Evening star., 1947-11-30

luIlodLACilGdl dAiO VIC dlc uCbCl AlAliCd
,ared to suspend some of the liberties
industries from the point Of view Of
the country's property get priority.
Finally, we are doing what we can
consistently with our democratic in
stitutions, to see that labor flows to
those industries whose need Is most
urgent.
Why Is 1t that we face such hard
ships now, in order to avoid eco
nomic collapse? Our internal imam
cial position is good; we are check
ing the tendency to imitation; we
are balancing our budget; the
wheels of our industry are humming
round; every one is employed. What
is our danger? The answer Is very
simple. Britain has never been 4
self f-supporting country, we always
had TO import great quantities Of
food, of raw materials, Of timber, Of
oil and SO on from abroad, and
largely from America. Before the
war we were able to pay for those
things largely because, in addition
10 our exports, we had great finan-
Cial resources abroad.
EmerSed 80 Billion Poorer
We could get by OH actual physical
exports amounting to only one half
Of our imports-the balance we
made good by these invisible exports
these foreign investments and so
on. During the war, all that went.
Although we helped to win the war,
we have emerged far poorer-$3O,-
600, 900 900 poorer.
About one-third OF Britains pre-
war national wealth was exhausted.
We can no longer pay for our imports
as we used to do largely by means
Of money we were earning on capital
investments overseas; we can only
pay for them now to the extent that
we can export our own goods in
return. The dollar loans, which the
United States and Canada very
generously made us, were intended
to meet that situation by giving us
time to rebuild our export trade.
Unfortunately, they did not give us
enough time That was partly be-
cause American wholesale prices rose
between 40 per cent and so per cent
and 50 reduced the real value Of the
loan, and partly because other coun-
tries, both in Europe and elsewhere,
found themselves equally in need of
dollars and insisted on our paying
for what we bought from them by
dollars, or sterling which they could
change into dollars, instead OF using
to buy goods from US. All that we
can do Is to cut down our imports
and build up our exports.
A country which reduces its meat
ration to 20 cents week: which
accepts, as We are having to accept,
lower level of food consumption
than 1t ever had to undergo during
the war: which rations bread; which
cuts out all pleasure motoring: which
deprives itself of many of the Or
dinary amenities of life-such a
country, and Britain is that country,
can hardly be said not to be facing
up to the realities of the situation
We are, Of course, concentrating
every energy we have on building UP
our export trade so as to balance
our payments.
Export Aims for '48
Today We are employing over a
million more people in manufacture
ing for export than two years ago;
that is a so per cent increase on the
number we employed in 1888. Al
ready our exports much exceed the
1888 volume; our target Is to increase
by IS per cent above the 1888 volume
by the end Of next year. In that
way, and by that time, we hope to
balance the money we have to pay
out by money coming In, and then
TO build up our standards Of life.
We shall continue the battle be-
cause We know that with economic
collapse In Britain our freedom and
liberty, our democratic institutions,
all that We hold dear in our way Of
life would collapse also. 1t is because
the totalitarians see the imminent
possibility Sof economic collapse in
the western democracies that the
voice OF totalitarian demagogy is
raised so stridently now. And that
Is why the countries of Western
Europe, taking courage and guidance
from the example which my country
shows. look to the great American
democracy for the material assist
ance which my people can no longer
give.