5. The Commonwealth

It is going to be a trying time for our politicians. British capitalism has been forced, after much dithering, to face up to the harsh realities of its own world. No more can it ignore the increasing challenge to its position in a highly competitive world market, and the fact that the relatively easy markets of the British Commonwealth are no longer sufficient to offset this. As The Observer pointed out almost three years ago:

“At the moment the Commonwealth accounts for nearly half our trade but it would be foolish to pretend that it offers anything like the growing market of Europe.”

This must be a major consideration to our rulers, despite the high-flown claptrap which they have talked on occasions about “Commonwealth family of Nations.” So Britain goes cap in hand to “the Six” and Tory Ministers make a flying tour of the major Commonwealth Countries in an effort to ride out the inevitable storm of protest which their decision has aroused.

Since the end of the Second World War in particular, successive Governments have never tired of telling us how important it is that Britain should export more and more. So perhaps we may be forgiven if we have forgotten that Britain itself is a large and important market for goods coming from Canada, Australia and New Zealand, for example. And it is the fear of losing this which is behind the undignified squabbles which have taken place over the past few months.

Canada
In a recent survey by The Times we read that “. . . . there is an undoubted fear that by Britain’s closer association with Europe, Canada is going to suffer in what is her second best market, especially in agricultural and chemical products as well as in a newly found market for her manufactured goods.” So seriously do the Canadian capitalists view the prospects, that only on November 11th last, The Observer was able to report that relations between Canada and Britain on the Common Market issue were worse than at any time since preliminary negotiation began.

Over the other side of the world in New Zealand, there is near-panic at the threat of a shrinking market for primary products—lamb, wool, butter and cheese—in Great Britain. Understandably so from the viewpoint of the N.Z. farmers. Apparently fifty-seven per cent. of their total exports were sold in the United Kingdom in 1959. And more recently The Dominion (Wellington) asserted that some eighty per cent. by weight of N.Z. dairy products now go to the British Market. The remarks of Prime Minister Holyoake further emphasise with what trepidation the future is viewed; just listen to his words, reported in the National Party Journal Freedom for July, 1961 :

“It is no exaggeration to say that our dairy industry and our lamb production have been based on and are designed to serve the needs of the United Kingdom Market. They have been based on the idea that our expanding production could receive a full and remunerative outlet. Without it, the whole economic future of New Zealand is thrown out of balance.”

Strong words indeed! And matched equally by (hose of leading government spokesmen in nearby Australia. Their Common Market Communique issued on July 11th speaks of “… the serious adverse consequences for Australian producers and for the Australian balance of payments which would confront Australia if the United Kingdom were to enter the Common Market on a basis which failed to safeguard Australian trade interests for the future.”

Australia Looks Elsewhere

Wheat, meat, dairy products, bas; metals, sugar and fruits constitute the bulk of Australian exports to Britain and are currently valued at almost £200 million Sterling. The Minister for Trade, Mr. McEwen, has asserted that Britain is Australia’s biggest market. So little wonder then, that there was such “full and frank” discussion with Mr. Duncan Sandys when he paid his visit a few weeks before.

But despite the forebodings of official spokesmen, it does not seem that Britain’s decision has taken the Australian Government completely by surprise. For some years now, attempts have been made to find alternative markets, and it is interesting to learn that Japan has now become the biggest buyer of Australian wool and a top-level buyer of many other important products. Trade with Japan in 1960 was worth £160 millions.

In a press interview on last July Mr. Menzies admitted the great political implications of the Common Market. He has described it as possibly “a third power” in the world :

“(But) we record our view that the Commonwealth will not be quite the same . . . this will lead to a loosening of Commonwealth relations.“

So where will they turn then? Might there be just the possibility that yet “a fourth power” will emerge, embracing Australia, New Zealand and other far eastern States, and with Japan as a leading member? Does it sound too far fetched? Nothing should surprise us in a capitalist world. Canada in her turn could swing politically in favour of the U.S.A. if the tariff walls of the Common Market go up against her. She already has close economic links and American capitalists have large investments in Canada.

And for the workers of the Commonwealth? Well, there is one market which they have always had in common with their opposite numbers in every other part of the world, and that is the labour market. This basic fact will not, of course, be altered. They will remain workers facing the common problem of Capitalism—and how to get rid of it.
E.T.C.