Evening star., 1948-06-29
British Promise 10 Put
Finances in Order as
.<Part Of ERP Obligation

VII VI 6N S~ssHssVss
., Great Britain today promised
'.to keep her financial house in
order as part of her obligation
>, under an agreement laying down
.tthe terms for American assist
sance under the European Recov-
;. cry Program.
In an agreement made public by
-. the State Department as 1t was SUBJ
mitted to Parliament In London,
the British government pledged it.
self to use its best endeavors" to:
1, Stabilize its currency, establish OF
: maintain valid rate OF exchange
q. balance its government budget, Gre
F. ate or maintain internal financial
G stability, and generally restore OF
! Smaintain confidence in its none
stary system"
T. Pact Represents Compromise.
Z This represented compromise
tworked out after Britain and other
Z European countries had objected to
"a clause originally proposed by the
sUnited States for inclusion In the
agreements covering Marshall Plan
1s.aid. 1t was reported in London and
sParis that the original clause would
shave given the United States the
fright to fix exchange rates between
s1he dollar and currencies OF the
Marshall Plan countries.
The British agreement made pub
lie today is similar to those signed
with Italy, France and Fire yester-
day and being closed with the other
nations cooperating in the European
Recovery program.
= In line with the Act of Congress
authorizing ERP. the agreements
contain numerous detailed pro-
visions to insure cooperation Of the
participating European countries in
. co-ordinated recovery effort.
Must Ratify Agreements.
. The British, French and Italian
!, parliaments must ratify the agree
ments before July 8 If American aid
now flowing under temporary pacts
is not to- halt then. Ratification
was expected with little trouble.
Among other returns from the
billions in Marshall Plan aid, the
United States stands to gain stores
of scarce war materials. Funds set
aside in local currencies by the Eu-
ropean countries to match actual
dollar grants by the United States
will be used In part to pay for ex-
ploration and development OF stra-
tegic materials needed by the United
States, under the agreements. This
country will acquire the materials
on such reasonable terms of sale,
exchange, barter or otherwise" as
may be agreed on later.
Operating costs overseas OF the
Economic Cooperation Administra-
ton, administering the Marshall
Plan aid, will be met from the local
funds set aside in each country to
match dollar grants. Other uses Of
these funds, such as developing local
industries, will be agreed on in sep
arate understandings.
For the first year of the ERP
operation, Congress appropriated
$4,000 100000 under an act signed
by the President yesterday for direct
grants. Another $1,000, ,000, 900 In
ECA, funds which Is to be furnished
in rnE form of fepayabfe loans will
not be matched by foreign cur
rencv denoSifs
The British agreement pledges
that government to sustained
efforts" in co-operation with other
Marshall Plan nations to achieve
economic recovery in Europe ESSEN
tial to lasting peace and prosperity"
and to make the participating
countries independent Of extraor-
dinary outside economic assistance"
within the next four and a quarter
years.