ECONOMIC PLAN FOR BRITAIN SITUATION REVIEWED BY MR MORRISON

Press, Volume LXXXIII, Issue 25227, 4 July 1947, Page 7

ECONOMIC PLAN FOR BRITAIN

SITUATION REVIEWED BY MR MORRISON

SHORTAGES OF FOREIGN EXCHANGE (N.Z. Press Association—Copyright)

(Rec. 7 p.m.) LONDON, July 2. The Leader of the House of Commons (Mr Morrison) said today that the Government next week would announce the membership of a planning board which would prepare a long-term economic plan for Britain, covering from three to five years. Mr Morrison said that there was not the slightest need for panic talk. “There is a good hope that we will come through,” he said.

Reviewing Britain’s economic situation at a press conference, Mr Morrison said that the countries which needed to import food and raw materials had to pay out more and more foreign exchange and were “within sight of the bottom of the barrel.” Other countries, as well as Britain, had to cut down imports because of lack of dollars. One after the other, the import bans were coming into effect.

“It is a sad fact that every import ban is also an export ban,” he said. “An increasing number of countries are shutting out British goods because of the currency shortage. While this lasts the world is on a downward path which, if it were continued, would end in throttling world trade and lead to stagnation, starvation, and decay.” Mr Morrison said that the alternative was a system of world trade which would stimulate more production and more exchange. The world was confronted with a plain choice between economic sanity and economic insanity. The choice would have to be made soon. There were many who believed in the economics of expansion. If that point of view prevailed and world trade got a chance to expand, all would be well. That was the reason why the Government did not come forward now with a programme of dfastic cuts in food and raw materials. If the Government had imposed cuts, it would have been betting against world recovery, and it would have been helping to create fear and restriction and big cuts would have been advertised to the world. Britain’s disbelief in the possibility of the expansion of full production would have made a direct cut in world trade and would have so throttled down Britain’s productive effort that the countries which were waiting anxiously for supplies of machinery and other goods would have gone shorter still. “Instead of giving them a lift out of the slough of despond, we should have given them another push into it,” he said.

Dollars Running Out The Government could not be blind to the fact that dollars were rapidly running out. It was taking all possible measures to cut down the rate of loss without cutting down Britain’s productive strength “If financial arrangements are made which put the world’s economy in a healthy, expanding position, our industry and trade will expand with it,” he said. "Britain’s revision of imports of tobacco, petrol, and newsprint means that she has decided to carry an umbrella. It may turn out to be a deluge and later we may have to strip and swim. We shall see.” Mr Morrison revealed that, out of the 9,000,000 tons of coal which Britain aimed at saving in the summer months, 3,500,000 tons have already been put by, with 17 weeks left to secure the remaining 5,500,000 tons. Nevertheless, the position was by no means safe. Mr Morrison said that the highest output at the coal face ever attained in Britain was 2.95 tons a man-shift. Face workers, immediately after the introduction of the five-day week, came within 1 per cent, of that prewar record. "Is that. the mark of a slow death?” he asked.

Mr Morrison, answering questions, said that British exports in 1947 might reach £1.100.000.000. “The United States, with surplus production, is in an exceptional position.” he continued. "They have the problem of exports; we have the problem of imports. General Marshall’s offer is admirable. but we must not see the whole burden of the solving of problems planted on Uncle Sam. We have to look to ourselves.”