Evening star., 1946-04-25
Debate on British Loan
Called Healthy to US.
Many in Congress Fear Results
of Rejection, Says Writer
Bv Dapid Laurence

ny INIt0 LU"V tUtS
There is no doubt that lot of mem
bers of Congress do not like the British
loan idea but there is also every reason
for believing that most Senators and
Representatives fear the consequences
OF a rejection of the proposal.
To an extent hardly realized either
inside or outside Of Congress, the future
of world peace depends upon economic
stability in Europe. The tides of Com
munism and radicalism rise in the world
when nations are impoverished and
governments are unable to provide the
revenues to sustain either domestic or
foreign commerce and to give employ
ment.
Some Of the same men who held the
isolationist theory before Pearl Harbor
are fighting the British loan Some Of
the others who have not been ISOLATION
lists are opposing the loan, because they
think 1t is politically more popular not
to lend money to foreign governments
Still others think the same objectives
can be achieved either by a partial gift
or some other device.
Complicated Questions
But the loan agreement between Bri-
tain and the United States has been
consummated after many weeks of ne
gotiation. The questions involved are
complicated The American negotia-
tors feel that to free the ports of the
world now under British economic con-
troll for the entry of American goods
is a worthwhile concession and that the
cause of increased consumption for
American products and increased mar
kets will be enhanced If fewer. instead
of more, restrictions are imposed on the
trade of the world.
It's an old story-the argument in
favor of self -suffciency and self-con-
tainment and high tariff walls a.
against exporting surpluses and pro-
noting more trade and exchanges OF
goods. But it has little place in the
present controversy. What the United
States faces is a condition and not a
theory.
Thus Britain has already shown signs
of turning to the left Her Labor
party government is not as extreme as
many Americans think it to be, but II
Britain is faced with economic chaos
she may get a government that will
make the present Labor ministry seem
conservative in comparison.
II Britain fails to exercise stabilizing
influence on the economic front in
Europe, the fate of f'Belgium and France
and ultimately Spain must also hang in
the balance. The soil for the cultivation
of Communistic doctrine will be better
If the British economic system is in
trouble than if it is nursed to health
by loan from the outside
Somewhat the same situation arose
in Central Europe after the last war.
Germany tried liberalism and q re-
publican form Of government She went
through painful imitation. Her economic
chaos gave the militarisJs and the Nazis
their chance and the German people
| were infamed by NaA propaganda
which never would have had a chance
to be effective If the German republic
had had more outside help than 1t
received
Analogous Situation.
Today an analogous situation arises
with reference to the future not only OF
| Britain but of Western Europe and the
countries with which Britain has hnan-
cial and economic relationships. The
United States Government has taken its
position on the side Of financial aid In
crisis. 1t could as readily have reverted
to prewar ideas about lending and looked
at the matter as business proposition
alone. Too many Americans back in
1882 looked at relief and loans to the
hardship cases in American business
and industry as paternalism AS a con-
sequence, unemployment rose to un-
precedented heights and the New Deal
was swept into power. Then the Nation
spent billions On relief projects and
loans and taxes rose.
Great Britain is an ally and not a
former enemy. Her resistance to the
Nazis gave the United States eventually
base from which our successful attack
was launched. There can be no denyinp
that strong Britain in an economic
sense means an ally for the United
States in any future trouble in the
world. The strength of the United
Nations is related to the economic and
financial stability of the British Empire
as well as the United States.
Americas aid to Britain is approved
by more than majority of both Houses
but political considerations and fear of
minority groups is causing some to
hesitate. The debate is healthy thing.
Tor 1t puts everybody on record and
there is an opportunity for the American
people to judge who in Congress ares
reverting to isolationism and who are
beginning to understand that dollars
-
loaned now may mean the saving of J
tens of thousands of American lives
tomorrow. =
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