Evening star., 1953-03-08

flculties appeared in the
1930s. World War II set
Britain back again. She
has recovered from most
immediate effects of the war.
but her economic troubles con-
tinue to pile up. So for the
basic causes one must look
further than wartime disloca-
tions.
The Analysis
An analysis of Britain's
plight by the Committee for
Economic Development fixes
the causes this way:
An industrialized island,
Britain is dependent on world
trade for her prosperity. She
therefore is extremely sensi-
tive to changes in world econ
omies and politics. Since the
turn Of the century Britain's
dominating position in world
trade has changed. New COM
petition has sprung up all over
the world. Tariffs and trade
restrictions have made it more
difficult and less profitable to
sell abroad.
In the face of these chang
ing conditions, Britain's econ
omy has proved to be too
inflexible. Her businessmen
try to operate much as they
did in the happier 10Th CEN
tury.
This inflexibility is not the
result of sheer Stubbornness.
Foreign trade risks are high,
and profits are low. Taxes are
up, and labor gets a larger
share of the gross. War,
threats of war and imitation :
have made it harder for Brit
ain to adapt to world changes.
A British businessman cannot
be blamed for refusing to stick
his neck out.
Consequently Britain has
been earning less than she
should to pay for the standard
of living and defense she Is
struggling to maintain.
Series Of Emergencies
Since the war. one emer-
gency after another has pre-
occupied the planners in Brit
ain. There has been little
chance to get at the roots of
the troubles. But late last year
the opportunity arose for long
range planning. Representa-
tives of all commonwealth
countries met to look for a
way out of the wilderness.
They worked out a complex
program which the British
explained in Washington last
week. The program is global
in sweep. It asks sacrifice and
cooperation from the princi-
pal trading nations Of the free
world.
First of all, Britain and all
the commonwealth nations
would take drastic steps where
needed to live within their
incomes and to strengthen
and stabilize their fiscal po-
sitions. America would be
asked to liberalize its foreign
trade policies and contribute
to a dollar-sterling stabiliza-
ton fund. Europe would be
urged to cooperate in free
ing trade.
Hint Of U. S. Role
Details of the program have
not been made public. But as
an indication of Americas
proposed role, Mr.. Eden said
last week he liked the recon-
mendations made by the Com
mittee for Economic Develop
ment, a research organization
financed by American buSi-
nessmen, and the Bell Com
mission report to President
Eisenhower on foreign policy.
Both groups suggested drastic
cuts in import restrictions and
assurances to Britain and Eu-
rope Of wider, steadier markets.
Mr.. Eden is not asking for r
a yes or no to the plan on
this trip. He could not get a
final answer even if he wanted
it. His proposals are too COM
plex and their implications too
broad to be digested in few
brief meetings. And the EiSen-
hover administration is too
new on the job to have formu-
lated all the details of its own
policy.
So Mr.. Eden, the Chancellor
of the EXchequer, r. A. Butler.
and a host of lesser experts
spent last week explaining
their program while Secretary
of State Dulles and Secretary
of the Treasury Humphrey
and a host of American ex-
pertS-liStened.
The last conference was held
yesterday.
After the final meeting, it
was announced that Britain
will help impose a stronger
blockade on Red China. The
fact that the British have been
trading with Macs country has
long been bone of contention
between the United States and
Britain. This was supposed to
be a voluntary British move.
But to many people it looked
like the "quid" for Americas
quo"