Mr. Walsh Reports On Crisis In Britain

Chronicle (Levin), 16 August 1949, Page 6

Mr. Walsh Reports On Crisis In Britain

■ i WELLINGTON, August 15. The new crisis 'which has' developed •^in Britain 's trade in 1949, is very dif- " ferent from. that faced in 1947," said 1 the ehairman of the Aid for Britain 1 National Council, Mr F. P. Walsir, • to 1 day. Mr Walsh, w'ho recently visited 1 Britain, was speaking at a- meeting of the council. His report marked aiso I the second anniversary of the establish- ! ment of the council. II "There is now no production crisis in Britain," lie said. " Her industries ; are workiiig at full pressure under conditions of full employment, turnmg out lirst class prodilcts for which she has always been noted. The crisis in reality has developed outside of Britain. Indeed, I (frequently fiud myself thinking this is not Britain 's crisis. It is a world crisis — in particular an American crisis. " In the 1947 crisis th^ solutions were largeiy in Britain 's own hands and she worked miracles to solve her production crisis but now solutions would not be found without international collaboration. ' ' The plain fact is that Britain at the moment is enjoying higlier stand ards of leisure and of living than the rest of the world is vvilling or indeed able at present to provide for her," said Mr Walsh, ''if a solution cannot be found through international cokaboration in freeing the congestiou steadily developing today in world trade channels, Britain will have to do without many things they had coimto consider necessities and would be unable to pay today 's prices for th-om things, they could continue to buy. That could coneeivably mean lower staridardo for New Zealand, too, unless measurea were taken to protect the Domimou s internal economy., "From the bankers ' point of vtew the individual who had in about 18 ..nonths made an amazing recovery from near bankruptc3r, would be a sound subject for further investment," said J\Lr Walsh. "Britain has already made that recovery. We in New Zealand can rely on Britain coming- through, rely on coutinuing to tie our economy to hers, and in years to come rely on sharing her new pr.osperity. We should never forget tiiat we have a lieavy responsibility on onr shoulders. . We are one of the world 's most favoured producing areas. fhe degree to which we make fulj^-.t use of our resources, will determme our ultimate future. "