AMERICAN “SACRIFICE”

Otago Daily Times, Issue 26772, 15 May 1948, Page 7

AMERICAN “SACRIFICE”

EXPORTS TO EUROPE. UNDER MARSHALL PLAN MR HARRIMAN’S WARNING Rec. 9 p.m. LONDON, May 14. Mr Averell Harriman, the United States Special Ambassador for the European Recovery Programme, said at a press conference in London last night that there was no question of American goods in Europe, any intention of dumping surplus By and large it would be a sacrifice for the United States to provide the exports required to carry out the programme, he said. The United States would have to export agricultural machinery, for instance, of which she had a great need. There was a basic scarcity of steel in the United States and in the world generally. The European Recovery Programme, he added, did not mean that trade between Eastern and AVestern Europe would cease. On the contrary, it was of much value. Western Europe needed grain, timber and coal, and in exchange for them Eastern Europe would have to receive supplies of machinery. “ Britons Disturbed ” The London correspondent of the New York Times, reporting on the interview, said that Mr liarriman's statement that the United States was considering its policy toward the sterling area with regard to the European Recovery Programme, clearly disturbed representatives of the British financial press present at the interview. “ There has been much talk in London that certain quarters in Washington desire to weaken, or even break up, the sterling area,” says 'he correspondent. “Those fears will now be intensified, although Mr Harriman did say there had been no formulation of American policy yet. “ It frightens Britons to think that a policy on the subject is contemplated, and reporters tried to pin Mr Harriman down specifically on items of trade with the British dominions. He denied that Commonwealth nations’ trade would be interfered with, although he said the United States felt that the dominions, like other countries, should contribute an equitable share to European recovery.”