LABOUR’S POLICY IN BRITAIN

Press, Volume LXXXI, Issue 24633, 1 August 1945, Page 7

LABOUR’S POLICY IN BRITAIN

“Air of Expectation”

DEEP CHANGE LIKELY IN FOREIGN AFFAIRS

(Special Correspondent N.Z.P.A.) (Rec. 7 p.m.) LONDON, July 30. An air of expectation is abroad in Britain to-day, with the awareness of a new Government firmly in power sharpening interest in the future. Labour has it within its power to develop this into something resembling a renaissance. With the desire of the people so clearly expressed, there is a general atmosphere of goodwill and a mood to withhold any premature criticism, but to support the Government in the difficult days ahead. Though admittedly surprised at the Labour Party’s sweeping success, its supporters are naturally jubilant and confident that its leaders are competent to direct the reforms it has long advocated. Many of its opponents tend to share neither mood, but profess gloom and doubt of the ability of the new Cabinet, particularly in the sphere of foreign affairs, while their mental habits still seem to influence them to regard Labour as being “not quite out of the top drawer.” The doubts of this section seem to attach particularly to. Mr Morrison and Mr Bevin, two men who seem to evoke either whole-hearted admiration or total dislike. But it can be noted that these same people go little further than regretting the loss of Mr Churchill and Mr Eden in directing affairs of State, and if taxed they will admit that they are not sorry to see Lord Beaverbrook’s influence removed from the Government.

Attention is now being given to the line of action the new Government will follow. Labour’s Five Year Plan for domestic reconstruction is ambitious and far-reaching. Housing is the first priority, and the Labour leaders realise that the party’s ability as a whole will be largely judged by the results achieved in this, the most burning of all domestic‘problenjs. It is expected that a special department will be formed to grapple wit.i it, and that there will be a big State housing loan at a low rate of interest. Building rings will be curbed, prices controlled, and materials bought through a new bulk purchasing scheme. Plans for health and social security will, it is expected, be pressed on, with development of the war-time feeding schemes and extension of factory canteens and British restaurants. Details of Labour’s financial proposals are at present regarded as somewhat vague, but it seeks to establish general epntrol over the financial system and to nationalise the Bank of England. The Government’s first Budget will outline its fiscal policy and measures for controlling investment. Foreign Affairs In foreign affairs there will be no deviation - from the first priority of defeating Japan. While there will be no drastic departure from the policy pursued by Mr Eden, it is thought likely that Labour will undertake a deep and thoroughgoing change in the conduct of foreign affairs. There will be no friendly words for General Franco or the Greek monarchists, and a different approach to the Belgian problem. What is described as “a big democratisation of diplomacy” is expected, and more opportunities for the ordinary man and woman. It is thought likely that Lord Halifax may be replaced as Ambassador in America, Mr R. 'W. A. Deeper in Athens, and perhaps Mr A. Duff Cooper in Paris. ' Mr Bevin is known to hold strong views about the future of Germany and the dangers of turning the remnant of the , Reich into “an economic slum.” . . , j The reactions of Russia and America to the election results are being watched with interest. Attention will shortly focus on the arriyal in London of Mr William Clayton, United States Assistant-Secretary of State, who is coming for British-American talks on world trade policy. Apparently the questions America would like answered are: (1) Willßri- • tain want to return to the free convertibility of her currency? (2) Will she be willing to return to multilateral trading and to give up the preference system? , . . Russia, it has been noted, has greeted the Labour victory with a tone of reserve. This is believed to be because the Soviet is waiting until Britain’s foreign policy is more clearly defined. It Is also remarked that while the Labour victory gives Russia an assurance that no anti-Russian blocwiu be formed under British leadership, it may also open up the prospect of competition between Moscow and London for the allegiance of the Left in Europe. Export Markets, Agriculture Some fears are felt at present about export industries. It is not known how far American opinion will be sympathetic to a Socialist Britain, and it is thought that if Labour rejects the Bretton Woods international monetary agreement—and Mr Bevin has criticised it—perhaps Britain would be unable to count so surely on American help with her balance of payments problem, but would have to face intensified competition in export mark6Attention is also expected to be given to agriculture, and an endeavour made to place it on a basis of permanent prosperity. The home grower wiU be encouraged to produce milk, eggs, fruit, and vegetables, while meat and wheat will be imported. An immediate aim is to increase dairy herds by at least 1,000,000. More attention will be paid to the nutritional side of the food question, and the work of the country war executives will be continued. . . After housing comes coaL It is anticipated that a National Fuel and Power Board will be established and made responsible to a Minister. Labour’s mines policy is thus expected to follow .the main lines of the Reid report and its plan for public ownership. It is thought that the psychological effect of a Labour Government being m power will have an effect on output providing the Government shows that • it means business. ■- It is also expected that the gas mid electricity industries will be dealt with shortly, together with, iron and steel, and railways, roads, and canals, lor which public ownership has been promised. Cartels and monopolies will receive attention, perhaps on the lines of the anti-trust legislation in America, , It is said that one of the first things the Government will do will be to revive the bill to continue war-time economic controls, which Mr Morrison introduced shortly before the Coalition wds dissolved. Labour’s policy for controls will be closely watched. It is generally admitted that some are necessary in the transition period ahead.

COMPLETION OF CABINET

GUESSES AT COMING APPOINTMENTS

ATTLEE RETURNING NEXT WEEK

(Rec. 8 p.m.) LONDON, July 30. “Mr Attlee will return from Potsdam for the first assembly of the new Parliament next Wednesday,” says the Parliamentary correspondent of “The Times." “This will enable him to complete the appointments to his new Cabinet. “The Foreign Secretary (Mr Bevin) is remaining at Potsdam, and if,the conference discussions make further decisions necessary by the three leaders, Mr Attlee is expected to return to Potsdam later in the week. Further Cabinet appointments will be made known soon after his return.” The special correspondent of the New Zealand Press Association says; Much interest is being taken in the remainder of the appointments by Mr Attlee in forming his Government, which he will make when he returns from Potsdam. It is believed that he will not lack boldness in appointing his men. . „ ~, Guesses are that Mr E-. Shinwell will become Minister of Fuel, Mr A. V. Alexander Home Secretary, Lord Addison Minister of Agriculture, and Sir John Boyd Orr, if he is returned for the Scottish Universities seat, will perhaps be Minister of Food. An important post is likely to be given Mr Aneurin Bevan. It is thought that one of the reasons why Mr Herbert Morrison has not taken a department, but is devoting his time to being Leader of the House, is not only to help to steer legislation through the Commons, but to bear the brunt of criticism from the Opposition, led by such men as Mr Churchiu, Mr Eden, Mr R. A. Butler, and Mr R. S, Hudson.

GREEK MESSAGE TO BIG THREE

DISPUTES WITH ITALY AND BULGARIA LONDON, July 30. “General Plaatiras and three other Greek Republican leaders have sent a cablegram to the Big Three at Potsdam demanding satisfaction of Greece s claims in her disputes with Italy, Bulgaria, and Albania,” says the correspondent of the Associated Press in Athens. ~ , ‘‘The Dodecanese are mentioned specifically as territory which Greece should have in view of her sacrifices and for ethnological reasons. , ‘‘The message, in appealing for fair play and justice, said; ‘Greece bitterly views the effort which Italy, Bulgaria, and Albania are making to jump from the hostile, vanquished camp into the status of co-belligerency without first settling accounts with Greece.’ ‘‘The message added that Greek public opinion was painfully surprised by Turkish attacks against Greek claims to the Dodecanese. ‘The islands cannot become the object of international settlement because of their purely Greek population,’ ” states the message.

TALKS ON TANGIER RESUMING

RUSSIA TO ATTEND LONDON, July 30. Members of the French Foreign Office have confirmed that the Paris conference on the status of the international zone of Tangier, which was postponed on July 2, will resume on August 3. . J _ The British, American and French delegates, for three days, will continue the talks as originally planned before Russia made known her desire to participate. They will discuss the definition of the regime on the basis of its pre-war status quo, also a programme for an international plenipotentiary conference which will discuss the new status in accordance with the world’s changed conditions and the new balance of power. Russia will join the conference on August 6. French official circles also expect Spain to be invited to the conference.

MR TRUMAN TO MEET THE KING

LONDON, July 30.

“President Truman, after leaving Potsdam, plans to land at Plymouth for a few hours,” says the political correspondent of the “Daily Express.” "His Majesty the King is delaying his holiday in Scotland, and he will travel to Plymouth to meet him for a private talk and a meal together before Mr Truman continues his journey across the Atlantic.”

Montgomery’s Deputy.—LieutenantGeneral Sir Brian Robertson has replaced Lieutenant-General Sir Ronald Weeks as deputy to Field-Marshal Sir Bernard Montgomery on the British Control Commission and the Allied Control Council for Germany. Lieu-tenant-General Weeks has been ordered three months’ complete rest.— London, July 30.

TAX ON CAPITAL IN FRANCE

(Rec. 7 p.m.) PARIS, July 30. The French National Assembly, by 233 votes to two, has approved of a capital tax. under which 3 per cent, will be levied on all capital over £SOO, with certain exceptions. There will also be a tax on wealth acquired since 1939, with no exceptions.

Attempted Suicide By German Prisoner.—The second suicide attempt among the 11 German civilians on trial for the murder of six American airmen occurred at Darmstadt on Sunday night, when Friedrich Wuest attempted to hang himself in his cell. A warder cut the rope. Wuest appeared on the fifth day of the trial.—Berlin. July 31.