INDUSTRIES OF WEST

Press, Volume LXXXVII, Issue 26524, 12 September 1951, Page 7

INDUSTRIES OF WEST

ABILITY TO COPE WITH REARMING

WASHINGTON, Sept. 10. The Western Powers’ growing industries should be able to cope with rearmament and at the same time meet the needs of the underdeveloped countries, the International Bank for Reconstruction and Development stated to-day. The bank’s annual report, published at the opening of the annual meeting to-day, emphasised that the productive potential of the developed countries was immense, and there was a sound basis for believing that conflicts :i the allocation of scarce materials and equipment could be resolved without Serious damage to the continuity of economic development. The report said that the current strains, although considerable were those of a defence economy rather than of a war economy, but it warned that in the months ahead it might be necessary to modify- or postpone certain projects. Capital goods shortages were, up to the end of June, not acute enough to impede seriously the bank’s operations but defence mobilisation, especially in the United States, is expected to make the problem graver. Accordingly a special section has been set up in the bank to aid member countries to find sources of supply in the United States. Canada, and Western Europe. The report said that Australia’s Immigration programme was giving rise to large investment requirements for new productive facilities, housing, and public Utilities. Australia was em barking on a period of rapid economic development. The report predicted increased activity in various countries, including the Belgian Congo. Egypt. French overseas territories. Southern Rhod°sia. Cevlon, Iraq. Lebanon. Syria, ltaly, Jugoslavia, Chile. Costa Rica. Ecuador. Peru, and Surinam. The increased productivity in Western Europe had led to a growing ne"d 'nr Webern European currencies for tb« bend’s operations. The fonort said that 31.4 per cent, or the batik’e disbursements in the year ended June was spent in countries other than the United States.