Monday, Aug. 11, 1947

Slow Motion

Drastic increase of Ruhr coal and steel production was the indispensable first step to make the Marshall plan for western Europe a working reality. But there were three snags dead ahead: French fear of a revived Germany, lack of capital for Ruhr reconstruction, the British Labor Government's insistence on nationalization, which the U.S. maintains should be deferred. Last week a little progress was reported in clearing these blocks:

P: French Communists were tirelessly playing on French fear of a strong Germany. But Foreign Minister Georges Bidault, bolstered by a recent vote of confidence, was reportedly willing to discuss a U.S. proposal for upping Ruhr coal and steel production under a plan of internationalized management. For Bidault, this was political daring; for France, a long step toward agreement. Nevertheless, all the Western nations had was still only a basis for further talk.

P: In a chummy note to "Lew," World Bank President Jack McCloy suggested to his brother-in-law Lewis Douglas, U.S. Ambassador to Britain, that the World Bank might provide funds for Ruhr reconstruction. But since Germany is not eligible for a World Bank loan, a way would first have to be found to get around the bank's legal restrictions.

P: Britain was in no position to be stiff-necked about socialization of Ruhr industry (see FOREIGN NEWS), as was indicated by her readiness to discuss Ruhr coal production in Washington.

But the world crisis called for quick action and the Western powers were in a slow-motion saunter.

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