ATTLEE TO MAKE GRAVEST PRONOUNCEMENT SINCE WAR DECLARATION

Chronicle (Levin), 4 August 1947, Page 5

ATTLEE TO MAKE GRAVEST PRONOUNCEMENT SINCE WAR DECLARATION

(N.Z.P.A.-

-Reuter,

Copyright)

Received ^unday, 7,0 p,m. 4 LOND0N, August 2. * TKe Supday Times' pplitjcal pprrespondent in a statement on the country ?s economic position says: "Thp situation and the Government 's measures to meet it, a statement on wbieh I#r. Attlee will make ip the Oommons on Wednesday, will be the gravest pronoiineement since the declaratioh of war in 1939 if the Government faees the position squarely and resolutely, The economic Grisis overshadows every other issue at We^tminster. The Government has been compelljed to f rame^ measures which will bring harder living conditions in this country until we can begin. again to.pay our way. The general food staudard will be lowered, and Mr. Attlee will announce pla.ns for increasing home food production. - "Britain in seehing a more liberal interpretation of the nondiscrimination clause in the American loan agreement is tactfully but firmly pressing the point that while she must reduce imports from America she must import more from within the Empire. "More stringent priorities in materials and fuel in favour of the export industries will be employed, and the effect will be to divcrt labour by indirect pressure from relatively non-essential industries, An urgent appeal will be made to employers and unions in essential trades to work overtime, • The ex-tent of the overtime and payment for it will be left to each industry to decide, There may be a reduction of 30 or 25 per cent in the ser vices which had a total strength of 1,301,000 on June 30, 1947. A reduction of the forces in Germany, Italy and the Middle East is anticipated. "It is understood that Britain to reduce the cpst of garrisom ing, feeding and administering the British zone in Germany is suggesting that America should find dollars and Britain should pay a share in sterling which should be set aside in a special fund as security for America, to be realised as soon as conditions improve. "There is some uncfficial talk of the possibility of compulsory saving, but Cabinet has not yet considered this aspect of the problem nor is it on the agenda of urgent matters to be considered, ' ' The Sunday Dispatch says: ''Oabinot Ministers are standing fcy this weekend for calls to emergency meetings of committees dealing with the crisis. One of the biggest decisions facing Gabinet is the introduction of the October Budget. This may raise indirect taxation to meet the inflation probjem presented by more money to spend because of overtime wages and fewer goods to buy, "

With sucli slogans as "Into Battle" and "Get to Grips", the national Sunday newspapers warn their readers, the majority of whom are spending the last long holiday of the year, that the coming week is a decisive one for Britain 's position in the world. The Sunday Pietorial says : "Mr. Attlee has delayed too long. It should have been launched six or twelve months ago. British experts to pay ibr essential imports must. be 'raised by.at least £9,000,000 a week. ' ■ The News of the World 's political correspondent stated that Gabinet diseussed some form of immediate capital ievy, and added: "It is certain that increased production measures will include the conceutration, pf production to essential export .industries which is 'a disguised form of direction of labour'." Tlie newspaper, in a leader added : "We want no more loans." Tiie Laliour newspaper, The Ppople^says: "Only one year of the new austerity living will be needed if the workers get down to the job. According to experts we in that time can turn the corner and be reorganised to take on and beat the world industrially." The Ilouse of Commons is sitting tomorrow which is the first time it has done so on the August Bank Holiday for 21 years.