FIVE-YEAR PLAN

Grey River Argus, 29 November 1946, Page 3

FIVE-YEAR PLAN

IN ARGENTINA The International Wood Secretariat, London, has forwarded the following particulars of a five-year plan to the New Zealand Wool Board. The “Manchester Guardian” reports that “the Argentine Government has drafted a five-year plan for the development of hydro-electric power, transport, and various manufacturing industries. The target proposed for different industries shows tjhat the plan \is a/nbitioiis. Many new power stations’ are to be built, the State railways are to be extended, and entirely new industrial areas 1 in the west and south of the country are to be created. The plan aims at an increase in steel ingot production from 120,000 tons a year at present, to 315,000 tons by 1951. While the country produces no tinplate at present, it is to turn out 70,000 tons in five years. Cotton yarn production is to be raised from 63,000 tons' to 80,000 tons and woollen yarn is also to be increased. If this plan is carried out it will have important effects on Argentina's foreign trade. Imports of certain consumption goods (particularly textiles 1 are likely to be reduced, while purchases of machinery and heavy equipment will be greatly increased. For a time Argentina will have little difficulty in paying for the capital equipment it buys (although it may be difficult finding suppliers 1 , for the Central Bank holds more than 5,000,000,000 pesos (£350,000,000) in gold and foreign exchange. The expansion of industry planned is l so big, however, that this sum, added to the proceeds of normal exports, may not be enough to pay for the imports which are needed. It is suggested that imports of “luxury” goods may be restricted in order to keep the money to buy capital goods. If the Argentine Government follows its present line of thought it may buy much of the equipment needed from countries like Britain, which are its permanent customers, rather than allow imports freely. The plan also includes clauses giving full protection to home industries and gives the Government power to establish different rates of exchange. If the plan is put into effect it will clearly be closely—and critically—examined by the International Trade Organisation when it is set up. But most of the items of equipment and plant which will be needed are still in very short supply, and the development may well take more than five years.