U.K. RESERVES DWINDLE

Press, Volume C, Issue 29539, 14 June 1961, Page 19

U.K. RESERVES DWINDLE

Lowest Figure Since 1947 ( N .Z.P.A .-Reuter-Copyright 1 ■ LONDON, June 13. Major changes in Government policy may be needed to save Britain's dwindling foreign exchange reserves. "The Times” said today. The newspaper pointed out editorially that in 1960 the reserves had sunk to £22m net. the lowest figure since 1947. It listed what it said were the five main sources of Britain’s "invisible income”— Governimen-t transactions, shipping income, interest payments, travel receipts and the financial services of the City of London—and said that only the last two items “have shown any signs of standing their ground.” Among the causes for the drop in income, “The Times" singled out overseas military spending, which had more than doubled in a decade, the feet that Britain paid more to foreign shipping than was earned by British shipping, and increased spending by British tourists. “ft is tempting to believe that 1960 was an exceptionally bad year and that an adjustment here and a little tinkering there may still do the trick.” t