MARSHALL AID TO BRITAIN

Press, Volume LXXXVI, Issue 26264, 8 November 1950, Page 7

MARSHALL AID TO BRITAIN

Review Discussions To Begin Soon (Special Correspondent N.Z P.A.) (Rec. 8 p.m.) LONDON, Nov. 7. The review of Britain’s current and future need for Marshall Aid, which Mr Attlee announced last week in the House of Commons, will begin fn London within the next few days. British officials and members of the Economic Co-operation Administration in London have been waiting ior the arrival of the new head of the E.C.A. mission, Mr William L. Batt, who will lead the American delegation.

The Chancellor of the Exchequer tMr Hugh Gaitskell) will conduct the negotiations for Britain. ‘The limes” says that the size of the problem is limited by the amount of appropriations to Europe for 195051. which is approximately 2500,000,000 dollars. “No direct allocations to individual countries have so far been made out of this sum,” says “The Times.” "But allotments of Marshall dollars since July 1 have been made broadly in accordance with the formula of distribution used in 1949-50, and it has been generally understood that the American authorities intended to continue using the formula for the rest of the year.

"On this basis Britain might receive direct aid of between 400.000.000 and 500,000,000 dollars during the year ended June 30. 1951."

The New York "Herald-Tribune” suggests that the British Government has resigned itself to early substantial reductions in aid, but at thb same time the Government hopes that Marshall Aid cuts may be replaced by dollars for the rearmament programme.

"The Washington talk of Marshall Aid suspension had the British Government deeply worried, and on this point it was prepared to protest strongly. The British attitude seems to be agreement with a cut but objection to suspension. "Although the sterling area’s gold and dollar position has improved, British financial experts argue that the reserves figure, while the highest since the war, is by no means substantial in terms of purchasing power because of rising world prices. They believe that any sharp upheaval in the world economic situation would quickly dissipate the reserves of the sterling area.”