THE NEW EUROPE

Evening Star, Issue 25714, 11 February 1946, Page 6

THE NEW EUROPE

• HAND OF THE SOVIET ECONOMIC DIFFICULTIES CREATED <Rec. 8 a.m.) WASHINGTON, February 10. A picture of East Europe, from Finland through the Balkans, tied fast to Russia in economic agreements precluding the rest of the world from substantial multilateral trade with the area is given in the second report by the Special House Committee on postwar economic policy which toured Europe last year. The report suggests that in return for American credits the Soviet might be required to alter its trade relations with neighbouring countries. The committee's findings regarding Russia include : (1) In all countries under Russian control a considerable part of the economic difficulties can be removed by the withdrawal of large occupation forces which live on the country. (2) The United States authorities, as parties to the Potsdam agreement, appear to have conceded that the seizing of tangible property belonging to Americans is part of the reparations settlement. It is not clear what remedy, if any, is open to American property holders beyond entering claims in a totally unrealistic struggle to force reparations from Germany after plants and other direct reparations have gone to Russia and France. The committee recommends that Congress study the problem. (3) In contrast to the United States the Soviet generally is in an excellent position so far as indebtedness is concerned, owing to its having paid for the war very largely from current income and the people's sacrifices. A Harvard professor, Mr Edward Mason, analysing the post-war trade problems, points out that the Soviet economic belt interferes with the area formerly in the British trade orbit, but by replacing Germany as an exporter Britain might make up more than she has lost. If, however, the tug-of-war between the east and west splits Germany, the subsequent integration of Western Germany into Western Europe's economy will involve consequences for Britain's trade which will defy prediction.