AMERICAN POLICY IN EUROPE

Press, Volume LXXXIV, Issue 25427, 25 February 1948, Page 7

AMERICAN POLICY IN EUROPE

“Economic Pressure By Washington” CHARGES MADE BY MR WALLACE (N.Z. Press Association—Copyright) (Rec. 9 p.m.) WASHINGTON, Feb. 23. The nationalisation of the British steel industry had been indefinitely postponed under pressure from the United States,' said Mr Henry Wallace to-day. Mr Wallace, a candidate for the Presidency in 1948, was testifying on the Marshall Plan before the House Foreign Affairs Committee.

He said that under pressure from Washington the French programme for the nationalisation of basic industries had been abandpned, as the French Government “moves steadily towards reaction in payment for food and fuel hand-outs.”

Mr Wallace, attacking the Marshall Plan, said: “Nowhere in Europe have large-scale American credits been advanced to finance projects of nationalisation. Yet millions have been advanced to Greek shipowners and leading Italian monopolies—Fiat, Monteratini, Pirelli.

‘‘The breakdown of Europe’s foreign trade controls as a result of State Department pressure has made it necessary for the western European countries to buy at high prices and sell at relatively low prices. In return -for dollars they have been forced io admit imports of non-essential goods and expose their weak industries to the inroads of American monopolies.

“State Department representatives at the International Trade Organisation conference at Havana have threatened unrestrained economic warfare against countries which refuse to eliminate import quotas. At the same time the Administration reserves the right to unlimited freedom of action for itself —it maintains special quotas and embargoes on many important products, and in spite of the Geneva agreements it continues high tariffs in speciality products that are significant in European exports to the United States.”

Mr Wallace contended that as a result of American policy western European governments were weakening price controls and rationing and “were moving toward a wage freeze advocated for the United States by President Truman and Mr Baruch.” - Policy in China

In Detroit Senator Robert Taft, a contender for nomination as Republican candidate for the Presidency, also criticised General Marshall—for his China policy. Speaking at the Detroit Economic Club, Senator Taft said: “The truth is that General Marshall does not like the Chinese and has no interest in their problems. He has been unwillingly forced into proposing the China relief programme. The Far East is ultimately even more important to our future peace than is Europe-”