European Economy
, The strictly limited success of the Organisation for European Economic Co-operation, which has at last succeeded, after much delay and dispute, in agreeing on a division of the current year's Marshall aid, may possibly be regarded as a challenge to some other organisation to do better. But its many difficulties, together with those which the three Benelux countries have encountered in their narrower schemes of economic co-operation, could equally well be taken as a warning against over-bold ventures in this field. The Economic Committee of the Consultative Assembly at Strasbourg has clearly decided to accept the challenge and ignore the warning. Its programme of action, which includes proposals for convertibility of all European currencies, a common credit policy and common capital development plans, is explicitly intended to go much further than O.E.E.C. can go. If it is to do that, it, will .need to have a different spirit from that which has recently governed O.E.E.C. discussions, as well as a more ambitious machinery. The recent " screening " process within O.E.E.C., from Which the British estimate a need of some $1,500 million of American aid this year emerged cut to ribbons and reduced to $962 million did no credit to anyone. For several days the organisation managed to make the worst of both worlds by gratuitously and unjustly offending the British delegation and at the same time bringing its work to a full stop. The trouble has been provisionally cleared up, but there may be more of it when the Atnerican Congress finally decides on the total amount of aid to be given. But it is difficult to see how' the British claim can be depressed any further. It will be difficult for the other countries of Europe to refuse to recognise, as the Americans recognise, that if the British economy were to break down the disaster would affect all Europe.
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