22.
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Uncontrolled Imports. To sum up the position on uncontrolled imports the items now on Open Licence include:-
(i) The following raw materials-non-ferrous and iron ores and scrap, non-
ferrous metals, raw wool, hides and skins, flax and flax tow.
(ii) A few food-stuffs, e.g., oranges (coming mainly from Spain and Israel) and
new potatoes and tomatoes (also mainly from Spain).
(iii) Items which would present formidable difficulties in the way of import control-machinery, chemicals, fresh fish, wines and spirits and a large range of very small items in the manufactured goods field.
(iv) A range of goods such as raw fur skins which are imported mainly for
export after processing in the United Kingdom.
There is inevitably a time-lag before import cuts on items removed from O.G.L. can take full effect unless importers' contracts are frustrated, and any attempt at a significant early saving in this field may be self-defeating through repercussions on our exports.
23. Petroleum.-The only effective means of reducing foreign exchange expenditure in oil is by a reduction in consumption of petroleum products. Con- sumption in the year 1952-53 is estimated at 22.4 million tons, compared with 20.8 million in 1951-52 and 18-8 million in 1950–51. Of this increase only 110,000 tons is attributable to motor spirit (which is only one-quarter of the whole). The big increases are in gas/diesel and fuel oil, which are for commercial transport, industrial purposes and bunkers.
24. Travel Allowance.-It would be very difficult to reduce the travel allowance again at this stage in the holiday season.
25: Films.-The Anglo-American film agreement, which regulates the dollar remittances in respect of films, does not expire until 30th September. Our policy at that time is under consideration, but it would obviously not be possible to achieve any savings before the fourth quarter of the year.
June 1952
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