Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-10
Report Says British Trade
With East Asia Menaced
BY A. G. GARDINER.

LONDON, May S.-NeW ugnC upon
the special causes Of the depression
which affiictS British industry is shed
by the report today of the Economic
Commission recently returned from IN
vestigations in the Far East. The calam-
itouS fall in trade with Eastern Asia
is most marked and is a sinister fact
in the present outlook.
The Indian boycott Of British goods
is one of the main causes of the fall,
but the purpose of the mission was to
inquire into the reasons for the cata-
strophic decline in trade with Japan and
China. The magnitude of that decline
is so alarming that the mission states
that If 1t continues at the present rate
the results must soon be evident In
bankruptcy and disaster at home. In
deed, those results already are evident,
not only in the lamentable condition OF
the textile industry. but in the reports
of the shipping companies trading with
the Far East, all of which indicate
most serious decline in business.
X y
The mission says the vast shTinkage
in trade in manufactured goods with
Japan is due to Japan'S increasing
ability to supply her own needs and her
change from customer to competitor.
This change was undoubtedly haStened
by the fact that during the war years
British trade with the East practically
ceased, leaving the field open to the
development of competition. But effect
of the increased japanese productivity
is not confined to Japan. Both in
wooden and cotton manufactures she
has become the most formidable rival
of British trade. The effect in China
is particularly noticeable. Based on
1918 values, British trade with China
has declined over 80 per cent, while
that of her competitors-chiefiy Japan,
but also the United States and Ger
many-shows increases ranging from
SO to 270 per cent.
X X
Discussing the causes of the loss of
the Eastern markets, the mission gives
chief prominence to the high costs of
production. 1t calculates that York
shire wages are two and a half times,
and maybe three times, Japanese costs.
Emphasis is laid upon the higher wages,
shorter hours and heavy taxation that
make British goods more expensive
than the competitors. But while stress
ing these facts, the mission points out
that the United States, in which the
standard Of living is also high, is m
creaSing her trade with the Far East,
while British trade is falling.
This leads the commission to the con-
clusion that not only wages and hours
are responsible for the phenomenon, but
that other causes are contributory. Brit
ish industry is declared to be lament
ably backward in methods of publicity
and hopelessly behind its competitors in
study and knowledge Of market require
mentS. British manufacturers give no
attention to proper advertisements, and
do not use suitable catalogues, efficient
packing or adequate labelling of goods.
Internal reorganization of industry Is
declared to be imperative if the present
disastrous tendency is not to reach the
proportions of national catastrophe.
X y
1t is significant that the report, which
plainly indicates the necessity for the
sacrifice of trade union claims, is signed
by the trade union and cooperative
members of the mission as well as by
the employers. But the prospects OF the
trade unions being Influenced by these
considerations is not apparent and this
week the trade union council issued de-
mands for increased insurance benefits
and the transfer of the whole insurance
burden, at present borne partly by the
workers and partly by the employer, to
the back of the taxpayer, while the
Lancashire operatives still refuse to
work the multiple loom system.
Meanwhile, another aspect of the In
duStrial crisis was the subject 0f
secret conclave in the House CT Com
mons this week, where a meeting OF
Conservative members listened to num-
Der of former officials OF Soviet trade or
CARNATIONS in this country who had
been dismissed from their posts and
refused to return to Russia.
According to the Morning Post, these
officials showed that the Soviet plan
directly aimed to disorganize the inter-
national markets and create instability
in order to destroy the capitalist system,
and that 80 per cent of the foreign cred
It's obtained to promote the policy came
from Britain.