United States Could End Marshall Aid To Europe Prematurely, States Report

Wanganui Chronicle, 3 November 1949, Page 5

United States Could End Marshall Aid To Europe Prematurely, States Report

Third Appropriation May Depend On Economic Integration Plan

NEW YORK, Nov. 1 (Rec. 8.15 pm).— A threat by the United States to end Marshall Aid prematurely was reported by the “New York Times” today.

A Washington despatch said the Truman Administration had no intention of asking Congress for a third appropriation “unless the West European Governments can agree by January on a plan of economic integration that cuts across the present State boundaries.” This followed Paul Hoffman's demand in Paris for a West European economic union. High Government officials said any any other course would ignore E.C.A. conclusions that the only hope of separate Continental economies paying their way after 1952 was by combining into a single mass market. The officials explained that the Government would be risking Congressional repudiation unnecessarily if it requested a further Marshall Plan appropriation without some concrete evidence that the West European Governments were making a fundamental attack on the problem. E.C.A. believed restoration of West Europe’s

competitive markets was basic to any solution of its economic problem. Political circles today expressed surprise at the press report that the Truman Administration would not ask Congress for a third Marshall Plan appropriation unless Western Europe achieved economic unity by 1950, says Reuter's diplomatic correspondent. Officials of the White House and the State Department said they knew nothing about such intention. A Marshall Plan spokesman said the report had caused some si ( prise at Economic Co-operation Administration headquarters. He said the Administrator, Paul Hoffman, was urging Marshall Plan countries to produce a plan of economic integration, but there was no known suggestion that all American aid would [be cut off unless this was done by the beginning of 1950. The spokesman said Hoffman was [concerned about tiv> possibility of aid funds being heavily reduced by next session of Congress unless Western I Europe unified its economies and took 'early steps to break down trade and (currency barriers.