Evening star., 1945-03-15

Amendments Urged
international Monetary Fund Use
Unrestricted, Says Observer
By David Laurence
Whatever may be the differences Of
opinion - to when the war IN Europe
viii end, there Is no such divergence
Of view on the proposition that the
instability which lies ahead needs the
careful cooperation OF all countries
80 that financial and economic recon-
struction may begin 1t once.
The major plan thus far Is that pro-
posed at the conference Of nations held
1t Breton Woods, N. H., last July. The
agreements drafted there were subject
to the approval or amendment er re-
lection by the various governments rep
resented. including our own.
Unfortunately, some oyerzealous pro-
ponents Of the Breton Woods plan are
giving the impression that the plan
cannot be amended and they are also
endeavoring to high-pressure Congress
into acceptance Of 1t by arguing that
the San Francisco delegates TO the
United Nations Conference would feel
4 sense Of Illustration If the plan isn't
Immediately adopted.
Until such strange arguments were
offered to push the plan through Con-
gress, there was no suspicion that the
good will OF the major powers would
have to be bought and paid for at San
Francisco by the American taxpayers
to the tune Of several billions Of doll
lars. 1t is most unfortunate that any
such tie-up between the San Francisco
conference and the Breton Woods plan
has been indicated by our officials.
Worthy Objective.
The Breton Woods plan is q goou
start toward a worthy objective and
deserves widespread support, but that
plan has two parts-one provision for
an international bank and the other
for an international monetary fund.
The United States is to put up $2,750.-
100000 for the latter and $3,175 ,000,.
600 for the former or a total of nearly
5000, ,000, 900. which is a rather sizable
postwar commitment.
Many groups of bankers, including
the American Bankers Association and
the Association of Reserve City Bank
ers, have been studying these plans and
their recommendation is that the in
ternational bank be retained but that
the monetary fund be operated by the
bank itself, with some amendments to
the present proposal.
It Is pointed out that under the pro-
posed rules for the operation of the
international bank there are safe
guards against unwise loans, but that
this Is not the case with the monetary
fund.
fashioned. AL their lives they have
been trained to believe that loans must
be paid back. What they may not real
ize Is that the international monetary
fund could be just postwar appendix
to our lease-lend generosity. Maybe
there's no harm in making an outright
gift to European countries to put them
back to their feet, but If that's the pur-
pose, 1t would be better not to incur the
i'll will that comes from a future de-
fault on loans and these billions might
better be called gifts from the start.
No Restrictions on Use.
Z Also there doesn't seem to be any
restriction against the use Of all this
money to build armies. nayies and air
forces for the next war. America has
been the arsenal OF democracy for two
wars and there isn't much sense In be-
ginning to provide foreign countries
with funds for q third world war Per.
haps Congress can provide for the in
slant withdrawal OF the United States
the moment any funds are used for
armament and perhaps also restrictions
can be adopted from the beginning
which forbid the use of the money for
anything but productive purposes. The
American Bankers Association pam
phlet says on this point:
There is no such veto power in the
case Of the fund. In other words, with
the fund We should be handing over to
an international body the power to de-
termine the destination, time and use
Of our money. Countries with whom
we might be having serious political
differences, as was the case with Italy
over Ethiopia or Japan over Manchuria,
or countries whose trade policies dis
| eliminated against the United States,
| might 60 right ahead using our dollars,
and We should have little power to
| prevent it"
Congress is about to give detailed
consideration to the Breton Woods
plan, the basic objectives OF which are
eminently desirable, but the whole thing
needs careful study and amendment,
especially since, As usual, Uncle Sam
Is TO hold the bag with the biggest finan-
cial contribution.
Neproduction RiEhts Reserved)
Newsworthy Nomes
From the Stars and Stripes.