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Prices in the United States

33. Moody's index of

274

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staple commodity prices (31st December, ed

fell from 390 at the beginning of 1949 to about 340 in June, and has fluctuated around the June level in subsequent months.

34. The United States (Bureau of Labour) index of wholesale prices. (1938 100) rose one point in September to 195, which is 20 points below the peak reached in August 1948. On the whole, the index has shown a fairly steady decline over the last twelve months, while the index of wholesale prices of farm. products has shown an even more rapid decline.

VIII. Wage Rates

35. The Ministry of Labour index of weekly wage rates (June 1947-100) remained unchanged in September at 109.

36. Increases in wage rates which became effective in September added approximately £44,000 to the weekly wage bill of about 230,000 workers. The principal increases were in milk distribution in England and Wales, sugar confectionery and food preserving, and in the road haulage industry.

37. In recent months wage increases have been relatively small. So far this year the greatest addition to the national wage bill has been that obtained by agricultural workers, whose minimum rates were increased between March and May by 4s. a week for men and 3s. a week for women in Great Britain, and by 4s. a week for adults in Northern Ireland. The increases in agricultural wages were accompanied by a reduction in the normal working hours to which the minimum rates apply.

38. The next largest addition to the national wage bill was gained by textile workers, over half a million of whom have had increases in their wage rates averaging about 5s. a week per worker.

39. The National Union of Railwaymen and the National Union of Mine- workers are both claiming increases in wages for their lowest-paid workers. The Confederation of Shipbuilding and Engineering Unions recently presented to the employers proposals for a new wages structure involving increases of 4s. a week to unskilled and 13s. to skilled workers. Since then the Confederation has presented a claim for an all-round flat increase of £1 per week to be met out of profits.

IX.-European Recovery Programme

The Appropriation Act for the European Recovery Programme (April 1949–June

1950)

40. Although the legislation authorising the continuance of the Economic Co-operation Administration was passed by Congress in May (as reported in C.P. (49) 121), actual funds were not voted until September. (In the interim E.C.A.'s operations were financed by a temporary loan from the Reconstruction Finance Corporation and by other expedients).

41. The amounts finally voted were $3,778 million for the financial year July 1949-June 1950 including an amount not exceeding $150 million in the form of loans, and in addition $1,074 million for the final quarter of the fiscal year ending 30th June, 1949.

42. $3,778 million is 10 per cent. less than the amount asked for by the Administration (which itself had been reduced below the original estimate to take account of the drop in some United States prices). As against this reduction, however, it should be noted that, of the many severe restrictions on the use of the funds which were proposed in the course of the Congressional debate, very few were incorporated in the legislation.

Division of Aid 1949–50

43. Thep 19405508 Division of Aid operation in O.E.E.Cpproved extremely difficult. In the Council of the Organisation many delegates, including the