Disturbing Indifference To Crisis

Chronicle (Levin), 14 July 1949, Page 7

Disturbing Indifference To Crisis

Received Wednesday, 7 p.m. LONDON, J uiy 13. Tlie Conuuonwealtli linancial talks in Londun appear to lie regarded jnore ab a nicans oi concerting snort term dollar sa\ mg ineasures witnm tlie sterling area itselx, tliau as an attempt to pro vide a long term solution for tlie steri ing area/s eurreney and tradmg ditnenlties. Any sucli long term ineasures, it is agreed, eannot be devised by tlie sterling area alone but can only be organised on a world- wide basis. JLliere was general disappointment at tlie inconelusive terms of tlie coinmuni que issued after recent talks between (Sir Stafford Cripps, Mr. Abbott and Mr. Snvder. Tlie \agueness of its plirasing, it is felt, indieated more tlian anytlung eise that aitliough tliere liad been a general interchange of views, none oi tliese vrews where tliey conihot, hau been substantially ciianged. It is now predicted that nothing delinite will be done until Sir Staff'oiu Cripps, Mr. Suyder and Mr. Abbott meet again in Washington in September. By that time Sir Stall'ord Cripps will liave liad the advantage of a full dis eussion with the Commonweailb Finance Ministers and will be in a posi tion to lcnow to what extent tlie piv sent additional restrietions upon doxlar buying liave proved eff'ective. One seetion of the recent communique which attracted interest in tlie City of London, was the reference to the possibiiitv of Britain obtaining aid 1 10111 sources outside either Canada or United States. This, according to the Financial Times, is interpreted inusunlly well infonned eircles, as an indica litm that Britain may seek liard eurreney loans either from the Internat ionu'l Monetary Fund or International Bank. At present the Internationai Moiietarv Fund Board iinposes a ban upon loans to countries receiviug Mars ha 11 aid but this could be set aside il' the United States representatives on tlie board could be persuaded tO agroe. in any case, the ban does not prevent countries in the sterling area, other tlian Britain, from receiviug loans as they do not receive Marsliall aid. Tliere is no ban on borrowing from the International Bank, but Mtherto British policy has been to raise such loans only for the purposes of eolonial de\ elopment. it is recognised that borrowing from tliese two organisations is only oue of a number of teniporary expedieuts. which iuay be used to safeguard and rcstore tlie sterling 'area's dollar and gold balances but that teniporary expedieuts will not solve the long term prublem — pie disequilibrium in trade between dollar countries and the rest of the world. In solving this, neitlier Britain alone nor the sterling area as a wliole, can provide a solution. Any

initiative must cqme from the dollar ' area, notably the United States, and this, it is felt, is unlikely to be forthcoming until September at the earliest. In Britam itself, one of the most disturbing features of the situation is J the evident public indifference to the ' issues involved. Once Sir Stafford Cripps statement in the Commons had relieved fears that immediate cuts in tobacco buying would be imposed, it seemed to be taken for granted that a way out of the difficulties would be found. A point of which the Government is well aware, is that so far Britain 's overseas trading difficulties have made little impression upon the pattern of life at home and that until they do, the discussion of them is likely to be ■ left^predominantly to the economists ! and politicians. j A recent questionnaire carried out in Leeds, indieated that only 15 in 100 people were able to give any ipdication of what MArshall aid, convertibility of sterling, bilateral trading and the sterling area, really mean. The general attitude was that all these were matters for the experts and that it was for the experts to solve the problems they involve. The argument that they all have a very important bearing upon the average British citizens' standard. of living, appears so far to have made little impression.