ARMAMENT COSTS

Poverty Bay Herald, Volume LXIV, Issue 19248, 13 February 1937, Page 5

ARMAMENT COSTS

BRITAIN'S PROGRAMME LABOUR OPPOSITION TjTB ER ALS astonished MAGNITUDE OF SUM (Elnc. Tel. Copyright—United Press Assn. (Reed. Feb. 13, noon) LONDON, Feb. 12. The executive of the Parliamentary Labour Party met immediately after the announcement by the Chancellor of the Exchequer, Mr. Neville Chamberlain, of the plans for financing tiie rearmament expenditure, and unanimously expressed the opinion that the plan should be opposed. Mr. F. AY. Pethick-Lawreuce, the Labour member for Edinburgh East, who is a member of the executive and was Financial Secretary to the Treasusy in the last Labour Clovornmont, said, after the meeting, that it would lead to boom conditions in which there would be e vast rake-off in the shape of windfall profits, followed almost certainly by a depression, the brunt of which would be borne by the workers in the shape of a reduced standard of life. ‘ ‘ LET THEM REMEMBER ’ ’ “Let countries throughout the world mark the determined effort we are making," said Sir Samuel Hoare at Birmingham. “Let them remember that when we put our hands to a great task we are willing to make great sacrifices. Though we might, bo slow in starting, we are remarkable for the way wc eventually reach the winning post. A great empire that is also weak is a menace to stability and a temptation to an aggressor.” Liberal members of the House of Commons will meet; -shortly to decide their attitude. In the meantime, they express astonishment at the magnitude of the sum involved. STABILISATION SOUGHT The Times, an an editorial, says the scale of British rearmament is wholly conditioned by the rearmament of others and the failure of other nations to agree _upon stabilisation which is still earnestly sought by Britain. The Daily Mail’s political corrps pondent says:—“lt is assumed that the rise in the income tax will now be smaller than anticipated. Members of the House of Commons in close touch with the Government express the opinion that it will not exceed threepence.” The Daily Telegraph’s political coi respondent says: —“Unofficial esti-. males place the defence expenditure for the next five years at £1,200,000,000. ’ ’ A Berlin message says that official circles find nothing to criticise in the" news ot the loan. The official spokesman said : “We take it now that. Britain is making use of her rights, as a inattei of course. We shall remember this when we are criticised.” At Rome, the astronomical figure ol the loan, when converted into tile lire, is taken as a final proof that Britain is now at the head of the armaments race. The news is welcomed in Paris, but it is regretted that such expenditure is necessary. Britain and France would have preferred a strong League of Nations, and disarmament. DEMAND FOR STEEL STEEP RISE IN COSTS BUILDING OF SHIPS (Heed. Feb. 13, noon.) LONDON, Feb. 12. Mr. Hector By water, writing in the Daily Telegraph, says that. the. mounting costs of steel are sending up the price of merchant tonnage. The costs of standard types of cargo ships are 30 per cent higher than last year and the costs of liners are 35 to 40 per cent up. There is every indication that the rise has not reached the peak. The large volume of the Admiralty work is contributing to the increased costs. Skilled labour is short and most oi the yards are fully occupied. REACTION ON EXCHANGE ARMAMENT SHARES (Reed. Feb. 13, 11.30 a.m.) LONDON, Feb. 12. The gilt-edged market on the Stock Exchange opened at a lower rate, but later recovered. Armament shares were strong as a result of tiie statement in the House of Commons yesterday by the Chancellor of the Exchequer, Mr. Neville Chamberlain. The market was already dull and is unlikely, in the opinion of The Times City Editor, to derive .much encouragement from the statement. The conditions for raising the loan are hardly favourable at present.