FOREIGN TRADE: Big Stick

Up to last week, the U.S. Government had spoken softly in its fight against Britain's restrictions on dollar oil (TIME, Jan. 2 et seq.). Then it decided the time had come to waggle a big financial stick. ECA's petroleum chief, Oscar Bransky, told a House subcommittee that Britain will get no more ECA dollars for expansion of its own oil refining industry until the fight is settled.

With $13,355,000 in ECA funds, British oil companies and associates are building four refineries to boost their output by 33 million barrels of oil a year. They want another $30 million to add...