THE CHINA MAIL, FRIDAY, JULY 8, 1040.
CRIPPS ON ROAD, SAYS
CHANCELLOR APPEALS THE
TO BRITISH PEOPLE Holding Off Claims
To Wage
Increases
DOLLAR-GOLD CRISIS
}
London, July 6.
Sir Stafford Cripps, Chancellor of the Exchequer, tonight appealed to the people to help beat the dollar-gold crisis by holding off claims to increases in personal incomes and by opposing politi- cally inspired strikes.
Speaking at a press conference immediately after his House of Commons statement announcing a three-month ban on dollar buying, the Chan- cellor gave this warning to the man-in-the-street:
"We must restrain ourselves on personal incomos, or we will wreck our
chances of stable employment and a decent standard of living.
"I were lo employment in
the TALY
try to keep full Replying to another question, certam selected foodstuffs which
frum said he does not pre primarily drawn this country-as Sir Stafford we must and shal-and protert share, the view that the raising dollar area and of certain par present standard of living we of the price of gold will solve the materials. need the full support of the or-moblem He looks for a solution dinary man and woman in that of the problem in policy
the consulta- The people mosi
tion between de-takimately concerned,
Stafford Cenomang, Sie chard "There is no rom what- Ter Boy present increase In personal incomes, Barrenses now STATES!
sume.
LIVE
pemple
1234834
A Standstill
Arrangement
At the
"Just as it took some time for this position to delcare itself so this stumistili will have Bule Im-
in reducing mediate effect
lean on our reserves.
But a standstill on dollar ex- though absolutely our
Pesanti
Cripps A
Statement
WRONG Curtain Raiser
REYNAUD
Paris, July 0.
Sir Stafford Cripps has per- haps chosen the wrong road in bis economic polley, M., Paul Reynaud former Premier of France and a former Finance Minister. told Reuter this of- ternoon.
All European currencies Are over-valued in relation to the dollar. They must all be re-ad- justed soon-there 19 a Freat need
for that specially for sterling. M. Reynaud sald.
He favours the establishment
of a gold stabilisation fund to back European currencies,
He said that such gold would have to be supplied by the Unit- ed States, and In his opinion the formal granice of the United Stater Government would be sufficient without actually trans-
London, July 8.
Polition opinion "here tonight recognises that Bir Stafford Crippa's Parliamentary statement on the shrinkage of Sterling reserves is merely a curtain calaor to concerted world efforts to solve the dollar problem.
It im aloar that the British Government expects to get to real grips with the problem only in the forthcoming discus.
lons with the United States and Commonwealth nations.
General reaction to the Cripps disclosures is that the DoD. nomid resesalon has shown how narrowly-balanced Britain's economy has been even with Marshall Ald.
Government quarters freely admit that the recent doolins in Britain's trade has been affected by speculation on Starling dovaluation course which air Stafford categorically reject- ed tonight-Router.
STANDSTILL ALSO APPLIES TO CANADIAN GOODS
London, July 6.
ferring gold from Fort Knox (the The standstill on dollar purchases announced tonight
United States gold store) to Eu- rope,
M. Raynaud favours the call- ing of a world economic confer- ence in the near future.
The solution of the present
economic crials la full smploy-- ment in the United States, tho Finance Minister, Mr. Walter Nach, told the New Zealand House of Representatives today on the eve of his
his departure for the London dollar talks. the
It might help towards a salu tion, he suggested, if the United States could follow the policy Britain had pursued from 1870
me to export free onwards ontime to ly and leave her surpluses In- vested in foreign countries
is no solution for 1 hits ouse of Commons state- money but they can only gives us,ent Sir Stafford drelased; "The difficulties,
"The effect upon our trade re- con-drain upon mar reserves as a nation. Ir goods 15
present rate calls for immediate lutions with the dollar area, of us for the change from an expanding to nu well Nor can
we afford the ridícurrsetter action
volume of world culous luxury of politically longer term anul for fundumental in contracting
212-
measures. His Majesty's Govern-trnde deinonstrates the need for spired strikes, the sole object of measu
is to destroy our which
and pursuance
Emphasising the power and bring hardship
prices misogy to pur
of what must re-
earning Iment therefore accounted at once positive long-term necessity water destiny, There is no mam the majur objective of our competition
the export drive, Sir the United States.
than
suid:
|
The
by Sir Stafford Crips, Chancellor of the Excho- quer, applies to purchases from Canada as well as the United States.
arrangement is described as relatively minor, pending much bigger decisions to be taken at the forthcoming Commonwealth Finance Ministers' Conference and other talks.
Thus the axe on Importa is suspended-It remains to be seen whether or not it will fall.
The British imports the stand- still might greatly affect are to- bacco and cotton from the United States.
During the past quarter Britain received £85,000,000 of Marshall Ald. For the year starting July 1, she has asked for no more than
averace of £59,000,000
En
1
quarter.
It is indicated tonight that in the changed circumstances Britain
The reasons for the gold loss
"The dilemina, as I see It," he said, "is that, to the extent the United Kingdom, Australia, New Zealand and other sterling area of countries cut dollar imports we order lo will
In Increase unemployment of effeiency metal policy, the safeguarding step up the
If we buy less from the Unit-may have to ask for more Mar- Government of the reserves of the Sterling
"The Staffor
Aid though it remains to be unarvessary strikes,
and the nation are pledged to aed States we will accentuate the seen whether she will get it. "We need maximum effrienry Area.
polley of maintaining
very problem that we are trying full em- "Before the middle of June we highest and the
pruductivity
been ployment and protecting our pre- to solve. That is the major pro had much throughout industry.
to our regret "Therefore, the ordinary man compelled by events to give in-sent standard of living. To that blem we
ՓԱ purchasing end efforts will be directed, don."-Beuter. and woman in this country have structions to all our
but 110 democratic government an immediate anul important part to play and
The most positive action they can take is to help to increase productivity. and 1-01- cleney so that we can get more goods for the same rest and thus keep up wages without increasing costs, or. Indeed, while redueingi custs."
Tobacco Buying
U.S. REACTION
TO SPEECH -PAGE 8
departments that they were postpone new dollar purchases to Questioned де to whether the maximum extent practicable.,
varlous com
contracts for modities will be affected by the dollar standa!) agreement on purchases he had announced in Parliament, the Chancellor said that neither tobacco nor cotton
пета
can
do this alone. ** nation
ach lever Is to -these generally
accepted alma there must be complete Co- operation. While we have no desire to 02 wager cut we must and can cut down costs and this we can do if we in- crease our production.
"Our existing polley of per- sonal incomes. costs and prices That standstill arrangement will have to be vigorously pur- will be continued for at least until after three months and the discussions to which i am"Any attempt at this stage to force up personal incomes can about
to hold.
only have the most adverse effect "Existing contracts und com
jupon our situation, since it will Included in the contracts, itinents will remain
hot specifie authority will be re-even more difficult for us to curn It raise prices and thereby maite it "Do you Intensi to continueured for any new dollar pur-dollars or other hard currencies he was asket, chases and will Only be given with our exports. That is one of the things we where a clear case of urgent na- most consider is association with tional interest is established,
"Expenditure other than on im-
b matters," ports will only
permilled where
essential and then at
They were bought at sales.
buying
the friends with whom we going to discuss these
the Chancellor replied.
Then followell those questions reduced rate.
and answers:
"Will the
purchase
of cotton
and tobacco be discussed with Mr.
Sayder (U.S. Secretary
Tremury)?"
Illegal Strikes
of the
"This in its turn must lead to a dimunition of our general ston- dord of Hving.
have to face in
of
in the past quarter includes the Lon-sharp drop in the purchuses
sterling area commodities by the United States.
AUSSIES RESTRICT
IMPORTS
Canberra, July 6.
"Cheap Sterling"
CRISIS DEBATE IN HOUSE
London, July 6. Labour Government members; today strongly resisted attempts the by the Conservatives and Liberals to get two days in- stead of one day of debate on
the crisis.
Sir Stafford Cripps. Chancellor | of the Exchequer, pleaded that next week he will be busy with the Commonwealth conference.
Mr. Anthony Eden, deputy leader of the oposition, retoried; "We are all glad that the Con- monwealth Ministers are coming, but there is the House of Com- tin, mons to consider too."
Five of
these-rubber, cocoa, wool and diamond- which were previously $12, 000,000 a quarter, fast quarter roached only about half this
total.
The devaluation question came a second time when Mr. Edward Davies (Labour) asked for an examination of tarif walls which keep British greds out of America. "Has not the time also come for devaluation of the price of gold In relation to our dollar problems" he asked, coun-
The Independent Labour mem- per, Mr. J. Platts-Mills, attacked the United States and said his
shall Plan is falling arc being earlier predictions that the Mar
He was stopped by the proved. speaker, who ruled that he was arguing and not asking a ques- tion-United Press,
Mr. Joseph B. Chifley, Aus- Leakages from the sterling area
another cause. tralian Prime Minister. today are
Some announced that the Department "cheap sterling" deals still con-
Continental of Trade and Customs had been tinue. Some ordered to issue licences only tries, for example, manage to get for urgently needed commodi the dollar proceeds of Australia's ties from the dollar area and wool sales to the United States.
basis. these only on a very restricted Some leaks, however, have been
stopped:
Britain's own imports did not contribute to the loss. They were heavier than in the first quarter of his year, but still below the schedule figure.
Mr. Chiefey sold that the bud get for the issue of licences for the quarter beginning on July 1 und ending September 30 has been considered by the Govern- Investigat-
Long-Term Remedy ment
ing the
to
The gold and dollar payments Belgium in July (for transuc- tions during June) are expected heavy June payment to be rather less than the very disclosed
"It is of crucial importance that in meeting the present situa-til after the discussions which are has been deferred un- tion we should not aggravate it Area either by demands
for increases to take place in London in con- two days ago.-Reuter.
pretion with the serious position
New Programme "Unters the Sterling succeeds in restoring the volume of personal incomes or by delays which has developed in regard of its sales to
the dullar these restrictions upon expenditure will have to be con- tinued.
the
PI
SMUGGLING
OF ALIENS
Manila, July 6. Constabulary investigators are reported today to have unearthed the existence of at least eight llogal Immigration syndicates in the country,
PI TALKS ON AIR PACT
Manila, July 7. Italy and the Philippines have begun talks on reciprocal air privileges.
Dr. Vittorio Strigari, Italian charge d'affaires, hopes negotiat- fons will be completed within a month.--Associated Press.
AIR TREATIES
area and stoppage in our Industry to the Sterling Area's gold and dollar which increases costs
and re-
lollar reserves duces our dollar earnings."
Referring to
Chifley's statement follow- Dollar- the "I did not say that we should
ed As soon as the distribution of
issue of trade figures from world relationships, the discuss these matters with Mr. E.R.P. ad for
Commonwealth the
statistician, the coming year Chancellor said that Britain, the Snyder. I said they were suitable has taken place and the
Dr. Reland Wilson, showing a new United States and the Common startling decline in the unfavour- subjects to discuss with our intra-European payments scheme wealth countries must
seek to
to-able friends, but I imagine that
trade balance
North we has come into operation we shall
with
Damascus, July 7. gether shall discuss a whole, range
a long-term remedy for
America for May
An aviation_agreement O get out a new import programme the stu
stubbor
problems of subjects arising out of this pre-in the light of the circumstances balance of trade
the
Dr.
The report said that constabu- signed at the Wilson's figures show a
Domascus Foreign} berveen the sent dificulty."
which then exist. We hope
decline
in the unfavourable trade lary sources have indicated that Ofee today between Syria and "Will that Include devalua-hase
to Western Hemisphere and the rest balance of more than £10,000, four alien smuggling rings are Turkey. have such n programme com-of the world of which the Ster-000 since the end of last year, tion?"
operating in Luzon, two in the pleted in September next. "It will include anything any
Aren forms an important Wool exports
United, Visayan Islands and two in Min- to the part.
States for the 12 months ended danao.-Router. The meeting of Commonwealth May this year were worth £10,- im-Finance Ministers in London will 800,000,
£23,- compared with
"Before the discussions to which one wants to raise arising out oft will refer in a moment we do this difficulty".
noi intend to make any to stovimediato adjustments
amount of dollar goods "By the common sense of the for consumption: but Brilish people",
How do you propose illegal strikes?"
link
In the begin on July 13, and will dis- 400,000 for the same period of released cuss the situation now existing 1047 to 1048, soon as and devise mutual have to measures to deal with it.
co-operative
In Washington, a "Post" co- lumnist said today that the Unit-
they are over we shall "But that has not got us veryeconsider the situation far?"
light of any decisions "It has got us quite a long way and it may than become neces-visit of Mr. Snyder, Secretary of Administ
Isary to reduce consumption
of the United States Treasury, to the time has come for Sterling to
initiate discussions with the be devalued. United States Government m 01
in the Sir Stafford added: “We are
ed States Treasury, the State De- reached taking the opportunity of the partment and the Marshall Aid
Administration are agreed
so far,!"
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Abbott, Stafford Cripps
that
Despite the resistages of Sir the whole matter. Mr.
British Chan- Canadian Finance Minister, will cellor of the Exchequer, it seems take part in these talks as well likely that Stering will be de as in those of Commonwealth valued some time this month or Finance Ministers."Reater.
next as part of a European plan, the columnist said.
OPTIMISM IN UNITED STATES
Washington, July 0.
Mr. Dean Acheson, Unlied States Secretary of State, today expressed confidence in the Bri- Ilsh Government's ability to over- come its present economie dim- culties.
He said that the British situn-
tion is not a great crisis.
It
tish Government can make.
The United States' gold as- nots have reached a
record high value of $24,468,923,000--. mbout three-fifths of the world's stock.
A high United States official today said that the Secretary of has been expected for some time State, Mr. Dean Acheson, had and it is a ro-adjustment which deliberately deprecated the he has every confidence the Bri-, British crisis in (today's press conference because the Depart- ment believes the British can find tho necessary remedies within the next three months.
The Department fools Britain is American experts in Washing- the most important of nations ton know nothing about rumours whose currencies should be de- that Britain and other European valued and other remedies should countries ora paking the United Include restoration of incentives States to grant further and initiative to British Industrial through the media of the Ameri- production in an effort to reduce can gold stock.
ald
the prices of export goods. Ila They point out that it would thinks that the crushing taxation take action by Congress to turn in Britain, plum all-inclusive recurity benefits, had virtually over any of the gold to a foreign country-fouter and Associated deprived the average British wor- ker of Incentives and initiative,
Ho added that the Belgian| polley of allowing the importation enough to buy them has proved of so-called luxury goods for rucessful. He praised the simi-i those who want to work hard lar trord in France-United Press.
Press.
was
A similar agreement was signed on Tuesday with Greece-Asso- ciated Press.
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