US. Reconstruction Plan May Become 'Mere Relief

Northern Advocate, 5 June 1948, Page 5

US. Reconstruction Plan May Become 'Mere Relief

WASHINGTON, Fri. (noon). —The Secretary of State (Mr Marshall) said today that the proposed reductions in Marshall Plan funds would, if confirmed by Congress, reduce the economic cooperation of the administration “from a scheme of reconstruction to one of mere relief.” *

Cuts suggested by the House Appropriations Committee would have a most serious effect throughout Europe.

Speaking as the House began a full debate on the Aid Bill, Mr Marshall said he clung firmly to his belief that the political and economic tion of Western Europe was a prerequisite to reaching a satisfactory post-war settlement.

grain crops were estimated to bo nearly at pre-war levels and, ingly. large-scale relief should not be needed. REINSTATEMENT SOUGHT

When told of the committee’s action, Mr Paul Hoffman, Economic Co-operation Administrator for the European recovery programme, promptly asked for reinstatement of the full amount of $4,245,000,000 for European aid. He said: “The less money we have the less recovery we can expect.” BRITAIN CONSIDERING DRAFT Britain has received the draft of a proposed bilateral agreement ori European recovery programme deliveries from America, which is being considered, according to authoritative sources, which denied a New York report that Britain objected to certain clauses.

When reporters reminded him that tomorrow would be the anniversary of the famous Harvard speech in which he first outlined his plan for the multimillion Aid Bill, Mr Marshall, grinning wryly, said: “It is certainly getting some birthday party.” A cut of 27 per cent from the figure proposed by the Administration was recommended today by the Appropriations Committee of the House of Representatives, in reporting the bill carrying the funds for the Marshall Plan and other foreign aid programmes. The measure now provides a sum of $5,980,710,228 for world assistance in the 15 months ending July 31, 1949, whereas President Truman had asked for $6,553,710,228 for the 12 months ending April 30, 1949.

The committee cut the amount for European aid to $4,000,000,000. a reduction of $245,000,000 from the figure asked for. It said it was dissatisfied with the progress of the rehabilitation of Germany. “MUCH WASTED” The committee also said since July 1, 1945, the United States had provided foreign aid totalling $18,182,000,000, much of which “has been wasted.”

It is expected that the House of Representatives tomorrow will debate the cuts recommended by the committee. The final figure will probably be decided at a conference of the House and Senate.

The Appropriations Committee approved the granting of $400,000,000 of $463,000,000 sought for aid to China and agreed to the Administration’s request for $424,000,000 for the relief of Japan and the Ryukus and $107,000,000 for Korea. It completely erased $150,000,000 for the economic reconstruction of Japan, which had General MacArthur’s support, and expressed misgivings about further aid to China. NO WOOL AT AUCTION

The committee stipulated that wool bought under the Economic Co-opera-tion Administration programmes should come from stocks at present held by the Commodity Credit Corporation, instead of being bought in foreign countries.

The chairman of the committee (Mr John Taber) said the Economic Co-operation Administration had proposed to buy wool from other sources than the Commodity Credit Corporation at prices higher than the 42 cents per lb which the latter had paid for its stock of 240.000,000 lb of wool.

The committee also stipulated that the Economic Co-operation Administration should not buy goods anywhere at prices higher than those in the United States. Mr Taber said the committee had eliminated one item of $288,000,000 to meet the balance of exchange between participating countries and the United States, because the expenditure of such a sum would have meant that the United States would have been paying debts due to itself. Mr Taber said another reason for the reductions was that the European