CONTINUED DOLLAR ECONOMY NECESSARY, MR. DOIDGE STATES

Wanganui Chronicle, 2 November 1950, Page 2

CONTINUED DOLLAR ECONOMY NECESSARY, MR. DOIDGE STATES

AUCKLAND, 29, (PA).—The Minister of External Affairs, Mr. Doidge, returned by air today after nearly seven weeks abroad. In that time he took part in two Commonwealth conferences, attended a meeting of the United Nations, had discussions with numerous world leaders and visited New Zealand posts abroad. “It was a very busy time, very interesting and very worth while,” said Mr. Doidge on his arrival. He said he would-be reporting to Cabinet on what he had done and if the Prime Minister, Mr. Holland, wishes to set aside a day for a debate in Parliament, he would be happy to participate. Mr. Doidge will leave for Wellington tomorrow. The Commonwealth conference dealing with general economic conferences, one of the two he had attended in London, had the dollar problem as its major subject of discussion, said Mr. Doidge. The outcome had been unanimous agreement upon the fundamental need to rebuild the central gold and dollar reserves to an adequate level, to continue to make the maximum effort to increase dollar earnings and to continue the strictest economy in dollar expenditure. “The United Kingdom would have liked a greater degree of precision about the way continued economy of dollar expenditure will be exercised,” said Mr. Doidge. “As custodian of the dollar pool however it is left to Britain to make new suggestions in the future as the occasion may demand.” Since July, 1949, all members of the Commonwealth had tried to observe a common decision to restrict expenditure on dollar imports to 7 per cent, of the 1948 level, he said. That had been a very important factor in the recent improvements in the dollar position of the sterling area. “In New Zealand, as in other Commonwealth countries, we have rigidly controlled our dollar spendings and sought as far as possible to increase our dollar earnings,” said Mr. Doidge.

“By the end of 1950 New Zealand should, as a result, be in balance with the dollar area. Other countries in the sterling area show a similar improvement. Britain is now paying her way for the first time since the war and is in approximate dollar balance. “In these circumstances, we went into the London conference with some hope of easement of the restrictions on future dollar expenditure. It was a coincidence that on the very eve ot the London meeting Mr. Truman, in America, and Mr. Attlee, in Britain, announced simultaneously vast new programmes for the maintenance of world peace. Astronomical sums are to be spent over a six-year period, millions of men are to be transferred into defence jobs. “In Mr. Attlee’s words: 'Britain has been working at full stretch with good effect. Some relaxation in austerity conditions seemed possible. It is hard now to have to take steps which must mean a setback to that recovery.’ “Mr. Hugh Gaitskell, the new Chancellor of the Exchequer, presided over the London deliberations,” continued Mr. Doidge. “Mr. Gaitskell was insistent on the need to continue building up gold and dollar reserves. He was realistic about the risk of possible shocks in the future and the need for continued economy in dollar expenditure.”