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INTERNATIONAL RELATIONS
We must treat our economy as a whole. Whatever we do internally, we cannot leave out the foreign balance and export trade. This element of our economy is largely dependent on the policies of other countries. The importance of restoring and expanding our export trade to make up for the loss of our overseas investments, is generally recognised, but Government action to this end cannot be taken in isolation I have said publicly before, that if the creative ability of the State is really brought out now, and we act as firms and individuals, governed by the great objective that I mentioned just now, the worry that might arise from the loss of overseas investments and living on interest may well be limited. I think, there is a great future for this country. It is not only going to survive in war; I believe it will survive well in its economic life.
The amount of production entering into what is called the foreign trade of the world is not a very large proportion of the world's total production and consumption. It is very small in comparison with the total production and consumption. We must have foreign trade, because the raw materials are outside our country. We must buy them, and other countries must buy goods from us, if we are to have the raw materials, and we must do so under conditions which will ensure that our internal economy is not brought near disaster with every storm that blows. Before the war, the number of people actually employed on what are called exports in this country, was about 2,000,000 of our total working population. Unless there is a method of insulation, there is always the danger of the whole economic structure being upset by this comparatively small number. Therefore, in association with other countries, we must try to agree on measures which will prevent the appalling fluctuations in the international price level, which characterised the years between the wars and which, if there is a reasonably stable international price level, make for expansion all over the world and give security and confidence. I am hoping that the negotiations now being carried on throughout the United Nations will lead to that end. We have wholeheartedly committed ourselves to this in the Atlantic Charter, the Mutual Aid Agreement and the Hot Springs Conference. We welcome the initiative taken in the employment field by the International Labour Organisation. Attention should be particularly directed to the resolutions passed at Philadelphia on the economic policies for the attainment of social objectives, which are broadly in line with the policy of this White Paper. Therefore, international discussions will proceed on a wide range of subjects and Parliament will be informed of their progress as in the case of the monetary proposals.
There is one great field that must call for special attention, and that is the development of the Colonial Empire. It must have a proper place in our expanding overseas trade. It must be systematically organised and have as its objective the raising of the standard of life of the 66,000,000 people in the Colonies. They can gain and we can gain. It is a common effort achieving a common purpose. Success in maintaining a high level of employment at home will in itself assist the export trade. The more products sold on a good home market the more they carry the overheads and assist in a reasonable price to meet competition.