Defensive Trade
Although it is difficult to quarrel with any individual item in Mr. Harold Wilson's catalogue of British trade negotiations and objectives it is ecRally difficult to deny that it all adds up to an uncomfortable state of affairs.. The President of the Board of Trade certainly did not deny it. He drew a clear distinction between the complex of bilateral arrangements which we must build up in order to keep going, and the multilateral system on which our inter- national commercial strength was founded and on which its future depends. It is true that we must concentrate our efforts on selling direct to Canada, the United States, Argentina and South Africa because these countries are the main suppliers of hard currency and gold ; but it would be better if we could get our dollars by the old (and cheaper) indirect routes. At least one of the countries mentioned is perfectly capable of extracting full advantage from the advertised information that we are eager sellers and desperate buyers. It is also true that we must meet as many as possible of the import demands of the members of the sterling area in order to prevent them from trying to meet their needs in the hard currency areas and drawing too heavily on the precious common stock of dollars ; but it would be better if we and they could sell and buy where we liked without strain either on our finances or our loyalties. Again it is true that we must concentrate on the immediately vital markets and maintain only what Mr. Wilson called " a reasonable flow " of goods to our older and more reliable customers ; but it would be better if we could pay more attention to the foundations of our trade and spend a little less time stopping leaks in the roof. Lastly, it is true that we must safeguard ourselves by individual agreements against a collapse of the sellers' market ; but it would be much better if we were sufficiently energetic and economical producers not to have to worry about such things. Mr. Wilson knows all this. He hit the biggest nail on the head when he included among our main objectives the need to keep the maximum of international trade going. If he remembers that amid the welter of, bilateral bargains we shall one day take the offensive in international trade.
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