ECONOMIC POLICY

New Zealand Herald, Volume 81, Issue 25013, 2 October 1944, Page 6

ECONOMIC POLICY

GERMANY'S FUTURE PLANS IN UNITED STATES (Reed. 5.35 p.m.) WASHINGTON. Sept. 30 President Roosevelt, in a letter sent to the Foreign Economic Administrator, Mr Leo Crowley, outlining major policies regarding postwar Germany, said that the following policies should be made effective by the Foreign Economic Administration within the scope of its present functions and responsibilities when military resistance in Germany has been overcome

(1) Export control: With a view to encouraging private trade and without interfering with the successful prosecution of the war against Japan, the Foreign Economic Administration should relax export controls compatible with American war objectives, particularly the defeating of Japan most quickly and as effectively as possible. International trade on as full and free a basis as possible is necessary not only as a sound economic foundation for future peace, but in order that we may have full production and employment at home. The Government should assist, to any extent necessary, tho high level of international trade bv _ returning international commerce to private lanes as rapidly a.s possible. Use of Raw Materials (2) Strategical, critical raw materials: In view of the curtailment of American war production, after tho German phase of the war the Foreign Economic Administration should consult_ supply agencies with a view to making the appropriate cut in the foreign procurement programme for strategic, critical materials. This adjustment should be made in order to _ prevent undue and unnecessary financial losses to the American taxpayers, to best preserve foreign relations and strengthen _ the foundation for high level, international trade in the future. (.'I) Preclusive buving: Mr Crowley said the peak of the F.E.A. preclusive buying had already passed as a result of the United Nations' victories, and F.E.A. should continue to take all necessary steps to prevent Japan getting strategic, critical materials, but should limit preclusive buying to achieving that end.; War Against Japan

(4) Economic warfare: F.E.A. studies of tlio enemy's war potential and other phases of economic warfare should be reduced and focused on the war against Japan. (o) Lend-lease: Until the complete defeat of Japan and Germany the flow of lend-lease aid should be continued in amounts necessary to enablo the combined strength of all the United Nations to defeat the common enemies most quickly and with the least loss of life. (6) Surplus property: Americans should continue to see that no unnecessary'surpluses develop out of F.E.A. procurement for lend-lease, Unrra or other purposes. (7) Control the war-making power of Germany: The work of studying from an economic standpoint what should be done in Germany to control its power and capacity to make war in the future must be accelerated so that Germany does not become a menace again to succeeding generations. Foreign Trade in the Future

(8) Reconstruction and future foreign trade: It is in the national interest of the United States, also the joint interest of the United States and other peaceloving nations, that the destruction of war be repaired and foundations for secure peace be laid. Any marked improvement in the economic well-being of the United States will aid materially in the building of the durable peace. Mr Roosevelt told his press conference that reports of a Cabinet split over the Morgenthau plan to deindustrialise Germany were newspaper stories and essentially untrue in their basic facts. He added that he did not expect, any further meetings of the Cabinet post-war sub-committee, Messrs. Stimson, Hull and Morgenthau.

The Associated Press says the letter to Mr Crowley put the job of rendering Germany harmless after the war under the State Department guidance, and adds that while the letter covered non-German subjects in eight points, it was apparently an outgrowth of the above-mentioned Cabinet split.

FUTURE SECURITY USEFUL CONVERSATIONS DUMBARTON OAKS PROGRESS WASHINGTON, Sept. 30 "Conversations between the British, American and Russian delegations in Washington regarding the establishment of a world security organisation have been completed," says a joint statement from Dumbarton Oaks. "These conversations have been most useful and have led to a large measure of agreement on recommendations for the general framework of the organisation, particularly for the machinery required to maintain peace and security. The three delegations are reporting to their respective Governments, which will consider the reports and in due course issue a simultaneous statement." The United States Under-Secretary of State, Mr E. R. Stettinius, in his closing speech, snid: "We have every reason for satisfaction with what has been accomplished. We have developed a wide area of agreement on fundamental and necessary principles for an international organisation to maintain peace and security." The Russian Ambassador and leader of the Soviet delegation, M. Gromikov, expressed his appreciation of the friendly atmosphere, and said that the conversations wore undoubtedly useful.

The British leader, Sir Alexander Cadogan, said: "We sometimes found ourselves in disagreement, but we believe we have disagreed amiably and reasonably. Each of us at some time was in opposition to the other two delegations, but even if wo considered tiie views of the other two peculiar, we recognised that they were sincerely held, and were, therefore, worthy of respect. I believe this is a good augury for the future."

AMERICANS ON PELEWS TWO MORE ISLANDS TAKEN (Bocd. 5.35 p.m.) WASHINGTON, Sept. 30 United States marines who landed on Ngesebus and Kingauru Islands, north of l'eleliu, Pelew Group, have secured both islands, says a Pacific Fleet communique. Enemy troops cornered in caves on Umorbroggal hill, Poletiu, are still offering bitter resistance. Mopping up operations are proceeding in the northern sector of Pole]iu and on Angaur Island. Our troops counted 8717 dead on Peleliu and 1055 on Angaur. Over 150 prisoners have been taken. Corsair* scored numerous direct hits on landing strips on Babelthruap Island.

Liberators flew over Truk in search of enemy shipping attempting to supply the isolated garrison, but no shipping was found and the bombs were dropped on installations still remaining.

PLACE FOR TRADE UNIONS (Reed. 5.35 p.m.) LONDON. Sept. 30

The trade unions should he represented at the peace talks when Germany was defeated, said the general secretary of the Trades Union Congress, Sir Walter Citrine, according to the Paris correspondent of the Associated Press. Sir Walter, who is also president of the Internationa] Federation of Trades Unions, went to Paris to assist in the reconstruction of the French trade unions*