§ 51. Major Bruce
asked the Chancellor of the Exchequer the approximate direct loss sustained by Britain in the period 1st January, 1946, to 30th June, 1948, as a result of the deterioration in the terms of trade obtaining between Britain and the Western Hemisphere.
§ Sir S. Cripps
Our Western Hemisphere trading deficit over this period would have been £314 million less if prices had remained at 1st January, 1946, level. Of this difference of £314 million only part can be attributed to the terms of trade, since the volume of our imports is much greater than that of our exports and prices were rising. Perhaps one-third of the difference might be attributed to terms of trade, and the rest to generally rising prices.