Magyar külpolitika, 1930 (11. évfolyam, 1-7. szám)

1930 / 2. szám - The customs convention conference in Geneva

18 HUNGÁRIA LLOYD July 1930 broughl aboul by the Greal War, from the generál impoverishmenl resulting, and Erőm the reaction of these factors on consumption, it goes without saying thai the consequenoe of Ihis economic dismemberment is an increase of the cosl of production resulting in an equally natural decline in consumption. One resull of the economic dismembermenl is that the industrial States arc compelled to enhance their agrarian production and to increase the severity of itheir measures for the protection of that production, while the agrarian countries arc driven to introduce even such industrial production which cannot be rhaintaned excepl by measures of the kind and must cease to exisl the moment the protection comes to an end. Tn hol cases the the nioment the protection comes to an end. In hoth cases the result of these tendencies is —' increase of customs duties. And that instead of dccreasing the obstades created by the economic barriers raised by the enstoms düties. Certain of the countries hastened to introduce new customs duties hefore the meeting of the Conference; others refused to jóin, either because they desired to impose neAv duties, or becaúse they were not prepared to take part in the work unless they received assurances that the Gérieva agreements (which are certainly elastic enough) should not interfere with their freedom of action in that field. Exactly the same has just happened as on the occasion of the world economic conference convened by the League of Nations in 1927. Grand resolutions were passed for the furtherance of that economic solidarity of the peoples which has for one of its most effectual means the greatest possible freedom in respect ©í economic intercourse: and one of the most éffectual means for the attainment of this last object is the gradual demolition of the customs barriers. Scarcely had the ink dried on the signatures bf the procés verbals when those very nations which had been the most zealous advocates of the finesounding resolutions passed by the world economic conference hastened to raise their customs tariffs. Notwithstanding, it goes without saying that these countries are the most enthusiastic advocates of the most far-reaching scheme of association or rapprochement, — wether those schemes be called „Pan-Europe" or „European Customs Union" or „Customs Federation" or „Collective Customs Conventions" or „Régiónál Customs Union", — whether they be drafted for the materialisation of a Danuhe Confederation or a Central European Customs Union. However, the fundamental conception hehind all these schemes jis in all cases naturally the protection of the i.nterests of the industrial States by a reduction ,of the industrial customs duties. This has been the dominating consideration in all the actions of the kind initiated by the League of Nations. So far the role played by the agrarian interests has been of a suhordinate character; indeed, when — on the occasion of the 1928 Assembly — T pointed the fact ont at a meeting fo the Economic Committee, criticising the generál attitűdé in a modest manner, I must confess that my words did not achieve any particular succes. They were lost even on the representatives of the countries with the same interests as my own. For these countries too, of course, the political interests were the (decisive factor in their economic policy too. I douht whether the representative of Hungary at the present Geneva customs conference was any more succesful in ohtaining a hearing for his serious and energetic protests in the same direction. Until the balance has been restored between the industrial and agrarian interests, — until the cell containing the ahsurd conception of economic autarchy has been hanished from the hrains of the several countries or at least repressed by somé sager idea —, in my opinion every attempt at rapprochement is doomed to failure, however speciously it may he introduced. Even then there would he difficulties enough left. T would refer only to two of these — the American and the Russian questions. The former concerns the matter of competition, which would hecome bittér to the utmost degree the moment the tendency of any Eíuropean economic unión or rapprochement seemed to be directed against the New World, — an issue which is inevitahle. Russia is of importance hoth as consumer and producer. Then there is the quite special situation — and quite special interests (— of the British Empire, which T for the moment ignore, though this situation and these interests may easily prove to he of a decisive character. The American question was actually raised in Geneva in the form of a shrewd agrarian proposal. This proposal was submitted by the representative of one of the industrial States for the purpose of bridging over certain agrarian ohjections by reducing the duties on wheat of European origin in generál to one-half of the morrnal amount included in the tariffs. That what was meant was the wheat duties which are to he raised, is la matter of no importance; hut the State responsihle for the proposal forgót to teli us what the overseas countries would do in answer to such a measure. T do not intend to continue even this cursory treatment of the circumstantial difficulties: lmt will now proceed to deal with the Customs Conference itself. The Conference was very soon driven todeparl from its originál intentioiis; the suggestion that the States should hind themselves not to raise their customs duties for two years, had to be dropped at the very outset of the discussions. And from that moment the Only question figuring al all was the qnestion of prestige, — everything being concentrated on saving the face of the League of Nations. This was certainly a desirable issue. for the only section of the League concerned in the failure — the financial and economic section — deserves every gratitúde for the work it has done, This section is objective in'every respect and deals with the matters entrusted to its charge with affectionate devotion; and it is nol the fault of this section that it has proved impossihle to achieve greater results in the mattéi' of the economic rapprochement. Nor was it possible to carry through the idea that the several countries should engage for two years not to foreclose the commercial treaties already in existence. Though that is surely a modest stipulation. At last, after greal difficulties, the parties agreed to accept the term of one year; though that too with the conviction that even this