TAKING STOCK

Evening Post, Volume CXL, Issue 59, 7 September 1945, Page 7

TAKING STOCK

SURVEY OF POSITION

(Special P.A. Correspondent.) Rec. 11 a.m. LONDON, September 6. Pending talks between the Keynes Mission and the Truman Administration in Washington on future AngloAmerican financial agreements following the termination of lend-lease, there has been comparatively little comment in Britain this week on this allimportant subject. Most of the news comes from Canada, where Lord Keynes is now reported to have concluded his talks and to be proceeding to Washington, where he will be joined by Lord Halifax. Canadian reports state that Lord Keynes and representatives of the Canadian Government reached an agreement whereby Canada will extend a post-war credit to Britain and that Lord Keynes is returning to Ottawa when he has secured the American proposals for a substitute for lend-lease. A Canadian agreement will then be made according to the extent of Britain's needs left unfulfilled. Reports from Canada also state that the question of Imperial preferences was raised in the recent Ottawa conversations by the suggestion that the United States proposes to bargain the remission of lend-lease indebtedness in return for a lowering of the exclusive Empire trading arrangement. As the architect of the existing scheme of Imperial preferences Canada is being given an important say in their future. PRICE OF PREFERENCE. The attitude of the Canadian Government is believed to be that Canada would not hesitate to abandon Empire preferences if in addition to remitting lend-lease indebtedness the United States would also contribute a worth-' while reduction in the existing American high tariff rates. One of the aims of Canadian trading policy is to create a three-way limited Anglo-Canadian-American system to which other countries might adhere automatically by matching' the tariff and other reductions in trade obstacles which the three original partners accord to one another. Reports from America indicate that Britain is still receiving essential supplies such as food and petroleum formerly sent as part of lend-lease, and that these shipments are continuing until new ararngements are worked out with Lords Keynes and Halifax. It is reported that Britain will pay cash for supplies sent from America since VJ Day. Pending the outcome of the Washington talks the general trend here may be said to have been a stocktaking of the position. BRTISH EXPORT POLICY. There have been gratifying reports from all the Dominions stating that efforts are being made to increase food supplies to Britain. There have been thoughtful comments on Britain's export policy, which is linked up with, the subj eel of demobilisation —now a live topic. There has also been interesting comment on taxation and its effect on industry, by Mr. Herbert Morrison. Commenting on the export policy, "The Times" state" that at £350,000,----000 sterling Brita'.i's exports are now some 50 per cen*. greater than a year ago, but if the *'arge amount of cigarettes exported .or the forces overseas is deducted the figure is nearer 25 per cent. Not till that 25 per cent, has been changed to something like 350 per cent, will Britain be coming near paying its way. 'The first necessity," says "The Times," "is that the policy developed during the past year—of allowing exporters freely to find their own export customers and thus combine the maximum of long-term good will and valuable trade connection with the necessary immediate acquisition of foreign currency—should be continued. "The next is that the exemption of all possible classes of goods from export licensing should be further extended with the substitution of a general production control wherever that is practicable. But in return for the fullest practicable measure of administrative and commercial freedom manufacturers must co-operate in the achievement of ambitious export targets and'in the allocation to export of such quotas of their output as the overriding national interest demands. The calculation and achievement' of targets are clearly enough conditioned by general questions of demobilisation

and industrial reconversion, but necessity demands that the capacity of every industry should be reviewed so that it may contribute its maximum quota to export revival." JOBS FOR DEMOBBED. Reports indicate that under the present demobilisation plans the switch of industry from war to peacetime conditions will not be completed until next spring. The weekly rate of release of men and women from the forces for the remainder of this year will be 45,000, and by the New Year it is estimated 950,000 men and 145,000 women will be back in civil life. A further speed-up of demobilisation is delayed until the Chiefs of Staff report to Cabinet in three w.eeks how few of the fighting men will be required for the next 12 months. The number of jobs waiting for those released is estimated as follows: In civilian and export manufactures, over 2,000,000; metals and chemicals, nearly 1,000,000; civil engineering and building, over 500,000; distributive trades, just under 1,000,000; other industries' and services, nearly 500,000. A monthly progress report will henceforth be made on the rate of discharge from the Services. NO PANACEA. Those who are hoping for some reduction of taxation were interested to hear Mr. Herbert Morrison declare that taxes were a brake on British trade. He warned the National Conference of Labour Women that Britain could not rely on nationalisation as a magic cure and on taxation to increase the standard of living. Mr. Morrison said there was a limit to what can be achieved merely by transferring money from one person's pocket to another's. The burden of taxation was already very high, not merely on the rich, but on every worker. The present rate of taxation on rather better-paid workers was so high that it tempted many to accept the undesirable view that it was not worth .while earning more Taxation on profits in the unsocialised sector of industry might sometimes be so high as to leave an insufficient incentive to reduce costs or increase turnover. Increasing the national income of the country, he said, could only be done by work, thought, drive, and initiative. Mr. Morrison also said that the efficient private firm and management must be encouraged. Practices which, restricted output and efficiency must be prevented. Expansion must be the key word. "In the end," he declared, "whether Britain succeeds in advancing the standard of living will depend on the men and women in industry."