Meeting Free Trade Challenge
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COMMENTS about the European Common Market and Free Trade Area were made by the chiefs of two prominent manufacturing concerns this week in their annual reports. Sir Leonard Lord, chairman of the British Motor Corporation, said that it would be the home market that would have to meet the impact of " this revolution in European economic policy."
The Government should properly understand the home market's function as the foundation of our economy, and policies which affected home sales through credit restrictions, purchase tax, profits taxes, hire-purchase and other controls must be revised to give Britain parity of home-market conditions with those of Continental competitors.
He reiterated that export trade in vehicles was founded upon a stable and
healthy home market. Unfortunately, the view seemed to persist in Government circles that home sales were made at the expense of exports and not as a foundation for them. "I am sure our European competitors are not handicapped in this way," said Sir Lebnard.
Mr. A. B. Waring, chairman and managing director of Joseph Lucas (Industries), Ltd., said that the long-term implications of European free trade were receiving close and continuous study. Branches were already established in Germany and Switzerland, and the company were about to set up a central European office in France.
At present about half Lucas output, either directly or indirectly, was for overseas use, and the value of exported equipment approached Lim. a week, stated Mr. Waring.