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[Mr. Stanley.] purchase and do purchase many of these commodities at above the world price, a thing which we cannot, with our free currency, attempt to do, but we have, even in the last few months, given in one or two ways considerable assistance to trading in those areas. There is the credit to Turkey, there has been a recent opportunity, which we had in turning over wheat under the Food Defence Plans Department, to buy a considerable block of Rumanian wheat; and I can assure traders that while we certainly will not
economic attempt an
to drive Germany out of markets which are for her a natural outlet, we shall be prepared to give industries of this country every possible assistance in maintaining a normal and proper trade with those countries.
war
But the third point to which the hon. Gentleman referred was much the most important. It has nothing to do with merely South-eastern countries.
It being Eleven of the Clock, the Motion for the Adjournment of the House lapsed, without Question put.
The Orders were read, and postponed.
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Question again proposed, That this House do now adjourn."[Captain Margesson.]
Mr. Stanley: I apologise for detaining the House, but the point which the hon. Gentleman raised is an important one for the future of our trade, and one to which, I think, everybody in industry must have been giving a considerable amount of thought in the past few years. It has really nothing to do with the peg on which the hon. Gentleman hung his argument. It is a problem of the old open economy practised by such countries as ourselves and America, who have to live now in the world with the closed economy of the totalitarian States. The problem is not confined only to living with Germany. The Russian economy pre- sents, too, many difficulties to the old system. Somehow or other we have to find a way. Just as we have to find a way in the political sphere for democracies and dictatorships to live to- gether, so in the economic sphere we have to find a way for the old-fashioned
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economy such as ours to live with the totalitarian economy of the dictator States. I agree with the hon. Gentleman that we are not going to find that modus vivendi by simply sitting down and allow- ing ourselves to be put out of market after market in the world. On the other hand, we are not out to try and turn other countries out of their markets. I do not agree with what the hon. Gentle- man considers the ideal solution, but he said many things with which I do agree.
I think it is possible to meet this com- petition only by doing what I believe we ought to do, and that is to come to a sensible arrangement with these coun- tries for the allocation of the markets on the basis of the markets which we can each serve best. I do not believe we can compete with these countries unless to some extent we learn a new technique. We have prospered for many generations on a system of free competition in the When the in- markets of the world. dividual firm in this country had to com- pete with a single firm, whether in Germany or America, or wherever it might be, it was competition which they were not afraid to face, and which they faced successfully. It is a very different thing when the single firm in this country has to face, first of all, the competition of a whole industry abroad, and when behind the competition of that industry is the power also of the whole State. That ceases to be competition, because the basis of it is so unfair. I do not believe that you can meet competition of that kind without to some extent adapting your methods in this country. To meet a challenge of that kind the first thing necessary is a greater degree of organisa- tion on the export side in particular in dustries, so that an industry may speak as one and be enabled to devote its full strength to it if it comes to fighting for its existence and fighting for its fair share in a proper market.
The hon. Gentleman referred to two commodities, coal and textiles. I should say that coal was one of the industries in which that new technique was already being evolved and that some parts of the Bill which was passed last year were forced on the industry by the considera- tion to which the hon. Member has drawn attention and were directed to meet exactly those difficulties. With regard to textiles, what does the hon. Gentleman think is really the basis for the campaign
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in Lancashire in favour of the Bill which is now being prepared? It is the same view, that if we are to maintain our ex- ports in face of the new form of competi- tion there must be some form of unity in the industry which will enable it to direct its exporting power at its strongest wherever we wish it to direct it. There is a great deal we have to learn in deal- ing with this competition, and I can assure the House that the Government are fully alive to the dangers of an hindered development of a reckless com- petition of this kind. We believe the ideal solution is an arrangement between industries in the various countries which will fairly allocate the markets and enable competing countries to do the maximum of trade on the soundest basis possible, but we realise that we are never going to get an agreement of that kind unless, if it should come to a fight, we are in a posi- tion to fight. Therefore, we are pre- pared, in order to try to get an arrange- ment of that kind, to give whatever assistance we can to the industries of this country to put themselves in a position to fight, if fight they must.
I have dealt as well as I could with the economic effects of the Munich Agreement
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and the broader questions arising from the new system in Europe, because I take no part in a Foreign Affairs Debate as an expert. I have only one other thing to say. The hon. Gentleman said that the Prime Minister was the only person in the world who did not regard Munich as a defeat. As I say, I am not the expert on foreign policy that the hon. Gentleman is, but I have heard something of the feelings of ordinary people in this country and in other countries in the world, and I believe that there are millions of people all over the world who do not regard the preservation of peace as a defeat.
Mr. Ede: Is not the right hon. Gentle- man going to say anything about the Opposition, by the hon. Member for Sea- point put to him by the Leader of the
ham (Mr. Shinwell) and by myself regarding the extraordinary statements made at Shoreham and Horsham by the Chancellor of the Duchy of Lancaster?
Mr. Stanley: I have not read them. Question, "That this House do now adjourn," put, and agreed to.
Adjourned accordingly at Ten Minutes after Eleven o'clock.
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