ECONOMIC AID TO EUROPE

Press, Volume LXXXIX, Issue 27037, 12 May 1953, Page 9

ECONOMIC AID TO EUROPE

U.S. Seeks Abolition In Two Years x (N.Z. Press Association—Copyright) WASHINGTON, May 10. The Mutual Security Administrator (Mr Harold Stassen) said in a broadcast today that the United States hopes to be able to end economic aid to Europe within two years. He said that military assistance would be continued so long as the “grave threat” from the Soviet Union existed.

In a speech recorded before he left late yesterday for a tour of the Middle East and South-east Asia with the Secretary of State (Mr John Foster Dulles), Mr Stassen said: “We are hopeful that, except for some extreme situations such as drought, the European nations will all be on their feet so far as economic aid is concerned within two years.” Outlining President Eisenhowers 5,800,000,000 dollars foreign aid programme for the coming fiscal year, which was presented to Congress last week, Mr Stassen said that Europe would receive 53 per cent, of foreign appropriations under the proposed Budget, which was a 20 per cent. cut. More emphasis had been placed on funds for Asia and. the Near East, but this did not minimise the importance of Europe. He said it was done “because we feel very much that you must look at the world-wide situation for the sake of the security and safety of the United States, and that we must encourage our partners in Europe to be placing themselves on a sound economic basis, and to carry a full share of the over-all defence burden. Mr Stassen said that Mr Eisenhower’s aid policy included plans for long-term contracts that would save money and, at the same time, attain better results. The policy objectives were: "More defence more quickly, for less dollars and lasting longer."