Evening star., 1949-09-09
Dollar Solution
Vital 10 Defense
Criipps Warns
Must Join Efforts
For Firm E Economic
Bosis, He Declares
By Gornett D. Horner

British Chancellor of the Ex-
chequer Sir Stafford Cripps
warned today that "a sound
strategy of defense" for democ-
racy depends on solution Of the
British economic crises.
The British economic boss spoke
at a National Press Club luncheon
during a halliday lull in the
American-Bri Canadian con-
ference here seeking to work out
cooperative means to remedy
Britains growing dollar shortage.
In his prepared address. Sir
Stafford gave no details on pro-
gress of the talks. but emphasized
that 1--WE must combine success
fully our efforts to put our eco
nomic relationship upon a firm
basis and so bring victory to the
free democracies in the cold war" p"
Bound up in Single Problem.
He emphasized that much more
than the immediate dollar crisis
hinges on success of the three
power talks which began here
Wednesday.
Let us get clearly in our minds,
the British Spokesman asserted
"that we can not separate the
political, defense and economic
aspects of what is single
problem"
He added:
"It's a little like the House
that Jack Built. To secure the
future happiness and prosperity
of the world and of humanity
and nothing less is our aim-we
must have a strong democracy
and we must be able to resist
totalitarianism.
Firm Economic Basis Needed.
ITO have a strong democracy
we must have a political under
standing between the free demo-
cratic nations. To have polltl-
cal understanding we must have
q sound strategy for the defense
of democracy. To have a sound
strategy of defense we must have
a firm economic basis in all the
countries concerned.
Sir Stafford warned that ire
markable progress" made by the
Western powers toward creating
the necessary political and defense
structure Twill be in vain If we
fail to provide sound economic
basis for these combined efforts
of the free democracies."
Bevin Also Is Guest.
British Foreign Minister Bevin,
who shares leadership of the Brit
ish delegation to the three-power
talks here with Sir Stafford, also
was a guest at the press club
luncheon, but was not scheduled
for an address.
The conference, in recess this
morning while working groups"
prepared detailed studies on four
possible measures for American
assistance in meeting the British
dollar shortage problem without
additional direct financial aid, was
to resume at 8 o'clock this after
noon.
Sir Stafford said it was too early
to say anything about how the
talks are progressing. He asserted
however, they have opened with
mutual determination" to work
out a permanent solution so as
to avoid recurring crises in the
dollar relationship.
More important than even cas-
ing the immediate problem, Sir
Stafford said, is "to get on the
right path to establish lasting
equilibrium between the two great
trading areas of the world.
More Than British Crisis.
Despite greatly increased pro-
duction and export that have
''practically achieved an overall
balance of trade" he said that
the shortage of dollars in Britain
and other countries linked with
her sterling currency is getting
worse"
He declared that this so-called
dollar crisis is not just a British
crisis and nothing more" He ex-
planned that wartime devastation
of Germany and Japan. Interrupt
tion of production in Southeast
Asia, and the cold war East-West
split in Europe are among many
things that have "had part in
destroying the equilibrium that
used to exist between the dollar
90 rnTrvCTT r.-. q