Evening star., 1944-06-04


to the Once OF Special Political Affairs.
This. Mr.. Pasvolsky explained, Is how
the machinery OF the committee func.
tions:
A certain problem-say the lowering
of tariffs in the postwar worlds as
signed to group OF experts for study.
They gather together all possible infor.
nation on tariffs, not only from the
files of the State Department and other
Government agencies, but also from
studies made by universities, business
houses and special research organiza-
tions.
{ Then then decided after analysis of
this mountain of information what are
the possible alternatives OF tariff policy.
Next they consider what, in view of
Americas own set of interests, is the
most beneficial policy for the United
States. Finally comes the thorny ques-
ton of whether this most beneficial
policy" is one which other nations
would accept-in other words, whether
1t is politically feasible.
Finally, when the problem is so bro
ken down to its final analysis, It is sub
mitted to the Secretary of State, who
then, In his discretion. may or may not
pass it on to the President.
Solutions Are Secret.
Tariffs are only one example. The
same careful research is being done on
hundreds Of problems-po political, geo.
graphic and economic.
What are the solutions which the
hundreds Of experts now working in
the State Department have reached
after nearly two years of study? They
ares in detail, still State secrets. But it
is possible to give in very broad outline
and with some authority an idea Of the
way the Nations policies are shap-
ing up.
AS matters stand today, sources high
IN the administration do not expect \
full-dress peace conference on the
Versailles model to follow the surrender
OF Germany. They foresee, instead, an
interim period In which the conquered
and liberated sections of Europe-or at
least some Of the latter-wiIl have to be
administered by the Allied governments,
Russia taking over areas in the east
and Anglo-Anerican forces sections In
the west
The situation that will then exist has
been one Of the main political problems
OF the State Department Research Com
nittee. It has delved into such mat
ters As terms to be imposed on . de-
feated Germany, actual plans for oc-
cupying the Reich and the final peace
terms to be imposed later.
It has studied, too, the reorganiza-
ton Of the liberated nations and the
keeping Of public order and problem OF
feeding them until they can be restable-
lied.
Boundaries Must Be Fixed.
After an interim In which order will
be restored under the aegis Of the 'sbiR
three" the permanent organization of
Europe must be shaped.
Where will the Russo-Polish frontier
be drawn? Shall Russia keep the Baltic
states, absorb Western Romania and ex-
tend its sphere of influence throughout
the Balkans? What security can be
offered the Low Countries and Scan
dinavia? What will be the fate of Italy2
What Of the territorial future of Yugo-
Sla vic apd craa,ao
These vexing problems, too, have been
studied microscopically. Nor has the
Far East been neglected, but problems
in that part of the world appear farther
away in time.
No less important to the future secur-
ity of the world are the economic prob
lens now under study. DR.. Pasvolsky,
an economist of note, says:
"It was in the field of these policies
that lay the principal mistakes and
failures of the last postwar reconstruc-
tion effort. The dangers inherent in a
repetition of these failures will be far
greater than they were then. After this
war mankind will be even less able to
afford the mistakes made after the
last war"
THE creation after the war-as
rapidly as possible and as fully as possi-
ble-of conditions indispensable to a
system Of world trade operating on the
basis of substantial freedom from OBJ
structive legislation and on the basis of
multilateral balancing of international
accounts will be an urgent requirement
for all countries, including our own.
Sound Currency Sought.
Unless that need is met production
and trade will stagnate everywhere, no
matter what other measures are taken.
and living standards will suffer In con-
sequence"
The committee, keeping in mind the
terrible depression of the early 1930s
that followed the economic mistakes Of
the last war, has been carefully analyz-
Ing host of problems-the reduction of
tariffs, the elimination of quota import
systems, the unlocking of currencies
and the establishment of solid curren-
cles-probably based on gold-that will
aid in the stabilization of trade.
American will end the war as a tre-
mendous creditor power. AS such, IL
can only expect repayment If other
countries are permitted through free
exchange of goods and services, to earn
the money to repay their debts here.
That is the classic Hull economic philos-
ophy, and it may be assumed that it
will govern this countrys policies in ne
gotiating postwar arrangements In the
economic realm.