WASHINGTON CONFERENCE
VITAL MATTERS TO DISCUSS BRITAIN AND AMERICA SOME CONTENTIOUS ISSUES President Truman’s latest exposition of United States policy must be studied in relation .to the vital conference with Britain at Washington next month to discuss economic problems. There is in Britain a certain pessimism in anticipation of the conference, and regret that Mr John Snyder, a banker and Secretary to the Treasury, should preside at the-conference instead of the Secretary of State, Mr Dean Acheson. Britain regards the problem as politico-economic rather than a matter of banking. . -
Mr Truman’s speech has, however, restored confidence to some extent. The general tenor of his address was that the United States could succeed in its aims only in co-operation with Britain and the European nations; that American isolation had been discarded as a “futile and vulnerable shield.” This acceptance of the necessity of co-operation suggests that the United States will endeavour to strengthen Britain and western Europe economically and militarily. In the light of recent events the question arises how far Mr Trunan can switife the American Congress and people to his way of thinking. Special emphasis was placed by Mr Truman on the military preparedness aspect. He warned that European economic recovery would lag if a haunting .fear of military aggression were widespread. Here was an obvious expression of regret that the House of Representatives last week had reduced the military aid grant to Europe against his wishes. If protection against aggression were assured, economic recovery would move forward more rapidly. Sound economic recovery a*nd military defence must be carried forward together in balance. “And that, is exactly what we propose to do,” Mr Truman added. Theoretically the policy of cooperation flows smoothly, but when representatives of Britain and the United States come together in conference on ways and means certain difficulties obtrude. First and perhaps most important, a free enterprise system collides with a Socialist economy. There is a serious handicap before the discussions begin. Many Americans declare that in giving economic assistance to Britain they are being asked to “finance Socialism,” and to this they object. They point to huge expenditures in Britain in furtherance of political policy when economic survival is the burning question. No indication has been given of the specific subjects to be discusged by the Washington conference. Devaluation of sterling may be one; American investments abroad another. America will be asked to accept more British goods, and Britain will be advised that she must produce goods at competitive prices. There may be a decision that the United States wHI increase its stocks of good** from the sterling area; but this would afford only temporary relief. Senator K. Wherry (Republican) has said challengingly: “When Britain wins world markets through efficiency, quality and competitive prices her dollar shortage will disappear.” The question is whether in the circumstances it is .physically possible for Britain to fslfil that condition in time to save the situation.
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Waihi Daily Telegraph, Volume XLIX, Issue 9593, 26 August 1949, Page 2
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487WASHINGTON CONFERENCE Waihi Daily Telegraph, Volume XLIX, Issue 9593, 26 August 1949, Page 2
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