Portugal Starts Expansion Under Sound Finances

Manawatu Times, Volume 62, Issue 19, 23 January 1937, Page 9 (Supplement)

Portugal Starts Expansion Under Sound Finances

LISBON.—Free from financial diffi- i culties, the Government here is at last engaged on a programme of overdue economic development aud social amelioration. By the end of this year Portugal will : kave spent some £4,300,000 upon economic reconstruction, the first part of a 15-year-scheme involving a total expenditure of £00,000,000. The outstanding achievement of the present Administration has been the steadying influence of the nation’s finances, making tins reconstruction programme possible, it is stated in the report on the economic conditions of Portugal made to the Department of Overseas Trade, Loudon, by tho British Commercial Secretary in Lisbon. Social Amelioration. “The present position is,” tho report declares, “that the traditional background of national life has been transi.ormed. The disappearance of the factors of financial difficulties, wffieff handicapped aud negatived even conscientious attempts at reform, has freed the Government from the siugle preoccupation of keeping the nation solvent, and has enabled it to embark upon a programme of economic development and social amelioration unhindered by financial problems.” The main structure of financial reform was completed during the five | years ended 1933, the report adds, aud the stability and order then introduced has served as a bulwark against ie force of depression, aud as a foundation ou which to build aud strengthen the country’s economic position. Succession of Surpluses. “A succession of seven budget surpluses achieved in tho teeth ot depression is evidence,” it is declared, **o« what capable aud honest admmistiu tiou can do, aud there would appear te be no reasou why, given a continuance of political stability aud good govern meat, tho country should nut., in the course of time, achieve a position compatible with its resources and poteu lialities. ” Regarding Portugal’s reconstruction 1 plans, the report points out that uo ■special emphasis is placed on the ex'•tension of industry, since tho technique •of manufacturing for tho export mar j ket, apart from the colonies, has not j been developed here. Greater reliance, j it is said, is placed on tho future of its

agricultural and forestry products in world markets. Ports and Water Power. Main items in tho reconstruction, apart from increased armaments, are improved ports, roads, water-power schemes and irrigation. Rearmament of the army, comprising general reform of methods and equipment and rebuilding of fortifications, takes nearly' a third of the money set aside for economic development this year. Otherwise the objects on which most time and money are to be spent are, respectively, construction of airports, fishing ports, re-equipment of the naval air arm, and irrigation, schools, aud roads. A special commission is studying the production and consumption of electrical power in Portugal. Oversupply of Wheat The chief problem, economically speaking, confronting the Portugese Administration, tho British report declares, is the matter of production ol wheat. Only seven years ago Portugal was importing largo quantities ol wheat. Success of a Government wheal campaign, however, the report states, has given rise to an acute problem regarding large surpluses of wheat. Portugal’s average yearly consumption of wheat is, the report adds, 330,000 tons. But lately the home crop has risen to as much as 000,000 tons, owing to a guaranteed price for farmers. Tho cost of the wheat prohibited its competition in world markets. Restrictions on Acreage. After some discussion, it is said in the report, the Government has now forbidden the sowing of wheat in ccitain areas and arranged for the export of 300,000 tons. The remaining surplus is to be held against possible future shortage, since this year’s crop is not up to standard. “On the whole,” the report declares, summing up Portugal ’a economic prospects, “there is considerable ground for optimism, and tho country has a good ou which to congratulate itself. “The future of both Government aud people is brighter than it has been for decades, and unless there is a reversion to old systems and policies it is not too much to say that Portugal has at last seen the dawn of a new era which promises a future attainable in proportion to the extent to which the nation as a whole is prepared to tolerate only » sound and honest administration.”