Evening star., 1951-11-12
More American Aid?

Britain'S decision TO ask for q resumption
of American dollar aid will be greeted as unwel-
come and diScouraging news by many people
IN this counts y-particularly by those who
lleve that our national economy will be dan
gerously overextended if it undertakes to 90
much more in terms of defense spending and
foreign assistance.
Yet the impending British request--Which
may seek at least $500 million in aid-will have
to be dealt with not only on its merits but also
as matter of crucial Importance to the security
of the United States and the rest of the free
world The central fact that must be faced is
this: That Britain, wholly apart from its i'm
menSe significance land that has converted
itself into the principal advance base for our
deterrent atomic force, is the chief Western
bulWark-in alliance with our own country
against the threat of Red aggression.
This bulWark. however, is in danger at the
moment 1t is in the throes of an economic crisis
Its payments for vital imports are running at an
annual rate O. almost 81 billion above it's income
from exports abroad AS result, with its gold
and dollar reserves dWindling away and with
its population facing a further cut in living
standards that are already very austere, Britain
today must cope with grave inf1ationary and
other conditions that must be checked to save
its defense program and prevent eventual bank
who is scheduled to confer here with President
Truman early next year-has called for drastic
belt-tightening action on the home front. And
that is why his government is seeking new Amer
lean aid
The discour2ging thing about all this is that
not very Ions ago the British seemed to be
staging remarkable economic comeback. Their
gold and dollar reserves were at fairly safe
level. Their export earnings were exceeding their
import payments at a surplus rate of almost
81 billion yearly. In fact, they were doing so
we'll that they cecided-effective last January
to give up American aid under the Marshall Plan.
So who and what are to blame for the swift
deterioration that has since taken place? The
answer is simple enough: The recently defeated
Labor government may have erred in certain
policy decisions, but the chief villain of the piece
is the Krenlir and its program of direct and
indirect SubVersion and aggression.
In short, when the Communists struck in
Korea and made clear their readiness to risk
another world war, that meant the end of rela-
lively norma. peacetime trade and production
Tor every free nation OF consequence. AS far as
Britain is concerned-and the same holds true
In varying degrees for France and other allied
countries-the resulting sharp increase in re-
armament, together with things like wild infla-
tion in the prices of raw materials, quickly
created severe economic strains undermining
recovery. Plainly enough, were it not for the
Korean aggression and the Kremlns adherence
to a threatful policy throughout the globe most
of our overseas allies would need comparatively
little help from at this stage and some of
them-including the British-Would need none
at all.
These considerations that need to be
kept in mind now. Possibly, if the last session
of Congress had not slashed almost 81 billion
from the sum requested by the administration
for the Mutual Security Program, requests like
Britain'S might not have become necessary. In
any case regardless of might-have- -beens, the
fact remains that this key ally in the Atlantic
Pact seems very definitely to require fresh as
sstance, that France may also call for additional
help, and that the United States can hardly
ignore any such plea if the plea itself can be
genuinely defended and justified as essential.
This prospect, when related to all the billions
that have been poured out in American aid since
the end of the war, is certainly not pleasant
But we have to deal with it a reality and
to the extent that new help can be proved to
be really necessary, to the extent that our own
economy safely advance it, we shall have to
bear the burden. What is the alternative in the
teeth of an implacabe foe bent on destroying
our free world?