New Cuts Expected In Britain: Attlee Says 'No Need For Panic’

Greymouth Evening Star, 31 July 1947, Page 7

New Cuts Expected In Britain: Attlee Says 'No Need For Panic’

(Recd. 12.30 p.m.) LONDON, July 30. It is understood that Mr Attlee will announce substantial import cuts, including some food cuts, in his speech on August 6, opening a two-day debate in the House of Commons on economic affairs, says Reuter’s political correspondent. ’ Mr Attlee is also expected to announce cuts in dollar expenditure which will affect the. strength of the British forces of occupation in Germany and perhaps other parts of the world. The correspondent, adds that it is nbw evident that the gulf between the exhausting American loan and aid under the Marshall plan is too wide to be bridged without interim economy measures. ■ 4

The Government is anxious to pass the difficult period without spending its £700.000,000 gold reserves. Mr Attlee gave an indication of the coming cuts to the private meeting of the Parliamentary Labour Party. His prestige went up as a result of Ills vigorous tackling of the situation. He outlined his plans for the redeployment of industrial resources, including raw materials and coal in certain industries, and an exports priority plan to dovetail with the restrictions on expenditure and imports. Mr Attlee told the meeting that the economic position was serious, but there was no need for panic. The remedies planned could overcome the difficulties.

The discussion which followed the speech was on a high level. The criticism was friendly and reasonable. No anti-Government group emerged. Mr Attlee is likely to make “a state-of-the-nation” broadcast after the Parliamentary debate. Reuter’s labour correspondent said it is believed that Mr Attlee, at the meeting with mining representatives, suggested that the miners should voluntarily work an extra half-hour daily as a temporary measure to overcome the crisis. Mr Attlee made it clear that there is no question ol suspending the five-day week. The miners’ leader’s response was regarded as extremely sympathetic.