“A TRAGIC ERROR”

Otago Daily Times, Issue 27040, 26 March 1949, Page 7

“A TRAGIC ERROR”

CUTS IN DOLLAR AID TO BRITAIN

FULL APPROPRIATION URGED

NZPA—Copyright WASHINGTON Rec. 8 p.m. Mar. 24. Senator Tom Connally, chairman of the Foreign Relations Committee, in opening the debate in the Senate to-day on the European Aid Bill, said, in reference to proposals that aid to Britain be cut: “We must conclude that any substantial cut in dollar aid to Britain would be a tragic mistake. It would seriously retard British and European recovery. The estimated British requirements for dollar aid next year already represent a 24 per cent, cut on last year, compared with 15 per cent, for the European Recovery Programme countries as a whole.” Economic recovery must have the right of way over the military programme of Europe, said Senator Connally. In urging approval in full of the committee’s suggested sum of 5,580,000,000 dollars, he said: “We do not expect to continue this programme beyond June, 1952.” He added that next year’s aid must be cut considerably below the 5.000,000,000-doi-lar mark. Aid to Dutch)

In discussing fears that aid to the Netherlands might contribute towara Dutch military operations in Indonesia, Senator Connally said: “According to our information the Dutch had not incurred heavy military expenditures in excess of their expenditure* in that area before December 21. Moreover, it is reported that these operations are supported from local revenues and do not constitute a charge against the national Budget of the Netherlands. In these circumstances it seems to the committee to be most unwise to cut off aid to the Netherlands, and thus completely disrupt Dutch recovery and seriously impair the entire European recovery programme.

Senator Connally said that the committee felt that China should “be dealt with separately in relation to the unique circumstances that exist in that country.” He suggested that the United States continue its economic relief “until the next harvest in the areas of China that remain free of Communist domination. Meanwhile, if the situation m China should clarify itself sufficiently, consideration should be given to such further measures as might be appropriate,” he said. This would mean that the Economic Co-operation Administration could spend its remaining funds for China, estimated at approximately 58,000.000 dollars, to aid Nationalist China Senator Robert Taft said that since the current year’s appropriations for the European Recovery Programme had not been spent, there was no need to include in the present Bill an amount of 1,150,000,000 dollars to carry the programme through three months to June 30, 1949. West European Progress Commended Senator Arthur Vandenberg S3id that although the current appropriation had not been spent it had all been committed and Senator Taft’s suggestion would mean that the supply pipelines would be empty for three months. Senator Vandenberg invited the Appropriations Committee to make the cuts it considered justified, but said they must be related to reality. Senator Vandenberg highly commended Western European Progress in self-help and mutual co-operation. The Economic Co-operation Administration has already given a co-opera-tive impluse to Western Europe, he said, and the programme was living up to every objective assigned to it. When a Senator asked a question about Britain’s nationalisation programme, Senator Vandenberg declared sharply: “I don’t think it is any of our business what Britain decides to do with its industries as long as it is a free decision by a free Government, and as long as its policies produce the results in the international balance sheet that we are seeking.”