BRITAIN TO SLASH IMPORTS

Chronicle (Levin), 15 July 1949, Page 5

BRITAIN TO SLASH IMPORTS

Chancellor Announces Cuts To Close Dollar Gap

Received Friday, 9.45 a.m. s LONDON, July 14. Britain will cut her dollar imports m 1940-5U by £100,.000,000. because of the dollar gap. The Chancellor of the hxchequer, Sir Stafford Cripps, announced this in the House of Commons and gave details of ' the cuts when opening today's debate on Bntam's economic situation. i

Sir Stafford said that he had worked on the assumption that Britain would not be able to afford more than 75 per cent. of her 1948 dollar imports. The Chancellor said that the

combined effects of the standstill agreement on dollar purchases and

the reduced import programme , should eventually produce "a ' .narked reduction in the strain on : 3ritain's reserves." He said that.he hoped the financial confererice of Commonwealth Ministers wou'd result in some similar immediate action by the :e.st of the sterling area. The only two specific cuts announced by Sir Stafford were tooacco from 110,000,000 dollars to 30,000,000 dollars and sugar by 14,000,000 dollars during the comng twelve months. Cuts would be necessary, he said, in the imports of all important materials, but the effect of the cuts would vary from material to material. The principal materials affected would be timber, paper and pulp, non.-ferrous meta's, steel and cotton. "The decision at which we arrived implies a radical change in American Customs policy,'' said the American Secretary of the Trpasury Mr. John Snyder. commenting on his talks in London with Sir Stafford Cripns, and the Canadian Minister of Finance, Mr. Douglas Abbott. I "Big American investments in Eurooe and the British Empire are to be expected. Mr. Snyder said the results of the conference were the first steps in the dri-ve to stabilise world trade. I