BRITAIN’S GREAT FIGHT FOR RECOVERY

Gisborne Herald, Volume LXXV, Issue 22588, 17 March 1948, Page 4

BRITAIN’S GREAT FIGHT FOR RECOVERY

ft]SPECIALLY after having made the final withdrawal from the United States Loan, Britain is to a large extent dependent upon aid under the Marshall Plan for her economic security in the immediate future. From this angle it will he interesting to study in detail the ramifications of the United States Bill as they are unfolded after Congress gives the measure its official blessing and speeds it on its errand of mercy. Actually there is no need for deep pessimism over Britain’s position. In a recent message from London the New Zealand correspondent, Mr. Geoffrey Cox, said that the improvement in Home production, especially on the coalfields, was bringing a touch of confidence back to both the Government and the people. “If only the food situation were not so troublesome (it nags at every housewife like an aching tooth), and if the Government could point to sure markets for years ahead, one could allow oneself some genuine optimism,” wrote Mr. Cox. Judging from later cabled messages, however, it is clear that Britain must stage her recovery in conjunction with the extremely difficult conditions in Western Europe, the attempted amelioration of which has already cost, her dearly. The Chancellor of the Exchequer, Sir Stafford Cripps, has not spared the nation a close view of the grim picture. The American loan, which was expected to provide dollar funds for about three years, has been exhausted in about 20 months. In Britain there is little or no scope for reducing dollar imports still further without doing serious damage to the national economy. The only action that can be taken, therefore, is to earn more credits by selling more goods. But while self-help must and will be the chief basis of Britain’s recovery, the dollar deficit cannot be wiped out by that means alone. The drain on the country’s oversea reserves has been too heavy for that. Further help from America at an early date is the one obvious answer to the crisis, and that is where the Marshal] Plan should come to the rescue, supplemented by all the aid, particularly by way of increased shipments of foodstuffs, which the British Dominions can send to the Motherland. In regard to food, the keen efforts of Britain at self-help can bo noted with the same admiration bestowed upon her industrial and export programmes. The importance of agriculture is fittingly realised, and there are signs of the materialisation of plans for generating a high food output in keeping with a sound policy of nutrition designed to fortify the country’s economy and give balance to the national life.