Evening star., 1949-05-15


Britain. M Scaasnaa $40.
could usr much os thAt utr.tyrs-
durison Rgi hef eoancsnl, dix
lAtor ST. stafford CsJps,s 2 Ey-
a4cIAnt 70 hvlp IN wee a! ngiJ-
aims E4sisFlgs and aslaes eVa-
monte plans sE Stafford lie
report satd ooyectA 10 R8taga
purchas4ne more than 10 Asso-
lutrly necessary from continental
Eurupe
In presAg dsss RIstAIn par~
chased from the continent @! Eu-
rope ABOUT 81 ooQ coo o00 moie
than II sald 10 ii undsf Tive ns~
economic plan al the tAsos ge.-
eminent the Britain mast export
$500 600 GOO more worth Of seoss
TO Europe than they bay ircm u
This policy makes II diineult 'oF
the continent 10 dispose es is
present local osrrproductian The
result ul!l he That these gooas
vii be dumped In the United
States
Nov comes neNA from Geneva.
where the United Nations ECos
nomie Commission for Europe met
last aeek. that American exports
10 Europe will have 10 be SuFhed
IN order 10 S0lve increasing dol
lar shortages on the continent
But since such ata operation might
be hurtful and diStagleful To
American producers, an AiGetna-
tive Is suggested Planned Ions
term lendinr by the United STATES
abroad on scale great enough
TO provide q steady f1os Of dol
lars and thereby permit, Europss
return 10 conyertibility of eur
reneies,
More Dollars Needed
To the laymAn this means that
We would provide al time when
the ERP has restored Europe TO
It's prewar industrial production,
the dollars necessary for ths Eitr
nations TO buy more goods from
us. II this Is not done, the re-
port implies. Europe wiii be COM
PEELED to dump It's excess pFodne.
ton In the United States with
all the III consequences for our
production and employment prob.
lens.
The experts gathered In Geneva
point out justly that today less
than 20 per cent OF European ca
ports TO the United States are
finished products. compared 20 10
per cent 20 other areas which
do not have the much needed
dollar.
To come near balancing tS dol
lar accounts by direct sapoTts 10
this country Europe would have
10 increase sales by sonr 800 per
cent" Naturally. EuropeS eco
nomic experts admit. this would
endanRer the economic structure.
particularly with respect 10 en-
ployment. OF the United States
and might have far reaching pc
liticai repercusSion& in both Amer
lea and Europe
The chief problem which the
Western world nov encounters Ia
It's desperate efforts TO rektore
itself economically Ia the shrink-
age Of world markets
The consumption Of manufar-
tured products by satellite eoun-
tries in Central and Eastern
Europe has dwindled to neg
ligihle amount These states have
been intearated economically into
the Russian empire. where econ.
onies are dictated by aggressive
politics
Moreover. the once vast and
useful markets Of China rapidly
are drying UP The cisu var
fought aimee Ia4s has reduced
China TO almost negligible rank
as a consumer Of Western sooda
Now there ls every indication that
even the trickle Of trade octwesn
China and the West vii be re-
duoed 10 zero,
Moscow Has Veto
There Ia no possibility o; deal
ina with each individual govern
naeni. except In form Al tfs
orders which Poland and cneeho-
xlovakia. for example. want 10
place IN the West hrsi must have
the approval al Moscow. which "a
thinking right nos In strategic
rather than eoonofuie terms.
The var against uss Soviet
controlled Vlst Nam In lpdo-CnEas
has dealt seTerr biow 10 TIE
French. who formerly found FOOD
markets In thai country.
The si1rtnkass Of thess naagks'A
involving about 1000 600 900 se-
taal or potential consumers. places
the West on O fooiin. 10 tEads
with only q small portion o. iaas
world. What makes tlse kat&sa~
ton even worse IA that most Of
the Western countries are indus
W lMSk&&%1 aAAA 4AtN&SAN AAE$ e4kN&N&s
Of necessity. cosnpese wtth eaen
other.
Ths United States. with tas
highest cost o. production IN TIE
world. 10 likely 70 set the kssoyt
end of tns stick. since tiss West
ern Europe nations which ss are
sow helping 70 come back 10 life
can proda1e much cheaper than
se can.
Unsal the world h aeie 10 cot
the ooTdaan knos created sy tss
Pugitoxoa sfre~d pcaAeaea Ns
ahaii have To resort 10 pAliastlsss.
The Marshall Plan vas tie nrxs
II these The seoond 10 Likely 10
be the suggestion of tfs u. s
EeonosnAe Commission Tor Eauups
thai we nsTTT doiisr -stsors eossa~
srses Iona terra credits.
E0rne economists also hare
offered anosnes alternative. TfAaa
ws release the srad hoard as Fort
Knox ard give back tiss raArhses
80 ksses fz<ex e<aA<@t8rkR fUw Il