Evening star., 1952-09-12
Churchill Expected to Visit
New President on Dollar Gan

W Alect Tie SlLudLlOn.
Officials here believe it likely
that Mr.. Churchill will want to
discuss these problems personally
with the next President. If he
doesn't come himself, it is be-
lieved virtually certain he will
send Foreign Minister Anthony
Eden and Britain's Chancellor Of
the Exchequer, R. A. Butler, to
talk with the next American Sec
retarieS of State and Treasury.
president Truman, ques-
toned about this at his news
conference yesterday, said any
such discussion would neces-
sarily be with the new adminis-
tration and that he knew Moth
ing about it,
Rearmament Involved.
The backstage study now going
on in American Government ag-
encies seems to stem from a grow
ing belief that Americas allies
may have to halt their rearma-
ment drive unless new financial
props are found for their shaky
economies
This possibility was emphasized
yesterday when both Britain and
France announced they were GO
ing further in the red in their
foreign trade.
The French said they had a
trading deficit of l79, ,697 .0O0. 900
francs ($510 million) for the first
eight months of 1852. The gap
between exports and imports was
only 74.003, 100000 francs ($21O
million) in the corresponding Pc
riod last year.
AS an anti-inflation measure.
the French cabinet ordered prices
rolled back to the levels of Au.
gust 81.
British Exports Decline.
Britain disclosed that her ex-
ports during August dropped to
l8O. 100000 pounds t$505, 800, ,000)
as compared with July's 207 ,800,-
600 pounds 1851 $40, ,O00). I'M
ports, too, were down but the
nation still went in the red an
other 7S.700.0O0 pounds ($2o6,-
800 ,000).
The British Food Ministry an
nounced that government con.
trolled prices of butter, cheese.
sugar. bacon. margarine and
cooking fats would 60 up next
month by amounts ranging from
| to Z cents per pound. All these
foods are rationed.
Britain and France already
nave cut back their rearmament
schedules and American defense
experts fear any further cuts in
arms expenditures may seriously
hurt the Vests master plan for
foe1ense against communism.
Sterilization Fund Suggested.
Ihe informal ideas that are
being mentioned most frequently
both by American and foreign
financial experts are:
l. An international stabilization
fund OF So billion to So billion.
Inls would be set up to guarantee
that foreign currencies could be
exchanged into dollars, thus help
ing expand world commerce.
z. American agreement to buv
strategic raw materials such as
rubber. tin, copper and other
metals on a long-term contract
basis running from five to 10
years. This would insure a steady
source of dollars to foreign coun-
tries and permit them to expand
production with confidence of a
ready market. 1t would also help
build Americas strategic stock
pile Of materials set aside for
emergency use.
8. A big plan to greatly expand
private United States investments
overseas. This might take the
form OF an ron-clad government
guarantee to investors for COM
pensation in event their overseas
properties are nationalized, con-
nscated or seized as a result of war
or other emergency.
Change in Customs Sought.
4. A determined drive by the
administration to persuade Con-
gress to streamline American GUS
toms regulations in an effort tn
facilitate the entry of foreign
products into the United States
A Dill to do this is now pending.
D. Reaftirmation by the United
states of its dedication to the
principle Of lowering tariffs and
possible new tariff cutting agree
ments with other nations. Britain
france and Italy are especially
worried about what they consider
TO be a United States trend tn
raise tariff duties whenever for
elgn competition grows
8. Possible changes in the stat.
uteS OF the multi-billion dollar
international Fund. This interna-
tlonal institution has a capital of
$1.S billion which is supposed to
be used to help expand commerce.
Many foreign countries are dis
appointed with the funds rolls
mus far and believe a drastic
change in its function is needed