The Gisborne Herald IN WHICH IS INCORPORATED "THE TIMES." GISBORNE, WEDNESDAY, DECEMBER 22, 1948. BRITAIN'S PART IN EUROPEAN RECOVERY

Gisborne Herald, Volume LXXV, Issue 22826, 22 December 1948, Page 4

The Gisborne Herald IN WHICH IS INCORPORATED "THE TIMES." GISBORNE, WEDNESDAY, DECEMBER 22, 1948. BRITAIN'S PART IN EUROPEAN RECOVERY

when considered in relation to Britain’s fight for recovery, tlie subject, of economics cannot be regarded as (.lull or uninspiring. Indeed, there is something positively exciting about the Mother Country’s race towards the huge-scale production goal that will lift her out of the morass of troubles caused by the Second World War.

’flic White Paper outlining the plan for trade recovery by 1953 summarises the position by stating that the programme provides for an expansion of output in manufacturing, mining, agriculture, building and public utilities, taken as a whole, to a level of about one-third above pre-war and that, despite the constant or slightly declining labour force, it aims to increase the manufacturing output by a quarter in the five years from 1947 to a level of about 40 per cent above 1938.

In this way Britain is showing that she fully intends to do her hit by making the utmost use of Marshall aid. She is not included among the “gimme” nations of which the United States shows signs of tiring. When Marshall aid ceases it is realised that Britain will he forced to strike a balance between external payments and receipts. Nevertheless, it is assumed that a reasonable standard of living is possible by 1953 and that the present conditions of full emplovment will be maintained.

Marshall aid, under the United Slates European Recovery pro.

gramme, and the domestic financial Budget arc the currently dominating fa dors in the British economic situation. Both :n their separate ways have the objective of closing a gap. And both in certain directions arc complementary. Marshall aid will help to bridge the dollar gap until the Eastern and Western Hemispheres have come nearer to economic balance. The British Budget, with its discriminatory taxation and its anticipated surplus, will play an important part in the fight to reverse the inflationary trend and reduce prices. The two together will be vital influences in the great work of achieving world-wide permanent economic recovery. The outstanding task of the countries receiving Marshall aid is to expand production as speedily as possible. Yesterday’s outline of the White Paper made it plain that this is exactly what. Britain is doing and what she proposes to continue doing until recovery is complete and permanent. Provided there is no hold-up in raw materials, production should undoubtedly go ahead. It is worthy of note, also, that although Britain will receive £316.000,000 of Marshall aid this year, she will .contribute £125,000.000 to the other participating countries. Of this £70,000,000 will be a direct gift of sterling, while the balance will be drawn from the sterling balances of other participating countries. Not all the goods will come from the United Kingdom; a large part will be vital raw materials from the sterling area. Sacrifices by the British, people are entailed, but Britons are making this contribution because they realise the necessity of European co-operation. The policy shows, moreover, that they regard economic recovery as an essential element in the strengthening of European democracy.