How to Invade Britain

Although the war in Europe is over, U.S. manufacturers are--and for some time will remain--frozen out of the British market by exchange restrictions. For Britain, in order to rebuild at home and recover her export markets, intends to use her limited dollar resources almost entirely to buy vital food and essential raw materials. To U.S. firms anxious not to lose their British customers to British competitors, the alternative is to manufacture in Britain.

The American Chamber of Commerce in London put out a timely, readable pamphlet setting forth the problems and perils of this alternative. Gist:

P: Britain will not welcome U.S. businesses. The war forced many a British firm to close; production of well-known brands was dropped in favor of munitions; manpower has been stretched to the breaking point. Said the Chamber: "In view of this, British manufacturers . . . naturally expect that they will be given time to re-establish themselves before new competitors are allowed in the field."

P: However, if a U.S.. firm can make a product in Britain which will cut imports, or build up Britain's depressed areas, it will be graciously received.

P: Even if permission is given, the way is thorny. A firm must get licenses to make almost anything; it must find manpower, which will be short till the Japanese war is over; and its products will come under rigid price control. Further, it must be prepared to pay the British income tax, currently 50% of net profits, along with an excess-profits tax (100% for an established company, 90-92% for a new company). There is also a personal surtax "at heavy graduated rates" for executives.

As to how long the present ban against imports will continue, the Chamber said "not even the British Government knows." But it would be "unwise to assume that such restrictive measures will be a permanent feature of Government policy. Important sections of British opinion are fully convinced . . . that no country stands to gain more from a free flow of international trade. Therefore, any postwar restrictive measures should be regarded as temporary expedients to meet an emergency situation.''

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