HARDSHIPS PREDICTED

Chronicle (Levin), 29 July 1947, Page 5

HARDSHIPS PREDICTED

Press Assn.

. Growing Misgivings Over Britain's Economy

By Telegraph

.-Covyright

-(Bpeciaj. Correspondent.) HGdeived Moiidayj p.m. LONDON, July 28. The Oppositioii illteiids tb press for a two-day debate oii the edouomic State of the iiatioh before Parliament riseS 011 August 8. The ConServatives are also diseiiSsiftg Vvhether tliey will mahe this ail occasion to move a vote bf ceiislire 011 the Government but in aiiy ease Mr. Eden, tvho will be the L'hief Opposition ' spokeismaii, will ask tke Governuieiit to state' tuiequivocally whether it expects a breakdown in Britain's economy when the dollar loan runs out. The misgivihgs are not eonfihed to tiie Oppositioii aloiie. Labotir tnembers also show an aetite awareiiess of the hazards Of the Cotmtry 's preseiit positioil and are likely to Vveleome tbe opportitnity for a full discussion. Article 9 of the Arnericali loan agreement, is certain to come tilider fire before Parliament adjourns. Seven Conservative Cohirnoners have alreatly tabled a motion asking the Government to teqnest United States to release Britain from her obligations lilider this article "as they prevCnt us expanding' Imperial trade." A realisation that, although Britain is forced by the hartl enrrency shortage to reduCe her doilar purchases, she cannot go to her owii Dominions and coionies to t'Cdress the balahce} has foetissed attention upqn article 9 which threatens to become the centre of an aiigry controversy. The opponents of the American loati, who vvarned the Government that this would be the result of signiilg the agreement, are naturally anxious to remind the Government that their warliings werfe disregafded. The latest wat'rting given the Government upon the looming diffieuities ahead, comes from Ldrd Brand, until recentlY financial adviser to the Treasury in Washington, when he spoke on the Finance Bili in the Lords: lle predieted that great uneinployrnent and hardship of all kirtds would faee Britain when the loans run out and that the present Imdgeted surpllis woiild then disappear "like snow 011 a desert's dusty faee.'-' * So far the Government has had nothing to add to Mr. Morrison 's statement that Britain was relying upon the Marshall plan for assistailce when the present American and Canadian loans are ekhausted and both the oppositioii and many • Government members are anxious to obtain an indicatioii as to What. steps it is proposed to take to meet the crisis if the Marshall plan fails or does not materialise in time. Despite American reassurance, doubts as to whether the plail will evdr survive Congress opposition, are growing and with them are uncertainty about the whole of Britain's economic futirre. Rep'orts that exploratory discussions with the stet'iing Dominions are already taking piace about joint Commonwealth aetion, are- confirmed though the Commonweaith Relations Office is 1iot at present disposed to go into details. i T YiT. 'i -ii 1 'in itani