CUT PREDICTED

Otago Daily Times, Issue 27387, 12 May 1950, Page 5

CUT PREDICTED

Britain’s Share Of Marshall Aid THIRD YEAR’S OUTLAY NZPA—Copyright WASHINGTON, Rec. 9.10 p.m. May 11. A substantial cut in Britain’s proposed 687,000,000-dollar Marshall Plan share for 1950-51 was freely’predicted today. Economic Co-operation Admin- - istration officials admitted that possible reductions were being considered. They said Britain over the past six months had increased her dollar and gold reserves by over 500,000,000 dollars. These were exceptionally good months for dollar earnings. The ECA regarded this improvement as temporary but expected that some part of it would be of a permanent nature. Mr Paul Hoffman, the ECA chief, is expected to lay revised Marshall Plan estimates calling for a cut in British funds before the Senate Appropriations Committee within the next fortnight. The Senate and House recently cut European recovery funds by 25,000.000 dollars. Federal Spending Cut The House of Representatives today dealt the Truman Administration a sharp blow when it slashed 600,000,000 dollars from proposed Federal spending and also approved a plan to save another 400,000 dollars by cutting the number of Government employees. This Republican move, which was supported by the “ rebel ” Democrats from the South, reduced the Omnibus Appropriations Bill to 28,901,240,165 dollars. The measure finances almost every Federal agency for the fiscal year beginning on July 1.