Middle East Inflation
(8.0. W.) RUGBY, April 25 Lord Moyne, Minister Resident in the Middle East, to-day opened a Middle East financial conference with representatives present from 12 countries, in addition to the United States and British Treasuries. Lord Moyne said that an immediate financial issue was inflation arising from the arrival of Allied troops for defence in tire Middle East. The Allies had been involved in heavy local expenditure, often exceeding the expenditure of the Government of the country itself. On account of the shortage of shipping, and because their production had been diverted to winning the war. the Allies could not immediately set off this expenditure by the import of goods. Some money had been injected into the economic systems of various countries in the Middle East without the counter weight of increased supplies on which money could be spent. So long' as the spending power remained unneutralised, prices must inevitably rise, and it was for the delegates to find a remedy. The Allies would offer every possible assistance such as refusing to pay unduly high prices and organising the limited supply of transport available, and to bring in the maximum possible quantity of goods.
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Northern Advocate, 26 April 1944, Page 7
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197Middle East Inflation Northern Advocate, 26 April 1944, Page 7
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