WORLD AFFAIRS.

Star (Christchurch), Volume XLIV, Issue 296, 14 December 1931, Page 5

WORLD AFFAIRS.

A Weekly Review of Current Events. BRITAIN’S TRADE POLICY. (By BYSTANDER.) . As might have been expected, Britain’s abandonment of her traditional Free Trade policy has not only surprised the foreigners, but has aroused a certain amount of resentment abroad. The truth, of course, is that Britain has so effectually “ spoiled ” her foreign competitors by giving them the free run of her market that they have come to look upon the privilege as an absolute right, and they are accordingly indignant at its withdrawal. This is very unreasonable, and no doubt when the various parties to the controversy have cooled down they will be prepared to compromise on some rational basis. Mr Runciman, who, as president of the Board of Trade, finds himself in the anomalous position of an ardent Ccbdenite administering a Protectionist policy, charges France with trying to revenge herself for the loss of her British market by discriminating unfairly against British goods. But the French Minister of Commerce retorts that France’s new duties apply to all countries with depreciated currencies, and that the 15 per cent surtax is imposed definitely upon countries that are now “ off the gold standard.” There are the makings of a very pretty quarrel here. But all tariff difficulties are susceptible of adjustment, and experience has shown that the only way to settle them is by mutual concession and compromise. As the leading London newspapers have pointed out the chief Protectionist countries which, twelve months ago, could not be induced to consider Britain’s proposals for a reduction of tariffs, or even a tariff truce, are now anxious to negotiate with her; and this certainly is an encouraging sign of the times. The Fall in Sterling. Since Britain gave up the Gold Standard the pound sterling has naturally become depreciated to gold, and therefore it is also depreciated to the currencies of those countries like America and France which are still theoretically or practically on a gold basis. But the fall in sterling which was thus inevitable has been greatly intensified during the past two or three weeks, first by the great rush of imports poured into Britain to evade the threatened duties, and then by speculative dealing on the Continent, where the demand for sterling has naturally fallen with the relative decline in British exports. The upshot of it all is that the pound sterling is now valued at a little over fourteen shillings measured in gold, and it has been fluctuating violently from day to day. Of course, the collapse of the British pound has supplied a highly sensational flavour to the financial crisis through which the world is passing, and a great many people not only in

Britain as well, seem to be quite needlessly alarmed about it. Mr Neville Chamberlain, the new Chancellor of the Exchequer, has ascribed the decline in sterling chiefly to factors operating abroad which Britain cannot control, and Mr Baldwin has assured the general public that it gives no real ground for apprehension or disquietude. Those who are inclined to discount the assurances of the politicians, who in such a case are certainly interested parties, may derive some consolation from the comments of the “ Times,” which attributes this remarkable collapse of sterling to “ temporary and artificial ” circumstances, and confirms the view expressed by the statesmen that there is no real cause for alarm. In any case, the Government does not expect to see the pound stabilised till the trade accounts are balanced and the Reparations problem is settled, and that may be a long time yet. Debts and Reparations. During this week two distinct and separate international committees, sitting at Berlin and Basle respectively, have been discussing the question of reparation payments in all its various aspects, and their conclusions are likely to have a momentous effect upon the financial prospects of Europe in general and Germany in particular. It is impossible to anticipate the decisions of these conferences, but it is a significant fact that the Paris correspondent of “ The Times ” a few weeks ago committed himself to the assertion that “ the British Government favours the complete abolition of the Young Plan annuities.” But, of course, even Britain would regard such a step as practicable only if all war debts were wiped out at the same time, and the Americans gave the rest of the world a clean slate to start figuring on. This, unfortunately, is not a very probable contingency just now, and the Nazis in Germany have not improved the situation by choosing this juncture to proclaim that if a National Socialist Government is put in power it will make short work of “ the monstrous extortion passing under the name of reparations.” The Nazi Menace. In October last Herr Hitler announced his desire “to convince foreign opinion of his peaceful intentions in the event of his party’s attaining power.” A little before this he reviewed 80,000 Nazis, who “ goose-stepped ” past their commanders, and Prince August, one of the ex-Kaiser’s sons. On this occasion he dedicated twenty-four new standards for his “ storm troops ” and spoke most confidently of “ our definite ascent to power.” Hitler’s latest announcement in regard to reparations has therefore aroused resentment and alarm in France, where Hitlerism is taken very seriously. And considering the close association that the Nazis maintain with the Imperialists and militarists, it is not strange that they are usually identified with the extreme reactionaries and credited with a determination to use force to attain their ends. Yet Hitler maintains that the use of force is not an article of his faith or an essential part