SECRET INQUIRY

Gisborne Herald, Volume LXXIV, Issue 22440, 22 September 1947, Page 5

SECRET INQUIRY

STATE CONGRESS_COMMITTEE EUROPE'S DOLLAR NEEDS (10 a.m.) WASHINGTON, jSept. 21. The influential Senate Appropriations Committee yesterday called in officials of the State and Treasury Departments to testify in secret session on Britain’s ability to carry on in her present economic crisis. The Senators were warned that the United States Army would need an additional 500,000,000 dollars to continue upkeep in the occupation areas if the British were unable to sustain their present 50-50 share of German bizonal costs. The Treasury and State Department experts also submitted figures on the European economic situation.

This is the first'.time that Congressmen have entered directly into official discussions here regarding European dollar famine and Britain’s own difficulties since the loan was frozen last month.

A new scheme for cushioning the inflationary impact of any European relief programme which may be adopted is being studied by the Administration, says the Wall Street Journal’s correspondent in Washington. Its aim is to draw from other nonEuropean countries more of the food needed to tide Europe over the coming winter Supporters of the plain hopefully eye Argentina. Brazil. Canada and Australia as suppliers of more goods if they are aided with United States dollars. Supporters see the following advantages: First, it would reduce some of the price pressure on United States domestic markets; secondly, it would spread United States dollars among foreign nations which are short of “hard money”; thirdly, as dollars are spent by the United States for food, other purchases would subsequently be respent in United States exports not directly affected by the foreign relief programme.