U.K. Trade Gap Narrows

Press, Volume CV, Issue 30959, 15 January 1966, Page 18

U.K. Trade Gap Narrows

(N Z.P.A. Reuter —Copyright) LONDON, January 13. Britain’s position in the economic world has strengthened dramatically with the Government announcement of the nation’s first balance-of-payments surplus for 10 months.

New trade figures for December issued by the Board of Trade also revealed the smallest trade gap for six months. A record value of £436 million for exports and re-exports and reduced imports, valued at £486 million, led to the improved trade gap. On a balance-of-payments basis, which brings the value of overseas services into the nation’s accounts book there was a surplus of £5 million. Britain last had a surplus in February, when it was £ll million. But this was because of an artificially low figure for imports produced by the American dock strike.

There were no such special circumstances in Decejnber and the price of sterling promptly started to rise, standing at 2.8043 dollars one hour after the figures were announced.

The figures were: exports and re-exports—£436 million (compared with £426 million in November). Imports 486 million (against £496 million). Trade gap £5O million (against £7O million).

Balance of payments—a surplus of £5 million (against November’s deficit of £l7 million). Halved Deficit Revenue from exports last year was the highest for 10 years and enabled Britain to slash in half the trade deficit which built up in 1964 to such proportions that the Government had to restrict imports. Commenting on the figures today, the Trade Minister, Mr Douglas Jay, said: “They are a very substantial step towards improving our balance of payments in 1964 and overcoming the deficit completely this year.” Mr Jay was referring to the £756 million deficit resulting from trade in 1964. The Government has said it planned to halve this in 1965 and balance the books completely in 1966.