London, June 9.
Trade Outlook was debated in the House of Commons today when the President of the Board of Trade, Mi Oliver Stanley, gave an encouraging account of prospects. The last fe months, he said, had shown a v marked recovery, and the index of industrial production for the first quarter of this year had now practically reached the level of the frs quarter of 1938.
While giving full weight to tne effect of the re-armament programme on the recovery. we should not exaggerate it. There were a good many signs that the recovery was not so greatly due to re-armament expenditure as some people believed.
British industry was still engaged in supplying normal requirements and there was as yet no general dislocation of industry.
Speaking of what would happer when it was possible to reduce armament expenditure, he said that if a reduction came as a result of a sudden and dramatic stroke, then that very stroke would immensely increase confidence and make possible revival of international and internal trade.
In Germany, there was an entirely new economy. It was hoped that Germans would see that it would lead to reduced standards of living and would themselves abandon it. Meanwhile we must try to meet the problems presented, he said.
Referring to the Anglo-Rumanian trade negotiations Mr. Stanley said there was no desire to exclude Germany from the natural markets which she enjoyed in the Balkan countries. What we do say, he added, is that we are entitled to our fair share of trade there, and we are determined to maintain it. Owy restoration of confidence would allow our trade negotiations with Berlin to be resumed—Wireless through Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.