MARSHALL AID TO END

Ashburton Guardian, Volume 71, Issue 55, 14 December 1950, Page 5

MARSHALL AID TO END

DOLLAR DEFICIT DISAPPEARS BRITAIN’S IMPROVED POSITION (N.Z.P.A.-Reuter—Copyright!. (Rec. 9.10 a.m.) LONDON, Dec. 13. The Chancellor of the Exchequer (Mr Hugh Gaitskell) announced in the Mouse of Commons to-day mat Marshall aid to Britain would be suspended from 1951. . Marshall aid to Britain would not be completely terminated, however, the Chancellor added. Britain's economic progress and the strain on American economy through the defence programme were tne reasons for the step. . In effect, the announcement means that aid to Britain has come to an end a year and seven months earlier than expected. Originally it was timed to finish in July,' 1952. No other Marshal aid country, so far has been able to announce that it can' now do without American assistance. Informed sources said the use of the word “suspended” meant that should some unexpected emergency arise, the position could be reconsidered, and Britain might be; able to fall back again on more aid. The decision to suspend Marshall aid was reached in talks recently between Mr Gaitskell and Mr William E. Batt, the Aid Administrator in Britain. ) .

Mr Gaitskell said that apart from the disappearance of Britain’s dollar deficit, another reason for doing without assistance was because the United States defence programme had put u greater strain on American economy. By the end of this year Britain will have received a total of 2,694,300,000 dollars from the United,, States since Marshall aid began in April, 1948.

Authoritative sources said that the ending of Marshall aid was not expected to have an apparent effect on the pockets of the ordinary person in Britain, but the nation would have to watch its dollar expenditure even more carefully than before.

Control to be Tightened Control on imports costing dollars would be tightened up. Britain would remain a full member of the Organisation for European Economic Cooperation, the body responsible for payments. The termination of Marshall aid would not affect Britain’s share in building up the defence of Western Europe under the Atlantic Treaty Organisation. Mr Gaitskell said that certain economic co-operation administration programmes, particularly those fostering overseas development for the production of scarce materials and for interchange of technical knowledge to encourage greater productivity would be maintained, and Britain would continue to be eligible under those programmes. The Chancellor added: “The suspension of aid under the European recovery programme does not mean that the recovery of British economy is complete, v or that the financial resources of; the sterling area are adequate. Both Governments recognise that part of the improvement in the position of the sterling area is due to external factors which may well be temporary.” He expressed the profound sense of gratitude which Britain felt toward the American peopl^.