Evening star., 1947-02-28
Britain Economy Under Strain>
Reported Asking U. S. to Assume
Bulk Of Commitments in Greece
Plan Would Mean
Large American
Budget Changes
By Alex H. Singleton
Assoeioted Press Sfoff Writer

Britain, her domestic economy
near the breaking point, was re-
ported in congressional and dip
lomatic quarters today to have
proposed that the United States
take over her commitments in
Greece on q large scale.
Although there was no White
House confirmation, this was under
stood to have been the subject-at
least in part-of highly secretive
White House conference yesterday
among President Truman, his diplo-
matte advisers and key legislators.
One source said the United States
would issue a statement soon on
what, part, if any, it would assume
in helping bolster the shaky Greek
government
In London Foreign Office spokes-
man said British and United States
discussions were under way in
Washington on the problem of con-
tinuing the economic and military
obligations in strife-torn Greece
now borne by Britain.
Foreign Exchange Sought.
The spokesman implied one aspect
of the talks was the continued pro-
vision of foreign currency with
which Greece could purchase arms
and military equipment.
The discussions, he added, arose out
Of the ending March 81 of Britain's
commitment to maintain the Greek
armed forces. The same spokesman
said he saw no prospects of Amer
ican military forces being sent to
the country after Britain's forces
get out.
Other British government sources
said Foreign Secretary Ernest Bevin
was planning to Withdraw Britain S
remaining 10000 troops from Greece
within the next three months.
It was learned from diplomats in
Washington that the whole problem
of Greece, together with report on
Britain's waning resources, was laid
before Secretary OF State Marshall
by Lord Inyerchapel, British Am
bassador to this country, at re-
cent conference.
u. s. Budget Rise Possible.
Should the United States decide
to take over large share OF British
commitments in Greece, and per-
haps elsewhere, to help restore Eu-
ropes stability, it could well force a
complete redrafting of this Nations
plans for foreign relief expenditures.
This in turn might force an up
ward revision Of both President
Truman's budget estimates, prob
lem which in turn would affect the
current congressional drive for trim
ming his $37, 500, ,000,0 900 figure, tax
cuts and debt reduction.
One key phase of relief costs, the
problem of feeding occupied Ger
many, has brought a report to Mr.
Truman from former President Her
bert Hoover. After personal review
abroad, Mr.. Hoover reported to the
White House yesterday and went
before the House Foreign Affairs
Committee today.
The Greek and related Middle
East problems, as we'll as the Euro
pean relief picture, could have con-
stituted a situation serious enough
for such a conference as that held
at the White House yesterday. 1t
brought together Gen. Marshall, the
leaders of both parties on Capitol
Hill, and the chairmen and ranking
minority members of the House and
Senate Foreign Affairs and Appro-
priations Committees.
Other British Changes Hinted.
Should Britain find her resources
SO strained that it has become nee
essary to withdraw economic sup
port from Greece, diplomats specu-
lated it was likely she may have to
curtail elsewhere commitments OF
her postwar policy.
Britain gave Greece $40 000, ,00O
credit last year and, in addition,
waived a Greek debt OF $184 ,OO0, 600
Nearly half this sum, held by the
Bank of Greece, was used to protect
the country's currency and to pur-
chase essential imports.
The United States lent Greece
60,000, 900 during 1916. ....-
Premier Constantin Tsaldarls last
November called upon the United
States Government to negotiate a
further general credits agreement
which, he said at the time, would
tide the country over continuing Sc
rious internal financial difficulties