Evening star., 1949-07-04
Perspective and the ERP

In connection with current m1Sg1v1ngS
regarding the Marshall Plans thus-far
unimpressive showing in promoting multi
lateral trade among the participating
countries, a sense Of perspective demands
that nobody lose sight of how spectacu-
larly we'll that plan has worked in other
respects. Nor should any one lose sight
of the fact that 1t has completed only the
first of Its projected four years of
operation.
Admittedly, as far as multilateral trade
is concerned, the Marshall Plan-the
European Recovery Program-has not
Jared well up to now. After its first full
year of application, however, it must be
credited with several outstanding accom-
plishments, chief among them being the
following: % 1t has played vital role
In stopping imitation among the partic
ipating nations; (2) 1t has undeniably
saved a number of those nations from a
complete economic collapse; 90 indus
trially, agriculturally, socially and other
wise, it has enabled Britain and Western
Europe in general to achieve a degree of
stability that would have been impossible
without 1t; and a., most important of
all, it has been an influence of enormous
significance in terms of halting the fur
ther westward advance of the Kremlin-
directed Red tide.
These are points that need to be kept
clearly in mind in any effort to evaluate
the difficulties that have arisen among
the ERP countries over the issue of multi
lateral versus bilateral trade. The ques-
l.; ;~I1
having to do with such extremely COM
plicated matters as the convertibility of
currencies. But the whole problem stems
from the fact that the participants in
the Marshall Plan do not have enough
dollars and have not been able to earn
enough of them with exports, to pay for
the things they must have from U.S. 1t
is for that reason that Britain-the chief
trader and banker in the West European
community-has sought to hold on to its
dollar and gold reserves by resisting pro-
posals for easier convertibility and by
resorting to such measures as its recent
barter deal with Argentina.
The United States. together with a
number of countries in Western Europe,
has strongly objected to the British posi-
ton on the ground that it tends to stifle
international commerce and thus runs
counter to Britain's pledge, under the
Marshall Plan, to cooperate in promoting
freer trade. In the American view, more
over, the British are doing long-run injury
to themselves by seeking to conserve
dollars through bilaterism, rigid currency
restrictions and other policies which many
economists regard as self-defeating and
stagnating. In recent days, there has
been some evidence that the Attlee Labor
government has not been entirely deaf to
these arguments, and that fact suggests
at least the hope that it may yet be
persuaded to do what it has obligated
itself to do in connection with the ERP's
efforts to build up multilateralism.
In any case, however, particularly be-
cause the ERP has been in operation for
only a fourth of its scheduled lifetime,
it certainly would seem to be much too
early in the day for anybody to take
defeatist view of the program. With
patience and good will all around, the
participating nations should find it pos
sible TO work out arrangements designed
to overcome the present trading diff
culties. Meanwhile, both here and abroad,
special point ought to be made of
remembering what the Marshall Plan has
achieved already, with three years yet to
60.