EUROPEAN AID BILL

Ashburton Guardian, Volume 69, Issue 140, 25 March 1949, Page 3

EUROPEAN AID BILL

DEBATE IN SENATE Approval in Full Sought (N.Z.P. A.—Copyright) (Rec. 11.5) WASHINGTON, March 24. Economic recovery must have the right-of-way over the military programme for Europe, said Senator Tom Connajly, chairman of the Foreign Relations Committee, in the opening debate in the Senate to-day on the European Aid Bill. In urging approval in full of the committee's suggested sum of 5,580,000,000 dollars, Senator Connally said: “We do not expect to continue this programme beyond June, 1952.” He aded that next year’s aid must be cut considerably below the 5,000,000,000 mark. Senator Connally, in commenting on the proposals that aid to Britain be cut, said: “We must conclude that any substantial cut in dollar aid to Britain would be a tragic mistake. It would seriously retard British and European recovery. Estimated British requirements for dollar aid next year already represent a 24 per cent, cut on last year, compared with 15 per cent, for European Recovery Programme countries as a whole.” Senator Connally said the committee felt that China should be “dealt with separately -in relation to the unique circumstances that exist in that country.” He suggested that the United States continue its economic relief “until next harvest in areas of China that remain free of Communist domination. Meanwhile, if the situation in China should clarify, itself suffi'cierftly, consideration should be. given to such further measures as might be appropriate.” This would mean that the Economic Co-operation Administration could spend its remaining funds for China, estimated at around 55,000,000 dollars, to aid Nationalist China.