STERLING DEVALUATION

Otago Daily Times, Issue 27166, 23 August 1949, Page 5

STERLING DEVALUATION

Labour Party’s Attitude Increasing Interest NZPA Special Correspondent Rec. 9 p.m. LONDON, Aug. 22. The political correspondent of the Financial Times says there, has recently been a marked change in the attitude of the British Labour Party towards the devaluation of sterling. Until recently very little interest was taken in the subject in political circles outside the Government, but to-day many Socialist quarters which were previously lukewarm in their attitude have come to the conclusion that devaluation would mean a scaling down of wages and the reduction of social security benefits. It now seems likely, says the correspondent, that when the Trades Union Congress meets at Bridlington next month it will urge the Government to stand firm in its opposition to American pressure in favour of devaluation. The Daily Telegraph says it is considered most unlikely, that the Government will agree to invite Conservative leaders to participate in the forthcoming financial talks in Washington in spite of American hints that, such a move would be favourably received by the United States. The chief reason for the Government’s reluctance to widen the talks upon an all-party basis, says the Telegraph, is that the Labour leaders now foresee that the Washington talks will become a vital factor in the approaching . British general election. The Government view is that if the Chancellor of the Exchequer, Sir Stafford Cripps, succeeds at the Washington talks they should be able to claim this success as a Labour victory. On the other hand, if he fails they want to be able to take the anti-American line when they go to the country. This line, the Telegraph suggests, would be less convincing from the Labour point of view if the Conservatives also participated in the Washington talks. The Labour organ, the Daily Herald, has reacted violently to the critical series of articles now appearing in the Scripps-Howard chain of newspapers in the United States. Yesterday it published a lengthy article by Mr Michael Foot, M.P., replying to American criticisms of British Socialism, and to-day it records with satisfaction ‘he fact that the American News Agency, the United Press, has distributed an 800-word summary of Mr Foot’s article to 1400 American newspapers.