“Economic Disaster Ahead”— GRAVE WARNING TO BRITAIN
LONDON, September 2 (Rec 10 a.m.).—lf Britain makes no change in its economic policy, it will be only a matter of months before the British financial reserves are exhausted, says the Economist in a review of the prospects of the coming talks in Washington. Noting that the sellers’ market has passed and that Germany and Japan are re-emerging as competitive exporters, the article emphasises that, long before the point will have been reached at which Britain’s reserves will be used up, sterling will have virtually devalued itself. The sterling area would disintegrate because its central banker will have closed his door. The Commonwealth would be submitted to economic strain severe enough to disturb the loyalty of even its oldest members. __
“With or without American assistance, Britain will soon be compelled to devaluate to cut her costs, to increase output and to tackle the problem of productivity. The choice is not between ‘accepting American dictation’ and the continuance of an Independent British line. It is between taking the steps necessary to make the British economy solvent now with America’s active co-operation, 01 taking them in six months time in the middle of an economic disaster. “There is only one way in which the Britsh people can be genuinely ‘defended’ against the economic troubles that lie ahead. It is by the closest and most confident association of the United States.” . The Economist says that underlying the whole British approach are defensiveness, isolationism and undue concentration on internal problems.
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Greymouth Evening Star, 3 September 1949, Page 5
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253“Economic Disaster Ahead”— GRAVE WARNING TO BRITAIN Greymouth Evening Star, 3 September 1949, Page 5
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