1949-07-16 — Page 7

Page

THE CHINA MAIL, SATURDAY, JULY 16, 1949.

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CRIPPS ANNOUNCES FURTHER UK INDUSTRY

AUSTERITY SCHEME

SCHEME FOR UK

Colossal Reduction In Dollar Imports

SUGAR RATION CUT

LONDON, JULY- 14.

SIR STAFFORD CRIPPS, CHANCELLOR OF THE EXCHEQUER, TODAY ANNOUNCED THAT BRITAIN IS TO CUT HER DOLLAR IMPORTS IN 1949-50 BY £100,000,000;BECAUSE OF THE DOLLAR "GAP". HE MADE THE

ANNOUNCEMENT

INDO-CHINA TENSION, INCREASES

Balgon, July 14, French army forces are comi centrating amid mounting along the frontier between Burma and frido- semiramicist

terion

the

France Prezte Agency. nounced today.

The Agency reported an official pource as caying that a Chinese band had, crossed the frontier and' bességed the Indo-Chinnio post of Thone Peung, about 150' inties' West of Luang Prabang, during

June.

"Liaison with this post has been re-established recently," the Agency added. It did not say if the siege has been lifted.Atnociated Pres.

AT THE OPENING OF A TWO-DAY DEBATE IN THE HOUSE OF COMMONS ON BRITAIN'S ECONOMIC SITUATION. Six Commonwealth Finance Ministers and the heads of two other Common- wealth delegations heard the Chancellor say that the dollar import cuts Sweets mcons reducing Britain's sugar ration to eight ounces weekly. will go back on the ration after three months' free sale: He announced that the $110,000,000 originally budgeted for buying tobac

"Exactly The Minister of Food, Sir Stafford said, co will be cut by $20 000;000. would announce some increases in other foods-butter, meat and bacon -which are governed by supplies coming from non-dollar sources.

word that

It would be ingonsable du kone | thé, senes second quantes, the for hy day one county atlete, it KE Brakes that it was, therefore, intypen,shavn donlar haarellon port all an d'un from

cetical wall the dullar ares had that we hulet, together?, ne tes areas which bank doen hopest Ten

Toda thanmental płukun " "but we shati mport at least as cute but just ran abalavatar

11632,980,000!,

1230,919,00 mach a lest year," the Chatterlat

work than the Government Top For addit

1

FERR

t-time

forest of all Sterling Arrn coun- fries was the same la preserve Alo siulality of Sterling and the strength of the reserves,

contributions ve em both make to this pur-} game and how best we can make them depends upon the Juran of fran "teale will the cutlar area,"

he

"We murt al ll all we can for rullar even if it menus anje the rest, mchupting the Brited

No Devaluation

| Kingdom, having fees on a zom e- And we most eut down The pregnat diane sions and The.. Stollen Belain would have to en 1+2T

expenditure. "There Part

"high-level" Jalks 113

dualtres. I aku how the cutsing with Je tupl part of hey ittigants, of Flowl

Washington surly.

Statemet leanin He hot out at the singe

provinents

dan the other ('om. would, he, hont, staminiben 180) |monwealth onstan enfed

on any achhitional a entries would lead to a cozy uderzale in

The bugh word of tinum on petiul enneumption, -

Baitados, gold and fam's ability to garry provement me

1/ Cham- Brdech prostuction. in etublar pasation with Belgium arsuration to whuels che he pevtsbury Cuts would

dla och alfo and that the concentration The edge in ingreement Imports of all ingatant trailer framparest walk Red vedr. Tais but the effects of thesay ruls would be a simulas atoparovement

ent European Provers

materials Don Buying: Don-dollar irratates

would vary rafertu

material from

1

that

Britan's position with Swat- zerland if she joined the scheme, The principal materials affert - Negotiations ou

joni wepe of 12 t- ed would be timber, paper and now going on. Must

steel ferense in the golet and dollar de- pulp, non-ferroUS inetais.

15

song This www

NO NA1- i lo Sterling

יורי

GIVEN SHOCK

London, July 14.

The 25 per cent cut in Britain's imports from the dollar area announced by Sir Stafford CHipps today will undoubtedly come as a shock, parti- pcularly to industry.

It may prove a salutary shock but its effects should not be minimised. If Britain had been able, without ill effects, to cut out £100,000,000 worth of dollar supplies she would have done it before this.

Dollar shortage is no new dis- import levels previously, arrang- covery.

The Chancellor of the Jed, which were in some enses Exchequer, Sir Stafford Cripps, above the 1048 levels. With big-

described the cuts as supplies from parts cul hardughly, ovil necess

necessity,"

rency sources. the Chancellor Their effect will be aggravated

reckoned that total supplier of by the Chancellor's Incidental re- How materials (though not of all. mark that Britain and other parts goods) would be larger than in of the Sterling Area will have to 1948 even after the cuts, and send more goods to dollar mar- enough to maintain the presen! Rete, at the expense of Sterling rate of production, countries including Britain ber- solt. Thus supplies for Britain

Sir Stafford seemed concerned wil be doubly reduced, both by to hold a balance between alarm- cuts in dollar supplies and by the

Ing and lulling the country. He diversion of mure essential Ster-expressed relief that the country ling supplies to dollar markets, had nynided a slikabling sense of

Unfortunately, these measures

cannot in

On the severe relsis.

almost themselverused

"unless that

Have much immediate or remedial strong language in saying that effect un Chancellor to describe Bla

remedies.

i

the problem. The

specifically refarvet Dollar cuts of £100,000,000 vear si Janve a very large gap. For the current quarter the 2011% can hardly become eferlive all, and the Chancellor warned that there would, be 20 further Jose of serves during this quaer” •

I

viller hand, he unprecedentedly maximum restraint ia shown in these matters by nil reetions of the camnunity, we shall indubitably find ourselves unable to surmount our dimeult- i,"

The re-arrangements in British food rations announced today will reduce Britain's dollar expendi- intres in food imports "to bełow The pre-war level.

Sir Stafford thought they shoul

Fo the Gnanciat. year 1949-50 “eventually pres

amard reduction as De brin on for pre food imports from dollar sourres, 201 Ves. The Commonwealth en

it is estimated, will he only 12 ference, he said, sulghat biter pr cent of the total Ferock plan - Similar action by ofing Sterling closes ali nod, compared with 25 countries lout the long-term cadus per cent in 1947-48 and 15 per tion must be souphy

with out

cent in the years

1934

Er 1938. Asnerian aid Candidion friend. Dollar expenditures .on fand and with others, too".

have lawn almost

បង

He mentioned that a complete solution cannot

expected even at the Washington con ference in September. It might take months longer than that, he Fold.

I

el few years, for 1949-50,

2011, will,

halved in the The

Jiragaurante Mill under discur it is understood; be well below $500,000,000, compared with

100,000 in 1940-47. 1947-48 the figure Was 5702,000,000 and in 1948-40 food |worth' $555,000,000 was bought in eets forthe dollar area.

Below Pre-War Lavel

These stollar import from those sources than from the Foolbar aver The situation

the coming 12 months are tron was

in Betaub's having Torning

|114» *

raw materials itation, Sr Stafford rear a paws (16, paty

cammmmm-, had iesalted sige stone best week's

Brition having "Low" thes etaniveedio

materials hugs for Tow jresting was made that en durlug the half year resah be devalnød“. The Chancellne

smaller reevipts said britt from

"although decided to work on the assump-dollar area. tion ist Brimin would at tees to the ineretved out-goings able to afford in 1949-60 -TING IC front the United Kingdom: dcuts, which he described than 70 per cent of her imports certain other countries",

and ention.

תדי

the dollar area in 19148,

from the

These imports in 1948 ammust- ed to about £400,000,000 and we are thus working sumption that able

ffort

to

the

IN-

The Problem

TITA The rume is

ke

And that. I hope, commented. Announcing the doline

EL Werte

to

is that,”; not likely to fight itself until it was agnio pressible to buy goods Import freely from either dollar de non- as "a dollar souters. All the countries then oughly evil – necessidy,”. the concerned were determined Chancellor nude these points: deal with the situation by fielą→

Sugar:-The ruthation would mental means, which would "pre The Sterling Aren was current, suve 150,000 tons, costing about serve throughout the world that ly running à defteli with the dol-{$14,000,000 between now and the full employment which has been

at the rate of Jar area we shall not be 000.000 a year--one

£600,- {vand of the year,

the main resnone and special and a half Sweets-A return to rationing aku of our civilisation since the import dollter

would end of the war," he said. goods of a rate of more times the total of its gold reser-of four Dunves

save another 30,000 tons of sugar,

"Denteracy, erraomle

inde- Amid cheera Sir Stafford Tabacco:-A $20,000,000 redue-pendere anci full employment commented. "N

deustation still mennt,thuu Britain would form a magnificent programmn mest spend substantially more dollars for the free peoples of the world.

on tobacco than last year.

Worse To Como? Britain hun contributed "many

Patrol-A digieult problem hundreds of millions Sterling", which had international implica- towards world recovery. She had tions, "I have not at this

stage incurred "huge dollar loans and asked for any new restriction on forbilities" which had been used it users but all petrol products the strength and contain a very large element of

and whole Sterling dollar expenditure

.oi! economy is essential."

£300,000,000," Sir

stated.

Stafford

ven.

There' should be enough

20W materials

sustain Britam's present overall fevel of príalde- tion.

No Now Help

ane that condition of affairs

he altered."

stability of

The combined effects of the standstill agreement on collar purchases and the reducet im- port programme should eventual- ly produce a marked reduction on Aren. the strain on Britain's the Chancellor athlet,

"The Commonwealth ference, we hope, will some immediate netlon rest of the Sterling Arca", continued.

the

for

Of the 12 per cent of total foor imparts in 1949-50 paid for in dollars, wheat purchases will ar- said he did not propose that Bris count for niste per cent. Sugar 19 tain should default, but he would | the next biggest drain. with send bill to India, Iraq andCanadian bacon, Canadian choose, Egypt with a full account of the and a few other items making up blocked Sterling,

the balance.

" would ask them to put n two-pence stamp on it at call it

day 1

for saving the Indians from the Japanese, Iraq from Com-

Egypt

munism

Hommel

and

the course of winding up the first day's debate, Mr. Hareli Wilson, President of the Board of Trade, said he had to report further reduction in exports to the dollar ares.

May Be Avoided

Not quite enough sugar is pro- from ruced within the Sterling Area to lavaid some dollar purchases, but "We are being milked by the it is believed that dollar alloca people we saved because of these tions for sugar may be avoided in unrequited exports and the Ster-tulure through special trading ling balances."

measures. In

Of British bacon supplies in the "We must spare no effort to

current 1949-50 period, seven per see that we establish these

cent will be bought against dollars three ac EL great safeguard for

under a confrnet the liberty

of

With Canader of the peoples the world,

running to the end of the man- Their achievement and' with establish our victory

cial year. Other bacon Imports Exports to the United States come from Denmark, Poland and will ensure the freedom Tand

which avernged £3,500,000 Hungary. of future happiness

cenera munthly in the first quarter this Sir Stafford concluded.

The nation's two main rationed tions.'

and butlerow Mr. Oliver Lyttleton, wartime year and had fallen to £3,000,-foois--meat

000 in May, fell further to £2, come entirely from non-dollar Minister of Production and chic!

083,000 in June.

countries: butter from Australia, Exports to Canada also fall New Zealand, Denmark and Hol- from the May Agure of £7,- land; meat from Australis, New 600,000 to rather more than Zealand. Argentina, Uruguay and

£8,000,000 in Jung-Reuter. ¡Eire-Reuter:

reservest "The long-terin problem

Same Interest which we must try to find 11

Timber-Dollar imports would consolation with our American and result in Canadian friendla,

with have to be cut substantially but by the others too, is to secure

a stable the Government hoped to buy Opposition speaker, said, "These

from hereintionship

non-dollar cuts are only the precursors of between the Ster more timber

very ⚫much Worse conditions farcus, ing and dollar

without artas

of which are going to come." short-lesing discussing WAR

Paper:--Dollar imports degree of

while paper and pulp would be cut Mr. Lyttleton said te believed term measures to improve Bri- exchange of

while substantially. possibly Ly ais tain's dollar position with the preserving to

that with tariff barriers down; country con- United States and Canadian cerned the right to decide itsmuch as a third. It was hoped to and with the help of the United

He

Governmente, but there was no own internal economic balance.

of new nancial "We are prepared and anxious suggestion

to moke our contribution to such help.. Sir Stafford declared that his a solution, but that solution must recent discussion with Mr. John be sought upon the basis of con- Snyder, for the Treasury, and Mr. D. C. individual country. Abbott, Chnadian Finance Minis- "It is the search for this long- ter, had been "most, fruitful". term solution which started so

buy

sources.

maro from

non-dollar States Goverenso

possible 10"

exa

United States Secretary nuing full employment la cach in sources of supply at alter the Light Davies, leader of..

it might be

British Non-ferrous metals-A cut of ports to the

United States by £40,000,000 or some 25 per cent in dollar expen-

£50,000,000 diture, hut because of the changes

Mr.

urged the "freezing nations

price, consumption of war debts 'which we incurred would be kept at

white about the when bleeding ourselves

for every nation in the world". existing level.

Sir Stafford said that the In Mr. Richard Stokes, Labour,

Sir Stafford said that it was inauspleiously at our meeting last the light of his talk with Mr. week with the United States and Snyder and Mr. Abbott and the Canadian representatives. start of the conference of Com- "The really important result monwealth Finance Ministers of the discussions with Mr. that the picture of The

post Snyder and Mr. Abbott was that incur three Governments were in complete agreement that the pro-

three months · could be, sven "somewhat clearer detall".

Giving a factual account Britain's position at the end

of blems before us could not be ot solved by any easy improvisation

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