BRITISH BURDEN FAR FROM EASED

Chronicle (Levin), 5 December 1946, Page 6

BRITISH BURDEN FAR FROM EASED

lleceived Wcdnesdav, 7 p.m. LONDOX, Dec. 3. The British- Ainerican zone fusion will mean that Britons, in the next few months, will be denied any improvement in tlie austerity diet on which they at present are living, says the Press Association and Excliange Telegraph political corresiiondents. Britain will proliably ha\ e to bear well over half her £125,000,000 commitment next year liel'ore European harvests begin to ease the food situation in Germany. Meantinie most of the food will be for Germany. They will have to curtail dollar purchases of tinned fruits, canned meat and otlier trimmings which helped to add variety to the British diet. The correspondents add that the £S0,0()0,000 which the British taxpayer has been paying annually to maintaiu the British zone, will not continue. In addition to the new coniinitment of £125, 000, 000 spread over three years, the joint zone will in future be rosponsible for providing foodstuffs and medical • supplies which rcpresented about two-thirds of tlie annual British expenditure of their zoue. Ilowever, tlie cust of maintaining the civil admiiiistratioii of the zoue, about £27,000,000, will not l>e covered by the new agreement so the total cust of Germany to tlie British Treasury may be something like £200,000,000 spread over three years. Reuter's fniancial editor, hliv. Sydney Gampell, says Ihe big economie ipiestion is whether £250, 000, 000 will sullice lo get Germany goiug or merely dribble ti way. L'ndoubtedly the British eont ributiou, psirticiilarly the dollar portion, is all . or liinrr tlian Britain cafi all'ord and whether it will suflice remajns to be see'u. The cltuise stating that imports will be made tis far as possible froiu slerling sources so as lo economise the dollar cust iu Britain, is ti weak safeguard to her sctuily dollar supply slnce Xorth Ameriea and otlier currency areas based on gold are at present Ihe only sources of most goods and otlier things Geriuany ueeds. Alr. Gtunpeli considers that by l'tir the most importaul liuancial [Kiinls in Ihe agreement are tho .eariy esttiblishment (if an excliange value for ihe mark and linaucial reforni, as they | cul cleauly away from ihe Potsdam tirningenient ui'ider which all Gerl.iimny's exteriial " and i-iiter-zoiial, trade jhave to be trausacted in; dollarti. j It is reliably rejiotted that ordbrs ; ha\ e been given for' lluk suspedsion of j till " repartilioiis disnniutling " of GerI maii equipnient in tlie British zone, j says tlie British' United Press corres- ; imndont at British Headquarters in ' Germtuiy. Ollicial cireles have thus far j not confirmed tlie reports. I The British United Press Paris cori respondeiit says ollicial cireles state I that the British-l'uited Btates agreement will not aifect France's position. | I rance would continue to administei the zone, foliowing economie and political lines established when tlte war ended. Reuter's Berlin correspondeiit says Wilhelm l'ieck, president of the Russian sponsored Bociulist Unity Party said the mergor would have value only | if it brought uearer the unitv of the j whole of Germany. lle hojied the i merger would not be an obstacle to J that. end und added tluit the policy in j the wcsteni zones dilfered so liiucJi from that in tho tastern zone, it was

difficult to see liow unity eould be a«hieved.