Evening star., 1949-08-26
Cold War Seen Factor
In U. 5. Approach 10
British Dollar Talks
By Gornett D. Homer

tanning Great Britain as a strong
partner In the cold war Is an
important factor in this Govern
ment's sympathetic approach to
Britain's pleas for cooperation tn
efforts to meet her dollar short
age, officials said today.
Political and military as well as
strictly economic considerations
viii have to be taken into full
account by the United States. 1t
was said, in forthcoming discus
sions on the crisis with top
British and Canadian officials
here.
It remains to be determined
exactly what steps this Govern
ment will be able to agree to in
the meetings scheduled to begin
September g.. Preliminary talks
with British and Canadian tech
nical experts, starting tomorrow
at the State Department. may
help to clear the air.
Gold Price Rise Unlikely.
The British would like to see
some drastic move. such as dou-
bling Of the price Of gold by the
United States. But they realize
there Is little likelihood Of such
action.
Among steps considered possible
by this Government are: Cd tn
creasing stockpile purchases in
q general effort to help boost Brit
ish sales in this country; (2)
changes in customs administration
to facilitate entry of British
goods: 90 agreement to tenn
porary discrimination by the Brit
ish against American imports as
. means Of saving dollars, and %
cooperation with the British in
developing colonial areas through
President Truman's so called
point four" program.
The main effort to relieve the
Immediate situation, it is agreed
generally, must be by Britain and
the rest of her sterling area in
reducing imports for which they
must pay dollars and in increasing
their own exports to the dollar
area through more efficient pro-
duction and cost reductions.
Dollar Earning Inadequate.
While British recovery progress
90 far already has boosted her
production and exports above pre-
war levels, the present crisis re-
suits from failure <by the coun-
tries using sterling currency to
earn enough dollars to pay for
goods they must import from this
country.
At the present rate Of mount
ing dollar deficits. the British fig
ure they would be completely out
OF dollars in about two years.
British diplomats became con-
cerned over development Of Amer
lean policy last week when it was
announced that Secretary Of the
Treasury Snyder rather than Sec
retary% y%of State Acheson would be
the chief negotiator for the
United States.
Since British Foreign Minister
Bevin as well as Sir Stafford
Cripps, Britian's economic boss. Is
coming here for the conference
the British had assumed that Mr..
Acheson and Mr.. Bevin would be
the dominant figures.
All Factors Considered.
British concern arose out Of the
fear that Mr.. Snyder would treat
the British crisis solely in eco
nomic Germs. Administration
officials said today, however, that
the American position Is being
worked out among Mr.. Snyder,
Mr.. Acheson and other agency
heads. with political and military
as well as economic factors re-
seiving full consideration.
The preliminary talks starting
tomorrow on the technical leyel
are not expected to produce any
decisions. Ofhcials said they are
designed mainly to establish the
facts to be considered by the top
level conferees next month.
Even the major conference
starting September 6 is not ex-
pected to result in any complete
blueprint for overcoming the Brit.
tsh crisis. It woul be considered
helpful, however, If it results tr
nothing more than q better under.
standing Of mutual problems.
President Truman said yester-
day he expects good results from
the Observation-Disclosures there
wouldn't be any. Optimism also
was expressed by Sir Henry VIII
son-Smith, head Of a 20-man
British delegation of technical ex-
perts which arrived yesterday
I'VE are all optimistic" he said.