Evening star., 1946-01-30

e p
The tert OF President Tru-
mans message asking Congress
to ratity the British loan agree
nnent follotDs.
The establishment of a perma-
nent state of peace and prosperity
is not a simple matter. The crea-
ton and maintenance of conditions
under which nations can be pros
porous and remain peaceful in
wolves a series of highly complex
and difficult problems. II we are
to reach this greatly desired goal
we must be prepared at all times to
face the issues that will constantly
present themselves and We must be
determined to solve them If peace
Is to be permanent. we must never
relax our efforts to make 1t so.
In. his message to the Congress
recommending the approval of the
Breton Woods Agreements, Presi-
dent Roosevelt called these pro-
posals "the cornerstone for inter-
national economic cooperation -
BY enacting the Breton Woods
Agreements Act, the Seventy ninth
Congress laid this cornerstone for the
construction of an orderly economic
peace. The Congress took many
other steps during the same session
which enlarged the structure, and
its achievements in this field are
just cause for pride.
Among the most important of
these other steps were the ratifica-
ton and implementation of the
treaty establishing the United Ma
tions Organization, the enactment
of legislation to support the United
Nations Food and Agriculture Or
ganization and to carry on the op-
erations of the United Nations Re-
lief and Rehabilitation Administra-
tion, the extension in broader form
of the Reciprocal Trade Agreements
Act, and the expansion of the Ex-
port Import Bank. These steps will
take us a long way on the road to
worldwide security and prosperity
They should not make us blind, how
ever, to the job that has not been
done-to the work that lies ahead.
Cites Bank Approval.
In approving the establishment of
the International Monetary Fund
and the International Bank for Re-
construction and Development, the
Congress specifically expressed its
belief that additional measures for
International economic cooperation
would be necessary to render most
effective the operations of the fund
and bank. In the Breton Woods
Agreements Act the Congress de-
clareo it to be the policy of the
United States to seek to bring about
further international agreement and
cooperation along these lines.
The international monetary fund
agreement was drafted and the Bret
ton Woods Agreements Act was en-
acted during the war. Both recog-
nized that the financial condition
Of some countries resulting from the
war might make it impossible for
them to apply at once the funda-
mental rule of nondiscrimination in
their monetary and financial trans
actions. Therefore, provision was
made for transition period which
might postpone as long as Ave years
the complete application Of this fun
damental rule.
Now in time of peace as we rapidly
hn iua Nf
the International Monetary Fund
we find that the fears which were
responsible for this period of grace
are verified by the facts. The most
of these facts Is that the
United Kingdom as result of the
war must continue for long period
many of its emergency wartime
financial controls unless it obtains
additional working capital. 1t is ap-
parent that, in the case of prin-
cipal member of the International
Fund, we can i'll afford to
wait for the period permitted by the
Breton Woods Agreements for the
removal of these .hindrances to the
financial and commercial relation
ships between nations. Now is the
time to establish postwar monetary
and financial policies of the United
Nations. Now is the time to take
action to enable the United King
dom to move with us toward the
prompt abolition of these restric-
tions.
Next Order of Business.
For these reasons, the next order
of international business before the
Congress should be our financial
relations with the United Kingdom.
The problems involved, which are
severe but not insluble, are direct
consequences of the war. They are
matters of great urgency and l be-
lieve that the financial agreement
which I am transmitting herewith
furnishes a real basis for their solu-
tion. 1t Is my earnest hope that the
Congress will implement the finan-
cial agreement as speedily as is con-
sistent with careful legislative con-
sideration.
1t is not too much to say that the
agreement now transmitted will set
the course of American and British
economic relations for many years
to come. In so doing 1t will have a
decisive influence on the interna-
tional trade of the whole world
rvya-