Great Britain's policy with reference to future trade is outlined in the final report of the Committee on Commercial and Industrial Policy After the War, of which Lord Balfour of Burleigh was Chairman, and which included in its membership Arthur Balfour, (ex-Master Cutler of Sheffield,) also the heads of the various Boards of Trade, the textile trades, with representatives of the shipping and shipbuilding industries, finance, engineering, metal trades, coal, electrical, iron and steel associations, national transport workers, and distinguished economists.

Shipping policy after the war is not dealt with in the report, but, in view of the world shortage of tonnage, the committee express the opinion that, while it may be desirable to impose for a limited period some restriction on the use of British ports by enemy vessels, any policy which might tend to check the use of English ports by foreign shipping generally would be inexpedient. They, however, urge that, in accordance with the Paris Conference resolutions, the exaction of reparation in kind from enemy countries should, in the interests of the reconstruction of industry and the mercantile marine, be carried out as fully as may be practicable.

In a general survey of the position of British industry and overseas trade in 1913, prior to the war, the committee found that the United Kingdom had taken only a limited share in the more modern branches of industrial production, and that certain branches had come to be entirely, or very largely, under German control, and in numerous branches foreign manufacturers had secured a "strong, or even predominant, position." They found that British merchants and manufacturers had also been encountering successful competition in overseas trade. They believe that the knowledge gained during the war will be a valuable asset in the development of British industry.

As to the measures which should be adopted during the transitional period, the committee reaffirm the main recommendations of their interim report, namely:

Transition Period

(a) The prohibition of the importation of goods from enemy origin should be continued, subject to license in exceptional cases, for at least twelve months after the conclusion of the war, and subsequently for such further period as may be deemed expedient.

(b) The Paris resolutions relating to the supply of the Allies for the restoration of their industries can be carried into effect if a policy of joint control of certain important commodities can be agreed upon between the British Empire and the Allies. Any measures should aim at securing to the British Empire and the allied countries priority for their requirements, and should be applied only to materials which are mainly derived from those countries and will be required by them. This policy should be applied as regards the United Kingdom by legislation empowering the Government to prohibit the export, except under license, of such articles as may be deemed expedient, and, as regards the British Empire and the allied countries, the Government should, without delay, enter into negotiations with the various Governments concerned, with a view to the adoption of suitable joint measures in the case of selected commodities of importance.

The Government should consider, in consultation with the Allies, the expediency of establishing after the war a joint organization on the lines of Commission Internationale de Ravitaillement for dealing with the orders of the allied Governments for reconstruction purposes, and with such private orders as they may find it expedient to centralize.

It is pointed out that the prolongation of the war and the entry into it of the United States have increased the importance of a considered policy directed toward assuring to the British Empire and the Allies adequate supplies of essential raw materials during the period immediately following the conclusion of peace, and that the extent to which the Paris resolutions which bear upon this vital question can be carried into effect depends upon the co-operation of the Governments concerned.

PROBLEM OF RAW MATERIALS

The committee reports that it will be necessary to continue for a considerable period after the war some portion of the control of home and foreign trade in order to secure adequate supplies of foodstuffs and raw material. It does not regard it as practical to attempt to make the empire self-supporting in respect of numerous raw materials. It notes that the Board of Trade already has set up a committee to investigate the question of the supply of cotton and it recommends special inquiries as regards each commodity. "The object to be kept in view should be that the empire may be capable in an emergency of being independent in respect of the supply of every essential commodity of any single foreign country."

The committee advises against the exclusion of foreign (other than present enemy) capital from sharing in the development of the empire's resources, but recommends:

(a) Complete disclosure, as far as is practicable, of the extent of foreign holdings in any particular case.

(b) That mineral and other properties are not secured by foreign concerns in order to prevent the development of those properties, and to check competition in supply; and

(c) That in the case of commodities of great imperial importance, the local Government concerned should have some measure of control over the working of the properties.

These principles, if accepted, should be brought to the notice of the Governments of other parts of the empire, with a view to the adoption of a uniform policy.

ALIENS IN BUSINESS

The committee expresses the opinion that it would not be desirable to impose special restrictions against the participation of aliens in commercial and industrial occupations. It recommends, however, that such occupations as pilot and patent agent should be confined to British-born subjects, and suggests that foreign commercial travelers operating in the United Kingdom should be registered and hold licenses, that the registration of title to property should be compulsory, and that such registration should involve a declaration of the nationality of the owner.

The committee deems it unwise to restrain the establishment or the continuance of agencies or branches of foreign banks or insurance companies in the United Kingdom, but foreign insurance companies should be required to make a deposit proportionate to the business done. Foreign banks should be required to pay the income tax.

The committee considers it necessary to impose special restrictions on the subjects of enemy countries, and that this can best be done by means of stringent permit and police regulations, but it does not believe that attempts should be made to prevent enemy subjects from establishing agencies or holding interests in commercial or industrial undertakings.

A plan for the maintenance and development of industries essential to national safety, called "Key Industries," is proposed, as follows:

Synthetic dyes, spelter, tungsten, magnetos, optical and chemical glass, hosiery needles, thorium nitrate, limit and screw gauges, and certain drugs.

SPECIAL INDUSTRIES BOARD

The committee recommends the creation of a permanent special industries board, charged with the duty of watching the course of industrial development and recommending plans for the promotion and assistance of the industries enumerated above. With reference to industries generally the committee thinks that the individualist methods hitherto adopted should be supplemented by co-operation and co-ordination of effort in respect of

1. The securing of supplies of materials.

2. Production, in which we include standardization and scientific and industrial research; and

3. Marketing.

The report recommends the formation of combinations of manufacturers, strong, well organized associations and combinations, to secure supplies of materials, especially the control of mineral deposits in foreign countries. In order to facilitate increased production it recommends:

That an authority should be set up which should have the right, after inquiry, to grant compulsory powers for the acquisition of land for industrial purposes and the diversion or abolition of roads or footpaths.

That there should be a judicial body with compulsory powers to deal with the question of wayleaves required for the development of mineral royalties and the economical working of collieries and mines.

The committee believes in the formation of organizations for marketing the manufactured products of the country and deems it inexpedient for the Government to enter into any policy aiming at positive control of combinations (trusts) in the United Kingdom. It recommends that combinations be legalized, so as to be enforceable between members. It welcomes the establishment of the British Trade Corporation to co-ordinate and supplement existing financial facilities for trading purposes. As a general rule the members think it would be undesirable that the State should attempt to provide capital for industrial purposes, but as the re-establishment of industry on a peace basis will be profoundly affected by taxation, currency, and foreign exchanges, they recommend that these matters be taken up by the Treasury, in consultation with the banking and commercial interests.

TARIFF REGULATIONS

With reference to tariff the committee recommends a protective tariff only on industries "which can show that, in spite of the adoption of the most efficient technical methods and business organization, they cannot maintain themselves against foreign competition, or that they are hindered from adopting these methods by such competition."

The general fiscal policy as finally adopted by the committee is as follows:

1. The producers of this country are entitled to require from the Government that they should be protected in their home market against "dumping" and against the introduction of "sweated" goods, by which term we understand goods produced by labor which is not paid at trade union rates of wages, where such rates exist in the country of origin of the goods, or the current rates of that country where there are no trade union rates. We recommend that action be taken in regard to "dumping" on the lines (though not necessarily in the precise form) adopted in Canada.

2. Those industries which we have described as "key" or "pivotal" should be maintained in this country at all hazards and at any expense.

3. As regards other industries, protection by means of customs duties or Government assistance in other forms should be afforded only to carefully selected branches of industry, which must be maintained either for reasons of national safety or on the general ground that it is undesirable that any industry of real importance to our economic strength and well-being should be allowed to be weakened by foreign competition or brought to any serious extent under alien domination or control.

4. Preferential treatment should be accorded to the British oversea dominions and possessions in respect of any customs duties now or hereafter to be imposed in the United Kingdom, and consideration should be given to other forms of imperial preference.

5. As regards our commercial relations with our present allies and neutrals, the denunciation of existing commercial treaties is unnecessary and inexpedient, but the present opportunity should be taken to endeavor to promote our trade with our allies, and consideration should be given to the possibility of utilizing for purposes of negotiation with them and present neutrals any duties which may be imposed in accordance with the principles laid down above.

LIMITING PROTECTIVE PRINCIPLES

In view of the danger that the admission of the principle of protection, even to a limited extent, may give rise to a widespread demand for similar assistance from other industries, and consequently to an amount of political pressure which it may be very difficult to resist, the committee further recommends:

That a strong and competent board, with an independent status, should be established to examine into all applications from industries for State assistance, to advise his Majesty's Government upon such applications, and, where a case is made out, to frame proposals as to the precise nature and extent of the assistance to be given.

Before recommending tariff protection for any particular industry it should be the duty of the board to consider forms of State assistance other than, or concurrent with, protective duties, such as bounties on production, preferential treatment (subject to an adequate standard of quality and security against price rings) in respect of Government and other public authority contracts, State financial assistance, and also whether the position of the industry could not be improved by internal reorganization.

The board should also have constantly in mind the safeguarding of the interests of consumers and of labor, and should make recommendations as to the conditions which for these purposes should be attached to any form of Government assistance, whether by means of a tariff or otherwise.

The committee reports adversely on the changing of weights, measures, and coinage to the metric system.