U.S. AID FOR EUROPE

Press, Volume XCIII, Issue 27962, 8 May 1956, Page 13

U.S. AID FOR EUROPE

Transfer To Near And Far East

(N.Z. Press Association—Copyright) (Rec. 11 p.m.) WASHINGTON, May 6. The United States Foreign Aid Director, Mr John Hollister, said today that the Administration planned to stop economic aid to Europe “almost entirely” and spend more money in the Far and Near East. He said his International Co-opera-tion Administration already had “closed out five missions” in Europe and planned to close those in Paris. Rome and Bonn soon. But he said military aid to Europe would continue.

Mr Hollister cited the European situation when asked what improvements he had made in I.C.A. operations in the last 10 months. He said one would have to be a “very silly person” to say that Asia was ready to slip into the Communist camp because the United States was too “niggardly” with its aid.

“Aid from the American economic system, plus private help and aid from our Government, dwarfs what Russia ’? doing,” Mr Hollister said. He believed the Russians could carry out their commitments to other nations, put that there was “no evidence that tney are giving anything away—it’s mostly trade.”

Asked whether he believed foreign aid would become a permanent arm of the Government. Mr Hollister said n was justified as long as it was needed V? e “P eac e and security of the united States.”