EUROPE DEPENDS ON U.S. MONEY AND GOODS

Grey River Argus, 21 May 1947, Page 5

EUROPE DEPENDS ON U.S. MONEY AND GOODS

Dollar Grants Being Spent Rapidly WASHINGTON, May 19.. The Under-Secretary for Economic Affairs (Mr William Clayton) has returned from Geneva for consultations. He has an urgent appreciation of the fact that many countries' are using up their dollars so fast that a ’ famine” of them is imninent. Such a famine, particularly in Britain's case, could strangle at birth any long-term benefits derivable from' the international trade charter now being discussed at Geneva. ft is stated unofficially in Washington that the dstribution of as much a- 5,000.000,000 dollars annually for the next five years by loans, grants, fend-lease or some other device would he necessary to avert chaos in many areas, and to re-establish war-torn economies and genuine free trade.

Among problems facing the Truman administration are, firstly, where Is the money coming from, and secondly, how can Congress be persuaded to act? The State Department is intensively studying European and Asiatic financial conditions with the ■object of preventing a world monetary crisis. Mr Clayton will return to Geneva in a tortnight, after discussing the world economic situation with the Secretary of State (General Marshall) and th? Under-Secretary (Mr Acheson).