BRITAIN’S ECONOMIC POSITION STILL CRITICAL

New Zealand Journal of Agriculture, Volume 77, Issue 5, 15 November 1948, Page 513

BRITAIN’S ECONOMIC POSITION STILL CRITICAL

Greater Production of Food in Dominion Imperative

A WARNING that unless Britain could pay her ■Cb. own way by 1952-53, when Marshall Aid ceased, the standard of living in New Zealand would be jeopardised was given by Mr. F. P. Walsh, chairman of the Aid, for Britain National Council, in two statements issued recently. In these Mr. Walsh drew attention to the fact that, despite what had been achieved in little more than a year, Britain’s economic position still remained critical and he stressed the need for greater production of food and a sustained effort by the Dominion in supporting Britain. The two statements, the first of which is a survey of Britain’s trade and economic position at present and the second a review of the first year’s work of the Aid for Britain National Council in directing the Dominion’s campaign to give Britain every assistance possible, are printed below.

“AT intervals cables are published in our Press which deal with Britain’s export figures for individual months, quarters, etc., and these show a very marked increase in export volume combined equally with a reduction in imports,” said Mr. Walsh. “It would be possible from these cables to get a false picture of Britain’s real position. It is true that her exports have expanded tremendously since the end of the war. The amazing efforts of her workers and producers have resulted in an actual increase in the first half of this year of 30 per cent, above the volume of total production for the first half of 1938. ‘By the end of June, 1948,’ said Sir Stafford Cripps in the House of Commons on September 16, ‘the volume of exports had almost certainly hit the target figure of 140 per cent, of pre-war, a figure which has since been well exceeded.’ But it is also true that the terms of trade have moved so far and so fast against Britain that the increases in export volume have not enabled her to pay for what she needs to feed and clothe her producers and to buy the raw materials they need to maintain their production. “The trade gap between what she sold overseas and what she needed to buy to keep going in the first six months of 1948 was £156 million, £69 million more than had been forecast; and in spite of a magnificent improvement in invisible receipts which gave a surplus of £l6 million on invisible items, the total gap was £l4O million for the six months. Marshall Aid during the Next 12 Months “Marshall Aid to the United Kingdom for the year July, 1948, to June, 1949, is $1263 million and should cover the sterling area’s dollar deficit if present economies and export efforts are maintained. But against this substantial figure of United States aid to the United Kingdom must be set the very considerable aid that Britain will have to give Europe; $282 million of the dollar aid will be given to the United Kingdom only on condition that she makes an equivalent amount of sterling available to deficit countries of Europe. In addition, she has agreed to allow those countries to draw down their sterling balances by the equivalent of $2lB million. Britain, with or without assistance from the sterling area, will therefore be pouring $5OO million of unrequited exports into Europe in the 12 months up to the end of June, 1949. She will pass on to Europe approximately 40 per cent, of the United States aid.

“In the first annual programme of Marshall Aid to Europe Britain can expect her overall balance of payments

to be relieved not by $1263 million or £313.4 million, but by $763 million or £189.3 million. The total gap for the first half of 1948 was at the annual rate of £2BO million. In the next full year this deficit must be reduced to less than £l9O million. The Four-year Plan “Even during this first year, therefore, tremendous efforts must be made to keep the payments gap to the net amount of aid which the United Kingdom will receive under the Marshall Plan, and the following years will show greater difficulties. If Congress will continue to support the present programme, there is a chance that Britain, with help from other members of the Commonwealth and in co-operation with the countries of Western Europe, will be able to balance her payments over the next four years without any reduction in her present standard of living. The prospect is at best precarious. Without American aid it would clearly be impossible. “But every year the dependence on this aid must lessen and at the end of the fourth year, 1951-52, Britain must be able to pay her own way. The British are at present drafting a four-year plan setting out the measures they must take to be able to do without Marshall Aid by 1952-53. By then they will have to pay for everything or go without. If payments are balanced at the present rate of exports, the standard of living must fall. A substantial increase in exports will be needed before any increase in the present meagre standard is possible. It cannot be done unless sufficient improvement is made not only in the United Kingdom’s balance of payments, but also and especially in the whole sterling area’s balance with the Western Hemisphere. “The basic principles of this plan must be: — (a) To continue austerity measures to enable investment schemes to be carried out both in the United Kingdom and overseas without adding to the potential inflation and to the difficulty of balancing payments. (b) To intensify the energetic and even uncomfortable measures now being made to increase and reorganise production and to increase exports. (c) To seek more supplies from non-dollar sources, especially the sterling area, so that dependence on imports from the dollar area may be reduced. (d) To seek the continuation of all these measures in the rest of the sterling area. Implications for New Zealand “The political and security implications of this great project add to its economic importance on its success depend the future standards of living and happiness of a great part of the world. The last year has shown the importance of the dollar problem to New Zealand and its solution can come only from facing up to the problem in these next few years. At the moment we are sending to Britain goods which we could sell for the dollars we need to buy goods which Britain cannot supply. But even now with world shortages and high prices we would not be able to import much more, for every ton diverted from Britain would leave less sterling to pay for imports from Britain. The gain would be slight and it would, of course, be at the expense of the people of Britain. But, also, experience has shown that we cannot hope to trade largely with the hard-currency area. Many of its countries often have burdensome surpluses of the very goods which we produce. Though we may sell small lots of butter, meat, cheese, and other products to these countries, we cannot build our economy on this scattered trade. Our whole economy has developed during our first 100 years on a foundation of sales to one main market, Great Britain. We are now under contract to supply her with 97 per cent, of our exports of butter and cheese and 100 per cent, of our meat exports. This is the world’s greatest market for overseas trade in primary products and we most certainly could not for many years find a substitute, if at all. If this market should fail, the damage to our economy would be incomparably greater than any temporary advantage we might get by seeking to send more than small quantities

to other markets. The truth is we cannot swap horses. Our destiny lies with Britain and we must see that she pulls through.

“It is a part of our duty and our privilege to be able to help Britain to close the gap by keeping down the prices at which we sell her the food she needs to keep her people going. That can be done by holding our costs.

“We provide Britain with more than 56 per cent, of her butter, about 50 per cent, of her cheese, and 25 per cent, of her meat in addition to a great part of her wool, hides, tallow, and other essentials. The volume of goods which Britain can import is limited by her overseas buying power, and therefore it is clear that every rise in- price in New Zealand must affect the volume of imports of food and other essentials into the United Kingdom and thereby affect her standard of living now or in the future.

Britain Must be Able to Sell Cheaply

“Britain wants to continue to sell more abroad to keep her own industries going, but she must be able to meet increasing competition in the markets in which she sells. Other countries must export to live, and many countries which formerly provided easy markets for her goods now produce the same things themselves and need to import less. The answer is that Britain must be able to sell cheaply and she cannot do this unless her costs at home are cut. This is a problem she is tackling at present, and we as a supplier to the British market are directly concerned. There is a school of thought in this country that considers that we should demand for our exports to Britain the price she is forced to pay to other producers of similar goods. If we demand higher and higher prices for our food exports to Britain, she will find it harder and harder to compete in selling her goods in world markets.

“It is not out of place to point out here that costs of production in Denmark are extraordinarily high. Britain has been paying Denmark 3215. 6d. for every cwt. of butter she buys while New Zealand receives 2355. per cwt. When the Danish contract was made the Danish farmer could not produce the butter even at this much higher price, but had to be paid a further 20s. per cwt. by his own Government before he could meet his cost of production. We in New Zealand are, through natural advantages and the stabilisation of our costs, still able to produce at the 2295. 7d. per cwt. which is paid out to our farmers. This price more than adequately covers farm and factory costs. It gives our farmers a good standard of living, which is increasing on every efficient farm. The remaining ss. sd. per cwt. over the price paid out to the farmer will add approximately £l| million to the industry’s substantial reserves.

“The meat industry, similarly, will have its costs more than met this season by export prices. This can be seen in the estimate that more than £2 million will be added to the Meat Industry Account this season. It should be noted that this overall surplus is accruing, even though more than the export price is paid out to encourage the production of certain types of meat, for example, pig meats.

“The wool grower’s receipts are also high. The average price for 1947-48 was 25.61 d. per lb., more than double the 9.17 d. per lb. average in 1938-39 or the 12|d. which was paid out during the first three seasons of the wartime purchase arrangements.

Protection of Overseas Funds

“There is, of course, a limit to the extent to which we can afford to keep our prices low. Not only must we cover the farmer’s costs, but we must also cover our necessary imports and so protect our overseas funds. It is easy to forget one while -thinking of the other. A country’s standard of living must be lower if the prices of its exports have not risen as far as the prices of its imports; that is, if its terms of trade are unfavourable. At the national conference in August, 1947, it was agreed that, in following a policy of not embarrassing the United Kingdom Government by seeking world market prices for our products, the terms of trade position must be taken into account in order not to impair our own internal stability.

“Various ways by which we may help to develop sterling area supplies are under consideration, but our main contribution must be in the form of increased exports to

the United Kingdom. The Aid for Britain National Council is satisfied that the sound policy is to increase our primary production to a maximum and at the same time keep down our costs.

“We must remember how much better our standard of living is than that of most of the other countries of the world, who are still suffering from an acute food shortage. Apart from the supply of bread grains and sugar there is very little sign of any alleviation of the world food situation. In our own interests we must therefore send as much food as possible overseas. Food parcels are a good gesture and one that the national council supports, but the real solution is to produce more food for export in bulk. As Sir Stafford Cripps told the Trade Union Congress recently, ‘Our object can be achieved in two ways. Either we must use more muscle or more brain, and I am in favour of more brain. I would rather see the introduction of new methods and new machinery than longer hours of work.’

“But we must not wait for the new methods to be imposed upon us. We must develop a new interest in our work and we must see it as part of the world’s effort to set its house in order. If every one of us does what he can without looking over his shoulder at the other man, we will find that the comforts we now enjoy, the standard of living which is at present ours, may continue. Britain’s standards of living are largely sustained at present with American gifts and loans of dollars, and quite rightly so. The Americans see clearly what a debt the world owes to Britain 1 and are prepared to pay their part of that debt to see Britain through her critical years of recovery. But if Britain is largely depending on these gifts and loans just now, so to a degree are we. The benefits are ours as well as hers. If by 1952 Britain is still short’ of her targets, and the dollar gifts and loans begin to shrink, as ultimately they must, we all must suffer. Sir Stafford Cripps has stated, ‘There is only one way, and that is by each producing more. There is no other answer.’

Every Production Problem Must be Fought

“Though this is only a brief survey of the facts, it discloses how critical Britain’s position, and ours, still remains. It is obvious from the survey that it is in the interests of our own economy and the rights and privileges we enjoy that we should fight every individual production problem as a vital phase in the long battle to see that Britain wins through.

“We in New Zealand have our difficulties, of course. Surely we can remind ourselves again, however, just how fortunate we are and of the comparative standard of com. fort and peace of mind we enjoy. Perhaps we should remind ourselves of that fact more often and, more important, that it is to Britain, to the people of Britain, that we owe our position. They stood for us and still stand for us. Their efforts were and are an inspiration to the world.

“These are points. to keep in proper perspective when we talk of our effort, of our rationing, or our difficulties. We must continue to act up to our motto established by our late Prime Minister, the Rt. Hon. M. J. Savage, ‘Where Britain stands we stand.’.”

Work of National Council in Increasing Production

“'T'HE first meeting of the Help Britain Committee, whose A title was later changed to Aid for Britain National Council, was held on August 28, 1947, almost immediately following its formation at the big Dominion conference in Parliament Buildings on August 20, 21, and 22, 1947,” said Mr. Walsh.

“Thus we have now operated for a full 12 months and the time has come to review our position. . How far have we been successful in carrying out the task entrusted to us by the conference? To what extent must our activities be continued? In what direction should our efforts be concentrated in the coming months?

“An answer to these questions can best be formed by restudying what Britain asked, of us at that August conference.

“Mr. Attlee’s cable of August 16, 1947, referred to our efforts up to that time to obtain further supplies for Britain of New Zealand’s primary food products, our rationing of these products in New Zealand to enable more to go to Britain, and the welcome gift food parcels being sent. He said that in general it was along these lines that they asked for our continued and increasing aid. “He referred in some detail to three matters upon which we could give help: (a) Food exports; (b) turn-round of shipping, and (c) imports. “In reference to food exports he said that any steps we could take to increase and accelerate supplies of dairy products, meat, and animal fats were of the highest importance. What then has been . done regarding exports in meeting these wishes? Food Production “With good weather in the early part of the season farmers’ efforts seemed to be likely to result in a very considerable increase in production. Droughts and floods, however, and a hot, dry summer and autumn set production back. The final result, in spite of these handicaps, was a considerable increase in meat production, as the following figures, based on the normal meat year ending September 30, show. (This date also coincides closely with the beginning of the Aid for Britain Campaign.) SLAUGHTERINGS AT MEAT EXPORT WORKS AND ABATTOIRS FOR SEVEN MONTHS OCTOBER TO APRIL, INCLUSIVE Thousand head of stock . Cattle Calves Sheep Lambs Pigs 1945- .. 365.2 251.5 3,567 10,030 524.2 1946- . . 336.1 252.4 3,186 9,826 502.8 1947- . . 402.8 281.6 3,198 10,916 537.8 “The figures for 1947-48 show considerable increases over those for the previous year in each case and over those for the last two years in every case except sheep. “Undoubtedly constant publicity hammering home the need for more production to help Britain contributed largely to these increases. “The second major food item in our export to Britain is dairy produce. Very considerable increases in production were recorded, as shown in the following table, the figures for which are based on the normal dairy year ending June 30. : (This date does not correspond exactly with the operations of the Aid for Britain Campaign, but does give a useful guide.) DAIRY PRODUCTION FOR 10 MONTHS JULY TO APRIL, INCLUSIVE Creamery Canned milk Butterfat butter Cheese products lb. tons tons tons (million) (thousands) (thousands) (thousands) 1945- , 305.4 118.3 88.1 21.71 1946- .. 335.9 ' 135.4 87.8 26.22 1947- .. 349.8 143.8 83.9 27.76 "These figures also show a considerable increase over those for production in either of the last two years, with the exception of cheese production, where there has been some diversion ..of supplies to other food uses. ■’ “We. can answer the first question, therefore, by saying that we have met Mr. Attlee’s request-for an increase in the production dairy... produce and meat. Figures for the production of animal fats are not available, but exports of refined animal fats for 1946 were 1001 tons and for 1947, 1855, a valuable' increase. " Tallow exports were 24,700 tons for 1946 and 25,700 for 1947, again a useful increase.

“If the season this year is not unfavourable, we look forward to bigger increases in all our food production figures, as we know the farmers and all other producers and workers are strongly behind this campaign.

Organisation of Campaign

“How far has the Aid for Britain organisation contributed to this increase in food production?

“The national council now has district committees operating in 21 postal districts throughout the country. These committees were mainly set up at public meetings called by the mayors of the chief towns and consist of primary producers, employers, workers, social workers, and others with a direct interest in getting food to Britain.

Sub-committees deal with farming problems, gift food, etc., and a close correlation with the district executives of Federated Farmers of New Zealand is achieved in all farming districts.

“In this way food production problems may frequently come to the local primary production sub-committee from its farming representatives. If they cannot immediately overcome the problem, it is passed on to the main district committee. If local action is not sufficient and the problem is one of national importance, the district committee, through its paid secretary-organiser where there is one employed, investigates the local implications of the problem and reports to the national council for their action. The national council may be able to arrange with a Government Department to have the difficulty met, or may have to go to the Government. In either case experience has been that the utmost co-operation has been available. Government Departments and the Government have been fully alive to the need for tackling every separate problem retarding production, and I want to place on record here my very real appreciation of the spirit in which our requests have been met by officials in every Department and by the Government, from whom, from the Prime Minister downward, we have always had the warmest support and the speediest help.

“Another channel for acquainting the national council with our primary production requirements has been established and has proved invaluable in getting speedy attention to local or national problems. Federated Farmers have a strong organisation throughout the country, and problems are frequently brought direct to our attention by their local executives or through their Dominion council. Indeed, i local officials of Federated Farmers regularly straighten out difficulties before production can be badly held up, and in this way and by assisting in organising public meetings and conferences and by arranging newspaper and radio publicity for the national council these local executives have become practically agents of the Aid for Britain Campaign. Their co-operation and the co-operation of their Dominion president, Mr. W. N. Perry, their national secretary, Mr. A. P. O’Shea, and his council have been invaluable and sincerely appreciated. Direct Contributions of Council “The national council can claim to have contributed directly to improving production during .the last 12 months in a number of very important ways. Fertilisers “Without the direct intervention of the national council considerably less fertiliser would have been available on farms this year. In one instance a large works was preparing to close down for a protracted overhaul, during which no fertiliser would have been available. At the urgent request of I the council workers did long overtime and weekend hours to create a backlog of fertiliser which was called on to meet orders during the overhaul period.

“In three other works in the north available treated supplies accumulated : because, of a shortage of transport. On the instigation of the national council a conference of railways, transport; agriculture; labour, and union representatives arranged a' scheme for special weekend trains to carry fertiliser out to country stations.. Within five weeks 3000 tons of additional. fertiliser on the farms at a critical period of the autumn. .. . .

“The national council, was recently advised of an accumulation of fertiliser at some wbrks, workmen in some cases being put off owing to a lack of orders. The falling off was more than the usual seasonal slackening and it was found that farmers were holding off their orders in anticipation of a price change. As any continuation of this policy would have resulted in a material intensification of the rush period, when farmers have usually found it extremely hard to get their orders met in reasonable time, action was taken to ask the Government for an immediate announcement. Within a few days a new season’s price was announced embodying a retrospective reduction, and orders were immediately stimulated, firms once more taking on fresh hands to meet the demand.

“The result of these actions alone must have been a very considerable increase in the food available next season, with a consequent increase in the amount we ship to Britain.

Farm Machinery

“Our campaign had not been opened long when investigations revealed that farmers were in urgent need of greater numbers of tractors, particularly crawlers, and more farm machinery if useful increases in production were to be obtained.

“Conferences were held with farmers’ representatives and departmental heads, and for the first time in this country a complete survey was made of the tractors and machinery already available and of the country’s minimum future requirements.

“Following the national council’s recommendation which, we regret to say, met with stubborn and persistent opposition from certain quarters, the Government, wisely, in our opinion, agreed to release an additional $1 million for the purchase of further tractors and spare parts from dollar areas and thus assist in the campaign for increased production, with particular emphasis on wheat growing.

“This decision has been more than justified by results, and a striking increase of cereal acreage and other food production is already assured.

“A committee specially appointed by the Government for the purpose, on which the Aid for Britain National Council has been represented by the chairman, has been further investigating the whole question of importation of tractors and machinery for 1949 both from dollar and sterling areas.

“A number of meetings have already been held with farmers’ representatives and representatives of companies importing both British and American tractors, and it is expected that arising from these meetings a complete understanding on the country’s requirements for tractors and other farm machinery will be reached and the Government advised accordingly.

Wheat Growing

“Last year the lowest acreage of wheat New Zealand had planted for many years, 122,000 acres, was harvested. In view of the vital need for an increase in the world’s grain supplies and to reduce New Zealand’s calls on wheat supplies elsewhere, members of the national council carried out an intensive campaign of farmers’ meetings and of publicity throughout the wheat-growing areas. The campaign was well received and farmers were most co-opera-tive. Autumn sowings have shown a marked increase over last year’s, and the Dominion president of Federated Farmers, Mr. W. N. Perry, has estimated that completed sowings should approach 200,000 acres this year if spring weather is reasonable. This is still far below minimum requirements, but a pleasing result of the first year’s campaign. Next year we confidently hope for a further great improvement in wheat acreage. Special meetings were held under the auspices of the national council in Christchurch last year, when difficulty was being met in getting the harvested wheat into store and urgent arrangements were made for extra road transport licences to be issued. The licensing authority, by special instructions from the Government, was authorised to grant licences wherever necessary to help shift the wheat, and by this and other special measures the harvest was got in with the minimum loss. In the coming year similar arrangements will be made and the Government has authorised a special committee to . meet shortly to deal in advance with any problems that can be anticipated. Other Farm Supplies “Constant attention has been given throughout the year to the procurement of such other farm requirements as fencing wire, cement, steel for dairy factory extensions, etc. Regular pressure has been kept on buying authorities and distributors, with useful results. The wire position has been critical, but supplies of both baling wire for hay, etc., and fencing wire will be much easier this year as a result of purchases in many different markets. The Building Controller, in line with a policy of allocating extra cement to farmers in the slack winter months, has met our requests for special allocations to several districts and the same co-operation has been received in obtaining steel and cement for renovations or expansions to dairy factories and other buildings. Hay Subsidy for Drought and Flood Relief “A proposal brought to us by Federated Farmers for getting relief to farmers hard hit in the drought and flood

areas received the fullest co-operation from the Government, with the result that well over 1000 tons of hay bought at a fixed ceiling price and financed if necessary by Government-guaranteed loans were railed at subsidised rates to the flood and drought districts. This has certainly ensured a saving of stock which would otherwise have been killed and thus largely prevented a fall in food production in those areas in the coming season.

Labour for Urgent Farm Work

“Critical positions commonly develop, particularly in the harvesting season, when labour is urgently needed to save crops but is in very short supply. The national council has established a link with many districts which enables us to put out special radio and newspaper appeals which have resulted many times in the needed labour being made available. Fertiliser and freezing works and farmers harvesting fruit, tobacco, etc., have used this service and it is clear that production has been saved as a result.

Turn-round of Shipping

“The problem of the turn-round of shipping has been one of continuous concern to the council and it cannot be said to be satisfied with the situation. Undoubtedly, however, this is a subject in which generalisations are inadequate and often inaccurate. The council has examined the particular problems which affect the turn-round, including such factors as transport delays, wharf congestion, and uneconomic handling practices. Reports on these have been submitted to the Government.

“Cargo control committees, which were re-convened following the original August conference, have had some success in clearing bottlenecks.

“The whole of this complex field relating to the shipment of our food to Britain has received and is continuing to receive the close attention of the national council.

Conservation of Sterling and Dollars

“Mr. Attlee’s request for us to refrain from drawing on our sterling balances has meant a continuation of import restrictions. The support of the community generally has been retained, and manufacturers and importers, though occasionally criticising the Government’s policy, have usually recognised the need for controls. This is a question of Government policy and the council is concerned only to a limited extent if restrictions should seem to be retarding the production of food.

“Though the restoration of parity in our exchange rate will mean that we can buy more British goods for our money than previously, it will also mean that our export income in the future will be lower. Thus Mr. Attlee’s request that we keep our purchases from Britain within the limits of our sterling income still applies with its force unchanged, and we should not expect any loosening up in this respect.

“Restrictions on the amount of dollars made available for imports have been well received, as the effects of the dollar shortage on Britain are well known, and it is widely understood that any dollars we take leave so much less in the pool for the people in Britain. Where food production in New Zealand can be directly increased by purchases of equipment in the United States dollars are generally made available and the Aid for Britain Campaign has not had to make representations to the Government for more dollars, except in the case of the purchase of tractors of a type unprocurable in Britain. “The dollar difficulty shows no sign of easing and in the coming months we shall have to continue to produce the maximum of food without heavy calls on dollar exchange. Gift Food “Mr. Attlee’s appreciation of the gift food parcels being sent has spurred voluntary workers throughout the country and there has already been a very great increase in the quantity of gift food being sent. The fact 'that posted parcels have not greatly increased in number is due to the extension of bulk sending, which enables more food to be sent for the same money.

“During the year the central Food for Britain Committee, operating under Mr. T. N. Smallwood in Wellington, handed over its functions to the Aid for Britain National Council. This has meant no change in the districts, where voluntary workers have continued their splendid work either under the old organisation of the local Food for Britain Committees or after amalgamation with larger district Aid for Britain Committees.

“The national council is continuing to operate and extend the British Ministry of Food’s bulk gift scheme, which permits gift food to be sent in cases, each tin bearing a sticker with the donor’s name and address so that the personal touch is retained. These cases are sent freight free and delivered by the Ministry of Food to organisations such as hospitals, homes for the aged, local authorities, etc., for free distribution to individual needy people. This scheme is being widely extended in New Zealand and provides a valuable outlet for voluntary effort. A parallel scheme has been instituted for schools, who are thus able to send gift food to their counterparts in Britain. Hundreds of cases of gift food are leaving our ports each month under these two schemes, and the value not only in food to Britain, but in the development of stronger Commonwealth ties, is almost incalculable.

“The national' council during the year adopted the Barling fat collection plan, which had proved so successful in Otago and Southland. With the . council’s help this plan has been put into operation in many other districts, and hundreds of pounds of .first-class edible fat are going to

Britain each month as a result. Otago and Southland are still extending the scheme under Mr. Barling’s indefatigable administration, and in other centres depots are functioning to an increasing extent. “Coupon saving continued to achieve valuable results. The actual value of meat or butter saved has been outweighed by the effect upon the public conscience of this constant reminder of our duty to Britain, and the competitive spirit encouraged in coupon saving between districts and between localities is a sure way of keeping the aims of the campaign permanently before the people. Future of Campaign “Unfortunately there is no indication at present of any material improvement in Britain’s position and our continued efforts to increase the amount of food we can send to Britain will be just as essential in the coming year as they have been in . the last 12 months. “No one reading recent figures on Britain’s present situation or Sir Stafford Cripps’s frequent looks into the future can resist the compelling impression that Britain’s position is still critical and her need as great as ever. “I think I am not misreading the Government’s mind when I say that the Aid for Britain National Council will continue in existence as long as Britain’s crisis continues, and in the coming 12 months will use its utmost efforts to maintain in New Zealand a sense of Britain’s need and a determination to do all that our country can to see Britain through.” Mr. Walsh’s statement concluded with an expression of appreciation for the work done by members of the Aid for Britain National Council and district committees and the support given by the Press.