SITUATION GRAVER

Chronicle (Levin), 21 August 1947, Page 5

SITUATION GRAVER

(N.Z.P.A.-

-Reuter,

Britain Will Have To Face ' Worse Things

CopyrighV

Received Thursday, 11.30 a.m. LONDON, Aug.. 20. Addressing a press conference today, Mr. Herbert Morrison said that Britain's exports in July of £110;3 million steriing was the highest monthly value ever recorded and unemployment was at its lowest in peacetime since reliable statistics began. Mr. Morrison said that the July exports compared with 93.1 millions in June and a monthly average in 1946 of 76 millions. July imports totalled 179.2 millions as against 153.8 in June and a monthly average in 1946 of 108 millions. Mr. Morrison said that under British chairmanship the Paris economic conference had «reached 'substantial agreement on a constructive joint proposal for European revival, going farther than anything achieved in the twenty years between the wars.- British eoal stocks had been built up to several weeks ahead of the target, while the Ruhr eoal production, under Britain's management, had reached its highest postwar level of nearly 240,000 tons daily. Mr. Morrison said that the Minister of Agriculture, Mr. Williams, would tomorrow announce the biggest expansion programme fpr agriculture ever launched in peacetime. "The economic situation is get,ting graver and we shall have ^o face worse things before we afe through. The most pressing problem is overseas balance payments. "We and other countries all over the world, even in America, have been caught at an awkward stage and our postwar reconstruc^ tion is threatened by the prospects of a breakdown in monetary exchange. We will have to adjust ourselves in the face of these circumstances, and we are doing its

as fast as we can. We cannot do every thing at once. We are doing plenty and are going to do plenty more." Mr. Morrison said that the five main lines of attacking the difficulty were: Firstly, a great increase in the production of essentials such as eoal, food, steel and clothing. Secondly, an expansion in value and volume of exports to buy essential imports. Thirdly, a reduction of unessential or postponable consumption. Fourthly, a reduction of unessential or postponable investment expenditure. Fifthly, an adjustment of the overseas burden. "It begins to look as if we have stopped the rot in eoal," added Mr. Morrison, "but I am not going farther than that. That is a milestone, an achievement and a hopeful point in our progress in the vital fight for raw materials." Mr. Morrison said that the pros1pects of getting the co-operation needed depended on how far Britain could convince others that she meant business. This meant a big further effort, and the Government would press all the people to do an extra bit to the utmost limit of the available tools and materials, even if it meant working longer hours and getting down to something less easy but more useful.