Evening star., 1942-07-12
British Industry
Maps Imposing
Postwar Plan
For-Reoching System
For Cooperation With
U. S. Is Proposed
BY FRANK MacMILLEN,


industrialists, in a document which
has gone almost unnoticed here,
have laid far-reaching plans for the
postwar period and called on their
Government to work out a system
of consultations among the United
States, the United Kingdom and
the British Dominions to this end.
The Federation of British Indus
tries, top trade association of the
United Kingdom, with a semiofficial
status, has made a preliminary re-
port to the Board of Trade (roughly
equivalent to our Department of
Commerce., which sketches the in
dustrialists' idea of what the post
war economic picture will look like
and suggests some tentative solu-
tions of inevitable problems.
The report frankly foresees diff
culties in working out these solutions
in a way which will be acceptable
to both the British and American
peoples, but believes mutual under
standing can bring about agreement.
Joint Action Favored.
The report suggests that system
OF cooperation with the United
States should be created with a view
Of joint discussions of the means
whereby it will be possible to restore
prosperity to ourselves and the rest
of the world"
It adds:
Practical co-operat ton between
British and American industry is
possible even today and should be
considered by the Government and
by industry. In spite of war condi-
tions such discussions hold out
great hopes for fruitful cooperation
which, If realized, will be OF inesti-
mable benefit in the postwar
period"
This report on reconstruction"
was issued III mid-April but appar-
emily has received its first detailed
notice here in an abbreviated version
made public by our own National
Foreign Trade Council.
The summary shows that the Brit
ish manufacturers have concluded
that:
l. Policing the world against ag-
gression" Is basic to postwar eco
nomic organization and prosperity.
2. Some larger grouping of nations
economically, regardless of political
aspects, appears inevitable, and that
this, and collective defense against
aggression, might entail "an altera-
ton of our past conception of ma
t;onal sovereignty"
3. A starting point in the new
setup is close cooperation between
the United Kingdom and its domin-
ion partners. including India and
the United States, and calls for in
innate collaboration with Russia and
China.
4. That one of the primary eco
nomic problems Of the peace will be
raising world purchasing power.
Interests May Clash.
5. The economic situation Of the
British Isles may be so changed by
the struggle that the country may
not easily adapt itself to free and
unrestricted world trade, and SO may
come into sharp conflict with ideas
in the United States.
6. The shape of British policies
after the war will depend to a large
extent on the way In which the
United States decides to settle the
lend -lease accounts.
Ideas on the postwar economic
setup held in Britain and America
ARE so divergent that they will not
be easy to reconcile" the report
says. It asks for mutual under
standing of each countrys circum-
stances and difficulties by the other.
OF this conflict, the report says:
THE view is widely held in indus
trial circles in this country that we
must, at any rate for some consider
able period tafter the war;, rely on
a policy of directive imports, on the
assumption that we only import
from overseas countries those essen
tial commodities for which overseas
countries are prepared to accept
payment by the only means which
will be open to us-by the export OF
our own products and such services
as we can render.
"In effect, almost a system of
barter, or at any rate system OF
bilateral trade which will regulate
our imports by our capacity to pay
for them.
Controls Necessary.
''This involves import and export
controls, possibly by quota, prefer
entail treatment of the imports o1
those countries which are prepared
to assure us OF the means of paying
them, and excange control.
otherwise our economic stability
crashes, owing to our importing be.
yond our ability to pay, which il
the road to economic bankruptcy
On the other hand, the report
continues, the attitude of the Unitet
states, "as defined by the statement.
of the Government and by respons'
ible leaders of the industrial thought
seems to envisage postwar worlt
| in which trade BARRIERS exchange
control, directive systems Of import!
and exports, discriminatory agree
ments to facilitate trade between
individual countries should be swep
away.
Trade should everywhere be free
Inter-imperial preferences
with all the advantages they hav.
(SEE BRITISH, Page C-6D
ALL H r>l:1:n~