FIRST REPORT ON UNITED STATES AID FOR EUROPE

Greymouth Evening Star, 18 October 1948, Page 8

FIRST REPORT ON UNITED STATES AID FOR EUROPE

PARIS,; October 17. The United States Amba ; ssador-at-Large (Mr Averell Harriman) has received a 70-page report by the Organisation for European Economic Co-operation on the first annual programme (July, 1948, to July, 1949) of Marshall aid and European Economic Co-operation on the first annual programme (July, 1948, to July, 1949) of Marshall aid and European self-aid. The Council of the organisation, when it met yesterday, completed the programme and the draft convention for the intra-European payments and compensations. . After M. Paul Spaak, Prime Minister of Belgium, had handed the programme to Mr Harriman today, the Marshall Plan countries signed the draft convention. M. Spaak said that the work qf the organisation was not only a matter of receiving dollars, but also an opportunity for a great cooperative endeavour by the European nations to help themselves. Below Pre-War Standards The report said that during the coming year Europeans would eat only slightly better than in 1947 and still far below pre-war standards, that bread consumption would be 10 per cent, below the pre-war quantity, that meat consumption would not be better than in 1947 and 35 per cent, lower than before the war, that fats and oils would be 15 per cent, better than in 1947, but 20 per cent, lower than before the war, and that Europeans would not have any more clothes than hitherto.

Only- tobacco consumption is expected to be above the pre-war level. The plan for the next nine months includes: —

(1) Reduction of Europe’s dependence on dollar imports, as a first step towards the regaining of economic independence. (2) An increase in Europe’s production of basic commodities, including coal, coke, steel, electricity, timber, pulp, paper, and merchant shipping. (3) Continued self-imposed austerity, by the restriction of scarce materials to the uses best serving European reconstruction. (4) A substantial breaking down of inter-European trade barriers, by the adoption of an inter-European payments system. The report emphasised that without the “vital contribution” of American aid it would not be possible for the 18 European countries to “undertake this great joint enterprise,” but added that in spite of about £1,219,000,000 of aid voted by the United States Congress, the 18 countries will have a collective dollar dedeficit of £55,000,000, which must be met from the reserve of the few foreign assets which the 18 counties still possessed.

Distribution Of Aid

The distribution of American aid for the first year will be: Britain, 1,263,000,000 dollars; Austria, 1,217,000,000; Belgium and Luxemburg, 250,000,000; Denmark, 110,000,000; France, 989,000,000; Greece, 146,000,000; Ireland, 79,000,000; Iceland, 11,000,000; Italy, ..01,000,000; Netherlands, 496,000,000 (including 84,000,000 for the Netherlands East Indies); Norway, 84,000,000; Sweden, 47,000,000; Trieste 18,000,000; Turkey, 50,000,000; Bizonia, 414,000,000; French zone of Germany, 100,000,000. Under the payments scheme, the countries who are net creditors are to make the following contributions (all millions of dollars): Britain 282, Belgium 207.5. Italy 20.3, Sweden 25, Turkey 19.7, Bizonia 10.2. This makes a collective total of £141,175,000. The net debtoi’ countries, with the amounts they are entitled to draw from the above contributions, are (all millions of dollars): —Austria 63.5, Denmark 6.8, France 323.3, Greece 66.8, Netherlands 71.7, Norway 31.8, French zone 0.8.

Greece has repeatedly asked for a minimum of £45,000,000 and has told the organisation that she is unable to draw up any recovery programme based on less.