Evening star., 1946-07-09
House Stand Waivers
On British Loan Bill
Bevin's Ill.Advised Remarks
Used Effectively by Opposition


Bevin's Ill-Advised Remarks
Used Effectively by Opposition
BY David Laurence
Several weeks ago when the Senate
passed the bill whereby the United
States. is to grant credit of $3.50, ,00o,-
900 to Great Britain, there was a COM
Portable majority in the House OF
Representatives for adoption OF the
measure.
Today the situation is doubtful. De-
laying tactics, which always tend to
weaken the majority, have been used.
But there is every reason to believe that
Foreign Minister Bevin's ill-advised re-
marks in recent speech at the British
Labor Party gathering have been utilized
effectively to drum up opposition.
There is always an antipathy in some
quarters in Congress toward anything
that fayors Great Britain. The men,
bers with constituencies of Irish origil:
have not eliminated their anti-Britisi-
feeling and when, in such heavily popu
lated areas as New York City, this i
combined with the Palestine issue, Tx
Congress members who would like to
vote against the loan anyway find
plenty Of excuse.
Another source OF opposition comes
from the conservative groups who, mis-
taken though the theory is, are con-
vinced that by passing the British loan
they are aiding q Socialistic govern
ment to kill Off private enterprise in
the major industries of England.
Economy" Appeal.
Then there is the appeal on economy"
grounds, which always gathers some
strength-the argument being that
America with her large public debt
cannot afford to grant huge credits.
The small margin between success or
failure of the British loan bill in the
House has made the administration
nervous about the outcome. This sc-
counts for the letter from President
Truman and the message from Secre-
tary OF State Byrnes at Paris urging
the House to pass the bill
Unfortunately, the administration
suffers by the absence of Mr.. Byrnes,
who no doubt could persuade many
House members in person how impor-
tant it is to American policy abroad to
have the British loan ratified.
For the truth is that the British loan
is not matter that can be disposed of
by prejudice or bias. Nor should the
larger policies OF world cooperation and
economic stability be permanently in
jured by the thoughtleSs remark of a
British Foreign Minister or the wabbling
of the present British cabinet on its
| pledges in connection with the Anglo
American Committee report on Pales-
tine
! Actually the British loan Is Of direct
| concern to American factories and plants
which soon will face widespread unem-
| ployment unless the markets OF the
world can absorb the surplus production
OF American industry. Inevitably the
present shortages will be eliminated ano
supply will catch up with demand. Amer
lean producers will not be able to con-
tinue to pay high wages, or rather tc
| continue high employment levels, unIes
substantial amount of production ca
| move into world trade
"Sterling Area"
If the British loan fails, an entirel
different and doubtless anti Unite,
States system of distribution of the
worlds goods will develop instead O.
that which is contemplated under the
British-American agreement. At present
vast area of the earth's surface Is in
accessible to American goods because the
British in that area-known as the "ster-
ling area'-control foreign exchange
Under the new agreement, If passed by
! Congress, large number Of countries
will be opened to dollar exchange
In sense, therefore, the loan agree
ment has advantages OF a reciprocal
nature. Great Britain has agreed to
| remove exchange restrictions In the
areas she controls, and the United States
has agreed to advance $3,750, 900 900,
| largely as dollar credit to enable
Britain to carry out her part Of the
agreement
The theory that America is lending
money to Britain merely to finance
sociallstic enterprises inside Britain Is
fallacious. The loan has nothing to do
with Britain's internal economy and is
concerned wholly with external opera
tions in currency exchange The agree
ment really should have been labeled
as "a plan to promote world trade, to
maintain high employment levels In the
United States and help ward off a de-
preston wh6h supply balances demand
in the domestic market"
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