Evening star., 1949-08-28
British Effort 10 Cut
Costs Of Production
Reported Promised
by Gornett D. Homer

oy SoTnett y. 1oTnef
Efforts to agree on the exact ma
ture and causes Of Great Britain's
dollar troubles were begun here
yesterday by American, British
and Canadian technical experts
rs q preliminary to cooperative
search for remedies.
The experts hope to reach joint
conclusions during two-a-day
meetings for the next 10 days that
will clarity the problem for con-
sideration by Cabinet-level con-
ference scheduled to open here
September Z.
Authoritative sources said the
British already have pledged an
attempt to cut production costs
and take other measures designed
to increase exports to the United
States and Canada. At the same
time, the British experts proposed
that the United States and
Canada increase their purchases
Of foreign goods as a means Of
helping to ease the British crisis.
Solution Urgently Needed.
Viewing the crisis presented by
the swift draining away OF Brit
aims gold and dollar reserves as
. serious threat to the power OF
the West in the cold war, Ameri-
can officials consider a solution OF
urgent Importance to this country
and other free nations as well as
to the British.
This Government, therefore, ap-
proaches the discussion with the
British in the spirit Of partner
tackliug a common problem, con-
fident that joint effort eventually
can overcome the difficulties, but
with no hope for q quick or easy
ctlre-a1l solution.
No significant progress was ex-
pected or reported at the first two
meetings Of the three-power tech
nical experts yesterday. Possible
remedial steps-devaluation of the
pound, more drastic curbs on
British imports. American moves
to increase British sales to this
country, and so on-are not due
for discussion until the top-level
conferences next month.
Secretary Of the Treasury Sny-
der and Secretary of State Ache
SON will meet then with Britain's
Foreign Minister Ernest Bevin and
Chancellor of the Exehequer Sir
Stafford Cripps, with a Canadian
delegation headed by Lester Pear
son, Minister for External Affairs.
Webb Chairman of Talks.
Undersecretary Of State Webb
was chosen chairman for the pre-
liminary talks opening yesterday
at the State Department. Sir
Henry Wilson Smith, British
treasury representative, headed
tho British group. The Canadian
delegation was led by Norman
Robertson. cabinet secretary.
In their morning session, off,
cials said. the experts cleared away
some details of procedure and pre-
pared for the British representa-
tives to begin presenting an analy-
sis of their problem at the after
noon meeting.
The meetings here were likened
to the treatment of a seriously Ill
patient. In this case, British econ
omy is the patient. The technical
experts or the three powers are
attempting to agree on q diagnosis.
Then, on the basis Of this dag
nosis. the cabinet negotiators
meeting next month will seek to
write q prescription to relieve the
patient at least temporarily, gain
ing further time to consider a
permanent remedy.
The dollar crisis has developed
despite rapid economic recovery
by the British since the war. They
have boosted industrial production
to 1856 per cent of 1888. and the
physical volume of exports to so
per cent above 1888. Their total
trade and overseas payments show
o practical balance of accounts.
That is. they are collecting from
overseas as much as they are
spending overseas on a total basis.
The British themselves find 1t
difficult to explain why their dol
lar position is failing to right itself
as readily as their overall trade
position. 3
There is general agreement ON