1950-12-06 — Page 7

THE HONGKONG TELEGRAPH, WEDNESDAY, DECEMBER 6, 1950.

EDITORS PRESS SERVICE, INC.-NUEVA YORK

-1854-

DER BATURDAY KYKNING POST

"It's 8:30. How about getting that egg in here?”

WHAT

YOU

WOULD

SAY?

By R. Brooman-White

THE United States must

T continue some degree

What would we think if the situation were reversed?

OUT

The views of right-wing of economic support to Americans are obvious they do Europe and will also have not like Socialism. They have to contribute heavily to supported the European Aid

in programme spite of western rearmament. That Government, not because of it. is the gist of the newly-

EYES ON VOTES published Washington re-JOR have the speeches of the No have the bus these fuch port on the America Aid

to win goodwill from the Ame- programme.

How does that prospect look to the American man in the street?

ASIA-FIRST VIEW

ISOLATIONIST thought has been taking new shapes. Few Americans now believe that they can sit peacefully in their ontinent and disregard the rest f the world. But many, while Admitting the necessity of aid o Britain and other countries, Think that it is being overdone- hat they are helping us too huch, and that we are helping urselves too little.

Other argue

are

FOR · THE BUSINESSMAN

Steel Shortage Feared: Britain Reduces Export

London.

Rumours of an impending steel shortage have led to sug- gestions that the allocation system may be re-imposed.

that

so loosely

Moreover, in the field of general

In the following review, based on authorita- allocation of sheet steel shows, tive sources, the supply and demand position is administered

such a paper scheme has to be analysed and the conclusion reached that rearma-over-ordering is not prevented. ment has not yet caused any appreciable rise in steel such a scheme is incapable consumption. The major new factor is a certain of coping with requirements increase in consumer buying.

Exports of steel are being limited in order to increase supplies to the home. market. This step and the re-orientation of production, it is considered, should ensure industry at home except in special receiving the steel it requires. A detailed allocation system is regarded as unnecessary.

cases

for specific shapes, sizes and qualities which, throughout the life of the distribution scheme, were dealt with in the ordinary way of business by consultation between supplier and customer in the light of general guidance as to policies and priorities.

ALLOCATION SYSTEM Home output of crude steel In) of about £280 million over the But the chief argument against the form of ingots and castings next three years. Taking ac- detailed allocation was forecast in the Economic count of prospective American that it is quite unnecessary. It of steel is Survey for 1950 at between aid, this may represent £700lias already been demonstrated | 15,750,000 and 16,000,000 tons. million of work for British in-

ten months of the year amounts period.

that no sudden and substantial In fact, production in the first dustry over the three-year increase in real requirements is This is not a large likely. But even if it arose, the to 13,427,000 tons (compared amount, particularly when it is current level of exports provides. with 12,814,000 tons corresponding months of 1949),

borne in mind that the nationalan adequate safety valve, Action Since total out-put in 1994 was

industry terms) is already being taken by the 15,553,000 tons there is thus

liveries in order to increase sup- to limit export de- every expectation that the output for the year will exceed 18,000,-

plies to the home market, 000 tons and may, indeed, reach 16,250,000 tons--well over the upper limit of the forecast,

The Survey did not give the remaining items of the supply side of the equation in detail, It can, however, be deduced that

incon in me th in the

real

about £600 million last year. It may not, however, be possible to find all the resources from additional pro- necessary

duction.

J-

commitment is

rican left.

Cabinet Ministers, with their eyes fixed on doubtful votes rather than lifted to wider

It is not generally known that In the recent American elec-horizons, have spent far too

the industry, at the time when tions, the isolationists were far much time enlarging on their

SUPPLY AND USE general steel was released from from being fhally driven from own achievements, asserting

In present conditions of control, entered into a firm com- the field. They survived

"brimful" employment it is not mitment that preference would and that life has never been better slightly increased their strength in Britain and extolling the

to be expected that there can be be given to supplies to the home In spite of the fact that "isola- benefits of a Welfare State. itionism" in the old sense of the

any substantial and sudden in-market. This American left-wingers read word is dead,

these statements in their news-imports were estimated at about crease in the rate of steel con-being honoured and the industry

sumption. papens and take them as fact 850,000 ingot tons. In fact they

is prepared to cut back its ex- There has been no hint of any ports still further for the time the flics in our ointment are not may not much exceed 600,000 drastic redeployment of labour being. easily scen from across the ingot tons. Thus the surplus of Atlantic. And American work-home production over the fore-

or lengthening of the working The flexible resources of the ers wonder why, if things cast will about make up for the rise to such a development. The field of general steel, convert the week which alone would give industry will; over the whole really so rosy over here, they shortfall in imports. The should have to contribute to our aggregate supply of steel will be change-over from normal lines metal thus divertd into the pro- welfare rather than keep the just at the level officially fore-will, in many cases, disrupt the home.

of output to rearmament items ducts in most active demand" at money at home for their own cast.

It is difficult wellbeing.

indeed, even flow of production and with exports at the three million EXPORT OBJECTIVE thus reduce productivity.

ingot tons B

to Exports were expected to rise

year level, Moreover, contrary to general envisage any increase in home to some 3,000,000 ingot tons and belief, workers on armaments, requirements which cannot be this objective is in sight, the complex Although by far the greater part modern war, use less steel per reorientation of production.

machines of met by limitation of export and merican support is being given

of the range of steel products is hour, not more, than the average Europe and not enough to

not controlled, the industry ac-worker anti-Communist forces

that is in

cepts and acts on the advice of affected. sia. This "Asia - first view

the political leaders

Government

A steel shortage has developed ill undoubtedly gain strength.

As to the It must be concluded, there-in Sheffield, he Far West has always been should be a little more tactful direction of exports.

fore, from an examination of substantial reduction of export

necessitating nsitive to danger from

and our publicity a lat more

Thus the confident expectation these facts, that the development deliveries, effective. ar East.

Less should be said in the Survey that "there will of steel supplies and utilisation These broad issues of policy about the very dubious achieve- be a substantial increase in de- this year has closely followed The president of the Chamber e brought home to the averagements of the British Govern- liveries to the Commonwealth" the lines envisaged at the be- of Commerce,

Mr F. Lloyd, menican by rising prices, tire-ment and more about the very is being carried out,

ginning of the year, Moreover, says the shortage is due in part me controls, frustrating short-real efforts and sacrifices of the

British people.

Since total supplies and ex-

the effect of the orders placed to diversion of some steel to es, grinding taxation-in fact

ports are at the forecast level,

under the rearmament pro- meet the new, defence pro- the troubles from which, to

For example, though Americans are well aware that steel

most it follows that the quantity of year is negligible in relation to by the fact that

gramme on consumption this gramme. It is also being caused available for

Te

that too much

the

it?

we do

about

TACT NEEDED WHAT should

First, now we have built up some dollar reserves we should announce our intention to do without all Aid absolutely essential.

Second, our

not

home

in

་

the

industries

SHEFFIELD SHORTAGE

some of the

even greater degree, we are their country is facing up to a consumption is also as expected, the other items in the equation. markets that have been supply-

ffering ourselves.

STANDARO BRIDGE

By M. Harrison-Gray

Dealer: South, North-South game.

W.

N.

A643

❤A 7

♦ Q 10 6 5

4042

KQJ93

872

KJ 8 6 3

S.

✩ 0 6

10 6 4 2

• A 3 4

◆ Q 10 7 5

A R Q J 10 8 7 2

85 K9 3 A

4

With a choice of opening Ids on this hand. South referred One Spade, over hich West bid Two Hearts. forth had technically nine bsers. but with two Aces ho 789 right to bid Threa pades. East-West bid up to ive Hearts, which North pulled, but South decided

go for the rubber and bid ive Spades.

WOO

The guess in Diamonds as avoided by some careful imination play. The Arst ick was

with A; buth came to his hand th 10 and cashed AA then led 7 to dummy's A, preserving his 2. A tub was ruffed and dummy Bro-entered by leading 2 to 44 After ruling a last Club, South got off ay with Heart lead. topelling the opponents to d Diamonds or concedo B It and discard.

London Express Kervico.

bre maledi

17c

REARMAMENT

•

Gain In

steel have

Rubber

NY

3,000 million dollar defence pro-Play has been gramme, many

CONSUMER ORDERS have no

made in some

ing Sheffield with idea that Britain's

quarters with the young men.

fact that Why then, it may

be asked, dried up. · facing up to two

Earlier this year, stocks of steel in the hands of should apprehensions of short- years' con-

Mr Lloyd scription.

consumers fell during the first ages arise and difficulty be re-pointed out that

a stage had Last and most important, we

half-year. But this movement ported in placing orders?

been reached when supply had must encourage Amenican idea-was anticipated in the Economic Since the explanation lies overtaken demand, but now, he lism and efforts by ourselves Survey. It was there envisaged neither in a shortfall of supply said, the sudden change had showing more gumption and that, if necessary, it should be nor in any unexpected rise in made supplies available to leadership in world affairs.

possible, without any dislocation consumption, it must be sought Shefeld not equal to the or serious inconvenience, to run in the behaviour of consumers demand. down consumers stocks by some in placing their orders. The fact 800,000 finished tons, or some is that, whereas orders fell off 400,000 ingot tons, in the year, during the first half of the year, In fact the decline in these there has been a sharp increase stocks during the first half-year in the flow of orders on the was rather less than half this steelworks since the commence- figure,

ment of hostilities in Korea,

"This represents the counterpart What of the effect of rearma-been experienced in many other of the panic buying which has ment? The rearmament pro-countries in recent months. In-

New York, Dec. 5. gramme is still being worked deed the

Rubber futures backed and out in detail and in many cases country has been but a pale re- cents, but managed to close with experience of this filled today over a range of two a whole series of decisions has flection of what

gains of 75 to 150 points. Sales to be taken before orders can elsewhere. be placed for munitions warrant-

totalled. 70 contracts. Washington Whatever device may be indications that mandatory price ing the placing of orders on the chosen to remedy this condition controls were not yet possible, steelworks for finished steel, Land to provide elbow-room for along with the improved tone in So far as is known publicly, rearmament, detailed allocation London and Singapore, oncour- the total orders placed for all of materials, such as the steel aged better enquiry in the local items under the new programme allocation system so recently re-spot market. Reploement buy- amount only to £100 million, laxed, can find no useful place. ing on technical reasons was also though a second £100 million

Detailed control over the many apparent in the futures market. will apparently follow fairly thousands of steel consumers in Some observers felt that the soon. These amounts are small order to divert a few percent of drop of 62 cents a pound in comparison with the value total consumption is administra- Prices closed, today as follows: Monday, was unduly drastic, of industrial production, which tively wasteful and clumsy, even probably exceeds £6,000 million. If there were

dtiv... 60-4 enough civil The entire rearmament pro- servants with the skill to gauge

Wianco 05.00 bid Krümme announced by the to a nicety the detailed steel re- Government represents

"Pardon me, lock--! represent #lgwood's Footbagi. Poofs Ltd.!"

has happened

Spot

January (1001) December

March

an quirements of each firm.

May

July

As experience with the present

| average increase în éxpenditure

on

53.50 traged -7.75-bid

44.50 traded

-United Press.