Evening star., 1949-08-22
Preliminary Par|eys
On British Crisis Open
Bitterly This Week
BY the Assoeiotsd Press

Bitterly This Week
BY the Asseeiotsd Press
Preliminary American-British
talks on Britain's economic crisis
will open here this week in al,
atmosphere of bitterness and
gloom.
American officials said it would
require some notable feats OF
craftsmanship to prevent the
conference from hurting instead
of improving British american
relations. The conference will
reach a climax early next month.
Among other things. the Brit
ish say they take a dim view OF
the appointment of Secretary of
the Treasury Snyder to head ZIP
the American delegation for the
main, second stage of the nego-
tiations which will open Sep
tember 6 or 7. They say they
would have preferred Secretary
of State Acheson.
State Department officials
counter this criticism by saying
that Mr.. Acheson and British
Foreign Minister Bevin will in
fact probably hold the most i'm
portant of the conversations -
covering the whole range of Unit
ed States-British relations - en-
tirely outside the economic nego-
. tiations. The latter will be con-
Quoted by Mr.. Snyder and Brit
aims Chancellor of the Exchequer
Sir Stafford Cripps.
Definite Results Doubted.
To add to the confusion on this
point, however, British officials
here say that no preparations
have been made for Acheson-
Bevin discussions paralleling the
Cripps-Snyder negotiations. The
British say they doubt that the
meetings between the foreign Sec
retaries will be planned to pro-
duce definite results.
Canada will be an interested
third party at the talks.
Meanwhile. lower level Ameri-
can and British negotiators will
open the preliminary round be-
tween the two countries next
Saturday. Undersecretary OF
State Webb has been named to
head up the American group for
this preparatory Exchange OF
views" as the diplomats call it.
Actually, the preliminary talks
will be highly important. They
will disclose what specific proposals
the British have in mind to deal
with their dollar and gold shortages
and what measures the United
States also is considering.
Viewpoints Wide Apart.
It is In connection with these
proposals, which have become
known at least in a general way.
that the bitterness surrounding
preparations for the talks has
been built up. It is also out Of
the nature of the proposals that
the gloom has developed. ~ >
American officials believe. the
British negotiators are coming
here with hands outstretched for
another round Of American help
not a loan comparable to that OF
1946, nor a new kind Of Marshall
Plan, but rather some more indi-
rect measures. '" '"N> @'
The British, on their part, evil
dently expect to get little more
than. advice out Of their visit to
Washington. Some Of it they know
will be hard to take, particularly
the American Government idea
that sooner or later the British
pound will have to be devalued.
According to advance reports,
the British have in mind number
of drastic and dramatic proposals
for action by the United States.
Chief among these are the sugges-
tions that the American Govern
ment should raise the price Of gold
from $35 to s45 an ounce (Which
would make Britain's gold supply
worth more, and that this coun-
try should establish stabilization
fund to maintain the value Of the
pound if the pound is devalued.
Devaluation will be urged at
some point by the American side
of the talks. United States Off
cials say, although the British dis
pute it, that a pound worth less
than $4.03 would instantly reduce
the price of British goods in the
American market and thereby in
crease the sales. The British posi-
ton is that the first effect would
be to raise the price of goods that
Britain must buy.
A warning to the American ne
gotiators not to try to bypass
Congress was issued yesterday by
Senator Wherry, Republican, Of
Nebraska, the Senate Republican
floor leader.
Senator Wherry said in a state
ment that Congress want Britain
to be strong but will not approve
steps taken at undue expense to
United States taxpayers. He
argued that when Britain wins
world markets through efficiency,
quality and competitive prices her
dollar shortages will disappear. !"
Senator Wherry said that
friendship for the British people
and a regard for self-interest en-
courage the hope that ways will
be found to get Britain on her
feel so that she can 60 it alone.
faD,,& ,>r,,Ao~n1 l{nfofae ha