view the quota system with any special favour, but it was possible that, on investigation it might be found advisable to adopt the method in the case of those goods to which it could be applied, if other schemes to attain the same object could not be agreed upon.. . -a a: