Post-devaluation Plan For Economy Cuts To Be Issued In Britain

Otago Daily Times, Issue 27212, 15 October 1949, Page 7

Post-devaluation Plan For Economy Cuts To Be Issued In Britain

N ZP A—Reuter—Copyright LONDON, Oct. 13. It would be “ most unfortunate ” if the Government’s action in altering the exchange value of sterling were allowed to “obscure the wider issues discussed at Washington,” the Prime Minister, Mr Attlee, said to-night at a dinner of the British Chamber of Shipping. He said the discussions covered a wide range of subjects, and resulted in a greater understanding of “the most intractable problem, that of the balance of payments,” and a determination on the part of the British, American and Canadian Governments to work together Jor its solution. Mr Attlee said that devaluation had never been put forward as a solution, but was an essential factor in restoring Britain’s position, and provided the needed stimulus for the export drive.

There were certain “ consequential measures ” to he taken in Britain which were being worked out, and of which the country would be fully informed within a few days.

Mr Attlee said that Britain as a member of the Organisation for European Economic Co-operation had given a dead to other members by announcing the removal of a “substantial part of our import restrictions.”

Mr Attlee added: “There are signs that other countries are following our lead. If our hopes are disappointed we shall have to reconsider our action, but we are anxious that there should be no unreasonable impediments to our importing from countries with which we are not in balance of payment difficulties.”

He said that in the coming months the need was for the people of Britain to do two things: To increase national production, and to exercise restraint in demands for increased incomes and self-control in expenditure. “You may be certain that the Government will take whatever steys it deems necessary to assist in the realisation of these objectives,” he said. “Difficulties there will be, but difficulties are there to be overcome. I am confident that in peace, just as she did in war, Britain will conquer them by determination, hard work and by the co-operation of all.” Reuter says that Mr Attlee’s mention of “ consequential measures ” to be taken following devaluation was taken to refer to the Government’s “post-devaluation” plan for economy cuts which will be issued soon.