Evening star., 1945-09-14
Halifax, Keynes Begin
Presentation Of Case
On British Economy
BY JOSEPH H. BAIRD.

n uctdllGu plCbuIc VI LIE WdT 5
depredations on Great Britain s
financial and economic position
is being drawn for the American
Government by the Earl of Hall
fax, British Ambassador, and
Lord Keynes, British treasury
adviser, a a prelude to London's S
request for assistance in reor-
ganizing it's postwar economy.
The presentation of the British
case, which will continue today,
was begun by the two late yester-
day at the London delegates OPEN
ing business session with American
negotiators at the Federal Reserve
Board Building.
1t was made simultaneously with
a fresh attack by Republican mem
bers of the House on the socialistic
policies of Prime Minister Attlee's
labor government-policies which
they said should preclude Amer
lean assistance.
Statement Is Authorized.
At the end of a two-hour session,
Lord Halifax, who heads his coun-
trys mission, and Assistant Secre-
tary Of State Will L. Clayton, chief
American negotiator, authorized the
following brief statement through
their press representatives:
Lord Keynes began the presenta-
IF p,-ifo oir,'c faonniol cit
uation. The negotiators will meet
at the same hour and place to-
morrow"
That was the extent of the au-
thoriZed statement. Later it was
learned that the British economist
had presented detailed figures on
the current British treasury bal
ance and the prospective balance for
next year. Today or in subsequent
sessions he is expected to go into
British financial commitments in
the socalled sterling area" the
liquidation of British holdings
abroad and Britain's position in for
eign trade and shipping.
Keynes Silent on Figures.
Lord Keynes, according to the
British spokesman, has refused to
make public any of the figures he is
submitting until he has completed
the picture, after which they will be
given as a whole to the press News
papermen pointed out to him that
this mass of statistics might be more
digestible in small doses, but this
failed to produce any impression.
While Lord Keynes own figures
are secret, some idea of the ma
terial he is presenting may be
gained from other official british
Statisticians. They show:
/. That up to June of last year,
the United Kingdom had iquidated
S4,26O, 100000 of its overseas holdings
to pay for purchases abroad.
2. In 1914, British exports had
shrunk to $1,132 100000, which was
SIS per cent by value and 81 per
cent by volume of its sales abroad
in the last preWar year, 1888.
g. At the end of 1914, the United
Kingdoms overseas Indebtedness,
large part of which is owed to the
sterling bloc" had risen to $12,-
000,000,000. British officials main
tain that it can be repaid only by
an invigorated foreign trade.
4. At the end of 1943, the British
merchant marine, primary source of
foreign income, had shrunk by %
per cent under it's prewar tonnage
of approximately 17,5OO,000. Losses
were placed at 11,643,000 tons, but
this had been made up in part by
new building.
Knutson Resumes Attack.
Undeterred by President Truman's
statement Wednesday that the argu-
ment that the United States should
not advance aid to the British gov
ernment because it was socialistic
was perfectly silly" Representative
knutson, Republican, of Minnesota
returned to the attack yesterday
afternoon.
The President no doubt recalls"
he said, that the British govern
ment back III 1929 also was con-
trolled by Labor. Ramsay Macdonald
was then Prime Minister, and it was
his government that repudiated
Britain's debt to the United States.
What one Labor government has
already done it is perfectly capable
of doing again.
Liberal governments are noto-
riously liberal with other peoples
money, but they are shyer than Shy
lock when it comes to paying the
bill"
Keynes Called Communist.
Mr.. Knutson was joined in his
attack by Representative Smith, Re-
publican, of Ohio, who described
Lord Keynes as "one of the arch
leaders of world Communism.
The economist, Mr.. Smith con-
tinued, lis again in the United
States conniving with Treasury and
other Government officials to draw
more blood from the American peo-
pie for transfusing the economy of
his native land, which is now so
critically i'll from the deadly nos
trums administered to it by him
and others like him."
-Four committees, it was an
nounced, have been set up to deal
with specific phases of the CONVEX
sations. The groups and their re-
spective principal American and
British members are:
Lease-lend liquidation - Foreign
Economic Administrator Leo r.
Crowley and Lord Keynes.
Finance-Secretary of the Treas
ury Vinson and Lord Halifax and
Lord Keynes.
Commercial policy-Mr. Clayton,
Lord Halifax and Lord Keynes.
Surplus war property-Chairman
w. S. Symington of the Surplus
Property Board and Henry Self,
deputy chairman of the British
Supply Council.
II Vessels Of Sd Fleet
T. Do~.;n ia Ia W,4or.