AMERICAN CONGRESS MAKES CUT IN MARSHALL AID PROGRAMME FOR CONTINENT

Grey River Argus, 24 March 1949, Page 5

AMERICAN CONGRESS MAKES CUT IN MARSHALL AID PROGRAMME FOR CONTINENT

PROVISION FOR PRIVATE INVESTMENTS TO EUROPE

(Rec. 9.30) WASHINGTON, March 22. The House Foreign Affairs Committee to-night approved the continuation of the European Recovery Programme, but reduced the amount which may be provided until July 1, 1950 by 200,000,000 dollars. The Administration sought 5,580,000,000 dollars and the committee reduced this to 5,380,000,000 dollars.

The committee, however, approved a fund totalling 272,000,000 dollars to underwrite private American investments in Europe.

Last Minute Plea

Mr Paul’ Hoffman, the Economic Co-operation Administrator to-day made a last-minute piea to the House of Foreign Af.airs Committee tnat the estimates of the ivlarsnall Plan needs should not be reduced. Reports have indicted that the committee was considering cutting the ‘ official estimate by up to 200,U00,0UU dollars on the ground of the lower cost of food and other supplies. Mr Hoffman recently argued the case before the Senate Foreign Relations Committee, which later approved of the estimates in full. NO SAFETY MARGIN Mr Hoffman and Mr D. A. Fitzgerald, the E.C.A., Food Chief, told the House Committee to-day that tne drops in prices did not mean that funds for the second year of the Recovery Programme could be reduced safely. They asked for full approval of the E.C.A. request and said that if price cuts turned out to be permanent, they would make corresponding reductions in week-to-week appropriation requests. The House Committee' already has made significant changes in the Aid Bill. Through a series of amendments, it has authorised the E.C.A. to guarantee investors against loss through the seizure, confiscation, or destruction by riot, revolution, or war, or from any ordinance decree or administrative action, by a Marshall Plan Government. The commmittee has ear-marked 300,000,000 dollars for this purpose. The committee also has made “tentative” cuts in the bill, these included 150,000,00 dollars from the 1,150,000,000 dollars the E.C.A. has asked for financing operations in April Mav and June of this year.