SPANNER IN WORKS

Evening Star, Issue 25942, 6 November 1946, Page 7

SPANNER IN WORKS

America's Return to "Dollar Diplomacy" World-wide Repercussions Britain Likely to be Greatest Sufferer (From A. W. Mitchell, N.Z.P.Ai Spl.'por.) (Rec. 11 a.m.) LONDON, Noverhber 5. A note of deep concern is being expressed in Britaiii at the American decision to abolish’price controls on food, her hostility to the proposed world food board, and the announcement that her Ministry of Agriculture will not buy food for foreign Governments in future. It is believed here that unless America reconsiders and changes her policy, it will have worldwide repercussions, bringing in their train near-starva-tion in many countries, with definite political unsettletnenl. Mr Bevin, who ever since the war has maintained that adequate world food supplies are one of the most important necessities towards rebuilding peace, is expected to raise the matter with President Truman as a matter of urgency. With the lifting of American price controls, the British and other Governments will have to bid against - each other for supplies in the American market as well as against American buyers. It is anticipated that prices will inevitably be forced up.

"While Britain, with her long-term hulk purchase' agreements with Australia, New Zealand, Canada, 1 and the Argentine, has the majority of her supplies protected, she has other responsibilities. They are to the British sone in Germany, to India, and to the British colonies in the FnivEast. Unrra supplies to South-eastern and Eastern European countries come to an end in' December. These and other eastern countries will also be obliged to join in-what may become a scramble for food . The arrangements made, with America by Britain for equalising rations in. thß British and American zones in Germany are believed ! to have collapsed. In any cate,-'

there is no equality of'rations in the two J areas, and supplies for the* British zone are,welt behind schedule; Britain has no reserves, and there is a possibility that the . ‘rations in Germany may have to '.be reduced this .winter. From India it is reported that the threat of a food problem is far woree than last winter. Yet Japan is stated to be receiving four times as much cereals from America as India and eight times as much ae Italy. Greece at the present time has a low ration. Since the end of the war she J has largely depended oh Unrra supplies, and she will require substantial imports even to maintain the present positiou.

Some Bitter Comments

All .these facts have caused serious misgivings in Britain about. the general situation. In addition, America's :deoision to reverse suddenly Her .policy towards the world food board has shocked the Country and caused some bitter comments, It is pointed out that barely a month ago America, fully supported the aims of Sir John; Bovd Orr, at Copenhagen, for the world food board preparatory commission to! work out machinery to establish fair prides for farmers arid * consumersJlnd td. prevent ilumpsi'arid” abolish famine. Now, she has apparently overthrown such "an idea of international planning, British Left-wing comment is particularly , outspoken. on ; America’s action. It charges her with “ a mad rush back to purely selfish Capitalism ” and apparently deciding to walk out

of “ functional ” internationalism “ just as she walked out of the League of Nations after the First World War.” Dollar diplomacy is said to be triumphant. . • By declaring the Orr plan unworkable and preferring commercial methods and direct negotiations between Governments it is also being said that America is pandering to food gamblers, big . capitalists, farmers, and wheat and produce operators. It is also i alleged that America is making > foodstuffs a political anch trade- ”■ bargaining r counter, with the British people the greatest sufferers,, \ ■ ' ' ; The outcome of Mr Bevin’s talk with President Truman and the meetings of the preparatory commission for a world food board are being anxiously awaited. v. ■