Evening star., 1941-02-16
Discusses Economics
of Peuce Plun
BIZ Frederic J. HdSkin.


in Europe and Asia, and one which in
recent months has become more ana
more pronounced, is the absence OF any
definite plan for a peace settlement be-
tween warning countries. There seems
to be general feeling that it is fight
to finish and that the terms VIII be
dictated by the conqueror. Such con-
clusion, in the light of all factors in
volved, is undoubtedly correct At least
it is the conclusion of most people who
say that present wars are conflicts for
power and power only.
However advocates have not given DIP
| hope that a peace satisfactory 10 the
nations directly concerned can be nego-
| tiated In meetings, public and private,
| and by published documents and nuner-
Gus letters to friends and the press these
| believers in such a peace hold that even
| a dictator is willing to come TO some sort
| of terms not altogether of his own
| making.
The old view is still held that the pres
ent conflict is not necessarily for the
| purpose of territorial domination, but
merely because the three principal sg-
|
Japan, are fighting for economic
| reasons. 1t is no accident that these
| three countries, in relation to their IN
dustrial development and increasing
| population, are the worst off so far as
raw materials either at home or In
external possessions are concerned, and
that their present regimes and policies
constitute the chief menace TO world
peace.
1t has long been an accepted fact that
since Germany, Italy and Japan are
| highly industrialized, and have large
and rapidly increasing populations and
very limited internal resources of raw
materials, their expansion is a press
| ing problem. They have no extensive
external possessions from which they
can draw the needed supplies in their
! crude form, and because of this. they
may be cut off in times of vsr or
peace, or forced to pay what would be
termed monopolistic prices for the ma
terials they do not have. Many other
| countries are in a similar position.
Even the United States is lacking in q
number OF important minerals and GER
tain foodstuffS. This dependency was
illustrated in 1916 when the supply OF
potash from Germany was cut of.
In the face of these facts, a plan for
peace through an agreement on an In
ternational distribution Of raw materials
is proposed. The proposal is that an
international inquiry be made as to
sources and possible supplies of the
raw materials of the world, with view
to working out a plan for their export
without tariff barriers or excessive
profits to producers.
Such an inquiry it is pointed out,
should serve two extremely valuable
purposes. In the first instance 1t
might lead to the removal Of certain
grievances, and in the second it might
well show that the advantages enjoyed
by colonial powers over others are in
some respects greatly exaggerated.
There has always beer a feeling among
many economists and students of inter-
national affairs that colonial possess
sions are not always the great store
houses they are often rated. Acquisition
of a far-off land does not always prove
to be profitable. For example It Is
common knowledge the world over that
the taking of Ethiopia by Italy has, so
far, proved only liability
The survey would be made by a COM
mittee appointed by governing heads Of
the principal countries Of the world, but
it would not be vested with power
A.
Any recommendations made would be-
come effective when ratified by the
treaty-making authorities of two-thirds
of the nations affected.
The So-called unfair distribution of
raw materials has long been familiar
topic, and it was often discussed by the
League of Nations, but nothing definite
ever proposed. But the suggestion that
the subject be submitted for interna-
tional inquiry has, for several reasons,
an exceptional importance, and in some
quarters is evoking considerable interest.
Reduced to its simplest terms, there
would be brought about condition so
that nations could share the earths
riches on quota basis.
The slogan of the undertaking would
be free trade in raw materials" which
principle was recognized by the World
Economic Conference of 1927. An allot-
ment of raw materials to countries
would be based on population. What
each country would supply would be
based on its surpluseS, thus not COM
pelling any country to share with an
other when domestic needs we're equal
to or less than the supply. All materials
sold would be on equal terms to pur-
chasers of any nationality, and prices in
the interest of producers and consumers
would be controlled by an executive
council composed of members repre-
Senting six of the largest exporting
nations. However, in order TO keep the
plan democratic no one has suggested
what could be done when a producer
failed to produce or a consumer refused
to consume because of unsatisfactory
prices. This illustrates some of the
difficulties that could easily arise from
the plan which, in its first draft, seems
so simple and easy of operation.
One great difficulty in the past with
peace arrangements has been. with few
exceptions, their short duration. The
idea now is to devise some plan that
| will x,orlr ind l.