BRITAIN’S EXPORT SURPLUS

Press, Volume LXXXIX, Issue 27149, 19 September 1953, Page 7

BRITAIN’S EXPORT SURPLUS

“Increase Reasonably Satisfactory”

(Special Correspondent N.Z.P.A.) (Rec. 7 p.m.) LONDON. September 17. The former Chancellor of the Exchequer (Mr Hugh Gaitskell) said in Leeds that he believed Britain this year would have a surplus of exports over imports amounting to £ 100,000.000 “I do not think that on the production side we have any serious reasons to reproach ourselves—the increase in production is a reasonably satisfactory one,” he said. “At least half that increase is due to higher productivity. Coupled with that is the improvement in our exports.

“I would say. looking back to 1945, when we Socialists came into power and faced this problem, that I could not have believed that we could increase exports by 75 per cent by 1950-

“After the economic crisis of 1951. the fall in the prices of imports far exceeded that in the prices of our exports. We might conclude that there is no need to worry: that we have overcome our main difficulties: that on the whole the country is on an even keel.

“We do not take such an optimistic view as that. It is doubtful that the favourable change in the fall of import prices over export prices is going to continue.

“It may be that the process of world nrices turning against us will be deferred by reason of an economic depression. but that is not a prospect that can encourage any of us. “Our present surplus of exports over imports is not big enough. If we wish to keep the Commonwealth together as an economic unit. I am quite sure we have to invest abroad.

“I believe the central gold reserve of the sterling area held in the Bank of England is much too low. “As long as we have very small sold reserves, any small movement in the United States will cause, trouble for us. We must have bigger reserves, and we cannot have bigger reserves unless we have a surplus to obtain gold. “The surplus we need should aver-

age £200.000,000 or £3oo,ooo,ooo—that means much more in a good year. The target is, therefore, a good deal above what we seem likely to be getting at the moment.”