Measures to Meet Britain’s Crisis Will Harden Living Conditions

Otago Daily Times, Issue 26530, 4 August 1947, Page 5

Measures to Meet Britain’s Crisis Will Harden Living Conditions

Rec. 9 p.m. LONDON, Aug. 2. The political correspondent of the Sunday Times, in a statement on the country’s economic position, says that the Government’s measures to meet the situation, which Mr Attlee will make in the House of Commons on Wednesday, will be the gravest pronouncement since the declaration of war , in 1939 if the Government faces the position squarely and resolutely. The economic crisis overshadows every other issue at Westminster, and the Government has been compelled to frame measures which will bring harder living conditions in this country until we can begin again to pay our way. The general food standard will be lowered, and Mr Attlee will announce plans for increasing home food production. Britain, in seeking a more liberal interpretation of the non-discrimination clause in the American Loan Agreement, is tactfully but firmly pressing the point that, while she must reduce exports from America, she must import more from within the Empire. More stringent priorities in materials and fuel in favour of export industries will be employed. The effect will be to divert labour by indirect pressure from relative non-essential industries and an urgent appeal will be made to employers and unions in essential trades to work overtime. The extent of overtime and payment will be left to each industry to decide.

There may be a reduction of 20 or 25 per cent, in the services, which had a total strength of 1,301,000 on June 30, 1947. A reduction of forces in Germany, Italy and the Middle East is anticipated. It is understood that Britain, to reduce the cost of garrisoning, feeding and administering the British zone in Germany, is suggesting that America should find the dollars and Britain should pay her share in sterling, which would be set aside in a special fund as security for America, to be realised as soon as conditions improve. There is some unofficial talk of the possibility of compulsory saving, but the Cabinet has not yet considered this aspect of the problem nor is it on the agenda of urgent matters to be considered. The Sunday Despatch says that Cabinet Ministers are standing by this week-end for calls to emergency meetings of committees dealing with the crisis. One of the biggest decisions facing Cabinet is the introduction of the October budget. This may raise indirect taxation to meet the inflation problem presented by more money. to spend because of overtime wages, and fewer goods to buy. With such slogans as “ Into Battle,” and “ Get to Grips,” the National Sunday newspapers warn their readers, the majority of whom are spending the last long holiday of the year, that the coming week is a decisive one for Britain’s position in the world. The Sunday Pictorial says that Mr Attlee had delayed the campaign too long. It should have been launched six or twelve months ago. The newspapers added that British exports to pay for essential imports must be raised by at least £9,000,000. The political correspondent of the News of the World stated that Cabinet had discussed some form of immediate capital levy and added that it was certain that increased production measures will include the concentration of production to essential export industries which was “ a disguised form of direction of labour.’ The newspaper, in a leader, added: “We want no more loans.” The Labour newspaper, The People, says: “ Only one year of new austerity living will be needed if the workers get down to the job. According to experts, we in that time can turn the corner and be reorganised to take on and beat the world industrially.” The House of Commons is sitting to-morrow, which is the first time it has done so on the August Bank Holiday for 21 years.