U.S. TERMS FOR LOAN TO RUSSIA

Gisborne Herald, Volume LXXIII, Issue 21961, 4 March 1946, Page 3

U.S. TERMS FOR LOAN TO RUSSIA

NO TRADE BLOCS EUROPE_OR ASIA REMOVAL OF BARRIERS FIVE MAIN CONDITIONS (10 a.m.) NEW YORK, Mar. 3. The Wall Street Journal’s correspondent in "Washington says the United States is reported to have informed Russia that a loan will be made only if Ihe Russians are willing to reverse their effort for a selfcontained enonomic bloc in East Europe and Asia. In other words, Russia will be required to join the International Monetary Fund and Bank and also adhere to ihe United States proposals for minimising international trade barriers.

This means that Russia would also be required, first, to disclose her figures on gold and exchange holdings, secondly, reveal details of foreign trade: thirdly, stabilise the rouble instead of setting arbitarary values to obtain advantages, in Balkan trade, fourthly, release satellites from trade arrangements which, directly or indirectly, preclude them from trading outside the Russian sphere. State Department officials indicate that there is some room for compromise but not much. They may be willing to allow Russia special trade relationships with countries on her border but Russia would require to renounce any hope of doing in Germany, Czechoslovakia, Turkey and the Middle East what she has done in the Balkans. The State Department recently asked to see the Balkan agreements to ascertain whether they are incompatible with the United States trade proposals. The officials question whether the countries whose industries and agriculture are so similar will be able to manage without things customarily bought, from Britain and the United States.