CO129-581-16 British propaganda in Hong Kong 18-4-1939 - 29-10-1939 — Page 44

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3.

Cotton Industry to be recrganised.

Before the end of the year a great and new experiment will begin

in the British cotton industry. For many years the industry has

been in a depressed condition and various schemes have been tried in

order to recover its lost markets. Now Parliament has passed a Bill

for the reorganisation of the industry.

To some extent the individual firm will sulfer, in the interests

of the industry as a whole, a curtailment of its liberty of action.

Different sections can prepare and, by a majority vote, adopt schemes

for purchasing and selling redundant plant, thus regulating output, and

fixing selling prices. But no individual firm, and no section of the

industry, can act independently of the rest, for all schemes must

first receive the approval of the Cotton Industry Board, and then be

submitted to the Board of rade.

Even in its days of decline the cotton trace remained of enormous

importance as one of the greatest exporting industries, and one of the

auties of the Cotton Industry Board will be the cevelopment of the

overseas markets of the industry. The reorganisation schemes will

enable it to survive and grow in a world where foreign trade in staple

goods tends to be done in vast bulk and under centralised and assisted

organisation schemes.

It is understood that the first steps to be taken will be in the

cirection of retrenchment, in order to bring the productive capacity of

the industry into proportion with the whole trade which Lancashire

can expect to do. Minimum prices will be fixed, and undercutting of

prices will thus be abolished, With the help of the Government

department concerned it is hoped that the industry will enjoy a new

lease of life.