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ENGAGEMENT
THE CHINA MAIL, SATURDAY, APRIL 15, 1050.
The Dollar crisis--No. 2
Problem of Sterling balances
In 1910 about one quarter of the Yesterday's article describ
Imports of India and Pakistan from ed the first part of the analyse U.S.A. were of foodstuffs, sis of the dollar crisis in the and about one half machinery, sterling area made by the vehicles and metals. These figures Research and Planning Divi- tell graphically, the story sion of the Economic Com- dia's post-war prtuned. During mission for Europe. It dealt the last five-years India has had two great Beeds. The first was with the deficit of the UK and to feed itself. The second was the dollar'area.
The study passes on to the de-. ficit of the other countries of the sterling areas the overseas stér- ilag countries.
Between 1098 and 1940, the trade deficit between the overseas
countries sterling
and North America increased from $79,000, ODD 10, $439,000,000. The total payments denet-including ser- vices as well as merchandise in creased from $83,000,000 to $542,- 000,000). This has to be compar GORDON-LEIGH-The Engage-ed with the increase of only $17,- ment is announced between 000,000 in the trade, deficit of the
UK with North America. Sidney, Gordon, son of. Mr. and, Mrs. P. S. Gordon of Glasgow, and Olive Leigh, daughter of Mr. and Mrs. Lingheld. P. A. Eldon of Surrey,
OUR LOCAL GOVERNMENT
of in
*
Kingdom from the United States. There 18, 1 understand, and Canada have been held since unanimity of last in Shanghal, The war indidates Pint further Formose the people there wish reductions here would uffernt the Nationalists would mine their best only
limited ppīši.
But this is not the end of the!
"The nextremely low lovalab The United Kingdom no which imports Inta, the Giuled. story? lenger has a surplus in its ac counts with the overseas sterling buation, yak
The stability of the pre-war system of exchanges depended on the UK earning a surplus in its economic, relations, with the over- seas sterling countries. It used
-By "Windrush' Special Correspondent
to restore and develop its indus- trial system and its transport system, both of which had be- come run down during the war.
Population up
this surplus to settle its deflelt with North America.
Today
this surplus has fallen disastrously
bilities of dollar saving. Alten- own business.
lon needs therefore to be cen. tred on the greatly expanded pust-war volume of imports from U.S. Relentists worried North America into other Sterl-hydrogen bomb.". ing. Area countries."
Them and me both.
1
U.S. thinking
over
Declaring that he... is not a This undoubtedly reflects cur propagandist.fr Russia, rent American thinking about the American, professor in Melbourne that he "could sterling area crisis.
adda,, however, gan in creasing extent, Americus and no evidence of a Soviet de criticising the scale and.
others." of the relenia, by, the UK alone, impose their system on He is, I think, likely to bo sterling balances to the sterling. prea countries It is this, say, the ostrichised, whích: hân” mudo, it
This large dollar deficit of the
With India's population increas- overseas sterling countries is une of the key, dominating facts of the crisis. The crisis has beening at the fantastic rate of three and a half million a year, Inda's produced not only by. eircum-
food needs are growing by 400,000 stances of the British domestic
tons of grain every also by circum-to the political collo WINS DOO. economy, but
South stances of the overseas sterling- countries.
East Asia, India has been unable to obtain, its food Imports from the Which countries were mainly responsible for this heavy dollarlee-howl there. It has had 12 volume of pre-war exports. The exports to the dollar area on thel
It is two countries principally which have increased their ad- verse balance. They are Indin and South Africa. The following table is instructive:
Imports in $ milion from the U.S. U.K. India and S. Africa
Pakistan 1936 516 35 1948 838 31G*
404
buy
to
The
in
of
gold of
has fo
del-
lar prices have doubled. Thus the
Taking the fun out of it.
Committee. appointed to
reported to be getting worried. Members of the fish ring inre
pretent investigate the high price of fish.
The Private 'ere? says Russia, the Search me if you want to create
reale which is neccos Bull another incident:
British/experis, correctness of
This
**TCUB.Thus Get bably America would, in.we end,dalghter, and..
of
for can the UK ports. Dut the long-term result
markets
area may
farce, and that the Dead paid for, or, who was to pay ports of India and South Africa of 1949:4ho, crisis. in, the sterlingtries, other thon,
United States.
the
The paradox is that the change / possible for some of the oversens has taken place at a time when sterling countries, especially India Great Britain has in fact been ex- and South Africa, to finance panding in anuhprecedented way their hugely inflated imports from The total British ex- the last analysis, It is this which
pound. to exports to the sterling area the dollar, area; and therefore, in countries, trles were in 1938 only $787 - broke, tho,ince. so..
much of They are afraid their Moreover ports to overseas sterling
In 1948 they had risen to British, experts was canalised by rate of profits may be oficially
After
into the approved, like the hotels and $2,240,000,000.
llowing for
the sterlbig balances. price increases, this represented sterling area, this prevented, the utility companies. ittle short of a doubling of the UK economy from developing Its
from abroad, including from greater part of these experts defcil? Some actually improved America. There are two ways of re-their dollar position. Australis,
India's adverse balance of trade were machinery, metals, manu-
they are reluctant to draw the moulding our affairs nearer for example, turned a deficit of would have been even greater, if factures, vehicles and chemicals.
conclusion that the refense of the the terms of trade had not chang
Unrequited exports the heart's desire. One of $84,000,000 in 1938 into a surplus
balances at $7,000,000 in 1948. West Africa
must be stopped. ed in
sterling its favour. Because of this
But a very large part of these. The sterling area, countries mus
Agency report from Hollywood them is to go Bolshie, gather turned a surplus of $8,000,000 in change, India enjoyed a three-fold the mob around, carry out a 1939 into one of $101,000,000 in inc
increase in the price of its exports exports are what is known as obtain imports from somewhere says the Bergmans are "negotiating They have Been If they were no longer, financed an out of court settlement over the dollar arca.. Revolution, and then, do the 1948.
The releuse, ot
of... their through sterling...bulances.
custody pro-
12-your-old The reason for the heavy in mudo.
about $250,000 jpb yourself. The other is, to
crease in imports by South Africa sterling form a Party or Committee,
is less easy to discover. Of South Britain gains, property."
I'd like to know, what It does acquire, as it did nuance
not
them. directly it could. draft a Programme of Action
Africa's imports from the dollar the past, a claim upon diq dollar not accept the political conse- community is going to muy about and Polley, put it before the
orea in 1948, nearly half were
Jarly, a quarter
the sterling But nearly a
urva quence of cutting off their im- that. machinery, lectors, and then, if elected,
were of textile fibres and manu
any more the new gold of such a move would be the put it through. Nobody has
factures. South Africa was not production of South Africa, for permanent, loss of valuable Eri- ever got anywhere by rush-
"Jap suicide rate higher than assisted in its trade with America South Africh uses this entirely tish
to American ex-ever before." ing into the streets or into.
by a change in the terms of trade to finance its imports from the porters.
And yet some..critical: readers dollar print, clad like John the
The devaluation of the pound *** dollar area.
say We never print any good mained unchanged
of world has already done something to pattern This new Baptist, und crying aloud that.
trade and world financial re- Increase the value of the exports news these days. Government is a pain in the neck, the Unofficials hypo-it suffered from the same sin-
Only a few basic facts need to urea. In particular, exports from was proportionately reduced. crites and also an unlocated gle defect. There was not a power of new South Africa gold is fairly easy to discern of the sterling arca to the dollar
replace It is expected that Prevident exports in the, dollar. Videla will get anything but a pain, the Budget debate, a line as to how it was to be
This increase of the dollar im- kupt in mind. In the course the sterling
area worsened considerably, but
the US Chile reception on his visit to the Wood must be eviscerated, it. Now you cannot meet is one of the main causes of the the underlying pattern did not and Canada; this will be of
crisis of the. sterling area. Bechp
change..
special importance because so emasculated and altogether responsibility with Irrespon-fore the war the everseas .coun The cause of deepening crisis much of the United Kingdom'
is with removed. Words are no cure sibility, Responsible, govern tries of the sterling area had in was the sudden fall which took own dullar, defelt
thest or sur place in commodity prices in the countries, But
But very few people for frustration and no real ment means just that: it be- prosperous years. a dollar
with America. They used U.S. and in American import expect any longer that devalitn is redeemed from its reputa- according to your cloth. And production to discharge the de-of 1949 the UK's export to the wiil solve, the diallar problem:
bit from their deficit with the US. fell by as much as 25.ver It
seeing therefore inevitable tion as the most wordy of that is what has to be done.
United Kingdom, and the United cout. Throughout the sterling that the problem of the systems by its capacity to act
decling there was toare Kingdom gained the ricans as well as to talk.
settle its own deficit with North
ominously
y-an increase in imports overseas ster from Anerica. structive suggestion-and one ernment was in the poor re-down because the
what light does this analysis only-in the two long letters sponse of the electors, them-ling countries no longer have our correspondent "W" sent selves. Parties were organis either a dollar surplus or gold 'not of the nature of the dollar crisis us, and it was repeated in his ed, and well organised. The already car-marked for the pur throw on the way to deal with
teresting concrete suggestions, It was that we Progressive Party got down chase of imports from North The bulletin makes some in- should take our grievances to solid work and not only Home to Mother and tell her drafted an intelligible and we are grown up and want practicable programme, but to, handle our own, affairs, got themselves a majority of the seats. The Labour Party (At this very moment an- other letter from "W" arrives, also took themselves-serious- stressing this constructively, and while they also per- suggestion). Now, it is com- formed prodigious, deeds of mon knowledge that detailed valour in shouting down plans for this have been move everybody, and everything ing, back and forth for some they disliked mostly the time, and that Mother White other Party rather than the hall is holding the matter up. officials, curiously enough We have been trying for they also vindicated the new months to find out why, but advance. Indeed the only nobody seems to know the serious trouble arose out of answer.
an important staff appoint- ment, which has been held up for months and months be cause it had become a Party or political issue,
More juvenile delinquency..
"Toddlers stole the show and
In 1949 SAS flow. more than 500,000 passengers to 65 relief for fury. Democracy gins by cutting your garment this-and South Africa's new gold demands. In the second quarter tion and its stimulus to exports carried off first and second prizes
cities--30 countries—on 5 continents.
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In Singapore, the only dis- appointment that arose after
sterling
Now, there was one con- the introduction of self-gov-America, This system has broken Cxports to Americk and balances will have to be taken.
last letter.
The assumption 19, of course, that, it had to do with the revolutionary regime on our doorstep. Even Hong
Kong can no longer afford to ignore China. But while Mr. Bevin's promised statement on the discussions in Peling
Our correspondents may say what they like about the de- bate in the Budget session of the Legislative Council We is still awaited, it seems hold no brief either for the
America.
In the fancy dress competition."
the
Leopold suggesting compromise up some time this year-with all two on the throne.”
unfortunate political com the
Constantly critical 04 ' plcations which this will bring-
post-war housing shortage, the Everybody is waiting for the Socialist Party says: "If this next phase of the crisis to begin.
of ours. Then the debate on the future happens, it will be throno fault
ba, reopened. of sterling balances is bound to
The man with a load of
trouble
•
You can tell a serviceman's hlatory and even age by looking at his medals, says local sperker.
That is, of course, if you except the mass production technique of America.
A fur sole recently attracted several hundred women.
They were all under the Influence of mink.
aflars for the Empire than all Bt A skinny, emaciated Communist methods present Chinese, wearing nothirig but serious problem but only one of fain's expert manufactures and
the many problems which Mr. Scotland's Scotch put together.
Now let us look at the British a pair of ragged khaki shorts, Jim Grimths, the ex-coal miner
The American Nudist slithers through the jungle, who has been promoted from West Indies. Sugar is the trouble
has 1,000,000 He lays down his tommy- the Insurance Ministry to the tople there. Watch out for strite
For, with the Convention now gun, crouches and listens. A Colonial Office, will have to in
possible
Just the bare million. few yards away, on the out For I reckon there's a packet sugar is the basic, wage-provider skirts. of....
of Kuala Lumpur of trouble in store for the now for the peasants of Brush Gulsun, Malaya's.sent of government, Colonial Secretary-trouble which on the coast of South America, and throughout the islands of the Indies. British the jungle has been cleared.
argument
Lackle.
By
Edward Bishop
In the clearing at an open-air dinema sita an audience Chinese, Malays, Indians, and a gandful of Britons. All yes are on the thrlits of a Tarzan picture,
The Chinese
beckons
from? half a dozen confederates
They creep up to the hen Monkeya --
chatter tax
the
Four lay dead
the Trinidad. members.
At hero's an
going on as to how much sugar
the after 1952,
Britain will buy from this area agreement ends... on the
Indins tempers are run- ning high because Britain, while
West
in hot prepared to buy all the sugar Its the British West
offer
Indies can
The West discussing Trieste issue
London, April 14. Britain, France and the
600 after that date, (and thus help to United States are discussing the A Foreign square maintain the semblance of a stain-future of Trieste,
dard of living for his Majesty's Office spokesman sald today. coloured subjects), continuca
Usually well-informed quarters here belleve that plans to warn Dominican Marshal; Josip Titoaghinst any
Trouble brewing
a
policy of buying sugar for dollars from Cuba and the
pretty clear already that Government or for the Un- the screen The bandit lend things have not gone well. The officials. But, whatever may orders releand deed, just as Hong Kong was be thought for the result, it rattle, a thousand, jungle creatures people, and its related in some ways with the was one of the most com are terrified into a tremendous alle
datter. events on the mainland, so has prehensive, well argued de the problem of Britain's rela-bates or discussions if "W"
altempted coup following next Republic have
is trouble; spol
the tions with China become in- prefers it that way we
orean to Africa. Sunday's elections in the Yugo not in
Already the new Chinese Co. Here, the Colonel terr Holes predlav-occupied zone of Trieste volved in the still greater one known anywhere in o
undergoing the teething unies have been droppeda of the international line-up in considerable knowledge of The real Jungia and the screen minst, respins Chica
public affairs. It was more fungie, che, the constaton the upk for wresentation in Brish or the Government's experimentparently, not convinced follow- the cold war.
In handing over more and more bandlis make: Dieir getaway. In territories of The plan, or plans, for self-over, a detalled discussion, the auditorium" Your people He they get their way and re- responsibility to the Colonial, ing afstatement made last week
member that while Australia has government exist. A single Item by item. It did lack, dead. -
Bevin has already question in the House might of course, the asperitles and Thin-huppened recently in yet to grant recognition to then take East Afric
Malaya. It's the sort of thing regime Mr. evoke the reason for, delay in sharp exchanges that use that's been going on for ionths, dons; expect to find dentences have just been mpige Belgrade, that no count
authorising its enforcement. to pass between so autocratic But there is no reason at all: a Governor as
why the Five ousand should not sign a petition all
well, asking, when it is
and so, Bardor
All around the
Chinese bandits, who know to" May law other then jungle law and of
of the fami
official who hava discovered that if
is thath
Ideas, and"; help | 7asures
Керув
and
The Western, Powers are ap» ·
Tito to speaink by Marshal "correspondent of the London
and other Indian
ame
A Thefe discussions were thouch
.TC-
Sout the familiar.
beenlener and underground ögants
Field Mistral immune anis- Viscount, Montgomery visited sions. This throat is especially set up an Army base, t dangerous in Malaya because of
In Ugaidia the large Chinese population. We
That piece of jungle thuggery Blustrates the
mil intents and purposes akin to fran the
many.
anguish of ut if we
as the Ho
years ago, to Press and the
ted — al we
not bechuse
to be introduced, or delivering an ultimatum on the
the subject
The point is that ernment may have been au
thorised: months
terday. It may be
tomorrow. Buty
(Party, no
tión or Policy
bad temper.
quite true.
a wond
Wants form Ch
R-gove↑ wer
for
Uno
JAP FAMILY
SUICIDE
Tokyo, April 14.
cinema a!
the
been
to be centring on the whether any nego mont puasible between and “Yugoslavia.
The hostile reception-
speech
thing that's going on" in Malayn, eles me had od... But, Torero Mfri
ara bumped
four Creare plenty
overtintäkts,
dingundel storie,, in), MilSTA
zpolity, gidered by a-observers:
R:Savon (members of pRIA EXTen China,” Yes, it' of handing over responsibility to| Indiente, much basis fOF="I
lity of that ar family were found Mooris
which
to
ause it left so woods behind a Buddhist Chinmose, Caldera
introduce trouble.".. poor scribe to the Northern Honshu, city of may sound Incredible, but I have the local people as a door through on Reuter,
Sendal yesterday, adding to the met people Ing it of currently popular t alked smily sufeldes, was a CES he dead bodies were those of
o. Issica
wan take
othian fed funt far-old husband a match young (
sons, aged 11. and and three daughters, aged in
and on
the bodi
who talk like that,
Sugar strife
Chaos m All-these-problems of cuffie they don't under- a park of thi
serious implications of cretary's inh
ple who handed
the war...
e job on tha Colonia
NON KILLES
Geralding
too;