1953-01-19 — Page 91

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M Economic Experts In Britain Indulge In Debate

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Feb. 24 Feb. 25 Mar. 14

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10

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Jan, 25 for Singapore, Port Swetten- ham, Madras, Colombo, Bombay, Karachi, Kharram- shahr, Basrah & Bahrein,

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Indo-China

Coal For Japan

Tokyo, Jan, 18. Five Japanese firms have de- elded to import 40,000 tons of coal from Indo-China is the first

six months of the current year a trade ceport cald today.

The Tokyo, Osaka, Toho and

Hiroshima gus

companies and

the Mitsubishi Chemicala Com- pany are expected shortly to start negotiations for the pur chase of Hongay anthracite less than US$21' per ton.

at

Meanwhile, Japan will import 700,000 tons of coal from India during this year as an official communication from New Delhi: informed the Foreign Office that the Indian Government had decided to increase coal alloca- tion to Japan by 200,000 tons over the former quota of 500,000 tons.

The International Trade and Industry Ministry is now work- ing out a coal-Import plan for the 1953-54 fiscal year during which roughly 3,440,000 tons of coking coal will be imported for the steel industry.

The Ministry estimates that the the country's steel fadustry will produce 4,200,000 forms of pig iron dusting the coming year and a total of 6,740,000 toris of cdking coal as expected to be required.

The Ministry thinks it Can obtam 350,000 hogy from Homerlic minés but has to import the remainder from foreign countries, thetrado report explained. —

France-Presse.

HONGKONG

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Talks On U.S. Trade With Japan

Washington, Jan. 18. Business executives and, Government officials have surled

24 two-day con- ference оп America's policies toward Japan.

The sessions were secret And the participants re- fused to discuss detalls of their

deliberations. How- over, 11

it was Indicated that the emphasis was on trade between the two nailons. including questions as to Japan's desire for private American capital invest- ment. American turliïs on день Japanese goods, opportuni- iles for greater American business in Japan, and the need for commercial agreements between the two nationa.

The participants felt the discussions had been help- Jut toward achieving these and other related objec- lives.-Associated Press,

Function Of Free Enterprise

London.

The all industry's achieve- ments are a function of free on- terprise, said Mr F. A. C. Guepin, a Shell managing director, in a speech in London:

that to

Sequel To Commonwealth Conference's Decisions

(FROM OUR OWN CORRESPONDENT)

London, Jan. 18.

The doctrine of economic development propounded by the Common- wealth Prime Ministers at their London economic conference has given rise to a lively debate on the means by which Britain can increase her overseas investment.

The stage was set for this debate by a leading article in "The Economist" entitled "Commonwealth by Thrift.".

Briefly, the argument put forward in this article was that Britain would have to set aside resources not only to enable her to play her part in financing Commonwealth development but also to incrcase investment

at home.

The output of the British people would thus have to exceed their consumption by double margin.

There can be no argument on

that score. 11 Britain is to full the task. lold down for her

the by

Commonwealth

Con- ference she must carn a larger surplus on overseas trade.

to in But Britain's ability crease exports depends primarily upon the "competitiveness" of her Industries.

If British exports ore to compete in the present world

for markets her in-

must be modernised and re-equipped and this can only be financed by internal savings.

Britain must, therefore, save more at home as the first sic Lowards increasing her invest- ment in Commonwealth develop

"

Other municipal authorities are owating their turn to enter the market.

wartime representative of the British Treasury in Washington and a United Kingdom delegate at the Bretton Woods Confer-

Among Industrials activity continued in "take-over" shares He pointed out that the critical though this business was on A issue WOK

when it became how reduced scale nat merely "savings" could be increased but known that bids for Eastern's. how sufficient savings were to be the, furnishing concern, and the

to lend to but to Stag Line had been called off. found, not invest in industries both large risen from 30/-to 70/-in a

The State Line, which zad and small.

a month, fell on Tuesday to about 40/- before recovering to 577-.

THE QUESTION The question was: from where However, shloping shares were was this "rlik capital" to come? it in keen demand and gains Mr. Jay replied that it was to were recorded in F and O, Union come "partly from undistributed | Castle and British Steamships.

but partly- through pronts

Other sections of the Industrial 'outside Dorton-from the share market remained form. Budget surplus

Features of the commodity The Government would use an share markets. were the lower the overall surplus to extinguish debt dividends announced by and buy Government securities, Central Line Sisal and Kuala thus making funds available] Lumpur Rubber; reflecting last through the Stock Exchange for year's fall of commodity prices. So far there is general agree-companies to borrow by making

But arguments arise when new issues. the discussion moves on to the question of how the neccessary Increase in saving Is to be achieved.

ment.

ment.

NOW TO DO IT

"The Economist" pointed out there were three possible means of securing a larger volume of "Internal savings.

Since 1938, world oil produc- tlon has Increased at a rate that is four times as great as the tn crease in European, and 15% greater thon

U.S., Industrial activity. Oll explora- tion, particularly, is highly com- petitive. Despite every cure, in the United States alone, over

to

This not unnaturally falled to satisfy Lord Brand. He pointed out that Mr Joy had not dis- tinguished at all between lending company and investing in its ordinary shares.

He

agreed that if a Budget surplus was used in the way M Jay suggested some part of the] proceeds might find, their way ultimately into the purchase of

Aut he But means certain that the necessary increase in saving would follow. would be quite small.

Extra production would be Lord Brand's other main matched by higher real income objection to the use of a Budget tolal | Industrial investment is that only

The Brat was by higher pro- ductivity. But, even assuming that productivity could be raised

17.000 dry holes were drilled in at all rapidly. It was by no į ording the proportion |

dry

and a U.S. partner

By the end of 1053 refining | taxes, capacity in Western Europe is planned to be over 10 mililon

croase.

Oll industry

profits are low

at

this

by

Д

Indian Tea Industry

6

agreement

of,

say,

פי

once

To

SAILINGS "TJITJALENGKA" Jan. 2. smjapore,”; Djakarta, Maurlitos,

"THPONDOK"

"TJIBANTİRT'"* ETHWAND!"

«N018 EVAIN" **TABMAN" "STRAAT

MAKABBAR” "TJIKAMPEK"

"TJIMENTENO"

Jan. 19

Jan.

Feb.

Fab.

Feb.

Feb. Feb.

I

Fab.

Feb. 18

**TJILUWAZ"

“DOISSEVAIN**

Feb. 22

Feb. 23

Feb.

Mar.

"TJIDANTJET"

*TJWANO?" "TARMAN"

"STRAAT HORNDA" Mar. "TJIBODAS"

"TJILUWAI"

*TABMAN" "TJISADANE” "STRAAT

MAKARSAR"

A" - -- " - ---- ཅུ ཀྟ ཟུ ཝ ^-

+

BIAR,

Mar. 18 Mar.

NO

17

Mar.

22

"TJONDOR"

"TJIWANGI"

TJPANAS" GTJLUWAR"

Mar. 23

Apr.

apr. Apr.

16

*THWANĠI" -

"TITJALENGKA”

"THPONDOK"

MAKASRAN”

"STRAAT

4. Africa & 1, Amories -

·Diakarta Semarang, kurabila

MRCRTIKE

Oak, Kobe, Natoya de Yokohama „Kingapore. Bijakarta. SEMMIKKE,

·Sürahila a Macanar Jabal

Yokohama, Nagoya, saka » Robe

Japan

Bjakarta Sematang. Birabela

Macaishr

Manila, Bingapore, E. & 8. Aftien à

G. America

Singapore,

Djakarta,

Aurebala Macarine

Bingapore.

REMBAUE,

Djakarta. Mauritius,

8. Antica 4.5. America Djakarta Bernaräng. Barabain A

MALAISET

Ristaport, Penang & Belawan Den Singapore, Djakarta, - Semarang,

Hurabala A Macassar Japan

Djakarta. Remarang, Aurabala

Macar

Bingapore, DJakarta, *Aemotany,

Arabila Mathanar

Japan

Japan

Singapore Djakaria, Mauritius

Djakarta, Remarank,

8. Africa & 8. Ametira

Machisar

RIYAMALA

Kingapore, Djakarta, Kemara

Buradala Klacassar

Mandia, Bingapore, R. & S. Afrien

ainespom.

DJakarta,

Surabain & Mackar

ARRIVALS

From

F

„Semarang,

DJakarta, Semarang. Aurubula

Jati.

'Jan.

21

Jan.

22

Japan Japan

Feb. 7

4

8. Americs, B. Africa, Mauritius,

Singapore & Manila

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Dalez.and..rotation subject to change without notice,

At liberty to proceed via other ports to bond/discharge cargo,

Reluctant To Handle Cargo

For Far East

Washington, Jan. 18. The Military Sea Transporta- fion Service today said that lack of offers from tramp freighter operators will make it difficult to meet all necessary dry cargo shipments to the Far East this month.

Sugar Output In Formosa

Talpel, Jan, 18, Formosa's sugar' produc, tion this year is expected to be about 8,000,000 métric tons, according to ugually reliable economie estimates published today.

Producilon wis expected to

exored last year's" by 100,000 tona.

Sugar exporta Isab year were 454,011 metria, fons worth US$69,680,000. cording

the

20- Taiwan

Barter Pact With 1951 representing 39% of the

Russia Possible total new holes drilled in search of production. In Canada, onc drilled 130

Lucknow, Jan. 18. major oil company

holes over a span of 28 years largely in the hands of wage surplus as a means of financing "and when the

The recent recession in before discovering their first carers,

is low it would be a certain part of it could be tea prices may compel India Ecuador, saving oilfield. In major which held great promise, Sheli miraculous if the marginal saving used for extinguishing debt after to enter into a barter agree.. were other calls on it have been ment with Russia, whom from the extra income spent £9id"

mel. millon before abandoning the

she regards us BELF-DEFEATING

a potential on a national search for oll and writing" off

could also be ensured by Taxation, he said, had already buyer of her ten.

obliterated "risk the expenditure as a loss. All scale or saving

A two-man official team on this, he said, shows the heavy Increasing the Budget surplus more or less

more taxation

the Lea Industry has reported capital investment and consider-either by taxing more without savings." Was still

going to be increasing expenditure or able element of risk involved.

so that that during the discussions with be imposed spending less without cutting through the agency of a still trade representatives, Inquiries'

larger Budget surplus they migh were made it they could trade STRONG OBJECTIONS be again increased by a small with Russia and export tea to

cmount But there were strong objec-fraction of the

thus that

country, Russia tons per annum, nearly a five-tions to this course, une killing. This seemed "not merely a tea of the type which is now.

made available?

bought Indian medium quality fold increase since-pre-war. Of crippling incentives and this, over 30 million tons will

will any chance of

self-surplus. raising pro roundabout way but a be in the United Kingdom, re-

re-ductivity, higher

taxation would defeating one."

The team made it plain that There have been other objec there presenting nearly a 15-fold in-

the expense of capital or

nothing to prevent Keen and continuous new saving if it fell on the rich tions to Mr Jay's "panacea," the India negotiating sales and ex-

cause untold

chior

of which is that indirect porting tea to Russin competition has also stimulated and would

untold political

Budgel The to the Government in investment through a

Boid tearn the rapid development of refining harm

that in

to surplus would increase the flow addition techniques.

power if it fell on the workers.

exports of tea en The alternative means-and the of so-called "State funds" into private account,

question The cost of supplying oil one

which obtains the most sup- certain industries and thus leave raised was whether Russia could the world is very port

future be persuaded to products to

enter into a great. By the end of 1952, the Port from economists-was by the way open for

Socialist Government to declare

for the culting Government expenditure

them "ripe for nationalization." oil industry in the U.S.A. will

12,000,000 without cutting taxes. since the war, have Invested,

"The

If this debate has served any pounds of tea Баш Economist But

from India for the Government useful purpose at all, however, it some of her own products. about $17,000 million; outside the

during the same period, adopting

lille hope, of U.S.A...

course. Its is by underlining the problem

The team asked the Indián it will have invested well in

would be to that Mr Butler will have to solve Commerce ⚫ and Industries excess of £2,000 million. The political instinct

maich any saving in Government next April.

Ministry to consider if this were Industry is spending £50 million spending with an almost equal Clearly, if Britain is to play possible. The report warned

research alone.

cut in taxes..

her full part in Commonwealth that India would have to face (From Our Correspondent) per annum, on

Since the world's capital markets

Therefore,

"The Economist" development she cannot afford to competition from Indonesia and Business done on the Stock do not produce money on this argued, "it is the British people neglect her own earning capacity. East Africa in the United King

part has to be

markets as share- At the present levels of taxation dom as individuals and

despite ber industry's Exchange this morning amount scale, a large ed to $209,715.60. Noon quota-financed out of the

holders in enterprises who must this is being gravely jeopardised advantage in being exempt from tons and the morning's

Tramp operators have recently trans profits.

by the lack of private saving to import duly. Save."

could

It pin-pointed The State

help by back new investment.

the need for contended that there are more than enough privately-operated that make

The question, therefore, re-studying intensively the nature

ships to carry all military cargoes per gallon sold. Their size is a

to 'see how

but operators are reluctant to of the bigness saving worthwhile but this could mains how can saving be in- of foreign demand

Shell not after the basic argument that creased? Every ward uttered by Indian exports can be further

handle all types and quantities of the business.

now and increased.

of cargo offered for the Far East. Group earns less than one penny saving is thrift; it is consuming Mr Butler between

to be done by | Budget Day will be closely on is less; and it has

The team's report calls for im- A statement lasued by

the net Proct per gallon

Into the Inquiries studied for possible clues to his mediate the people." 1051

said that the M.S.T.S.

scarcity It paid more business; in

The correspondence following answer.

potentialities of other markets times its total net

of ships will affect shipments than four

and and publication of this article has, in.

lists us instances Egypt, everywhere but the primary profits in various taxes

THE STOCK EXCHANGE concentrated

Turkey, Iraq and Burmo. It needs for dry It has invested more the levics.

cargo to the este capital relationship between savings and

Big feature of the past week said attempts should be made to Far East. than £100 million

on the Stock Exchange was the export more tea to Egypt. Turkey projects every

year since the the Budget.

In keeping with the

Navy SOCIALIST'S VIEW

start of dealings. In the new and Freq, It added, were already policy to use commercial ship- Mr Douglas day, who was

Importing Indian tea. In regard ་་་ The ultimate of bigness is not

Mr Financial Secretary to the

The issue was a huge success to Burma, the report said, tea ping to the fullest extent, Vice- Admiral F. C. Denebrink, the enterprise, 400 7. State-owned 1000

have been MS.TS. Commander, will con- two Treasury in the Socialist Govern the largest allotment being only exports from India The declared: Guepin

ommon ment, believes not only that £40,000, so that institutions had negligible to that country since tinuo efforts, to get privately- havo nothing

bid heavily for their extra re- 1947-40. thus Investment to

operated ships rather than take! The international team work of saving and

through could be increased

13 quirements,

ships more Navy-owned cargo the all industry can only prop larger Budget surplus but that

CAUTION ́ADVOCATED

out of the mothball dect. The As a result there was a £10 under free enterprise. Although it should be.

million turnover in the now The report suggests that munk

MS.TS. eat that 118 privately-

Sydney, Jan. 18. free enterprise must conform

Filipino businessmen come to if Britain was to finance the stock

on Monday, and the Trade Commissioners abroad to STS. charter Valted Press, Australia to buy machinery and livestock, the New. Philippines domestle

Industry, he argued, premium, which opened at £2, popularise Indian

£2 to

official The

advisca team

| Consul, Mr G. B. Provido, sold.. corporate saving must be raised. subsequently rising

the weeks at: £25. caution on the question of India

Australian machinery was re- Company saving would play a

This activity tended to breaking away from the Inter- part but if we were to make any.

ported to be cheaper, he said. de overshadow gilt-edged securities national Tea Agreement. ess towards progress

more

adding that, the Philippines Is It went an record as saying but Arm conditions developed in

seeking mocratie ownership of Industry,

Industrial farming profit taxation must be used so this section of the market after that no benefit would, however,

New York, Jan. 10. machinery and livestock to re- that expansions (at least of large the opening of the new account seem to accrue to India by such

On Wednesday and several a step. If the object is" to Trading in German dollar habilitate and Industrialise her; of outside borrowing and not

were made. One

with other countries, with be delayed for

time, wholly by retained profits

Australla is at present at- inancial circles report. Resumpi – hence private capital apprecia-keep gill-edged prices tip is the a view to eliminating them, such

tion of buying and selling had tracting Philippines trade and a weight of cash piled up in life competition could be still" carried Hon

trade been expected in a few months, further increase in assurance funds. The volume of on within the framework of the Therefore, Mr Jay wont on,

relations but may be relarded by a legal countries is expected.

between the, two, for A far-reaching Investment Life sssinence business reached agreement.

The poble repercussions in tangle.. programme a Budget surplus was a new high level last year.

sources Buy There' country like the

"In return for Australian goods. MUNICIPAL ISSUE

Us da cons

consumer likely to be necessary. And this

The week also brought news of United Kingdom of such restric- Goverment officials want the the Philippines could provide must mean for a time continued

"and other the sugar-hemp, cocon high taxation

-validation law-passod-by

products. These have 2514-7914 Incomes and fortance though fe authority, since the Government report doubted it countries Bonn Government last August, to Uhipald

The conceded that the might perhaps reopened the market for this type

and Trade betweení ·Australia. Uko Indonesia and Ceylon would but other officials contend the be adjusted so as to encourage of loan, eta

The Birmingham Corporation agree to proposals made by the US. Senate must handle the law the Philippines would be greatly Tho sigument was taken up at is to raise £0 mililon by an Indian trade, to, restrict produce as a treaty and calify or relect mabbed if the pinna to make This could mean a long, Sterling convertible eventualexk. this point by Lord Brand, who laissuto. or. 434 por: cent stock tion of tea to avert a further fall

dstay-Associated Press.

United Prom In prices-United Press. perhaps best remembered is 1907-70 at a price of £90.

SHARES BUYERS SELLERS SALES

BANKS

HK Bank .. 1405 1430

163

East Asia. ...

INSURANCES

Union ... 700 800 Underwriter DOCKS, ETC. K. WILET! N. PL. Whart S'hat Dock Wheelock

Dock

20.20 1.60

14:00 1.00 2.55 7.65 6000

7.00 Wheelock (REK)....... 1.56 2.05 4400 255 2000 @ 2.50 1200 & BAT

LAND, ETC.

HK Hotel. 7.70 7.80 2500 @ · 79% HK Land (0) 6611⁄2 5745 300 68 8735 HK Land (N) BI 07

direct function

war

In

The

to

the discipline, general welfare

creating conditions

Anglo-Iranian debentures.

Shia Lond 1.5 1.99 2000 @ 1.45 and moral codo of the community, | necessary amount of investment dealing the commencement off can and must be done by Indian owned ships are now

UTILATIES

Tram...... 22.20 22.30 1000 1,22.30 100210

Star Terry C. Light (0) D.10 0.30 G. Light (N) 5.10 8.20 1300 @ 0,15 Teleprom

10.00 200 43 20.473 INDUSTRIÁLS,

Coment

18.co

- 201

Пере

STORES, ETCI

Daley

18.55 19.10 2500 (9 18.03

28330 Wetson 1. Crawford 2315 1000 @.22 COTTONS

Exo

Mooltam Fog-Bound Exchange Rates

it is the economic expression of that: values, a social system respects, and requires ludividual freedoth.

Rubber Futures In S'pore

Prices

futures

Bingapore, Jan. 17.

of rubber closed today as follows; Number 1 rubber,

par ib. February March

April Number 2 rubber, “

February

24-841%

Number & rubber,

February

77034-7614

6.013 18.00 2470

Number. rubber,

Tabtuary

pot milber, utabaled

blanket ‘crupė iki

10.30

No. 1 pale cTEDD

London, Jan. 18. Business was done in the local axchimigo market this Australian and New Zealand unomcizi

morning, she following as LeBS pamentera: danced: sandi · played US, dollar (per_31). cards while the liner Bisolton was sterling note (par. £11. fog-bound in the Thames for 72ndoneman guiderk (per; *hours. The liner berthed "atiam lol per 100)

Blogapore (fruit) "Tilbury onrly today--Aleuter. ric" plastran >{per/150)

in

ten.

under

GERMAN BONDS IN AMERICA

Bugar Corporation,"

year, Formoes would also export. 170,000

вополь metrio

of -coal. according to usually reliabjo estimates—Reuter.

Australian Machinery, For P.I.

companies) comb partly by way tableclors tending tot on unrestricted competi-bonds in the United States, may, economy,

and

of

the

somo

af profits, Inega | the first new insus" by a locil tions should also be reckoned, il / United States to accept the primazed for in dollara sat

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