Evening star., 1949-08-30
Hoffman Stays Clear
OF Controversy Over
Britain's S Money Ills
Economic Cooperation Admin

Economic Cooperation Admin
1strator Paul Hoffman is one
official standing warily clear OF
the trans Atlantic controversy
over Britain's responsibility for
her economic ills.
Fresh from a European tour,
MIR. Hoffman met the press here
yesterday with a guarded defense
of the Labor government, which
has been bitterly attacked and as
warmly defended in recent weeks,
while the dollar crisis comes to
q head in Britain.
He said the fact that Britain
has a socialist economy has not
so far hindered the American pro-
gram for aiding Britain's recovery.
What have they nationalized so
far?" Mr.. Hoffman said. First
of all. coal-and the situation
there is no better or worse than
1t was before. Railroads-no
effect. They nationalized the
Bank of England, and nobody
knows the difference.
Silent on Economic Issue.
$50 without commenting on
British socialism as an economic
, measure, I'd have to say that, as
of the present time. the operation
of British socialism-of the Brit
iSh government, that is-has not
affected our program"
The ECA chief first said all his
tory indicates that the socialist
tendency to destroy competition
makes for higher production costs,
then added he could not say
whether British socialism had
thus contributed to the Western
economic crisis. Mr.. Hoffman
was emphatic, however, in the
statement that Britain must lower
productin costs in order to sell
more goods in this country and so
increase her dollar earnings.
Asked whether he felt he could
run the Studebaker Corporation
as efficiently in Britain as he has
IN this country, MIR. Holman
ducked neatly.
There is some disagreement as
to how efficiently I have run 1t
here" he said.
Thorough the twists and turns
of the exchange, however, observ-
ers felt Mr.. Hoffman clearly was
placing himself in the ranks OF
administration leaders who have
indicated they will not make Brit
ish socialism the issue at the
forthcoming Washington confer
ence on the dollar crisis.
President Truman made it plain
in his American Legion speech in
Philadelphia yesterday that, in
seeking a mutual solution to Eu-
ropes problems, the United States
does not propose to interfere In
anybody's internal politics.
Calls Output Greatest Need.
Mr.. Hoffman. who visited Brit
ain, France, Italy, Greece, Bel
GUM, Germany and Ireland on his
recent tour, reported that, as
result of Marshall plan aid, the
march Of c Communism has been
virtually stopped in Europe. There
is, too, he said. strong development
of the essential move toward poll
teal and .sconomic. unity Of the
continent. = q
"More-muche ,mere-needs to
be done" Mr.. Hoffman said, add
ing the greatest need is for in
creased production.
While Britain, for example, has
increased her production to SO per
cent above pre-war levels, her
man-hour output still is only
about 40 per cent of that in the
United States. he said. This, he
explained. is explained partly by
the fact that, whereas the average
American worker is backed by be-
tween 6 and 7 horsepower-worth
of machinery, the British worker
is backed by roughly 3 horse
power worth.
Mr.. Hoffman said he thinks
Britain could resolve many of her
troubles by increasing production
4 or S per cent a year during the
next four wears