EXPORTS VITAL

New Zealand Herald, Volume 81, Issue 24878, 27 April 1944, Page 5

EXPORTS VITAL

TBADE AFTER WAR NECESSITY FOR INCREASE (Reed. 5.35 p.m.) LONDON, April 25 "This second world war will complete a revolutionary change in our financial position," said the Chancellor of the Exchequer, Sir John Anderson, in his Budget speech. "The last war dealt our export trade a heavy blow. That loss entailed i tragic consequences, for it was the <] main cause of long-continued unemployment. tl "This world war is making further g deep inroads into our international in- '] come and investments. When it is over g we ' shall cease to be a large-scale n creditor country. We shall no longer be , able to rely on financing any part of << our important needs from overseas investment income, it will be indispen- j. sable to increase our exports. y. "The Government cannot make export trade. It depends upon manufacturers, merchants and working people. What the Government can do is to try to make conditions in which export trade can flourish. It is vital to main- j tain confidence in the value of sterling. "Our burdens are heavy. Indeed, our r debit balance may be even larger than * stated, but the productivity of this 1 country is also large. 1 am more con- * cerned to see a steady income from * exports than a building up of a tem- 1 porarily improved position on our foreign exchange. "We shall always be a country predominantly of high-class products. They ) can only iioid their own and find their j market if we keep our light shining a j little ahead of the rest." AUSTERITY PERIOD ' POST-WAR PROSPECTS PRESS APPROVES BUDGET (Reed. 5.35 p.m.) LONDON, April 20 The morning papers agree that while the Budget administered no shocks it gave a pre-yiew ol a period of postwar austerity. The Times says: "The courage and constructive spirit shown throughout the whole notable statement justifies confidence in the future." The Daily Mail says: "A Budget with no taxation increases must' be unique in modern times, hut this Budget was an inevitable introduction to a series of retrenchment Budgets which must come when the war is over." The Daily Express calls the Budget "a great success" because it lifts the burden on small traders by raising the amount a man can earn before handing over all his profits as excess profits tax*. "Previously the limit was £ISOO, but now at one bound the limit has been raised to £2500." The financial correspondent of the Daily Telegraph savs first reactions were unanimously favourable in the City, where raising of the cost of living index is regarded as confirming an expectation of a moderate rise in prices and a consequent rise in share quotations. Sir Patrick Hannon, president of the National Union of Manufacturers, said Sir John Anderson's outlook on the future of industry in relation to public finance and taxation was hopeful, inspiring and helpful. RISING LIVING COSTS HIGHER LIMIT FIXED (Reed. 6.30 p.m.) LONDON, April 26 In a broadcast the Chancellor of the . Exchequer, Sir John Anderson, recalled that it was decided three years i ago to hold the cost of living index within a limit of 30 per cent above pre-war level, but, owing to the steady upward movement of costs and prices, it had now become necessary to fix the limit at 35 per cent. The change was a danger signal, for if the upward trends continued, stable prices would become impossible and inflation would follow, ' Sir John said the regeneration of industry, including agriculture, would 1 be Britain's first and biggest post-war problem. He could hold out no hope of sweeping reductions in taxation on the morrow of the armistice celebrations. For ! one thing the Japanese would still be in the field and Britain was pledged to their defeat as she was to the defeat of Germany. ; PLANS FOR TRANSFER EUROPE TO PACIFIC , ALLIED FIGHTING POWER ■ (Reed. 11.45 p.m.) • NEW YORK, April 26 The combined British and American I staff has full plans for the transfer of 1 Allied fighting power from Europe to the Pacific as soon as it appears that . Germany is defeated, said Admiral E. • J. King, Commander-in-Chief of the > United States Navy. "Then," he said. ! "we can open wide the throttle and ' advance to Tokyo. > "Granting that we are able to de- ' feat the Germans in 1944 —which can ' happen—it would be dangerous to j; assume the end of the war was in sight. r The Japanese are still capable of wag--5 ing a defensive war of the first magnitude. It should also be understood that all air bases which the Japanese have in conquered territories must be reduced before we can get substantial support to China." UJELANG OCCUPIED i i ATOLL. IN MARSHALLS 1 WASHINGTON, April 25 f United States forces have seized ans other atoll in the Marshalls. A Pacific 1 Fleet communique states that United r States forces occupied Ujelang Atoll, 5 the most westerly of the Marshails, ' between Saturday and Sunday. The

light opposition was quickly overcome nnd the atoll was proclaimed to be under the military government of the Commander-in-Chief of the Pacific Ocean area. The American flag now flies on 21 of the Marshall atolls. Ujelang provides a base immediately north of the Carolines. BOMBING TRUK AREA DIFFICULTIES OF TASK SYDNEY, April 26 In spite of frequent bombings from Marshalis and Solomons-based aircraft Truk, the Japanese base in the Carolines, is still far from being neutralised. An Australian war correspondent in the Marshalis reports that much more continuous and heavy bombing will be required to smash it as Rabaul has been smashed. Originally it was estimated that the Japanese had about 150 fighters based on Trnk. With the supply route from Japan to Truk still open, this number may have been increased. Losses among Marshalls-based Liberators making the 1500-mile flight to attack the area have been light, not more than 2 per cent- of the attackers failing to return. In 15 attacks Mar-shalls-based Liberators have dropped 500 tons of bombs on Truk.