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(C. (52) 224 (Annex B)): these are of course only examples of a situation which is widespread throughout the engineering industries.
7.
We cannot in the nature of things automatically match the contraction of defence claims with increased exports, firm by firm and workshop by workshop. But, unless we take vigorous steps to increase the resources available to exporters we shall find that we have lost a great deal of long-term business as well as vitally important increased earnings in the next year or so. Therefore although limitation of defence production by the metal-using industries to £400 millions in 1953/4 may be too extreme we should, in my judgment, at least limit it to £450 millions if the export industries are to be given a fair chance.
8.
My conclusion is that we are still falling into the fatal error of trying to do too much. I therefore ask my colleagues to think earnestly about the export problem before they confirm the adoption of a level of defence production by the metal-using industries of £500 millions in 1953/4,
Board of Trade, S. W.1.,
16TH JULY, 1952.
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1.