CO129-577-1 Estimates- effect of war on colonial estimates 15-9-1939 - 4-10-1939 — Page 12

7450/39-

CIKP Thanks

Colonies to all Colonies

No.6%. Confidentia

(1)

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of use to you:-

(a)

Although experience in last war would som to indicate that there will be a general rise in prices of all commodities, special action which is n being taken in this country and elsewhere to control prices and existence of large World supplies, actual or potential, of many commodities may have result that prices of only a few Colonial commoüi ties will rise considera^>ly above their pre-war level. Moreover owing to rise in insurance, freights and other incidentals rice in prices in importing countries will not involve euivalent rise in prices received by producers. In some cases, however, quantities exported may increase substantially and in case of certain commodities where American consumption is dominant factor fall in value of sterling has already caused some increase in price.

(b) Increase in total value of exports may not immediately result in increase in total value of imports. Restriction of imports from Canada and most foreign countries is as you know essential on exchange grounds. Normal flow of

importa