Loss Of Economic Freedom- Eastern States Hitched To Soviet Chariot

Greymouth Evening Star, 16 October 1948, Page 5

Loss Of Economic FreedomEastern States Hitched To Soviet Chariot

(Recd. 10.15 a.m.) PARIS, Oct. 15. Addressing the United Nations Economic Committee, the Secretary to the British Treasury, Mr William Glenvill Hall, defended the Marshall Plan, He declared the Soviet was “deliberately harnessing” the economics of the Eastern European States. He denied that the sovereignty of the Western European nations had been infringed by “American imperialism.” He said their sovereignty had been strengthened. “They are being given real and practical help in recovering their vitality and full economic strength.”

Giving the committee “a few facts about what is going on in Eastern Europe,” Mr Hall said it was clear the economies of the countries there were being deliberately harnessed to serve the economic interests of the Soviet.

Soviet Procedure

Mr Hall said the following procedure was used: “A ban is placed on Eastern European countries co-oper-ating in the Marshall Plan. Trade agreements are negotiated on unequal terms.' Soviet economists and technicians are placed in key posts and great industrial combines are formed under Soviet control.” Russian interests and control were assured a preponderance over those of Rumania and Hungary. Mr Hall said that similar or slightly different methods of economic penetration were being used in Austria, Manchuria and the Soviet zone of Germany. He added that the Soviet trade agreement with Poland showed that the Soviet, and not Poland, would draw up plans for the steel, chemical, cement and light metal

plants which are to be established with Soviet aid.

“A Bad Day” “It would be a bad day for Western Europe if we surrendered our economic sovereignty to a degree comparable to the loss of economic freedom suffered by the countries of Eastern Europe,” Mr Hall said. He denied the Soviet charges that America was working for the continued dependence of Europe upon America by exporting consumer goods instead ol capital equipment to Europe. He said that Britain was exporting to Europe almost as much capital equipment as America, but Britain could not produce-all the food or raw materials she needed. Mr Hall said he regretted that Russia believed the Marshall Plan was being used to create a barrier between East and West Europe. He gave the following as the achievements of European co-operation: — 1. An Inter-European payments system was being created which would release £.125,000,000 worth, ot goods for European trade. 2. A long-term plan was being drawn up by which member countries Would establish viability. 3. The task of making division of American aid for 1948-49 was almostcompleted. Without this aid recovery would not be economically possible. . , . Mr Hall said that since the end of the war Britain had lent some £500,000.000 to participating countries. It was estimated that the supplies of oil to these countries this year would reach 13,000,000 tons. Britain was exporting machinery to Europe at the rate of nearly 270,000 tons yearly.