1949-10-28 — Page 7

THE CHINA MAIL, FRIDAY, OCTOBER 28, 1949.

UK FORCED TO SLOW DOWN Churchill Attacks

STERLING DEBT REPAYMENT

Cripps Statement On Economy Measures

ARMED FORCES TO BE CUT

London, October 26.

Sir Stafford Cripps, Chancellor of the Exchequer, told Parliament today that Britain could not continue to repay Sterling debts to the same extent as hitherto.

Optimistic Reaction To Cripps

London, October 26.

The vigorously delivered speech by Sir Stafford Cripps Chancellor of the Exchequer, In the House of Commons. produced for the moment ‘at least a more optimistle re- action

the terse an- nouncement of economy cuts made, on Monday by tha Prime Minister, Mr. Clement Attlee.

than

applause at the-close

AGEN NO NO Aber derford's speech was

Such credits or releases added to the nation's inflationary pressure just as

much as her own internal expenditure, he said...

The Chancellor was opening a two-day debate in the House of Commons _of_the_Government's £280,000,000 cuts in expenditure, aimed at

balancing the country's economy,

He said a sense of propor- tion and of responsibility must be retained. Britain was anxious about her own posi- tion. But she was also most anxious about the general world situation, particularly that of some of the large, less developed areas.

countries of the Sterling Area | 156 per cent of 1933 in the Erst with their dollar-saving require-quarter of this year, to 141 per through the dollar-saving upon ments and so to help them carry cent in third quarter. which all were agreed.

Cutting Down At Home

Britain lost gold if she did not balance her trade with such hard currency

countries

Persia as

and to the general pool of world | In a reference to the need for supplies from which Britain exporting more could also benefit

During that period. Imports have increased so that there is: not at present an overall bal ance of payments

Sir Stafford believed that the Government's cuts could produce the conditions needed for the

which had not devalued its cur-renewed export drive. There had These should, he said, be able rency. Many more British ex-been signs to show that inflation- to contribute

than ports would, therefore, have to go much more

ary pressure had again increas- they did to their own support Persia.

ed. Fresh measures would have to be taken to reduce domestic dollar demand. To the

Goods in the home markets, the Chancellor said he

market would have to be cut For this reason, Colonial de-hoped that some of these extra

would

come from the down until there was a further velopment and investment must exports be continued. both because of unrequited exports" Britain had considerable increase in produc

tion. Britain's duties to the inhabitants been sending abroad. of the Colonies and of her own interests.

ture

Beserves in the Sterling Area had fallen to a point where even Suite minor fluctuations in world trade were liable to cause the in Britain. very gravest concern others

On the other hand, he said, must be remembered that as part "When we come to the rest of

at the dollar economy campaign the Sterling Area, the very na- for the Sterling Area as a whole.

Britain had urged members should be able to draw expromise in dollar imports be on the reserves which they keep switching over to Sterling or soft with us in Sterling when they

currency sources of supply. are in need," he said.

of the system

that is

to

ex-

To supply those extra ports Britain would have to cut down supplies at home. Sir Stafford declared that the real solution for Britain's economic difficulties is more and I more efficient production.

"It is a necessary consequence of their being willing to allowi their balances at some time to rise that we should be willing to only

allow them at other times to draw on them.

restrained, but afterwards Government supporters sald that the Chancellor had improved the considerably atmosphere by his complete:

of the details of the economies and his hard line on certain aspects of Gov. ernment polley.

The faction of the Labour Party which wishes to larger reductions in the arm-

ed

forces apparently took Rome slight hope from the Chancellor's words. The Im- pression was that the overall defence review still proceed- ing may yield some concession to their demands-Reuter.

AUSSIE APPEAL QUASHED

Socialist Policy

Woodford, October 26.

Mr. Winston Churchill, leader of the Conservative-

Party, criticising the Goverment's economic policy, said here tonight that he could not conceive that the sending of "unrequited ex- ports" to such countries as India and Egypt should have been allowed to go on.

The Conservative leader, addressing more than 1,000 of his constituents, said, "They (the Government) talk of unrequited exports.

We are spending many hun- dreds of millions in sending ex- ports out of this country to places like India and Egypt which we protected in the war from Japan and Italy, and return

in

we are getting nothing to re-nourish ourselves, to revitalise our efforts |and to re-animate ourselves.

We have got to this plight. About two or three years ago I asked that there should be a duction in experilitare by several hundred millions a year. That. is what they are trying to do now. "But if they had done it two or three years ago we would have been in a better position today and would have avoided this disastrous devaluation.”

Mr. Churchill blamed the

Labour Government's "cramping and disastrous. rule" for Britain's present difficulties.

"Labour Funeral"

He told his audience that in the current debate in the House.

of Commons on the economy cuts they were witnessing the funeral

Socialist Gov

of

the

Sterling

Balances

Policy

London, October 26.

A Treasury spokesman said references to tonight that tightening releases of old Sterling balances, made by Sir Stafford Cripps, Charcel- lor of the Exchequer, in the House of Commons today, re- presented a general state-

ment of future policy,

has

The Chancellor was not refer- ring to individual cases or past agreements, the spokesman added.

As the debate

not yet! ended it was thought possible Mr.

Churchill said that de- that further details on this sub- valuation should have been pre-ject might be disclosed by later ceded by a strong and earnest Government speakers. effort to set our house in order and by which

bringing into power a

Unofficial experts recalled that Britain's

Sterling agreements government

would em- with India, Pakistan and several mand confidence both at home other countries already

specify and abroad

the amounts of Sterling to be The

be released for periods up to next ready

the etection June. Such

could agreements came, but he added. "Nothing hardly be

varied by Britain will induce your leader to bid

unilaterally. The British Empire's high-for office by competing with the est appeals court, the Privy Socialists by promises of Utonia Council, said today that the round the corner and an easy es- have been widely criticised in nationalisation of Australian case from the hard farts of life. Britain as excessive.

"It would be far better for us to lose the election than win

London, October 26.

he continued. These reserves must slowly and perhaps painfully be bot up again to a safe figure.

Sir Stafford said that following the new economies there would banks infringed "or the free be an opportunity to review thedom of trade, commerce and whole matter the next bud- intercourse

Further fiscal and 36.

other States." measures could then be taken it necessary.

me

among

the

The Privy Council last July "It is not our policy to produer rejected the Australian Govern- He said that the cutting down "Special considerations. hour-

ment's appeal from a verdict of ever, arise in the case of the of imports and the reduction of severe deflation," he declared, the Australian High Court on an "We believe that the practical Act that would have prohibited war-time Sterling balances and expenditure on capital invest the extent to which drawing is tent and on other

damage that this would do to cur things was permitted upon these is and has an essential condition for success production would more than off-Private banking business in Aus- been limited by the agreements but could not of itself bring that set any theoretical bencfit." which we have with the several success, countries."

Armed Forces Reduction

In his review of the Govern ment's economy measures. Sir Stafford Cripps said that the

April 1950 will be

Sterling Balances

tralia.

by false pretences"-Reuter.

Breeze At Manstein Trial

Today the Judicial Committee of the Privy Council reaffirmed this decision in a 17-page state- ment.

A Field

а

among

Hamburg, October 26. duel of words between Marshai Erich YOR

Sir Arthur

Matter Of Degree

He then referred to the case of

There is direct and imme-Manstein and the chief Prose- But the reduction of those

the wartime Sterling balances, diate result of the Act to restrist cution counsel Sterling liabilitles was like the

saying. "We cannot afford to the freedom of trade, commerce Comyns Carr, marked the Nazi strength of the armed forces in employ so much of our resources and granting of

Joans new

and

intercourse

the cornmander's fourth day in the credits a matter of degree, Sir 20.000 below the figure of 750,- been desirable in our own long-

more than for this purpose as has hitherto States," the report said.

witness box before a British War Crimes Court here today. "Clearly in our present situa-000 ready given.

term interests and in the inter- The Chancellor explained that

ests of world development." the annual saving of £30,000,000. proposed will also accrue in the following fields:

Stafford continued.

tion, we cannot afford to employ so much of our resources for thi

(1) A substantial reduction in headquarters staff.

purpose as

as has hitherto been desirable in our own__long-term interests and in the interests of world development," he said.

"In financial terms that means |

(2) A reduction in the train-

that in

keep Sterling ng maintenance and administra- order to

tive establishments. strong, we must not over-provide Sterling

Lo บ other countries

either in the form of new credits

or of releases of accumulated Sterling balances."

"Our past policy

Us

to give most essential help in the restoration of the economies

(3) Economies in works pro- rammes, particularly overseas.

Sir Stafford said, that there was also the unpleasant necessity imports. of cutting down Britain's dollar

Chief reductions would be in food, other than wheat and sugar, in tobacco, and in raw materials of various kinds.

Even this reduced programme, which barely supplied raw ma- possible

Sir Stafford said that Britain terial needs, was only could not afford to give further with the aid of the European

tries.

cases.

the

The nationalisation was challenged by 11 private banke and several States, including Western Australia.

Legal argument centred around the interpretation of Article 92 of the Australian Constitution providing for freedom of trade,

commerce and intercourse among the States.--Associated Press.

that could be agreed without Cabinet resignations.

Vital Period

For four hours, the white-hair- ed, cataract-blinded German fac- red a cross-examination.on his 17 war crime chargentor tried to

Twice the check the soldier's eloquence without much effect.

17

The amounts of the releases

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ARRIVALS

DEPARTURES

28/10

30/10

2/11

4/11

In general, however, the re- leases for the current 12 months have been inflated by the need to finance the transi- tion from the high rate of the year ending last June to a much lower rate

5/11

7/11

9/11

11/11

already

16/11

18/11

agreed for the future.

In India's case a large part of this year's release was specially stated to be transitional. Reu- ter.

23/11

25/11

30/11

2/12

7/12

9/12

14/12

16/12

U.S. MUST LEAD THE WORLD

New York, October 26. Miss Barbara Ward, Assis- tant Editor of the British weekly journal "Economist”, Would you mind answering said here tonight that the my question he asked.

instead of making United States must take over long

world leadership if free world Young Germans crowding the public galleries plainly enjoyed order is to be established. the spectacle of the fussy and

the world's nervous von Manstein as he Ad- America, has enabled loans or credits to other coun Recovery Programme and

getted with his earphones and powerful economy, must become a great consurner of foreign goods "It is the next six months that two pairs of spectacles. except in very special Canadian dollar loan, both of are going to be the vital period," Sir Arthur asked him whether and exporter of capital, playing

which must before long dis-he continued. of Europe and Asia," Sir Staf-

The total administrative

"It is only if we he had destroyed the Nazi order the part Britain filled in the last ford continued.

ings being made by the Govern- appear.

can restore the national economy for the shooting of captured com- century, Miss Ward told a meet- Had a

Sir Stafford then declared with and confidence in ourselves that missars or whether it had beening sponsored by the "New York different policy been

should be reckoned in ment

Herald Tribune". terms of manpower as well as emphasis: "Let me make it ab- later economies will have a seized by the Russians when they adopted both we and the world

solutely clear that no devalus-

chance of bearing fruit at all"

captured his baggage

Miss Ward outlined the part- would have been worse off. But money. At a rough estimate the sol

tion, no economics, no Govern- Mr. Eden urged the Govern-

Manstein replied: "The nership of the free world with we must now go slower, whether it has wide area is reduce mental action of any kind can ment to tell some of the coun- High Command was very angry the United States as the leader.

tion in civil departments of not in fact save our we like it or not."

which present social tries

still expected a with me when the Russians cap-on the following lines. Sir Stafford said that less than 10,000 people by the and living standards unless we few of "unrequited exports" that tured my baggage and I replied

the

(1) Western European diversion of exports to the dollar end of 1950. market was not the only way of

Fall In Exports

all collectively and severally play it was no use asking Britain to that in future I should take caretions, Britain and the Common- our full part.

go on with them.

to keep 100 kilometres behind the wealth must be ready to offer the saving dollars. It was equally Sir Stafford explained furiner "Unless

that Otherwise, he said, Britain front line so nothing should conditions and guarantees which important to supply the other that exports have fallen from produce more and get our costs would in the end erash herself be captured again.

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down we shall suffer a tragic fall and as she was the heart and "I do not know whether the make capital investment

da-

(2) Non-American nations can in our standard of living-accom-centre of the Sterling Area, they commissar order was in the bag- panied by all the demoralising would be ruined too.

there were make their own contribution to gage, but I know

Ger- insecurity of widespread unem- Referring to the Chancellor's numerous top secret documents, large-scale investment in

referring to our rocket many and Japan. ployment."

remarks on this subject, Mr. same.

Britain Can continue to Eden said, "I wish to God he had weapons."--Reuter.

assist financing india and said it before. He has left it

Africa, as it is now attempt. terribly late."

ing, though on too ambitious a scale.

Only A Prelude

Sir Stafford concluded with these words:

For the Liberals, Mr. Frank Byers announced that his Party would vote against the Govern-

"These economies, like de-iment when the debate ended to- valuation, are a prelude and no morrow. a new surge forward

more to

to conquer the hard, currency

markets without which our in- dustries, our standard of flying,

Labour Members

U.S. IGNORANCE OF BRITAIN

York, October 28, The Archbishop of York said today that the ordinary American citizen is

is largely ignorant of Mr. Ronald Chamberlain, British affairs.

Disappointed

Indeed our civilisation itself Labour, said that he and Dr. Cyril Garbett spoke at a

must fade and wither away.

We

dare not fail, in Our enforts."

Immediately

.following

.Sir

some

that

other Labour members joint Synod of the Convocation of were grievously disappointed York about his recent tour of the armed United States. He said he found the cuts in the

ignorance and pre- considerable forces were not greater. Staffords

tafford, the deputy leader of the

They regarded the cut of £20,- judice about Britain,

Frage: Conservative Opposition, Mr. 000,000

of 30 or 401 as "derisory"

newspapers

contained only a described Anthony Eden,

the Conscription was wasteful and pages usually Chancellor's speeth as an indict-uneconomic

paragraph here and there about

com-1 Europe, often scanty news cerned with some triding incident

intended to create prejudice.

year

ment et his own Administration: Mr. A. V. Alexander, Minister

He added, "I cannot understand of Defence, interrupted, you will

OC

the Government's view of our not get final economic recovery "Jews and Irish Roman Catho- national psychology. It is impos- unless you can maintain security lies carry their vendetta

**

sible to match the Government's for those working for you in through the Press. The ordinary proposals with the realities of those areas of the world upon American citizen is, therefore, the hour.

which

you depend for you econo- largely ignorant of British af- "I can remember no occasion mic recovery." on which a statement by the

Colonel Oliver Crost waite Eyre, head of the Government has fal- Conservative, said, "If the Gov- len so far below the expectation ernment are sincere why have

of the nation's needs."

they not tackled the Sterling bal-

fairs."-United Press.

CUT IN ERP. PREDICTED

Mr. Edes colleagues" realty As a result of these releases. Washington, October, 26....

there

asked if the Prime ances?" Minister or

Senator Tom Connally, Chair- believed that in this programme from Sterling balances everyone man of the Senate Foreign Re- was anything that could in the export industry was, work-lations Committee, predicted to- possibly enable the nation to ng one day a week free to pro-day that Congress would mit stand, on its feet very soon. vide goods for other countries, European recovery aid next year

by at least $1,000,000,000. approach to the problein had been Something like £300,000,000 a "Europe

must work out her wrongly founded. There was no year of British exports were go- own destiny," he told a reporter. plan and no order in the Coving abroad for which Britain re "We cannot carry indefinitely erament's proposals. They ceived nothing whatever in re- much a hlavy burden of financial represented the maximum' turn, be claimed-Reuter.

help?" he said-Beuter.

Fe thought the Government's he said.

(3) International - agencies. especially the World Bank, should

be used-Reuter.

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