Britain in the Steel Cartel The use of the tariff
for bargaining purposes is a danger- ous two-edged weapon which may be used against the country that applies it ; but it is fair to admit that Mr. Runciman's threat against the European Steel Cartel, implicit in his action in raising the duty on imported steel, has succeeded. It has induced the Cartel to accept an agreement that for a three-months period, during which negotiations for a permanent settlement will continue, its imports to Britain shall not exceed a rate of 643,000 tons a year and the tariff (when Mr. Runciman has formally agreed) will fall from 50 to 38 per cent. The next stage will be to negotiate for a share of the foreign market at present controlled by the Cartel. Dumping will cease. The British home market is secured. An increase in the foreign market is in prospect. Mr. Runciman has won the trick in a hazardous game, having played and bluffed skilfully. The trade and the Government have been successful in this big marketing deal. What we now hope to hear is that this success will not be a substitute for re-organization on the productive side, and that the consumer will not suffer by shortage or dearness of sup plies. * * * *
Previous page
