Evening star., 1947-07-10
Brituin's Dilemma


mons on the state of Britain's economy
makes doleful reading for those who
believed that formula for solving eco
nomic problems had been found in the
adoption of limited socialism,
Whether Britain would have been better
off under the old Conservative government
is moot question. Probably not. STILL
the admitted fact is that after some two
years of the Labor government Britain has
not become, and shows no sign of becom-
ing, a self supporting nation.
Deputy Prime Minister Herbert Morrison
has stated the matter bluntly. Britain
despite efforts to export more goods, faces
a trade deficit this year of approximately
81 800 0000,0 900. This cannot be offset by
any foreseeable increase in production
Thus, two alternatives remain. One is to
reduce imports to about Is per cent below
the level now contemplated. Understand
ably enough, Mr.. Morrison shrinks from
this prospect, for it could have disastrous
consequences in a country that is already
on short rations, both for its people and
its industries. The remaining alternative
lies in the revival of something akin to
lend-lease, or, as Mr.. Morrison prefers to
call it, mutual aid"
Britain has used all but 81, 500 900 900 of
the loan from the United States, which
originally was in the amount of $780,
100000. This represents withdrawal as
of this time of some $500 900, 900 more than
had been planned. OF this, more has been
spent on day-to-day needs, and less on
industrial recovery, than had been ex-
pected. So the outlook for the years end
is that Britain will have used up all of the
loan, will still be some $30O,O00O0O short
OF meeting her trade deficit, and will have
no funds with which to meet further
deficits
Various explanations have been ad-
vanced for the failure to do better. War
WEAKNESS, food shortages, the lack of con-
sumer goods on which money can be spent,
and governmental mistakes are some of
the causes set forth. Certainly the British
workers have not produced as they might
have produced. This has been especially
noticeable in the coal industry, which is
critical element of Britains economy. A
goal of 200000,000 tons was set for this
year. That is not going to be reached,
even though it is about 10 per cent under
the figure which many believe should have
been set as the goal. Plagued by unauth-
orized strikes by miners, the government
is talking vaguely of criminal prosecutions.
The president of the mine union, Will
LaWther, is condemning what he likes to
call the 1mperialiStic purposes of the
United States, and praising the dynamic
ideas" of communism. Despite his apparent
sympathy with communism, however, even
Mr.. Lawther seems to recognize that the
hope of Britain lies with the United States
and not with Russia, for he, hardly less
than Mr.. Morrison, welcomes the Marshall
program for economic aid to Europe.
Clearly, the need for this program, or
something like it, is real and urgent. There
are members of Congress who do not like
either the British venture into socialism or
the British attitude toward this country.
They think that socialism in Britain is a
threat to our economy. And they want to
reduce the matter to a question of narrow
self-interest.
Even at that level of appraisal, however
1t ought to be obvious that the worst which
could happen, from our own standpoint
would be real economic collapse in
Britain. For the British, in that event.
are not going to return to a system of
private capitalism. They. will be driven
from socialism to something worse. and
that this will come to pass is a strong
probability unless more substantial assist
ance is forthcoming from this country.