The Waterbury Democrat., 1945-03-28

llOIlS, COlQ UIle OnlUeU PTcSS III all
 Birla suggested that an arrange ment be made for India under terms of which Britain would con- vert into dollars part of the large holdings of Indian sterling which she has in London. This could be done" he said, 'by England rais-
 ing credits in America and placing
 them at India's disposal. thus trans ferring a portion of her indebted ness from India to America. This would not be against the interests of England, or of America, or of India"
 The industrialist, who soon will leave for London en route to New York on trade mission, said that Britain should not object to such a transaction.
 England surely cannot repudi- ate her debts to India he said. "If she desires to discharge her obligations, and if the reports are true that she proposes to seek large credits in America for rehabilita- ton purposes, then she would not be contracting any new debt by such transfers
 Appraises Trade Outlook
 Birla expects to reach the United States about June 15 and will dis cuss the general outlook for Indian American postwar trade with Am erican groups
 In his discussion with this cor respondent the industrialist made the following points in what he termed a realistic appraisal" Of the general outlook for improved Indian-American trade relations:
 l. In the preWar period India's exports to the United States con. sisted largely of jute and jute manufactures and her imports of mineral oils and automobiles. II trade is to expand, many new items must be added to this list. The difficulty will be to find goods which each country can sell to the other.
 2. American exports must be bal anced against imports from India. It is a question whether Americans will be willing to buy enough in the Indian market and whether India can find the goods the Americans might want in suitable quantity.
 3. It is to be doubted that Am orleans will grant direct credits to India. No country is likely to lend much money to another nation whose political future is as uncer- tain as is that of India.
 India Needs Capital Goods
 Amplifying the points Birla said:
 Tt is expected by many in India and in America that there is great possibility of a substantial expansion of the 1ndo-U.S.A. trade during the postwar period. While this optimism can be appreciated, I fear unless conditions necessary for the trade expansion are cre- ater, the hope may never materi- alize. In the prewar period, India's export to the U. s. A. consisted largely of jute and jute manufac- lures and its imports of mineral oils and automobiles. If the trade between these two countries is to we shall have to include many new items in our trade list What will these new items be? India will need large consignments of capital goods for her postwar and America is in position to supply these needs.
 But. then, the question will arise: how will India pay for these large imports? Obviously, either America must buy more from Indis in order to sell more or she must grant India large credits. What new things can America buy from India in exchange for her increased sales? India herself would need most of her surplus raw products under an expanSionist policy and also finished goods to raise her own living standard.
 Will America grant large cred its to India? On this question, too. am sceptical. No country would grant credits to another country whose political future is still un- decided. Neither a country that is for itS freedom would