Evening star., 1947-10-23
Britain Bans
Importation Of
u. ). Tobacco
Cripps Warns Of End
Of Democrocyif if
Economy CoIIopses
BY the Associated Press

the United States today and an
nounced new cuts in food i'm
ports as the government warned
that economic collapse would
probably mean the end of Brit
ish democracy.
The new Minister of Economic AT
fairs. Sir Stafford Cripps, reviewing
in the House Of Commons Britain's
economic crisis, announced at the
same time a cut of 100000 900 a
year in Government and private ex.
penditures for new homes, new fac
tories and new plant machinery
He predicted an even deeper aus
terity for the British people.
Sir Stafford declared Britain
would sacrifice some imperial pref
erence in exchange for lower Amer
lean tariffs. The Nations new eco
nomics boss said the British imme-
diately must decide to import less
from the United States and export
more goods to fend off collapse.
IF our economy and that of Eu.
rope should collapse" he said, "oul
democracy in all probability vii.
collapse, too, and will disappear, anc
with it will go the last stronghold OF
western democratic civilization ir
Europe.
Can we discipline ourselves to thu
task before us or are we going tt
invite the harsh discipline of event.
to impose some tragic solution upor
us?"
Will Save $4,000, 900.
1--WE have stopped all purchases o1
United States tobacco until further
decision" the Economics Minister
said.
This will save about 5000. .oO(
pounds (s2O,O0O,0O0) on this years
ALLEGATION, and before the tobacco
sales start next summer we shall be
able to decide whether and how fal
we are able to enter the market"
Trade sources said Britain has
enough tobacco on hand for two
years consumption at the present
rate.
Sir Stafford said Britains dollar
crisis was due not to inability tc
manufacture enough goods, but tx
inability to sell goods for dollars
THE implementation of the Mar
shall plan would be of the greatest
help to us over the next few years
but We are bound to proceed on
the basis that we must help our
selves tc the utmost, whatever others
may do or not do," he added.
Cripps said Britain aimed to ex-
port 45,000,000 pounds ($180, 0,0O0, ,000)
worth Of goods to dollar markets
next year over and above the target
laid down last August. In addition
he said, Britain will reduce raw
materials imports from dollar areas
by $1o0.000,000 a year.
Expects Balance in I94S.
Sir Stafford declared the Labor
government expects to balance Its
overseas accounts by the end of 1e4s
In asserting that capital expendi.
lures must be cut Immediately by
$500, 900 ,000," Cripps said the oh.
jective is to save steel, fuel and some
dollar imports such as timber. Re.
sources thus diverted including la.
borrow will be thrown into the
governments drive for increased ex.
ports. needed to close the gap be.
tween Britain's payments to anc
receipt from other countries,
Cripps' disclosure was the first
definite government statement thai
so extensive cut in capital expendi.
lures would be made. Leftists have
opposed restricting the housing pro.
gram, a major plank in labor's 194s
election platforms.
Cripps told the House that both
government and private capita
spending would be affected.
The building of some factories
he said, will have to be stopped
altogether, unless they are intended
to contribute to the export program
or some other essential need"
Dollar Balance Difficult.
The Minister said the problem o1
balancing trade with dollar coun-
tries was far more difficult than
the problem of balancing total
overseas payments"
Cripps said it was impossible tc
make a fully accurate forecast, but
allowing for various contingencies
I'VE calculate that we should arrive
at an approximate balance of ou1
total overseas payments by the end
of next year"
Cripps estimated that unless fur
ther corrective steps were taken
Britain's dollar deficit would be
about 81, 900, 100000.
Cripps said he hoped international
negotiations at Geneva to lower
trade barriers were now we'll with
in sight of successful conclusion"
"The value of these tariff ar
rangements will be the extra oppor.
tunity which reduced United States
tariffs will give us of selling our
goods in dollar markets." he said.