Rumours Of Devalisation

Chronicle (Levin), 18 June 1949, Page 5

Rumours Of Devalisation

Received Fridav, S.oO p.m. LONDON. .Tune 17. First report^ from British business agents which arp being given increasing prominenee in the Britisli press emnhasise that effnrts to sten up the Britisli export clrive in the Fnited Rtates in tlie face of increasing American fears of a trade recession are making little headwav and are being further haridicapu'-d liv persistent Ameri"an rnnienrs that I the Britisli Government intends to de- 1 vahie the pound sterling in relation to the dollar. 1 Categorical statements hv Chancellor Cripps denvinT this intpntion liave nol been aceepted by nmnv Americans, the reports snggest, and Britisli pxportevs are now urging that the Governnmiit shonld issne a further official stateir.ent in an effort to restore confidence. Careful investigations in the Fnited Rtates liave shown that manv British goods. notablv textil^s. are too high priced to compete with American goods ( even on the score of suoerior qnality. Fxporters are noiv stressing with considerable urcrencv the need to reduce British production costs in order to place British goods on a more competitive level. The reports ouote detailed instances given by leading American importers showing that bv conmarisnn with similar produets British leathv goods. tine textiles, rnade-up clothing and cars are all too high priced. 1 A recent survpv bv the Trinida-1 Chamber of Coninierce showed that of fi 7 items studied, onlv in 17 cases were British goods eheaper than American. The Board #f Trade and other British organisations charged with the p-o metion of tlie dollar-earning expo't drive admit frankly that tliev now face the most difficult period encountered sinee the end of the war in their effoHs to gain ground in American marke^s. Ruropean countries which are also anxiou.s to increase their dollar earnings and reduce their adverse balance of pnvments, are encountering similar diffieultips. Tf this position continues tliere are increasing indications that the estimates of the balance of pavment situation of the various Marshall Aid countries will have to be drastically revised nt the end of this vear.