Evening star., 1948-03-07

ceHCageS lOr denmark, norway ana
Sweden were, respectively, 1873, lit
and 125. The figures for Belgian
textile and iron-steel output were 10S
and 110 With ample food and light
goods, Luxembourg is known as 'the
consumers paradise
The most prosperous of the group
is Belgium. Unlike Britain, France
and the Netherlands, it has expert
enced no colony trouble" The Bel
gisn Congo supplies the mother
country with gold and uranium, for
The latter of which there is bottom
less dollar market. Unlike many
other European currencies, the Bel
gian frahcs depreciation has not
been too drastic. 1t was valued for
merly at bit more than 8 cents.
The official rate Is now 23 cents.
Holland Hard Hit
The fact that all these countries
are constitutional monarchies may
have some bearing on their undoubt-
ed political security. Belgium, Nor
way, Sweden and Denmark are king
donls. Luxembourg is grand
duchy. All are ruled by strong right
wing Socialist coalitions, with mere
fringes of opposition at extreme left
and right.
On descending to the third group,
the circumstances of which are
listed as difficult" one encounters
in the Netherlands the first case of
severe war damage, and in Iceland
the first important Communist in
huence.
OF all the countries in Western
Europe, Holland was most ruthlessly
despoiled by the Nazis, in reprisal
against its indomitable underground.
The country has since lost its great
German market and its income from
the rubber plantations and tin mines
of the Dutch East Indies. The ini-
tial Marshall Plan allotment for
the Netherlands is $7o5, 900 900, fifth
highest in the scale. Holland and
Britain are today the foremost ex-
emplars of the policy of salvation
through austerity.
According to the formula out
lined above, Ireland should rank
in prosperity with Switzerland.
Portugal and Turkey. 1t underwent
no war damage and has few If any
Communists. But the Emerald Isle
Is nothing If not paradoxical. Po-
litically it is hostile to England.
Yet Ireland's economy is bound di-
rectly to the British treasury. Tie
fate of the Irish pound is tied to
that of the pound sterling. Eng
lands restrictions on imports have
worked havoc with Ireland's mar
ket. Its first Marshall Plan quota
is 100000.
Fourth Group the Problem
Iceland also experienced no war
damage. But its government Of
merchants, farmers and Socialist
workmen is confronted by strong
Communist opposition. Using the
familiar tactic of boring into labor
unions, the Communists of Iceland,
though ousted from the govern
ment, exert power out of ratio 10
their number. American troops sta
toned in Iceland during the war
left 1t overf1owing with money but
without, sufficient goods for which
to spend it. The result Is an acute
attack Of imitation. Only Its small
population of $4,000 limits the is
lands first Marshall Plan allotment
to s13,0OOO00.
With the fourth group of coun-
tries, the status of which is rated
as poor" one arrives at the heart
of the foreign aid problem. The
United Kingdom, France and Italy
are slated to receive nearly two
thirds of Marshall Plan funds.
Without them overall estimates for
the first is months would be only
$4,000, 900 900.
France suffered widespread physi-
cal damage from the war. In Italy
1t was grievous. Both are notori-
ously unstable in politics. They pos
sess the largest Communist parties
outside Russia. Great Britain, on
the contrary, is politically sound and
is menaced by no Communist coup
from within. But it was war VIC
tim on a colossal scale, particularly
in the theater of finance.
u. X. Down for Lions Share
Britains trade recovery may be
described as phenomenal under the
circumstances, but its precarious
financial position was shown by the
truth that last year its adverse for
eign balance reached an all-time
high of S2.4 billions. The cause Of
this giant deficit may be stated in
simple terms. Britain draws AZ per
cent of its imports from the two
American continents, and sends only
IA per cent of its exports to Canada,
the United States and Latin Amer
ica. In other words, it Is compelled
to buy in hard-money countries and
sell in soft-currency ones-and that
at moment when its gold and dol
lar resources are well-nigh bank
rupt.
For the above reasons American
observers regard Britain's restora-
ton to be the most arduous of all
foreign aid problems, not excluding
Germany, and the one most likely
to remain chronic. On that account
Britain's quota for the first Is
months of the Marshall Plan is
lions share of $1,760 100000, or
about one-fourth of the whole.
France has one capital advantage
over most of the Paris Conference
countries. Normally. it is close to
-suficiency in production of food.
But from one of the best-fed ma