In his reply to the TUC and the CBI, Mr. Callaghan said that he had?
GV Bank of England
GV & CU INTERIOR Stock Exchange (3 shots)
GV PAN Dock with import cargo lying on docks (2 shots)
GV Container ship with export goods being loaded
GV & CU Fire engines ready for shipping to Dubai (3 shots)
GV & CU Factories (5 shots)
CU & GV Factories to let (2 shots)
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Background: In his reply to the TUC and the CBI, Mr. Callaghan said that he had received "with great appreciation" the representations by the two bodies. He said that the representations clearly deserved and would receive very careful and speedy consideration by the Government.
The United Kingdom's worst economic crisis since the Second World War deepened on Thursday (14 October) with the Government announcement that the country's balance of payments deficit had increased during September to 365 million pounds sterling. The deficit represents the difference between the country's imports and its exports, and September's deficit represented a twenty per cent increase over the August figures.
Following the Bank of England's announcement last week that it's base lending rate was to be increased to a record 15 per cent, the pound did not suffer too badly because of the new trade figures. On the London Stock Exchange, trading was described as nervous and uncertain. Top industrials gave more ground. Even the banking sector came under pressure.
Against this gloomy background, Britain's Prime Minister, Mr, James Callaghan, hinted that his Labour Government was moving towards adopting tougher restrictions on some imports to protect sectors of British industry, particularly hard hit by foreign competition. He encouraged speculation that early action was on the way by making a prompt and sympathetic response to a joint plea for curbs by trade union leaders and the employers organisation. However, the Government action is more likely to be in the form of anti-dumping legislation rather than full import controls.
Britain's export record over the past two years has been healthy -- these fire engines for Dubai are just one example of how British manufacturers have responded to the increased wealth of the Arab world. But as the export performance has increased, so has the country's ability to attract imports from other countries -- particularly from its trading partners in the Common Market, and to a lesser extent, Japan. Mr. Callaghan's administration has been under mounting pressure from left-wing members of the Labour Party to introduce import controls, but until now the Prime Minister and the Chancellor, Mr. Denis Healey, had refused to consider such measures.