Evening star., 1949-09-21
Snyder Plan 10 LET
British Boost Trade
Opposed by Wherry

An administration plan to let
Britain boost trade with Western
Europe at the possible expense of
imports from the United States
was tabled by Senator Wherry,
Republican, Of Nebraska, today as
another blow at American busi-
ness"
Senator Wherry. Senate minori-
ty leader. told a reporter a plan
laid before the Senate Foreign Re-
lations Committee yesterday by
Secretary of the Treasury Snyder
is lust another step to throw
open the door to flood of imports
into this country"
Mr.. Snyder advised committee
members Of proposal to let Eng
land take advantage of an escape
clause in the 1946 British loan.
BY so doing, she could ease bans
against imports from other Mar
shall Plan countries while keep
ing intact the British quota curbs
on American products.
Senator Wherry said that to
him this meant the British would
be able to get from Western Eu-
rope without spending dollars
many OF the things they now buy
from this country. In turn, he
said they probably will be able to
increase their exports to the
United States.
"The devaluation of the pound
meant q flood of exports to this
county and this is just another
step in the scheme" he said.
However, Mr.. Snyder got what
Senator George. Democrat, of
Georgia described as sympathetic
hearing from Foreign Relations
Committee members at the closed
session.
He asked for-but didn't get
help from them in interpreting the
escape clause. Senators said they
didn't have any right to speak for
all Of Congress in such a matter.
The three-year-old British loan
agreement specified that neither
country was to discriminate
against the other in trade quotas.
But one escape clause said there
could be discrimination If the
nation that practiced it was help
Ing out "a country whose economy
has been disrupted by the war"
Sees No Injury to U. S.
Mr.. Snyder said there wouldn't
be any substantial departure from
the non-discrimination rule. He
said the proposal wouldn't hurt
American business materially.
Paul G. Hoffman, Marshall Plan
administrator, told the Senators
he would keep q special watch on
trade operations If the proposal
goes through and the British alter
their trade quotas for European
countries. No question Of import
duties was involved, only quotas.
He said he would protest vigor-
ously If the British attempted to
use American dollars to finance
any OF the trade with the Marshall
Plan countries.
The idea, he said, is to stimulate
IN exchange Of goods in British
and European countries, devel-
opment he said would help all Of
them economically.
Meanwhile. a Commerce De-
partment Official said devaluation
Of the British pound will have few
immediate spectacular effects on
the American business picture be-
cause most Of the necessary ad-
justments were made in anticipa-
ton Of the move.
The official, who asked that his
name be withheld, said yesterday
the adjustment began weeks ago,
principally in response to the an
nouncement in London that Brit
ish import of American goods
would be curtailed by rs per cent.
During the next six months, he
predicted, there will be a slight |
decline in our exports to Britain
and probably a slight increase in
our imports from Britain.
The official said that "in the
long run" it is reasonable to ex-
pect a substantial increase in
American imports from Britain.
He emphasized that such an even
tual increase Is essential to the
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