Evening star., 1946-06-23
A Briton Surveys Our
Economy and Politics
London Times Writer Advocates
Moderation of u. S. Stand


fThe tolloping Is condensed re-
print OF special correspondents
article in the London Times OF
June IS.
The threat Of division OF Europe into
two separate and potentially hostile
camps Is not simply reflection of
different political ideas and practices.
1t arises also from diverging views on
the method and organization Of eco
nomic activities. Mainly the discord-
ance, both political and economic, is
between Western" and Russian ideas.
But, in the economic sphere at least,
the potential division between the
Western" and Soviet standpoints Is
not as clear-cut as is sometimes sup
posed. In American eyes at any rats
the British position between the power
poles" of Russia and the United States
is not without its ambiguity. This was
evidenced by the recent announcement
from the State Department that the
United States Charge d'Affaires in
Athens had been asked to report on
to establish monopolistic control of
the Greek economy.
This announcement was one more
sign of the present close connexion in
American diplomacy, as in Russian,
between politics and economics. Ever
since the General Election here last
July the opposition in Congress to the
loan to Britain has derived additional
arguments from the advent of Labour
Government. The recent negotiations
in Washington for credits to France
were visibly assisted by the setback
suffered by the French Communists in
the constitutional referendum; the dis
cussions were completed just in time
for the French elections, and the ad-
vantages and limitations of the credits
obtained by M. Blum played notice.
able part in the final stages Of the
election campaign.
It is In Eastern Europe, however, that
the connexion has been made most
apparent. A series OF protests has been
made to Russia by the United States
against the spread of barter arrange
ments and Russian control over neigh
boring economies. The prospect OF
large-scale American credits to the
Soviet Union, which as long as two
years ago seemed reasonable and likely,
has apparently been eclipsed by the
impossibility Of reaching an accom-
modation between Russian and Amer
lean views on the future organization
of this region Of Europe. The proposed
American loan to Poland has gone into
cold storage until free elections have
been held
After his return from the Paris con-
ference, where he was one Of Mr.. Byrnes'
advisers. Senator Vandenberg claimed
that American foreign policy was now
based both upon the moralities Of the
Atlantic and San Francisco charters"
and upon the practical necessities re-
quired for Europe's rehabilitation" The
President, in his message to the Eco
nomic and Social Council Of the United
Nations at the end Of last month, laid
similar stress upon the parallel tasks Of
advancing "the fundamental rights Of
man" and ensuing higher standards OF
living" In the Banking and Currency
Committee Of the House Of Represent
atives, where the loan to Britain has
been under examination, the immedi-
ate purposes Of such . policy have been
more concretely stated. Mr.. Wolcott, an
influential Republican member, echoed a
leading theme In these debates when
he declared few days ago that the
decisive issue was whether the loan
would strengthen Britain as q frontier
outpost against Communism" or whether
1t would arrest the spread Of Com
munism in Britain itself. Mr.. Charles
Dewey, vice-president Of the Chase Ma
tional Bank, described the loan as "the
one hope OF preventing q worldwide
movement towards State = controlled
trade dominated by Russia" Mr.. Vim
son, Secretary to the Treasury, rested
his advocacy Of the loan on q similar
combination of political and economic
considerations.
The fulcrum for American policy is
furnished by the necessities of Europe.
American food, American goods. Ameri-
can machines, and American dollars to
present in payment are demanded to
mitigate the long agony of recovery and
reconstruction throughout an improv-
erished continent. To allege merely
mercenary or theological motives would
be without justification. The combina-
tion of political and economic aims Is
far from being peculiar feature Of the
diplomacy of the United States. The
connexion in Soviet policy between
strategy. politics, and economics is
markedly intricate; Mr.. Bevin has laid
stress on the claim Of the Russians that
"they alone are democrats" and on
their 'insistence" that neighbouring
countries should adopt their system, and
he has spoken Of their "monopolistic
view" Of commerce along the Danube.
Outside aid in the provision Of relief,
in the building up Of their productive
resources, and In the establishment OF
markets for their products is essential
for the countries of Europe; and the
need grows from west to east. The i'm
mediate neighbours Of Russia have
sought, and have received with graft
tude, Russian support, which must in
fiuence the entire course Of their future
policies-and, for better or worse, their
politics.
But in this first phase of their re-
covery all these countries look with