MARSHALL AID TO BRITAIN

Press, Volume LXXXV, Issue 25740, 28 February 1949, Page 7

MARSHALL AID TO BRITAIN

SENATE COMMITTEE ORDERS REVIEW

MR ACHESON OPPOSES CESSATION (N.Z. Press Association—Copyright) (Rec. 7.15 p.m.) WASHINGTON, February 26. The Secretary of State (Mr Dean Acheson) said to-day that if Marshall aid to Britain were stopped now it would undo everything that had been •done in the Marshall Plan so far and eopardise .the future of Western 'Surope. He added that he most certainly did not think the recovery of Britain justified the cutting down of aid. Confusion had been caused by a well-intentioned but somewhat overenthusiastic statement (presumably that in which Britain’s Under-Secre-tary of State for Foreign Affairs, Mr C. P. Mayhew, told the United Nations Economic and Social Council on Wednesday that Britain was at last within sight cf balancing her trade figures). Mr Acheson was commenting on a decision by the Senate Foreign Relations Committee to review the proposed recovery grant to Britain of 940.000.000 dollars. The committee summoned Mr Paul Hoffman, the Marshall Plan Administrator, to explain “wide discrepancies” in the estimates of Britain’s recovery. Mr Hoffman will appear before the committee next Monday. The move was requested by Senator Arthur Vandenberg, who spoke of "wide discrepancies” between the reports on Britain’s recovery given by the Economic Co-operation Administration and Mr Mayhew. Senatox* Tom Connally, chairman of the committee, told reporters that its members were determined to allot foreign aid funds only "when they are needed and direly needed.” Economic Co-operation Administration officials have told Congress that Britain still has a long way to go before she gets back on her feet. They asked the Senate committee to include the 940.000,000 dollars for Britain in the bill extending Marshall aid for another 15 months. Senator Vandenberg said: “Mr Mayhew’s speech has raised a question both in fhe public and Congressional mind. It seems highly desirable that there should be no question about the validity of the E.C.A. figures.” The British. Ambassador (Sir Oliver Franks) said yesterday that Mr Mayhew’s remarks had been misinterpreted. He added that Mr Mayhew meant only that Britain was moving back toward a balanced foreign trade, not that she had overcome all her post-war economic difficulties.