OTHER EUROPEAN COUNTRIES ANXIOUSLY WATCHING

Chronicle (Levin), 30 August 1949, Page 5

OTHER EUROPEAN COUNTRIES ANXIOUSLY WATCHING

Received Monday, 7 p.m. LONDON, August 28. Messages from various parts of Europe suggest tluvt all tlie Marshall Aid countriea are anxiously watching Britain's approach to the eoining financial talks in Washington. The Frencli Press has given considerahle proniinence to the recent arrimonious exchanges hetween British and American newspapers and politicians, Imt has 011 tlip whole ref'rained from taking sides. There is an impression in France, savs the Paris correspondent of the Financial Times, that Britain has not vet displayed her tnnnp cards. The j French hope that Britain, urged bv South Africa, will succeed in persuading the Americans to inerease the world price of gold. Apart from the French Socialists. there is little support in France for the policy of the British Labour Government, Imt Frenchmen generallv realise that the instabilitv of tlie sterling area must have a serious effeet on their own unstable currencv, and therefore hope that something can be done to improve the position. Norwegian opinion is divided about tlie extent to which Britain's socialist pol\cies have affected her financial standing, but is agreed upon the importance of sterling to the whole Enropean econonjv. Tt is conceded that if sterling is devalued- the Norwegian kroner will follow. Belgians, according to Brnssels reports, blame tlie British Socialists for trving to create undue self-sufiicioncv in F.urope. Backed bv the influeiitial 1 Belgian diamond industrv, Belgian financial circles are franklv urging the devaluation of sterling. At the root of this demand is believed to be the sterling area 's £0,000,000 deficit with the Belgian Congo. The Rwedisli view is that a conipromise will be renched in Vashington and that Rir Stafford Cripps is overemnhasising Britain 's difficulties. The Puteh opinion, according to Anisterdnm reports is that Britain's socialisation and welfare policies arcnot in accord with financial realities. and that lintil Britain ad.iusts herselt to these realities no real cure can be fonnd t^r her present economic tronbles. Tn Denmark, financial circles aTe hostile to the American pressnre for devaluation, and hope flint Sir Statforn Cripps will be able to resist it. Oue Panish financial authoritv was reported as saving: "T do not believe that if sterliiu'- wns devalued the Brit'sh would sell oue dollar 's worth more of goods to America."