ABSTRACT
Three aspects of British commercial policy may conveniently be given separate treatment, although they are intimately inter-related. This chapter deals with those features of policy which determine direct commercial relations with foreign countries. It outlines pre-war tariff policy and reviews post-war changes, including the general abandonment of free trade in 1931-32. The principles applied in recent bilateral agreements and present attitudes towards the most-favoured-nation principle are examined. In the crisis of 1931 the National Government, which had succeeded the Labour Administration, appealed to the country for "a doctor's mandate" and was returned to power with an overwhelming majority in which Conservatives preponderated. The doctor's mandate was interpreted as empowering the Government to make substantial changes in commercial policy, and the Conservative section urged the immediate introduction of a comprehensive tariff system. Strong support of the most-favoured-nation principle in its unconditional form has long been a feature of British commercial policy, but recently a tendency has developed to modify its application.
