MARSHALL AID FUNDS FOR EUROPE

Press, Volume LXXXVI, Issue 26123, 27 May 1950, Page 7

MARSHALL AID FUNDS FOR EUROPE

’roposal To Cut British Quota By About 20 Per Cent. IMPROVED DOLLAR POSITION CITED AS REASON

(N.Z. Press Association—Copyright) (Rec. 8.30 p.m.) WASHINGTON, May 25. The Economic Co-operation Administration to-day asked hat Britain’s allocation of Marshall aid for 1950-51 should be tut by 129,000,000 dollars. The aid total previously recommended for Britain was 687,000,000 dollars. The request for the cut was contained in revised estimates tf Europe’s 1950-51 dollar needs, presented to the Appropriaions Committee of the United States Senate by the Economic fo-operation Administrator (Mr Paul Hoffman). Mr Hoffman said that the estimate of Britain’s needs had een reduced because the improvement in her dollar position jnce sterling devaluation had been greater than expected. Mr Hoffman told the committee that he would require ,6.(100,000 dollars less originally estimated to pay for I estern Germany’s wheat imports. This reduction resulted rom Western Germany’s admission to the International Wheat Jgreement, which provided for lower prices. It was now estimated that the four-year Marshall Plan ould be completed for a little more than 15,000,000,000 dolirs, instead of 18,000,000,000 dollars, as originally estimated. Mr Hoffman was testifying on legislation to provide the dual funds for the Foreign Aid Bill for 1950-51. The bill sets ceiling on the amounts to be voted for the European [ecovery Programme and other foreign assistance.

SENATE PASSES FOREIGN AID BILL

The Senate to-day approved a reign aid programme costing 248.450.000 dollars for the 1950-51 jancial year. The programme includes 2.977,000.000 illars for European recovery. This count was higher than the total pre- . ously mentioned, because the Senate greed to carry forward money not ' ent in the current financial year, I Other allocations include the follow- i South Korea. 100.000.000 dollars; i neral area of China, 94.000.000 dot- i is; refugees of the Palestine war, I

27.450.000 dollars; the International Children's Emergency Fund. 15.000.000 dollars; the Point Four programme for the world's under-developed areas, 35.0C9.000 dollars. The Foreign Aid Bill was passed by 247 votes to 88. A Republican move to delay approval of the Point Four programme was heavily defeated. The bill now goes to President Truman for signature. Both the House of Representatives and the Senate must pass separate legislation to provide the actual funds for carrying out the programme.