Evening star., 1934-04-22
RECOVERY
PROGRAM PUSHED
Seek to Enlarge Export
Business and Increase
Farm Productivity. .
BY the Associated Press

BY the Associated Press.
LONDON, April 21.-With the preci-
sion OF chess player, Great Britain is
carrying out recovery program de-
signed TO enlarge her export trade and,
dlametrically opposite to the American
agricultural objective, to increase the
productivity of her farms.
This new deal" which started when
the national government abandoned
free trade, entered a new phase this
week with the adoption OF plan Of
federation of the iron and steel indus
try under an authoritative group not
unlike an American code authority.
Four Groups Involved.
The iron and steel industry is one
of the four key groups involved in the
program, the others being cotton man
ufacture. coal mining and agriculture.
The government has taken a hand
directly, SO far, only in agriculture and
coal mining, but big stick" hangs
over iron and steel manufacturers in
the form of a threat to let the pro-
tective tariff expire next October un-
less the industry voluntarily puts it
house in order.
Wages. hours Of labor and related
matters do not figure in the industrial
program. The objective is purely to
attaI an efficiency which will reduce
prices and put the nation in a better
competitive position in tn world
market
The coal mining regulations-in-
corporated in an act of Parliament in
1930-are not fitting in satisfactorily
with the genera program, and the
government now is seeking a solution.
The coal mines act was designed to
bring about coordination Of prices and
regulation Of output on quota system.
Colli7fy owners have complained that
the restrictions interfere with their eX-
port trade, and the government now
proposes home consumption quotas for
various districts and uncontrolled pro-
duction for export A general agree
ment on measure o. this type ap-
pears imminent.
The steel and iron scheme, scarcely
48 hours old, already is the subject OF
considerable controversy. Its avowed
purpose is to get rid Of inefficient
plants and methods. The National
Federation of Iron and Steel Manu-
facturers has been transformed into
the Iron and Steel Federation and
given authority to carry out the
hOusecleaning.
Opinions Differ.
James Henderson, president Of the
federation, declared the action is
the most important step which the
industry collectively has taken in its
history" Critics of the plan maintain
that it is too weak to accomplish its
objectives.
The third phase of the program
the cotton induStry-appears nearer
to a definite plan of action now as a
result of failure of negotiations be-
tween Japanese and British manufac-
turers. Here the problem is the same
as that of iron and steel. lowering
costs by recognizing the industry as
whole.
Closest to the British consumers
pocketbook is the new deal in agri-
culture which has been developing in
the form of a variety Of marketing
schemes for hops, potatoes, milk, pigs
and other products.
Under the leadership of Minister of
Agriculture Walter Elliot, British
farming has revived in a manner
which has aroused forebodings among
exporters in the dominions and other
lands.
There are indications already that
certain clauses Of the Ottawa agree
ments, favoring empire farm prod
ucts, will cease to have effect in June.
Mr.. Elliot is the only government
leader who has used the new DEAL
phraseology He stated that there is
likely to be a "redeal of the cards"
after June 80. when preferential rates
in the Ottawa agreements are subject
to review.