Evening star., 1947-08-18
British Decide.
NOT 10 Press
For New Loan
Crisis ToIks Open
Here, With Easing Of
Pact as Only Cool
By the Assoeiotsd Press

loan went into the discard by
agreement today as top-rank
experts from both sides
Of the Atlantic assembled to
hunt a partial solution to Brit
aims dollar crisis.
The opening session was to be
held this afternoon.
Sir Wilfrid Eady, head of the
British delegation, said that so far
as his country is concerned a new
credit to supplement the almost
exhausted $3,750, ,00O, 900 advance of
1916 Is mot on the agenda.' .
That made it mutual.
American officials have empha-
sized that they will talk about modi-
flying the present loan agreement to
relieve Britain's economic distress,
but will go no further.
Accounting Sought.
And they said Secretary Of the
Treasury Snyder, chief American
would enter the Treas
ury's conference room ready to make
these demands:
l. That the British account for
the spending which has draired all
but 100000 of the year-old
drawing account, with its exhaus-
ton foreseen this fall.
q. That England outline specific
plans for balancing its budget,
speeding production and achieving
a balance Of trade that will con-
tribute to worldwide economic
stability.
Ultimately, the questions may
probe into the soundness and secur-
ity of the British program for. ma
tionalizing basic industries. Mr..
Snyder Is known to be primed with
questions on why England's ma
tionalized coal pits are below pre-
war production standards and why
coal exports are only one-eighth of
prewar.
Dollars Go Fast.
Sir Wilfrid, who is Undersecretary
Of the British Treasury, evidently
was ready with some of the answers.
At Laguardia Field, New York, last
night the special assistant to Chan
cellor of the Exchequer High Dalton
told reporters:
I'VE have been running through
the dollars faster than we expected
when we negotiated the loan and
We have come to discuss how it
happened"
He added that his country PLAN
ned to stop expenditures and get
more OF our exports going so as to
earn more foreign exchange"
I'VE are going to work our way
through" he asserted. IT think we
will get this thing steadied down in
. matter Of months and then you
will see that we have been a good
investment"
Basically, Sir Wilfrid added,
Britain's problem is "due purely to
a production crisis and q very slow
recovery in the eastern hemisphere
generally"
u. s. Sees Minor Changes.
He said he brought no specific
but Americans expected
the British group to start by sound
ing out American sentiment on the
postponement, or modification, Of
certain loan clauses which bind
Britain to a return to a freedom of
trade policy throughout the world.
The American delegation was re-
ported to believe that some minor
changes are possible, but not any
basic alteration. This would re-
quire approval by Congress.
It appeared obvious, therefore,
that the talks could go only small
way toward easing Britain's finan-
cial crisis. But they are expected to
provide basic understanding of
Britain's needs and therefore tie in
with the current Anglo-American
conference on improving coal pro-
duction In Germany's Ruhr Valley
and with future discussions of the
Marshall plan for continent-wide
aid to Europe.
Mr.. Snyder Is understood to be-
lieve that any future loan for Britain
should be tied directly with the
Marshall plan and should, under
no circumstances, be negotiated out
side the general framework of Euro
pean reconstruction.
From advance hints, 1t apperad
that Sir Wilfrid would seek these
immediate concessions under the
present loan:
First, permission to increase Bri-
tain's imports from her dominions,
at the expense Of purchases from the
United States. The loans mon
discrimination" clause requires that
England buy from this country un-
less she can get better price or
quality elsewhere.
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