STOPGAP TO INSOLVENCY

Chronicle (Levin), 19 December 1947, Page 5

STOPGAP TO INSOLVENCY

(N.Z.P.A.—

-Reuter,

Britain's Finances Reviewed By Chancellor

Copyright)

Received Friday, 10 a.m. LONDON, Dec. 18. Britain's overseas reserves, which 'alone stand between the sterling area and- bankruptcy" were expected to be about £500,000,000 at the end. of 1947, said the Chancellor of che Exchequer, Sir Stafford Cripps, in the Housfe of Commons, in a re- ■ view of the British financial situation and of the programme of cuts in capital investment. This total included the flrst £25,000,000 worth from the balance .now released of che TJnited States credit and the remainder of the gold Britain . would obtain from South Africa under the e-xisting normal gold contract. Sir Stafford Cripps said the estimated return from Britain's overseas investments in 1948 would only be £70,000,000. Britain, in addition, would have £75,000,000 representing the remainder of the United States credit, and £75,000,000 representing the undrawn part of the Canadian credit. There was also £80,000,000 in gold to come from South Africa, the result of the recently arranged three-year credit. Britain could also look forward in the latter part of 1948 to some reduction of the dollar drain if the Marshall aid plan had by then come into full operation. Britain's external liabilities totalled £5,300,000,000, said Sir Stafford, including £3,550,000,000 of sterling balances accumulated by Britain's creditors during the war aird as a direct result of the war.