The Wilmington morning star., 1945-12-17
BARGAINING WITH THE

BAKGAl$lNG WITH HE
BRITISH
The point will certainly be raised
in Congress that as a condition OF
the credit, Great Britain should
have been asked to meet our views
on a variety of other matters which
some or all of us are most interest
ed in. They range. all the way
from civil aviation, Middle East
ern oil, and naval bases to Zion
ism, and the theory is that as a
creditor dealing with a hard-press-
ed debtor we are in strong bar
gaining position and should exert
our bargaining power.
The theory is plausible and in
appearance. most realistic and
practical. Yet, if it is not applied
with great wisdom and discretion,
it is certain to be self-defeatlng.
In its crude form the theory con-
tains a major fallacy: namely
that Mr.. Vinson and Mr.. Clayton,
who were our principal negotla-
tors, have not already used sue
cessfully our bargaining power.
The fact of the matter is that they
have already used it to commit
the Labor government in Great
Britain, and the Conservatives as
well, to immediate measures and
to a far-reaehing program which
is not what most Socialists and
many imperialists have intended
or desired. The dissolution Of the
dollar pool and the sterling bloc
the ratification Of the Breton
Woods agreement, and the princi
:, pies agreed upon for internationa
). trade reduce greatly, if they d.
not altogether preclude, both tn
state trading which the Socialists
would like to carry to great length
and the economic imperialism
which Conservatives like Lore
Beaverbrook desire.
This agreement commits Grea
Britain to a system OF interna
tional trade. and currency, whicl
is essentially and preponderantl,,
: liberal, rather than Socialist o
t imperialist, in character. Sine
Z the loan is in the form of a lin
] of credit over period or six years
and is not lump sum delivered i
one + transaction, the agreemen
contains adequate guarantees TIA
If win he carried out faithful
during the whole critical period.
No one must say, Therefore, thu
, our negotiators. did not strike
: bargain, that they agreed to- loa
a large, sum Of money withol
strings attached to it. They il
sisted on very great condition
: nothing less than that the forelg
\ economic policy. Of Great Britai
shall be devoted to restoring a
: international economic order :whle
is favorable to- free and priva'
= enterprise. ~, y
TIE question, then, is wheth'
overland above all this they shou
4 have asked the British to meet o.
views on a variety of matter
4 which are either political or ha'
no direct bearing upon wheth
the international economic. ord
is to be liberal or socialist-impel
alist. 1t is clear, 4 believe, that
- they had done that, they Won
have made the cardinal error
= bargaining for more than t
traffic would bear, and OF failir
therefore, to get the best barge
which was possible.
i For when they insisted that
1 could make the loan only II Br
ain followed a policy which wol
IEexpand, rather than restrict,
=. ternational trade, they were
= firm ground. They were insist
\ that the, loan be used under G.
ditions which would make it
true loan, not a subsidy, VIII
would therefore, make it &C
financial risk. Those condltlt
were as legitimate as they w
important, and quite conslst'
with the soundest banking pr
,cinles which the British, so IL
the world bankers, thoroughly
derstand.
But if Messrs. Vinson and, CT
ton. and behind them the Pr
dent and the, Secretary OF Sta
had posed also political condltle
they would have weakened
probably sdestroyed their barg'
lug power. For then they VIC
have been trying to use the pc
i of money to challenge the so