Evening star., 1951-11-09
BedeviIed Britain

Prime Minister Churchill in his first address
to the new House of Commons, has not sugar.
coated his words in describing the problems be-
deviling Britain. Speaking very bluntly, ne mas
made clear that they are problems adding up
to a potential crisis of the first magnitude and
that if they are to be solved or assuaged-as tney
can and must be-the people OF the country Will
have to put up with more auSterlty not less, even
though they have been denied some OF the SIM
plest comforts of life for over decade past
Wholly apart from serious troubles in the
foreign field-notably in Iran and Egypt-tne
British face extremely difficult conditions at
home Inflationary pressures are intense There
is a shortage of sorely needed skilled labor. The
meat situation is so poor that there is no assur-
ance that the present ration per individual
equivalent to about two lamb chops week
can be maintained AS for fuel and the coming
winter. stocks of household coal-lower than at
any point since the end of the war-are only
half what they were last year, and there Is little
or no chance that enough can be imported In
time to guarantee against hardship in the months
Immediately ahead.
But the "gravest matter" of all, in MIR.
Churchills words, is the thing that is the chief
cause of Britain's dangerously taut domestic sit
uation. It is the economic crisis stemming from
the great imbalance between imports and ex-
ports. At present, according to the Prime Min
lister, what the British are paying out for their
purchases abroad is running at an annual rate
of almost So billion above what they are canning
from their sales abroad. This immense trade
deficit-which is eating away at gold and dollar
reserves-threatens the whole economy OF the
United Kingdom. If it continues unchecked,
as Mr. Churchill has warned, 1t "can only In
time lead to national bankruptcy" and before
that to imitation of kind that could wreck the
countrys defense program.
All this must seem the more bitter to the
British because only relatively short time ago
before the war in Korea-they had reason to
feel that they were at last getting out of the
economic woods. At that time, their gold and
dollar reserves were approaching safe level
and their trade, far from showing deficit, was
fairly booming, with exports exceeding imports
at surplus rate of close to 81 billion yearly
a condition enabling them to decide to- give up
American aid under the Marshall Plan. With the
Communist aggression, however, the picture
underwent rapid change. Rearmament and
such factors as imitation in world markets-piled
on top of welfare-state demands and certain
dubious policy decisions by the Labor govern
ment-paved the way for the present critical
situation.
Inthis speech to Commons Mr. Churchill has
not revealed precisely how he proposes to change
things for the better. But he has made the
general statement that there must be drastic
action" on the home front-a statement followed
by decree ordering spectacular slash in
imports. There have been indications, too
that he may soon come to Washington to seek
another loan or some other type of aid. That is
prospect unwelcome to many people over here,
but it is one that will be contemplated sympa-
thetically by all who are convinced that the we'll
being OF the British people and the stability of
their economy are of crucial Importance to the
United States and the entire free world :