Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-15
u. S. Dollars
Help Europe
Economic Conditions
Abroad Reported
Improving
By Tom Williams

&416
By Tom Williams
LONDON.-Western Europe Is on
the road to economic recovery, pro-
PEELED by the dollars and supplies
OF the European Recovery Program.
an Associated Press survey indicates.
The survey Allows that the mere
prospect Of American help, now .
reality. helped boost the 10 ERP
nations over the hump when bank.
ruptcy threatened during the criti.
cal days Congress debated the Mar
shall Plan.
Though in some nations the i'm.
provement is not yet reflected In
the hand-to-mouth economy, As
ISOLATED Press correspondents La
Western and Southern Europe re-
ported general increases in indus.
trial. production.
Crop Outlook Good
Crop reports, they messaged, In.
dictate agriculture production Is Ger.
tain to be larger than last year.
Besides . determination to qualify
for more American help by making
the recovery drive q success, an I'm.
pelling force behind the eo-opera-
ton program Is Russia's announced
intention to oppose it in it, every
aspect. This threat. voiced by Soviet
Foreign Minister v. M. Molotov in
Paris year ago, has done almost
as much Is American aid toward
fostering . Western European eco
nomic union.
But despite the progress made,
the cooperating nations are pain
fully aware that four years Is
short time to achieve the trans
formation the United States expects.
II the recovery plan Is to bs Q
success, they must establish eco
nomic equilibrium; expanded pro-
duction, sound monetary systems,
free convertibility of currencies, .
steady extension of multilateral
trading relations, and progressively
reduced reliance on Western Henri
sphere sources Of supply.
Britain, no longer q rich nation,
must provide lot of the leadership.
As No. l industrial power in West
ern Europe, she will be called
upon to supply large part Of the
capital equipment needed to build
up production in the other countries.
Number of Obstacles
Though the progress report indi-
Gates improvement, a number Of
Observation-Disclosures. to de-
lay complete success. Among them
are: %e.1 e. =.
/. France is moving from one
governmental crisis to another.
2. Civil war continues in Greece.
3. Germany is bone Of conten-
ton threatening the peace Of the
world.
4. Large, active and troublesome
Communist elements are at work In
France and Italy.
S. Dutch resources are being spent
in an effort to restore Netherlands
rule and the domestic economy in
Indonesia.
Belgium, Portugal and Switzerland
are islands of prosperity in Europe,
but their economic well-being is
threatened by the poverty of their
neighbors.
1t is this poverty that is clogging
the channels of international trade.
The obvious remedy is a miniature
international monetary fund for
Western Europe. Camille Quit,
managing director of INF, Is taking
up these currency problems with
various nations.
European cooperation admins
tration officials are considering an
international monetary pool to help
ease the currency shortages.
Despite the imbalance OF world
trade, however, the trend shows
definitely that Western Europe is
making long strides toward recovery.
British industry is producing about
10 per cent more than prewar and
exports are IS per cent higher than
in 1898. Iron and steel mills are
breaking all production records, coal
mining Is slightly ahead of sched-
ule in the drive to mine 211 600, 900
tons this year, and price reductions
indicate that imitation finally La
about to be checked.
There has been little labor strife
to disturb British industrial pro-
duction.
Belgium Receivers Fast
Despite a smaller planted acre
age and the heat and drought of
last summer, British agriculture
produced considerably more in 1947
than 1t did in 1889. This years
crop prospects are good.
Belgium, having escaped severe
damage, has made the quickest re-
covery. Belgian production has
been rising steadily In all the main
industries since liberation and IL
now nearing prewar level.
But Belgium Is dependent on
outside sources for her wheat and