Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-02-04
Sterling Weakness
And Common Mart

stir British industry out of its
complacency. And it has imposed
an economic belt-tightening pro-
gram to both hold prices steady
and direct business eyes abroad.
British business has been told
bluntly to pull up its socks. Eek
port and grow" is offered as q
slogan. It won't be easy. though.
The British press is full Of ex-
amples of the difficulties to be
overcome.
why should I go out on q
limb and tool up for a production
I am not sure I can sell?" asks a
Northampton businessman. 1T
would require more overhead,
more employees and probably mean
no more income in the end. MY
business provides a good living
for me and my son."
Lack Of Adoption
In Denmark a British reporter
learned some other reasons why
British exports are losing out: Fail
ure to observe delivery dates; I'M
willingness to adapt products to
the Danish market as the Ger
mans do, perhaps because the
British products are salable else
where without change; neglecting
to answer letters; failure to keep
delivery dates. So European cars
have displaced British in Dem
mark.
And in Sweden. In 1850 Britain
supplied 81 per cent Of car i'm
ports, Germany % per cent. In
1859 Britain sold IL per cent,
Germany 48 per cent. In 1860
Britain'S share slipped more.
Swiss importers complain of the
British take-it-or-leave-it atti-
tude: refusal to quote elf. (cost,
insurance and freight; quotation
in nonmetric measurements; arbi-
trary prices; preferential treat
ment Of the home market, insist
ence on the use of English in cor
respondence.
Department stores in the United
States, Australia and elsewhere
complain of six months delays in
getting British pottery, and up to
nine months on woolens and wor-
steds.
British machinery manufactur-
ers have successfully opposed ex-
ports Of machinery to Common
wealth countries, lest 1t be used
to compete with British makers
of consumer goods. Not long ago
It was the official policy Of the
British steel industry and British
Government to limit steel exports.
Shortage of capacity has con-
tinued to limit exports anyway,
especially Of newer types Of steel.
Some New Businesses
The old British chemical in
dustry, which grew up under pro-
lection, Is high-co and not anx-
ious to develop new export mark
cts. Newer segments like petro-
chemicals, however, are repeatedly
as efficient as any in Europe. Yet
they supply only OIL per cent of
the continents consumption.
British industry hesitates to in
vest in added capacity. It would
rather risk a short supply than
excess capacity. I'VE haven't the
CUTS to put up a large enough
plant" one manufacturer con-
feSSes.
Conditions blamed for Britain's
export lag also include: fantastic
paperwork"; low salaries of ex-
port managers; deficient export
organization; poor selling techni-
ques; insensitivity to conditions in
export markets.
But, according to the Financial
Times, the root cause of Britain's
economic troubles is tariff pro-
lection; hence suggested tariff
reductions by Britain may be
worthwhile without corresponding
concessions from others.
Now the Macmillan government
has decided to subject the British
home market, as well as Britain's
export trade, to competition such
as this generations businessmen
have never experienced. Reginald
Maulding, M. p, head of the
board Of trade in the cabinet,
advises British business to stop
looking for the safe home market
and begin to think "in terms of
one single market, with COMPETE
ton fierce at home as we'll as
abroad, but with opportunities
abroad as well as at home for
expansion and good profits for
hard work and sustained efforts"
He adds: Protection can be too
high to be healthy"
The government, moreover.
having frozen the pay of the civil
service, seeks to extend the wage
pause to millions of other workers.
To get British labor to swallow
this far from pleasant pill is not
easy. Those affected seethe with
indignation.
For Britain's union with the
common market only the bans
have been published. The nuptials
may prove troubled and prolonged.