BRITISH EXPORT TRADE

Southland Times, Issue 24593, 15 November 1941, Page 7

BRITISH EXPORT TRADE

MANUFACTURERS ARE CONCERNED

DRASTIC CUTS IMPOSED

(8.0.W.) RUGBY, November 14. The president of the National Union of Manufacturers has written the following letter to the Prime Minister, Mr Winston Churchill: —

“There is a growing feeling of concern among manufacturers at the drastic cuts now being made in established export trades to the Dominions and elsewhere in deference to the Americans and anxiety as to the effect of these cuts on the vitality and recuperative power of the country in the difficult period after the war. They entirely agree that the Lease-Lend materials must be regarded as a trust and the Americans are entitled to be fully satisfied that this trust is not being in any way abused. They also know that all export trades must in war be absolutely dependent on the amount of material and the transport which can

from time to time be made available. It appears to them that the present cuts are going rather farther than what, so far as they can see, is required at the moment owing to either or both these causes. , “You know how vital the established export trades are to the country and how difficult, if not impossible, it is to recover these when once they have been lost, also how important it is that the country should be strong enough to be able to play its proper part when the war is over. We, therefore, hope you will be able to see your way to asking the departments to be very careful not to cut into the establisned export trades any deepei- than the exigencies of the moment make absolutely necessary.” IMPORTANCE OF EXPORTS Mr Churchill replied:— “I am in full agreement with the National Union of Manufacturers about the vital importance which our export trade will have in the period after the war and I share its anxiety that no unnecessary obstacles shall be put in the way of its maintenance while the war lasts, but it is not correct to attribute the drastic cuts in our exports to deference to the United States. The reduction of exports is due to our increasing preoccupation with warlike measures. The Lease-Lend undertaking is a declaration of our understanding that while the United States is willing, to stint its own citizens that we may be able to prosecute the war effectively, it should not be expected to do so in order that we shall escape necessary sacrifices, even in our export trade.

“The difficulties with which we have to deal are inherent in our own situation. Our problem is to balance the merits of the various demands which are made upon the resources under our control. There may well be two opinions about the wisdom of any particular decision which the Government has reached and I shall be glad to see that any representations which the National Union may care to make receive the most careful consideration. But there is no difference between us about our object.”