1953-06-02 — Page 9

4

"

THE CHINA MAIL, TUESDAY, JUNE 2,1953,

Vicious Economic Circle Of Rising Wages And Costs

PROBLEM CONFRONTING UK SHIPPING INDUSTRY

British Transport

In Decay

system

London, May 31.

Britain, Germany Agree

Progress Towards Convertibility

Anglo German economie talks at ministerial level just finished in London have reached general agreement on the necessary conditions for progress towards con- vertibility of currencies and

removal of trade restrict- ions.

Announcing this, the British

tions welo Founel

EXPLORATION

FOR NATURAL

GAS IN U.K.

Council To Conduct Search

MESSAGERIES

P.O. Box 53 Queen's Bldg.

M

Gutwards

MARITIMES

Tel: 28851.

M

PASSENGERS/FREIGHT SERVICE

Leaves Martellles

"FELIX ROUSSEL" .. D Jubo'

Homewards

Hengkang

*FELIX ROUSSEL” 24-25) July

Ifongkong

10-11 July

For. Alanija

Jisse Martrilles

Via

23 August Vokoliates

Via Marseliles to all Mediterranean & West Africa ports. `via Djibouil to Madagascar,

· Outwards "MONKAY"

The Gas Council is to conduct a large-scale exploration for deposits of natural gas in Britain. This was 'disclosed by Colonel Sir Harold Smith, | “SILVERSANDAL" chairman of the Gas Council, when he addressed a "EKONG"

Tomtewards

meeting of the Institution of Gas Engineers." "'PEI-10"*

J

FREIGHT SERVICE

*Europe --Kallen ...Europe —Яable &

-Hamburg—-33' May

E.PATES Krelung- Juna Keelutig-10 July

Hongkong

For

14.10 June 28-29 Jone 38-10 July

Blangkong

Здрал Japan Japan

Fot

H June

+

12 July

28 July

..........Keefatig→ August 14 August

† Saigon, Marsellies, Algiers, Oran, Tangiero, Casablanca, Le Havre, Antwerp, Ratterdam & Dunkirk.

BUDJECT TO CHANGE WITHOUT NOTICE

Arrangements for the exploration are now "MONDAY" under discussion between the Gas Council and the "ILVERSANDAL“

"MEKONG" The path of the British shipping Industry

Anglo-Iranian Oil Company. The exploration is seems to be constantly beset with difficulties. As said that these vendi-expected to be spread over five years,

Sir Harold said that the Gast any magnitude would be of soon as one is overcome, then another arises to Anuncial poilcics, the pursuit

of good creditor policies by Council decided last year to immense value to our national take its place.

creditor countries, and avall-consider the possibility of find-economy, and it la suggested gas in Britain, that prospecting, where there is and engaged the help of Dr any possible hope of · KUTEERS, G. M. Lces, chief geologist of) should continue to receive the Anglo-Iranian Oil Company. vigorous support."

4

of adequate financial ing natural One of the thorniest of these problems has ability for some considerable time been the vicious

Decay economic circle of rising wages and rising costs.

Capital investment for the im- provement of Britain's transport Ivan been pitifully Yet Hidequate since the war,

the even today, when

raw materials Hential to major zeromatruction on roads and rail- ways are more freely available. there are few signs of any major change in offletal policy on the subject.

article In A recent

The Financial Times by the president of the Institute of Transport gave govern- amply illustration of mental failure to do more than pasi lip-service to the economies

on

im-

Now the stage has been set by the Confederation of Shipbuilding and Engineering Unions for the presenta tion of a new demand upon the employers for another wage increase.

Meeting at York on May 20 the Coutell of the Confederation decided to

go ahead with its calm for a 15 per cent wage increasi for its three million members in engineering, ship- building and ship repairing. The move, If successful, will add something like £125,000,000 10 the engineering and shipyard annual wage bill.

A statement by the president

that can be achieved by road of the Engineering and Allied building on a a realistic scale.

South Wales Associa- Employers' thelan admitted that the unions Tho plettire is similar railways. The fact that schemes were entitled to put forward which are now authorised or in anything they like for discuss.o

improve-through the Industry's `negotiat- progress for railway ment total 446m, appears

im-tag machinery. fact it does no In pressive. But ano" than underline the dif- But it went on to warn that feulites which the Raliway the latest move could bring Executive has had to face in "uthiru, but disaster to many planning the necessary schemes firms and their workers." of Teconstruction.

raise ests by increasing wages would be asking for trouble at a time when foreign competition was getting tougher.

To

Metal

Workers

Praised

Morale Impresses. U.S. Observers

of

prosed

A striking appreciation Inbour in the British metal Industry is contained in the report, of a Uulled States team which visited Britain the summer of 1951 under the auspices of the Anglo-American Council on Productivity.

15

support.

These two Jast conditions evidently refer respectively to Unlied States trado policies, of the International Monetary Fund, In which the United states, as the largest contribu tor to the fund, hav the fin minant voice.

Main

talks purpose of the was to enable the West German Ministers to

Britain question about the Commonwealth's pro- posals for freer world trade and payments, as presented to the Organisation for European Economic Co-operation in Paris last March.

Other economic

matters of interest to both countries were alco discussed,

Treasury the said. In particular It was agreed that the encouragemast of ex- artificial incentive ports by schtmes distorted the pattern of trade and impaired tree competition The two govern- menis

would consult further to- with gether

co-operate other governmenis

towards securing the progressive elimination of such schemes on an international basis.

The

matie no communique menilen of the

of question

the sterling being quoted on new West German foreign ex- change market and of the D- mark being quoted In Loncion.

HONEY AND STEEL The Imitation of both money

The unions, say the team, aro and steel has prevented the

sirong, resposible, experienced,

be carrying out of little more than essential track maintenance, The statement said that no and respected, Relations

and th was open to the tween the employers which must take first priority, other course

to be at high ant a low selected schemes of employers but to resist demands unions appear

that would raise the Industry's level of felerulliness and cordia- improvement and development,

referred of millions of lity. The Individual workers for costs by tena

are responding with a maximum pounds annually.

effort and intelligent

Co operation to the drive to in- crease productivity in their plants.

whole, their physical effort is greater than that of the Americans, effort, however, mechanical aids make more effective.

The allocation of money nny one year has often been too delayed for the full amount to be used, while steel rationing has severely limited supplies for one of the country's largest atcel users,

the

Cunsiderable economies have beca, made on the railways through

pruning Labour and the improvement of optra ting ciciency, but the funda mental needs have been barely

louched.

The present railway system won laid down over 100 years ago when the country's economy was very different from today.

No other industry could have

IN NO MOOD

In the past engineering arms had gone so far as they dared claims and to meet the unions' they dared not go further.

The statement concluded by saying the unions should obandon “this unrealistic demand without further ado."

But the Council was apparently in no mood to listen to such advice. Two amendments to the proposal, that the unions should

ahead with their ge get nowhere.

demands, One called for a survived with so little flat rate increase. It got 15 equipment, and in the long run votes. The other-called-for-a it will be the UK. as a whole "realistic" percentage Increase which will suffer from the with an output bonus based on neglect of the transport system the annual increases in the in through the ever Increasing dustry's productivity and a cost- addition to costs which it must of-living scale. This move found involve.

a seconder but net one vole, WORST FORM

4d.

week.

Tuon

A a

whose

10

are

ENCOURAGING ADVICE

The report outlined the sharp

in.

€x-

suflelently encouraging to have austries of the US and UK

"Dr Lees' advice," he said, "is contrast between the gas

which lies in

the rapid caused Die Cas Council to

Dxploitation of naural gas re- press its willingness to conduct a sources in the U.S. which in the large-scale

exploration for

Jast decade, has transformed the natural gas,"

economic and technical aspects of the American gas industry.

Development of the output of natural gas in Amerien, low in

as compared with

Sir Harold pointed out that there was, of course, no' guarnn- tee that gas would be found in any commercial quantity. But cost it was important to remember factured gas, has resulted that ro far, when borings had rapid and very extensive in- been made, these had been made

by een made creases In consumption All with the object of finding oil, classes of consumers,

and no serious attempt had been made

and

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ARRIVALS FROM U.S.A.

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USDA MAERSK"

June

1

June

June

12

hns meant that 53 per cent of total to look for natural gas gas sales in the US. is used by It was interesting to note that industry, against 24 per cent In gas might possibly bo found Britain.-The Financial Times. separately from oll.

of t

"What the result will be; course, none of us can yet say," sald Str

"If we Harold.

are successful the benefits accruing to the consumers of gas may well be considerable.

"If we are not, at any rate we shall have the satisfaction of knowing that we have not! neglected to take advantage of an opportunity of trying to find new supplies of gas."

"ISING PRICE

Sir Harold underlined the need to undertake such a search

for

STATEMENT

INTRIGUES

of no-

Washington, June 1, The Natural Rubber News, which representa Malayan, Ceylonese and Indo-China rub- ber interests here, said that the READY

real signilleance of the recent Copenhagen International Rubber The export incentive schemes

Study Group meeting to include rebates to

United by the the statement new sources of gas, by pointing. exceptionally exporters and

States rubber manufacturing to the decreasing supply of good terests that they believed that long-term

credit facilities.

has gas-making coal, and the rapidly there can be no surplus overseas buyers. Britain denied that she operates such increasing cost of coal.

tural rubber during the next 12 schemes. In West Germany the

In December, 1951, he pointed months, use of export robates in sold to

The review Implied thai was by have greatly diminished lately put, the price coat was increased

an amount which added more important than the fact Ciermany is understood to be ready to drop such, incentives approximately £9m, to the gas that the omeiat communique at

the end of the meeting appear cual bill,

the Impression that March, 1953, another increase Ined to give The team mentions two no altogether, if other countries Industry's annual tional factors which it regards would also agree to do so.

the price of cost added a further the meeting merely ducked the The talks with Germany

whole problem of the advis as largely responsible for high

while in Decem- part of a series of discussions £3m, a year.

ability of a buffer stock scheme, in rail First, overy

ber, 1052, an increase morale locally, British

concluded that no agreement la citizen knows that

Britain is holding with the lead- hls

charges added £1m. a year. ing West European countries on existence de- very

One

possible this time and postponed effect of these increases country's

of the implications of the Com-

the issue until the special meet- These had

been

to increase proposals pends upon the production

the ing to be called in September monwealth's cnough manufactured goods for

In differential between · ⚫ the export to maintain

price have never been disclosed

or Oclober to have another look favourable

gas con and the AL the problem. the charged for detall, but they aim at foreign of

trade.

coals. eventual convertibility of steri-price charged for other Secondly, there is the

feeling

Ing-and-the-freeing of world "The total increase,"

said Sir

The review. said the fact that that, to a greater extent than

trade. Mr Butler is believed Harold, "is such as is. tending to the representatives of the Unit ever before, whatever goods and

discussions make gas non-competitive with ed States rubber consuming in- to hope that the services remain in the country are being more equitably divid

will obtain support for the pro- other fuels not derived from coal,dustry at the Copenhagen meet- posals, and bring about agree-particularly for Industrial pur-ing said "the United States ed among the whole population. ment to make the leading con- poses, while at the same time rubber consuming industry will

currencies convertible upsetting. WORKING CONDITONS

competitive buy every pound of natural at the same time as sterling.-balance between gas and coke rubber available to them at a Reuter,

and other fuels derived from price compotlive with synthetic coni."

rubber", showed that this state- ment must be taken seriously.

Unless one doubted elther the The report on An Anglo- sincerity of this pledge or the American productivity team on manufacturers' ability to carry the gas industry, published on it out, the review added, "there May 11. emphasised the need can be no doubt that the signi for the discovery of other sources seance of it is that it brings of gas supply. Although there about in effect on a private aro no appreciable known re-hosts what so many advocates serves of natural gas in Great of the buffer stock scheme most Britain," it said, "a discovery of desire."-United Press.

balanc

the maintenance

Д

of

excellent

Earlier this year Mr A. J.

There now seems lttle hope The report says that one held Pearson of the Railway Executive that the industry can avoid a where British industry standa put the sum which could pro- repetition of last year's wage well ahead of the United States Otably be invested in the rail struggle when the unions colled in the matter of improving

Then worker

morale, and, con- ways at: £500m, over the next for another £2 weekly. ten years.

negotiations between the unions welfare programmes and good What has happened, however, protracted and sometimes bitter sequently, productivity, through and appears likely to continue to and the employers resulted in a happen, is that capital expendi- rise of is.

Two Working conditions. ture on the railways and on the months can easily elapse before

. The view is taken that the aouds has constituted a con- the men get a reply to their

contribution of the workers in nually, diminishing percentage latest claim. After the claim has the pressed metal industry to of the national total.

been presented to the employers increased productivity is close Investiment

employers' committee will to the optimum. in the roads and an railways does not show an im- meet with the unions and prob-

ably report back to the mediate return.

dematide an get of faiths and | ployers. of courage not only to accept the evidence of transport economists

It

but also to act upon it.

ing

:m-

al

In

Fuctors favouring produc- tivity are: national patriotisin, full employment, equality Mr H. Botherton, chairman of sacrifice in an austero economy, refused to managements the Confederation,

bargaining on what action the good faith, controlled incentive Thett lins too lang been public speculate

would take and official

If pay 1 indifference to ensur-Confederation

system, decent werking should be their claim was turned down. conditions, representation in de - that accidents reduced os for as possible.

But at an carlier meeling bepartmental management, warned that the unions would willingness to accept technolo- But..

from the humane wave to be strong, because there gical changes, and union apart

and aspect of the transport problem

would felter from

be stiff resistance. The company education pro- which is stressed in

correspondeat, it is ektar possibility of industrial action grammes.

he said. that both on the roads and rail- had to be considered, ways parsimony now will In the Leaders of some of the 30 unions

future prove

have In the Confederation have since been the wars! form of economy. told their members to stand firm

The Financial Times.

in defence of the claim.-Reuter.

#1

ncor

10

COTTON LOOMS

CENSUS

1030

.

PRIMARY NEED

Ahother point observed by the team wan that mannger- were younger than those In comparable positiorus

the

tinental

Small Yards In Japan Suffering

the

U.S. RESOURCES

Tokyo, June, 1. Small Japanesa shipbuilders, faced by mounting costs and loss of shipping contracts, are being frozen out by cutbacks In the

shipbuilding PENINSULAR current programme, the Journal Commerco

and Industry ported.

number

of

ro-

The magazine said that last October was the peak month of the shipbuilding boom, with 42 of the 52 slipways in 20 major shipyards occupied.

By February, however, "the slipways of idle

By execeded

those in use.. June or July only a few ship- yards will be engaged up to 60 per cent of their capacity...If this situation remains unim- proved ill next August, all the slipways will be vacant."

The magazino said that 'com- petition among shipbuilders has increased sharply in a scramble for available contracts.

screening by the Development Bank eliminated the smaller shipyards. As a result, the Mitsubishi ship- yard and other major ship- In securing yards succeeded orders, white a

all smaller ship- yards were rejected......

Unlied Slates but carried øl- most equal responsibility. Many were under 40 and had reached their positions by working up through the factory by ability and were not in any way cont nected with ownership. In Bri-

"Strict any person capable of an being a top-flight executive had a reasonable chance to become

one.

London, June 1. nations. Britain's cotton weay-

Industry has Tall, distinguished-looking Ing

become Norman Pearse, secretary of smaller more quickly than that

Internia- the Master Spinners'

of any other European nailon.

Since the tional, has just ended a nine

census, months, tusk of combing the Lancashire mills have lost 189,- world for cotton looms statistics 000 looms From 304,000 looms

Polnis of criticism were that has fallen to without leaving his Manchester the number

there was a comparativo lack of of some cost-consciousness, Royal, Exchange office, relying 349,000. The looms

inrmelent wire on *phano

and air mall other countries have also fallen standardisation, Insufficient use communicaitons to help him sharply, but this is because they of motion study, restrielive count the world's cotton looms have switched to shift working. mfety rules, and, generally, that It was, the first census for 10 The Lancashire cotton industry the primary need was more

industry, remains a one-shift yeah, Discovering how many focus there are clacking in while double and treble shifts efficient use of man-power. mills from Koten to Chile and

lave become quite normal in The team suggests that; an

many countries.

industry-sponsored Interchange

The

the

na. v. "CITASTINE MAERSK"

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Pedder Building.

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Shipping companies are now SPECIAL NOTE: With the exception of hand packages refraining from construction of

now

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In of freightage the recent *shipping alump."

The magazine sald that com- back to Lancashire would have explanation for the sharp of men would provide the Eng-yards,

peililen from European ship- together with high been much easier for Mr Pearso

sono fall

in Japan, fall in Lancashire's case in that Lishman with a clearer Insiglit if every no spoke the

is seriously langue tie

countries which, in the part, and understanding of the affecting the Japanese industry.

enthusiasm for

One big advantage hold by He had found that the world bought their textiles from Bri- United States total of cotton looms last year tain are now starting their own productivity, and would impress Japanese shipbuilders had been EMBARKATION:

quicki: ntest at 2,730,000, against 3,000, mille. Lancashirinade loonts upon the American the English

delivery but 7180 300 at the 1930'susun and that are being shipped, abread and pride in craftsmanship and the Europcon - yards now - likewise the hours Werked by Brilish immediately. put on

to chitt Importance of maintaining high have speeded up their construc- loomer wereh, Jowest among 40 world

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ORDINANCE 1952

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HONGKONG AND KOWLOON.

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