TOO MUCH BICKERING AMONGST STERLING AREAS

Chronicle (Levin), 22 August 1949, Page 5

TOO MUCH BICKERING AMONGST STERLING AREAS

Jteceived Bundav, 7 p.m. NEW YORK. August 20. One of the most serious aspects ot the present British financial crisis, was the internal bickering among the sterling bloc, said Mr. TTerbert Matthe.ws, T.ondon correspondent of the New York Times, in a dispatch to his paper todav. "Australia and New Zealand are very critical and show signs of wanting to go off on their own. South Africa wants to sell. gold direct to the. TTnited Btates instead of tlirongh the sterling area dollar pool." Mr. Matthewa declared British officials took a pessimistic view of the forthcoming talks on sterling in Washington. "There is nnanimous agreement that no simple. easy short ternt solutions are possihle. Nobodv in T.ondon experts nn'v dramatic definite agreement to emerge from the talks."

Mr. Matthewa said somo experts in T.ondon helievod Britain conld carrv on with very little or no Pnited Btates help. Tt wonld mean terrific internal and world repercussions and would be bad for the Pnited Btates too, but experts think it is feasible. There. wonld be gravo hardships in Britain inclnding unemployment, but there v.ould be no atarvation and no ecnnomic collapse. Tt would, however, represent the greatest Boviet victory since the elimination of Nazi Germanv, and the strain on Anglo-American relations would be cata.strophic accdrding to high opinion in London. One of the highest prioritiea of Boviet foreign policy is considered in London to have heert to cause a split between tlie Pnited Btates and the British Oommort' wcalth and to concentrate its maximuin nttack on Britain as the weaker of the two enemies."