BITTER DEBATE U.S.A. v. BRITAIN ON STERLING

Grey River Argus, 24 August 1949, Page 5

BITTER DEBATE U.S.A. v. BRITAIN ON STERLING

Alarm Expressed In Some Papers Rec. 9.55) NEW YORK, Aug. 22 Alarm was expressed in a section of the press and in official circles in Washington to-day over the bitterness of the AngloAmerican recriminations in the current debate between the press of the two countries over the responsibility for Britain’s crucial dollar shortage.

No international conference since the war had been preceded by such publicly expressed criticism of each other by the British and American press as that now, heralding the Bri-tish-Canadian - American financial talks, opening in Washington on September 7. The sharp tones of Mr Emanuel Shinwell’s protest in England, and a widely reprinted “Sunday Pictorial leader which America gave rise to a number of leading articles in the. American press, pointing out that such international bickering is endangering talks. The "Baltimore Sun” said: "Nothing is to be gained by the ■ exchange of recriminations. It added: The relationship between debtor and creditor is bound to be strained. The newspaper acknoweldged that the aid to Britain has been given primarily with ultimate benefit to the United States. It added: “That does not mean, however, that ouy own qualified representatives should withhold reasoned criticism of the present financial policy of the British Government. In a matter on which we are so seriously concerned, we surely have both the right and duty to offer 'suggestions and advice, provided that always it is done in a friendly manner.” The Washington Star wrote: “Now that the British press—both Labourite and Conservative —has, • understandably, struck back at extremists among us who delight in, twisting the lion’s tail, all of the parties involved ought to cease fire long enough to rpull over the fact that, this AngloAmerican family quarrel will, benefit nobody but the Russians, if it is allowed'to go from bad. to worse, generating heat and ill-will, rather than light and co-operation.” “The Star” added that Britons and Americans must remember above all, that they needed each other. The whole effort to safeguard, a free Western world could end only in catasrophic failure unless the two countries stuck together in the closest possible relationship. Short of that the Kremlin was likely to win the game. The New York "Wall Street Journal,” which has opposed as hopeless the American plans to revive Britain with dollars, so long as she had a planned economy, said to-day that the continuation of that policy would be foolhardy as well. This newspaper, which generally reflects the views of American big business, devoted a three thousand word leading article to the talks in Washington. The journal said: "The Washington official view is that the! weakening of Britain is the weakening of one of the pillars whereon rests the American political economic policy towards Europe. The primary purpose of the British negotiators will be different. First in their minds is a continuation in office of the present British Government. Other considerations are secondary, and, if AngloAmerican co-operation has been sacrificed to their ambition to continue in power, the sacrifice will be made.” The Journal added: "There is a growing sentiment .in Washington not to give the British any further substantial aid until the British have taken further steps to correct their situation. However, there, is also sentiment for further aid without stiff conditions, and it would seem that the idea is still in the ascendancy within the Administration. What really is threatened with collapse is not Britain; it is the collapse of a socialist structure, which is misusing thp great intelligence of the British nation”. Senator James Kern (Republican, Missouri) said in a speech m the Senate to-day that the United States should require Britain to abandon her "wasteful experiment in socialism before spoon-feeding any more economic soothing syrup to the people of Britain.” Mr Kern said American officials should tell Mr Bevin and Sir Stafford Cripps during the forthcoming talks to put their house in order. He added that the British proposals for relief of the dollar shortage would represent means “to tap the American Treasury for more billions to prop up the tottering socialistic economy in Britain”. Mr Kem continued: “If I had my way, I would say to Mr Bevin and Sir Stafford Cripps: ‘Not another dollar for British socialism—not another dime of the American taxpayers’ money until you take measures to help yourselves. We have done our part. We stand on record. But the evidence shows you have not lone your part’.” He added: “All signs indicate that British management is dead on its feet, and British labour is working no harder than absolutely necessary”.

Mr Kem suggested that Britain should devalue the pound sterling and repudiate her bilateral trade agreements, such as that signed with Argentina, “which”, he said, “shut off th e competition of free American enterprise in the markets of the world”.