U.S. MOBILISATION WILL END EUROPE’S DOLLAR WORRIES

Gisborne Herald, Volume LXXVII, Issue 23315, 26 July 1950, Page 7

U.S. MOBILISATION WILL END EUROPE’S DOLLAR WORRIES

(10 a.m.) WASHINGTON, July 25. The United States Government spokesman said today that one clause of Pi-esident Truman’s mobilisation bill would end the dollar gap worries of Britain and other West European countries.

This clause would give the Administration power to spend 2,000,000,000 dollars on “preclusive” buying—expenditure to acquire materials that might be used by Russia for her own war effort. These materials include rubber, tin, copper, manganese and other raw materials.

The spokesman said this trade would boost West Europe’s dollar earnings and wipe out its dollar deficits. The chairman of the National Security Resources Board, Mr. W. Stuart Symington, told Congressional committees that Congress must approve the mobilisation programme if the United States was to survive.

He said the United Slates was entering upon a full wartime footing and mobilisation controls were needed to meet aggression from outside forces. Senator Tom Connally, chairman of the Foreign Relations Committee of the Senate, said today that the Administration is considering the use of Marshall plan funds for European military projects instead of for economic development. He added that there is also a possibility that Congress, before it adjourns, will be asked by the Government fpr more money for the European arms aid programme.