Evening star., 1947-07-27

| Cne UnlteQ states take over more
than the present so per cent of
the burden of occupation costs in
the merged zones, which the United
States, already heavily burdened by
occupation expense, is loath to do
without some workable formula by
which the merged zones can achieve
self-support in reasonable time.
| Complieating this issue is the pro-
gressive naturalization of the coal
mines in the British occupation
zone, in pursuance of the same poll
| icy of socialization which Britain is
pursuing at home. The mines need
investment of new capital before
output can be measurably increased
but new capital is not available
under present conditions, with many
Of the mines nationalized and
operating under a weak German
administration whose ability to as
sure security of investment is highly
doubtful
Popular Subject
American bankers have been re-
ported ready and anxious to place
new investments in the Ruhr coal
mines, but not under q system
which not only provides uncertain
present security but carries the
prospect of ultimate naturalization.
The proposed British and Ameri-
can conference in Washington on
means to stimulate coal production
in the Ruhr met unexpected OBJ
stacles in the British insistence that
the discussions cover wide range
of other occupation problems-in-
cluding food and finances. However,
British American differences over
what the meeting should discuss
have now been settled and the con-
ference will be held.
With technical surveys now under
way by the four committees of the
Paris Economic Conference--in prep
aration for requests for aid under
the Marshall plan-the question Of
the Ruhr and its coal and iron in
dustries is bound to be entered into
deeply, and when the Co-ordinating
Committee submits its report on
September l, or thereabouts, it
should have some very precise things
to say about the German level Of
industry, and the Ruhr in particu-
lar.
New Approach
All vestiges of the Morgenthau
plan for treatment of Germany
have now been eradicated from the
thinking-in the United States. at
least-on what should be done about
Germany. Gone is the vengeful in
tention Of reducing Germany to
agrarian poverty; the line along
which those who have to deal with
Germany are thinking today is
restoration of Germany to some-
thing like her former industrial self,
although SO thoroughly demilitar-
lied and stripped OF war potential
that she could not become a menacs
again.
If the French are worried about
German competition with their own
industry, what should we-against
whom Germany competed most vici-
ously in the prewar years-be think
ing about the re-entry Of Germany
in the markets of the world?
Are we helping to raise new in
dustrial colossus which, when 1t is
full-grown, will bite back at us,
underselling us in the markets Of
the world and robbing American in
dustry of its own outlets2
Unquestionably, Germany will
compete with the United States
again in world markets, as she
once competed, but 1t will not be
with the same hostile political and
economic motives which dominated
her trade policies in the thirties.
For the present world economic
recovery and relief of the American
taxpayer from the staggering bur-
den of feeding and supplying Ger
many are more important than the
long term future likelihood that
Germany will again fight for Amer
lean markets.
An Economic Factor
For the present the demands on
industry everywhere are so great
that the task is to supply the need.
not to seek out new markets. II
American industry Is so over
burdened that it cannot build the
houses, the commercial structures,
the automobiles and other products
which this country-undamaged by
war-demands, what must be the
future task and opportunity for
European industry in repairing the
ravages of war right at home, to say
nothing of providing the luxury and
semi luxury goods which Americans
find necessary.
Cordell Hull, when he was Sec
retary of State, made it guiding
principle of his economic policy that
healthy multilateral world trade.
with all nations competing freely
in all the markets Of the world,
provided the sound economic basis
for a world of peace and prosperity.
The American government still
adheres to that belief, with the
overwhelming support Of both
parties in Congress, and it is to that
end that it is participating in inter-
national organizations aimed at the
elimination of trade barriers, de-
spite the fact that 1t continues to
maintain export controls over a
wide range of products.
It is in this same spirit Of assist
'ng in the resurrection OF world
trade-as well as to lift its financial
burdens-.that the United States Is