Prorogation – in the House of Commons at 12:00 am on 16 December 1949.
I have further to acquaint the House that the Lord High Chancellor, being one of the Royal Commissioners, delivered His Majesty's most Gracious Speech to both Houses of Parliament (in pursuance of His Majesty's Commands), as follows:
The long Session which is now ending has been marked by a continuance of the economic difficulties with which we have been confronted since the end of the war. Fortunately there is work for all, and through the sustained efforts of My People a notable increase in production has been achieved. I pray that, under the guidance of Almighty God, we shall overcome the difficulties that still beset us and reach the goal of a stable and prosperous economy.
During last winter our overseas account as a whole was brought into balance. Trade with North America still presented special problems, but the size of the gap between receipts and payments in respect of that area was being progressively reduced as the drive to increase direct and indirect dollar earnings gathered momentum. Thanks to generous assistance from the Governments and Peoples of the United States and Canada, together with the continued efforts of My People, there was every reason to believe that the gap would be closed.
In the early part of 1949 a fall in demand for goods from the United Kingdom, and from the other countries linked with sterling, seriously affected our earnings of dollars and the resultant difficulties were much intensified by a widespread belief that there would be an alteration in the value of the pound sterling in terms of the United States dollar. My Ministers took prompt action to reduce imports and to initiate discussions on some of the wider aspects of the problem. In July, a meeting of Commonwealth Finance Ministers was held in London to exchange views on the urgent economic problems confronting us. In September,My Ministers in the United Kingdom and Canada met representatives of the United States Government in Washington, and discussed with them the trade and financial relations between the sterling and dollar areas. Complete understanding was achieved in these talks. There was recognition that the freer development of world trade required the sustained effort, not only of these three countries, but of all other countries which desired to promote a free exchange of goods throughout the world.
Before the Washington discussions began My Ministers had reached the conclusion that a radical adjustment would be necessary in the rate of exchange between sterling and the dollar, and an alteration in the rate was announced on 18 th September. In order to make the devaluation of sterling an effective aid in foreign trade, My Ministers decided upon substantial reductions in Government expenditure and capital investment, thus maintaining their policy of disinflation as well as encouraging an increase in exports, especially to the dollar and other hard-currency areas.
An outstanding event during the Session was the conclusion of the North Atlantic Treaty, a defensive alliance of twelve Powers, each of whom has agreed, in harmony with the Charter of the United Nations, to give mutual assistance in case of armed attack. I am convinced that this Treaty will be a powerful aid to the preservation of peace and the defence of freedom.
Persuaded of the need for closer unity between European Nations, My Government also decided to join with other European Powers in the establishment of a Council of Europe. Members of both Houses of Parliament attended the first meeting of the Consultative Assembly at Strasbourg in August as representatives from the United Kingdom. I shall watch with close interest the progress of this venture in international co-operation.
In Germany considerable progress has been achieved by My Government in close collaboration with the Governments of the United States and France. The German Federal Government has been established after free elections and a wide measure of responsibility has now been transferred to the German authorities. I welcome particularly the Petersberg Agreement recently concluded between the Allied High Commission and the Federal Chancellor. After Berlin had been sustained for eleven months by the Allied airlift, adequate transport services were restored and the city has established closer relations with the Federal Republic. My Government, together with the United States and French Governments, have continued, unhappily without success so far, their efforts to reach an agreement with the Soviet Union on fundamental problems affecting Germany.
A special conference of the Prime Ministers and other Ministers of the self-governing members of the British Commonwealth was held in London in April and I am happy to record the historic agreement then reached whereby India, whilst assuming the status of a sovereign independent Republic, will continue in full membership of the
The steady progress of My Colonial Peoples towards self-government within the Commonwealth has recently been demonstrated by the important proposals for constitutional advance in the Gold Coast. I warmly welcomed the success of the Colonial Month and Exhibition which I inaugurated in London last June.
My Lords and Members of the House of Commons:
I have given My Assent to a measure to amend the Parliament Act, 1911, which reduces the period during which the House of Lord, may delay legislative proposals in cases of disagreement between the two Chambers. I regret that it was not possible to secure agreement between both Houses on the provisions of this measure.
Legislation has been enacted extending the housing functions of local authorities; providing financial assistance towards the improvement of housing accommodation by local authorities and by private persons; and providing for the control of rents of houses and flats let for the first time since the war and for the abolition of premiums.
By virtue of His Majesty's Commission, under the Great Seal, to us and other Lords directed, and now read, we do, in His Majesty's Name and in obedience to His Majesty's Commands, prorogue this Parliament to Tuesday, the Twenty-fourth day of January, One Thousand Nine Hundred and Fifty, to be then here holden; and this Parliament is accordingly prorogued until Tuesday, the Twenty-fourth day of January, One Thousand Nine Hundred and Fifty."