Marshall Plan Details

Northern Advocate, 15 January 1948, Page 5

Marshall Plan Details

WASHINGTON, Thu. 1 p.m.).—lssuing new details of the Marshall Plan today, the State Department forecast that food, clothing and petrol rationing would continue in Britain during and after completion of the European recovery programme on June' 30, 1952. The department warned that Britain’s gold and dollar resources—now approximately • $2,000,000,000 —would dwindle to 81,000,000,000 by the end of 1948, and that large dollar deficits would continue for several years. BALANCE IN 1952 However, it was expected that Britain’s overseas payments would approximately balance by 1952, and domestic economy would set on a steady course. Emphasising the importance of Britain’s recovery to the United States, the department pointed out that further deterioration in British domes'ic economy might well have serious consequences for the United States. The department’s data covered export and import production and the political prospects of each country, also Western Germany, due to benefit under the Marshall plan. . GRANTS TO BRITAIN

The document did not disclose exactly what sums and in what forms American funds would be - allocated, but the United States Ambassador to Britain (Mr Lewis Douglas) said today that Britain was due to receive approximately $2,000,000,000 in the first 15 months, mostly in outright grants. The Department disclosed that it had tentatively decided to apportion money thus: Outright grants: Greece and Austria. Partly grants and partly credits: Britain. France, Italy, the Netherlands, Luxembourg. Denmark and Iceland. * Loans only: Eire, Sweden and Norway. Countries expected to pay for goods in cash: Switzerland, Portugal and Turkey. DEVALUATION OF STERLING? The department hinted at a possible devaluation of sterling when it declared: “If, in future, the British Government should become convinced that sterling is an over-valued currency and that the present exchange rate is permanently and adversely affecting the balance of payments, or is otherwise causing serious difficulties, Britain will probably seek to make required adjustments in the exchange rate, in cooperation with the International Monetary Fund.” The document emphasised the importance of the Dominions and the Colonies in helping eventually to achieve a satisfactory balance of payments. RAW MATERIALS SOURCES They would likewise be the primary source from which the United States would be able to obtain, for stockpiling purposes, raw materials required as a result of deficiencies, or potential deficiencies in the United States’ own natural resources. The anticipated expansion of production of such materials should increase the net dollar earnings of the Dominions and Colonies during the recovery-programme period.