Britain MUST Earn More Dollars In 1948

Northern Advocate, 8 January 1948, Page 3

Britain MUST Earn More Dollars In 1948

LONDON, Wed. (10 a.m.) —Britain’s foremost object in 1948 was to earn more dollars, said the Chancellor of the Exchequei (Sir Stafford Cripps), addressing a Press conference today. It seemed unlikely that exports in 1947 had earned more than £190,000,000 worth of dollars, but 1948 exports must earn at least half as much again—even then there would be a £300,000,000 deficit in dollars at the end of 1948.

If exports for the third quarter of 1947 were taken as a guide, the position was not very encouraging.

could lead to some uncontrolled inflation which would ruin Britain’s trade.

Exports to North America were worth £24,000,000, which was a very small increase.

Only increased overall production justified wage increases.

The percentage of exports to North America of the total exports actually dropped in the third quarter from 8.11 per cent, to 7.9 per cent. The net drain on Britain’s gold and dollar reserves had fallen in December to $45,000,000 a week—less than half the rate after the suspension of convertibility.

Britain’s second main object was to wipe out the general deficit in overseas trade, Sir Stafford continued. If imports and exports in December were estimated the same as for November, then the overall current trade deficit in 1947 would be about £460,000,000. Britain had to face progressively less favourable trading conditions and. in most cases, had to pay more to get less.

Sir Stafford Cripps said that unless Marshall plan aid was forthcoming. Britain would not be able to get through without further import cuts jn food and raw materials from the western hemisphere. which was essential to support present production.

“But Marshall aid won't allow us to let up,” he said“lt promises not relief, but a chance of full recovery.” Sir Stafford declared that widespread increases in wages and prices