CRISIS IN BRITAIN’S PAYMENTS

Press, Volume LXXXIII, Issue 25248, 29 July 1947, Page 7

CRISIS IN BRITAIN’S PAYMENTS

Government’s Attitude Causes Anxiety LABOUR DISSATISFACTION WITH LEADERSHIP

(N.Z. Press Association—Copyright) (Rec. 8 p.m.) LONDON, July 28. The Parliamentary correspondent of “The Times” says: “Mr Attlee and the Chancellor of the Exchequer (Dr. Hugh Dalton) will take part at a meeting of the Parliamentary Labour Party on Wednesday. Recent events have made it plain that Labour members of the House of Commons are concerned about the Government’s attitude to the balance of payments crisis. The Government’s supporters are in a mood to demand that there shall be no further masking of realities. “Anxiety among Labour members in the past two or three weeks about the trend of events has been growing. A few of them have been almost as outspoken as Opposition critics of the Government in demanding bolder and mors resolute leadership.

“They give full credit to Mr Ernest Bevin for the urgency he has imparted to the preparations for a European recon* struction plan relating to the Marshall offer, but they fear that the United States Congress may not be in time before Britain’s critical hour arrives.”

EXHAUSTION OF U.S. CREDITS

‘‘The public are nonplussed by the profusion of official talk in advance of the crisis, and the absence of official action,” says the financial correspondent of “The Times.” “People cannot help wondering whether the Government is not again being hypnotised into inaction.

“It is almost everywhere accepted that the American credits will run out before any further external aid is forthcoming, and that in any case a deficit of the character and magnitude in prospect cannot be financed under the Marshall plan. “Presumably no Government would deliberately use its gold reserves, which are its last line of defence against utter catastrophe. It therefore seems that the second stage of cuts and economies will in fact arrive.”

“The Times,” in a leading article, says: “There is every reason to suppose that the trade union leaders expected drastic action by the Government, and that though the trade unions would have bargained and argued, they would have accepted the necessity of reasonable positive proposals. The trade unions, however, do not feel that it is for them to suggest measures which would cause unemployment or benefit some workers at the expense of others.” “The Times” asks whether the Government is drifting because it cannot fact* a decision which it fears may be unpopular. “If this is so, cowardice it, as usual, bringing out the unpleasantness it desires to avoid. The Government is losing more confidence by lack of action than it would by positive proposals.”

“RESTLESSNESS IN PARTY”

“Anxious Socialist supporters of the Government are developing an organised insistence that the Cabinet should produce without delay a master plan to stave off economic crisis,” says the political correspondent of the “Daily Mail.” They are asking for inlormation before Parliament adjourns. “Behind-the-scenes activity indicates a restlessness in the party which Ministers have been unable to allay.” The “Daily Express” says that Mr Attlee is expected to broadcast to the nation warning everyone of economic troubles ahead. Labour members of the House of Commons are anxious to have information to pass on to their constituents during the recess and it is likely that Mr Speaker will be authorised to summon both Houses at short notice if developments during the recess warrant emergency action. The “Daily Mirror,” in a leading rrticle, says: “There is no leadership. Attlee’s Cabinet system should go. So should Attlee.” The political correspondent of the “Daily Mirror” says: “The invitation to Mr Attlee to attend Wednesday’s meeting of the Parliamentary Labour Party was more in the nature of a summons, and was issued through the liaison committee.”

The political correspondent of the -Daily Express” says that Mr Attlee is likely to ask the miners to work on Saturdays at overtime rates until Britain’s coal target is reached. According to the “News Chronicle,” two Saturday shifts a month would produce 6,000,000 tons a year, which might be just the difference between victory and defeat next winter. The Communist “Daily Worker,” in a leading article commenting on Mr Ernest Bevin’s assertion in his speech at Durham on Saturday that the miners’ low production had deprived him of support at international gatherings, said: “This impudent assertion is intended to gloss over the fact that Bevin’s diplomacy and the military strategy that it has necessitated iiave lor two years withheld 2,000,000 British workers from productive capacity and are responsible for low production.” The Ministry of Fuel report on Welsh coal production shows a continued decline because of the holiday period. The weekly production target 1 for the fields is 500,000 tons of saleable coal The output for the week ended July 12 was 414,755 tons, a decrease of 79,573 tons from the pre-holi-i day output. The output for the week ended July 19 was 400,895 tons.