American House Committee Approves Continuation of ERP at Reduced Amount

Otago Daily Times, Issue 27038, 24 March 1949, Page 7

American House Committee Approves Continuation of ERP at Reduced Amount

New Zealand Press Association—Copyright Rec. 9.15 p.m. WASHINGTON, Mar. 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 but the committee reduced this to 5,380,000,000. The committee, however, approved a fund totalling 272,000,000 dollars to underwrite private American investments in Europe,

Mr Paul Hoffman, the Economic Cooperation Administrator, made a lastminute plea to the committee that the estimates of the Marshall Plan needs should not be reduced. Reoorts indicate that the committee cut the official estimate on the ground of lower costs of food and other supplies. Mr Hoffman recently argued the case before the Senate Foreign Relations Committee which later approved the estimates .in full. Mr Hoffman and Mr D. A. Fitzgerald, the ECA food chief, told the House Committee to-day that drops in prices did not mean that the funds for the second year of the recovery programme could be reduced safely. They asked for full approval of the ECA request and said that if the price cuts turned out to be permanent they would make corresponding reductions in week-to-week appropriation reauests. The Hou'p Committee had alreadv made significant changes in the 5 580.000.000 dollar aid Bill. Through a series of amendments it authorised the ECA to guarantee investors aeainst loss through seizure, confiscation, or destruction by riot, revolution, or war, or from any ordinance, decree, or administrative action by a Marshall Plan government.