“HARD-HEADED ATTITUDE”

Press, Volume LXXXIII, Issue 25269, 22 August 1947, Page 7

“HARD-HEADED ATTITUDE”

AMERICAN DEMAND FOR. FACTS COMMENT BY BRITISH CORRESPONDENTS (Rec. 7 p.m.) LONDON, August 20. The “News Chronicle” correspondent in New York says the Americans want to know in detail whether the dollar loan has been handled with the maximum wisdom, whether Britain could have produced more for export (particularly coal), and thus drawn less upon the loan, and whether Britain’s new austerity programme is stringent enough to make a substantial difference to the position. “Although this hard-headed attitude exists in American official and industrial circles,” says the “Daily Herald” Washington correspondent, “two articles in the ‘New York Herald-Tri-bune’ have helped to put before the American public a number of facts about Britain’s position which they had not hitherto realised.

“A well-known economist, Mr George Soule, in one article says the United States is not being asked to subsidise a shattered industrial system ruined by Socialist experiments, as many Americans suppose. Britain, he says, is turning out more steel than ever before in her history, has doubled her shipbuilding output, and has broken records in car manufacturing, rayon, and many other industries. Moreover, he points out that there is no unemployment in Britain, industrial disputes are few, and „the Budget shows a substantial surplus. He reminds Americans thqt much of Britain’s dollar drain is due to her efforts to help in feeding Ger>many, and that her overall position is due to her exertions during the war. “Much of this is still news to Americans,” comments the correspondent. “Mounting Pessimism” The Washington correspondent of the “Daily Telegraph” says: “There is mounting pessimism on both sides about the future of the Washington talks. The Americans argue that if relaxation of the convertibility clause had beep demanded nine months ago ‘there might have been some sense in it,’ but that matters have been allowed to drift so long that relaxation at this stage cannot achieve very much. “The Americans consider that even the amount of Britain’s credit still remaining (£212,500,000) must now be considered largely pledged to convertibility obligations. They cannot believe, in view of this position, that the British Government considers that relaxation of the convertibility clause at this stage will materially assist it. “Informed circles in Washington assert that last May financial advisers pressed the British Government to face up to the realities of Britain’s economic situation. Effective action could then have been taken, but as a result of what is regarded as the Government’s ‘cowardice and indecision’ nothing definite was done, and matters were allowed to drift into the present crisis. “Washington circles assert that a suitable plan for meeting Britain’s difficulties was actually prepared for delivery by Mr Attlee, but pressure by individual ..linisters so whittled it

down that the announcement ‘went off at half cock.’

“Americans are surprised to find that Sir Wilfred Eady arrived without specific plans, but merely general proposals for liberalising the loan agreement. His exposition of Britain’s present position was merely telling the Americans something they knew already.”

“Nothing Surprising” The “Yorkshire Post” says: “Though the situation is galling to Britain, there is nothing surprising in the hardheaded American attitude.” It points out that if the Americans do attach stringent conditions to any new assistance there is nothing unusual in this. Some of the loans granted under the League of Nations auspices between the wars contained extremely stringent conditions. The “News Chronicle” says: “Britain might as well admit that the Americans are perfectly entitled to ask where their money is going, and if it is likely to achieve anything more than the first instalment. Americans must realise, however, that no British Government would yield to foreign pressure on matters of domestic policy. If the Americans were unwise enough to make such a suggestion, the nation-wide reaction would be to' face the music without American aid, whatever the consequences.” $