The Daily News TUESDAY, JUNE 19, 1934. TRADE TALKS.

Taranaki Daily News, 19 June 1934, Page 6

The Daily News

TUESDAY, JUNE 19, 1934. TRADE TALKS.

OFFICES: NEW PLYMOUTH, Currie Street. STRATFORD, Broadway. HAWERA. High Street.

With the question of armaments postponed pending further consideration by individual members of the. League of Nations, international economics are receiving more publicity. At first sight it would appear that the jangle and wrangle of controversy is more apparent than the desire to bring about agreement, though in one respect a happier issue is said to have been arrived at. Great Britain and France are reported to have reached a new trade agreement that is satisfactory to both parties and retaliatory measures have been withdrawn. In both countries preservation of the home'markets for the home agriculturalist is now an important feature of State policy, and to a minor degree protection in the domestic market is afforded to the manufacturer as well. .To both England and France their export trade is vital to their solvency and to have found a trade agreement’ possible in such circumstances shows that, even in international economics, where there is a will .the way can be found to practical co-operaton. In Central Europe the position is by no means so satisfactory. Germany has proclaimed a full moratorium over all debt charges, action which is the culmination of a policy that has coincided with the growth of the Nazi movement. At Venice, last week, it is reported that Herr Hitler told Signor Mussolini that Germany “was disposed to return to the League provided her complete rights regarding armaments were recognised.” But the nation which desires acceptance as one of the Great Powers of Europe can scarcely expect its claim to that position to be fully recognised if it pursues at the same time a deliberate policy of repudiation of debts, not merely war debts or reparations, but liabilities incurred in the course of everyday business affairs. In 1931 a hold up of payments for six months was proclaimed’ by Germany, and on its termination there was only a partial resumption of payments. Last year a further reduction in the cash transfer quota was announced, and Holland and Switzerland received favoured treatment in return for wider acceptance by them of imports from Germany. There were strong protests from England and France in regard to this discrimination, and in regard to the whole question of German debts. It was urged upon the Hitler Government thate if- it desired to recreate confidence in Germany’s good faith, and her new national spirit, as well as belief in her right to the position of a leading nation, equitable treatment of creditors was essential. The German authorities promised redress and to withdraw the discrimination in favour of Holland and Sweden. The declaration of the moratorium is, however, the actual outcome of the position, and counter-measures are now being considered in London and Paris; Further afield, and yet intimately associated with European trade, is the' question of competition by Japan. In regard to this the issue is at least clearcut. It is a question whether goods produced under conditions that entail a cheaper standard of living are to be allowed to undersell those produced where costs of production are higher because the standard of living is also higher. Japan asserts that other considerations must be taken into account. She claims that efficiency and organisation as well as lower wages are enabling her to produce her manufactures at a lower cost, and she threatens reprisals upon New Zealand and Australia—by the refusal to purchase raw material from them—if exclusion of Japanese exports is made general throughout the Empire by political action. With so much turmoil around it is little wonder that the leader of the Conservatives in Great Britain, Mr. Stanley Baldwin, should appeal for patience in economic affairs, and particularly in regard to .Empire trading. If the suggested meeting of Empire Prime Ministers takes place in London next year, it seems fairly certain that intraEmpire trading will be the most important matter for discussion.