“Living Beyond Her Means”— BRITAIN “ON BRINK OF CHASM”

Greymouth Evening Star, 23 September 1949, Page 5

“Living Beyond Her Means”— BRITAIN “ON BRINK OF CHASM”

LONDON, September 22 (Rec 10 a.m.).—Mr John Freeman, Joint Parliamentary Secretary to the Minister of Supply, warned industrialists today that Britain was “on the brink of a terrifying chasm. One false step would see the end of all the country’s hopes. The North American market was not assured and, if Britain lost it, her loss would be enormous, he added. ... p . n , The president of the Federation of British Industries, Sir Robert Sinclair, speaking at a luncheon of the American Chamber of Commerce, said the outlook for some British products on the American market had certainly been improved by devaluation, which had undoubtedly helped to surmount the price and tariff hurdle. However, it was not the complete answer. ... '

Successful export to the dollar countries depended upon the ability to supply goods in the quantity required at a competitive price, suitably packaged and—most important —intelligently marketed. Sir Robert added: “The devaluation rate of 2.80 is in all conscience a staggering recognition of unpalatable facts. I am one of those who had vainly hoped that steps could and would have been taken by way of devaluation to prevent so drastic an adjustment. “It was obvious that we were living beyond our means and that the Government’s expenditure had soared to a level which called for an intolerable burden of taxation. We tried to do too much in too short a time. Let us hope that the shock will be salutary.” Parliamentary Debate The House of Lords and House of Commons will meet next Tuesday. Both Houses will debate the alteration in the sterling exchange rate and the Washington conference. Four members of Parliament forming the Independent Labour Group in the Commons announced tonight that they would table a censure motion on devaluation when the House reassembled. The group comprises Messrs D. N. Pritt, J. Platts-Mills, K. Zilliacus and L. J. Solley. They formed the group after the Labour Party expelled them. Reuter says that no motion expressing confidence in the Cripps policy is expected from the Government, as that might invite some Labour members to vote against it or to abstain. So the debate will almost certainly be a straight forward one on an adjournment with no division at the end.

Sir Stafford Cripps will open with a review of the Washington talks, the reasons for devaluation and the opportunities it will offer to industry. The Prime Minister, Mr Attlee, will wind up the debate on the last day. . . Mr Churchill is expected to take part for the Opposition. Denial Of Reports Authoritative quarters deny the reports in some London newspapers that Mr Attlee took the devaluation decision without consulting Sir Stafford Cripps', who was then in a Swiss nursing home, says Reuter’s political correspondent. It is authoritatively reaffirmed that the Cabinet unanimously decided on devaluation at a meeting on August 28, when Sir Stafford Cripps was present. i Political observers say the views of Mr Attlee and Mr -Ernest Bevin may have weighed considerably with Sir Stafford Cripps in his reversal of policy. He has stated publicly that he changed his mind on devaluation after returning from Switzerland.

. The Government is not likely to ventilate the full history of the devaluation decision, but Mr Attlee may put the question in perspective in next week’s’ House of Commons debate.

Reuter’s Geneva correspondent reports that an agent for British cars said that sales in Switzerland had increased by 600 per cent, since devaluation.