Evening star., 1952-12-21

VVSS
ing spree triggered by the Korean
war. Prices were forced higher than
sterling area countries could afford.
Now, when prices are falling back.
there is another painful period of
adjustment. The sterling area wants
to avoid such incidents in the future
and has some ground for hoping that
America will cooperate in planned
buying program. This whole pro-
posal of international schemlng"
comes close to proposing establish
ment of international cartels. how
ever, and all parties concerned
realize they must move carefully in
working out the arrangements.
'Trode Not Aid
The commonwealth at the same
time put in good word for trade
not aid" The United States should
stop giving aid, the sterling area
agrees, and instead turn to long
range investment on the one hand.
and removal of import restrictions
on the other. This would provide
foreign countries with more oppOr-
tunity to earn dollars. The general
program Of trade not aid" is receiv-
ing growing support from business
men and Republicans, as well as
Democrats, in this country.
Foreign Secretary Anthony Eden
explains that the commonwealth has
three main economic ObjectiveS: To
avoid recurring economic crises. to
end restrictive policies which prevent
the sterling area from importing
freely 1rCm the outside; and to pro-
mote internal financial stability
curb imitation and extravaganza
mainly-in individual commonwealth
countries.
All Of these are vague goals. But
to be more specific would be to fly
in the face OF international and in
ternal realities well understood by
all the prime ministers. The Ster-
ling area ooes not dare take bold
steps until it is reasonably sure what
other ountries-mainly the United
StateS-Will do Commonwealth coun-
tries dare not lower their import
barriers against American goods, for
instance, unless the United States
does the same. Nor may the prime
ministers decide on new austerity
programs, or on channeling of hard
won savings into basic productive
programs without the consent Of
their home parliamentS.
Retrenchment Unsuccessful
For all its vagueneSS, the confer
ence did show that the common
wealth countries had not been as
successful i'll retrenchment, fighting
imitation, or increasing production as
had been hoped when the last
commonwealth economic conference
broke up last January. If they had,
there would have been less duplica-
ton of these aims announced II
months later. The sterling area coun-
tries admitted as much, in fact, when
they said that development of the
basic essentials has on occasion been
impeded by other development of a
less sound and permanent kind, which
has overtaxed the countries re-
sources" And, as the London Times
said, the weakness of past perform
ance was further betrayed by lack of
any specific promises of sacrifice by
any commonwealth country. sacrifice
of ."even one of its follies, whether it
were housing program or a Sec
ondary industry"
The main value of the conference.
probably, was as large propaganda
forum, where the need for frugality
and perseverance in reconstruction
could be impressed on sterling areas,
and where the rest of the world could
be convinced of the commonwealth's
willingness to do its share in expand
ing world trade.
If the past is any criterion, the
sterling area-and the rest of the
world-will need another such pep
rally about. year from now.