Evening star., 1949-09-06
Britain Seekiinq
To Use ERP Aid
Outside Of u. ).
Bevin and Cripps Due
In New York Tonight
Aboard Mouretoniu
BY the Assoeioted Press

britain will ask permission to
spend Marshall Plan dollars any,
where she likes-not just in the
United States-as one way out of
her financial crisis, officials said
today.
Diplomatic authorities said Brit
ish Foreign Minister Bevin-on
his way here for three-power talks
on Britain's economic plight-is
convinced his country shortly will
have to dip into her dwindling re-
serves for millions of dollars un-
less Marshall Plan policies are re-
laXed.
Mr.. Bevin and Sir Stafford
Cripps, Chancellor of the Ex-
chequer, are due in New York to-
night aboard the British liner
Mauretania for the critical Brit
ish- sh-American-Canadian financial
conference opening tomorrow at
the State Department.
Top diplomats of the three gov
ernments hope to devise a series
of stopgap measures at these dis
Icussions to keep Britain's condi-
ton from getting worse. But they
are reported pessimistic about
finding an immediate formula for
solving Britain's long range
problem.
Canadian Officials Arrive.
Canadian Minister of Finance
Douglas Abbott-who arrived last
night with Minister for External
Affairs Lester B. Pearson-told
newsmen he hopes I'VE will be able
to achieve some useful work" but
added: "One should not expect
miracles"
Mr.. Bevin is reported keenly in
terested in the Marshall Plan
phase Of the discussions because
it may provide a way for Britain
to buy Canadian wheat. -four.
cheese, bacon and eggs. woodpulp
and paper with American dollars.
Paul Hoffman, the economic
cooperation administrator. has
refused in the past to permit
Marshall Plan money to be used
for this purpose because virtually
all these commodities are avail
able in the United States.
AS result Britain has been
forced to use its own dollars to
buy Canadian products. Last
year, diplomatic officials said.
Britain spent about $4,000, 900
of it's reserves in this fashion.
Change of Attitude Sought.
Mr.. Bevin is reported to be-
lieve that Mr.. Hoffman must now
change his attitude on that point.
The British Foreign Minister also
feels that Britain could save at
least another $100,0O0.0o0 of its
gold if Mr.. Hoffman allows Mar
shall Plan money to be spent for:
OD Equipment needed to expand
British petroleum production; 90
some Canadian raw materials
machinery and manufactured
goods; (3) those shipping costs
not affected by the law requiring
50 per cent of all Marshall Plar
shipments to be sent to Ameri'
can ships.
Mr.. Hoffman's answer to this
British request is certain to ot
Influenced by the attitude o.
members of Congress anxious tt
see ECA funds spent in American
markets.
Congress Limited Fund Use.
MIR. Hoffman's restrictions or
how Britain spends her Marshal
Plan dollars. are due to congress
sional mandates in the ECA legis-
lation. Congress aim was to SCI
that Marshall Plan dollars, wher
spent for farm products, are spent
in the United States when those
products are in surplus supply
here.
ECA officials said that since
January IL Britain has not beer
allowed to buy Canadian wheat
and Aour with Marshall Plan
money. This is because Secretar,
of Agriculture Brannan informall,
notified Mr.. Hoffman at thai
time that wheat and -four are II
surplus supply in the United
States.