Suspended, but Not Ended

Thirty months after Marshall aid began, Chancellor of the Exchequer Hugh Gaitskell last week had an announcement for the House of Commons: Britain could go it alone; Marshall Plan aid would be suspended Jan. 1, 18 months ahead of schedule. "Now we can begin to walk proudly again," said an M.P.

The $2.7 billion in dollar aid had bought Britain time to work out a way of living within its income--austerely. British production had increased about 40% over 1946; the rate of dollar-spending in the first quarter of 1950 had been cut 25% from the first Marshall Plan year. Currently, U.S. stockpiling was bringing an unexpectedly large number of dollars into the sterling area, especially for tin and rubber. Britain's share of U.S. military assistance--still unspecified--would also help keep the dollar gap closed.

But the skies had not cleared completely. Britain's present gold and dollar surplus could be wiped out by British rearmament costs or by a fall in exports. The London Economist gravely noted last week: "The ability of the postwar British economy to survive in competitive conditions remains untested." For this reason, Hugh Gaitskell had carefully stressed that Marshall Plan aid was suspended, not ended. Should it again be required before the end of 1952, it would be forthcoming.

But last week, once more able to pay its way, Britain was hopeful and grateful. "Ordinary words of thanks are inadequate," cried the Manchester Guardian. "Here is one of the most brilliant successes in the history of international relations." Gaitskell said: "We are not an emotional people . . . and not very articulate, but these characteristics should not . . . hide the real and profound sense of gratitude we feel toward the American people."

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