Swedish Industrialists Predict Slump

Grey River Argus, 30 August 1948, Page 8

Swedish Industrialists Predict Slump

(From Thomas Plarris), Reuter’s | Correspondent). STOCKHOLM •. (By Airmail) A slump, bringing "in its wake unemployment and widespread shortages, is prophesied by industrialists here as a result of the Socialist Government’s plan for reduced dollar imports. Under the plan, Sweden will import from the United States only 180 million crowns worth of goods in the second half of this year, or less than 50 per cent., of. the value of her American imports in the first six months of the year. The latter is estimated at 500 million crowns—a figure which may prove to be unreliable. There are, however, definite figures for the months for January-April inclusive which show that imports during this period totalled 318 million crowns. Industrialists argue that the plan is “ruinous” because it will deprive Swedish industry of vitally needed ’ machines and metals. Only 60 millions of the 180 million total is to be spent on these commodities. Ninety millions are to be spent on oils—lubricants and fuels —and the balance on “other imports.” In the period from January to April, 115 millions were spent on American machines and metals- —and industry was alieady feeling the pinch. In speeches at company meetings and in letters to the press, industrialists prophesy that the motor industry will be hard hit because spare parts will not be imported, agriculture impeded because there will be a lack of tractors, and firms using oil as fuel forced to restrict production because there will be . insufficient to keep the wheels of industry turning. Yet Sweden cannot affoid to buy American. Between June 7 and July 7, 42 million cgowns worth of precious gold and foreign currencies streamed away from the National Bank to keep imports running. The liberal evening newspaper Expressen” estimated that if the trend continned, there would be nothing, leit after ten months. The industrialists rep’led that the Government should have had the foresight to apply for an American loan on “strictly commercial terms,” as soon as it saw that foreign currency and gold stocks were being halved in every post-war year. M. Torsten Kreuger, one of Sweden s leadfng financiers and owner _of “Aftonbladet,” the biggest evening newspaper in Scandinavia, has been using whole pages to campaign for a loan. Now. he' has warned the Swedes, it is “too late to get a loan on (favourable terms.” M. Axel Gjores, Minister of Trade, shares the industrialists’ pessimism; but he pins his hopes on Marshall aid, including a loan, and trade with the sterling area and the combined Western zones of Germany. He told a meeting at Malmo that “the new import quota for commodities for m- ■ dustry is so tight that we must, unfortunately, count ’ with production troubles.” He added that trade with the sterling area, which he described as “the most important economic territory outside the United States”, and vzith the combined zones of Germany is, however, “increasing.” Industry, he declared, must adapt .itself, particiilarly by switching from oil fuel to coal. He stated that one of the most important causes of Sweden’s difficulties was the refusal of American business men to pay the prices demanded by Swedish pulp manufacturers for their products. “The Americans have cancelled a considerable number of orders,” he explained, “though this has not caused the industry any marketing difficulties because the British market has taken considerable extra quantities.”