TRUMAN'S REPORT ON GREATER AID FOR FREE NATIONS

Wanganui Chronicle, 13 November 1950, Page 5

TRUMAN'S REPORT ON GREATER AID FOR FREE NATIONS

Recommendations For What Is To Follow The Marshall Plan

WASHINGTON, Nov.. 12 (Reed. 10.55 p.m.).—President Truman today issued copies of an economic report containing sweeping proposals for increased American aid to economic recovery and rearmament of free nations.

The report was prepared by Mr Gordon Gray, chief adviser to Mr Truman on a post-marshall Plan for foreign economic policy.

Mr Truman, in a statement accompanying the report, said it would be of great value to Congress and the executive branch ih developing specific measures to further these objectives. Reuter’s Washington correspondent says the report is expected to determine the foreign aid programme President Truman will submit to the new Congress next January. The report makes 22 recommendations, including: (1) Stabilisation loans to help make the pound sterling and other currencies safely convertible. (2) Protection of the pound sterling against the effects of Britain’s rearmament programme.

(3) Continuance of economic aid in addition to military aid to Europe for one and a half to two and a half years after the scheduled end of the Marshall plan in 1952. (4) An increase of the leading authority of Export the Import Bank from 3,500,000,000 dollars to 5,000,000,000 dollars.

(5) Proposals to pump 1,600,000,000 dollars to 2,000,000,000 million dollars of public and private capital to finance the development of the world’s underdeveloped areas. (6) Relaxation of restrictions on expenditures of loans and grants by aided countries.

(7) Repeal of the “buy American” legislation discriminating against im-

ports into the United States. (8) International control of the distribution of scarce materials. (9) Establishment of a super economic Co-operation Administration to administer foreign economic programmes. The report stresses the importance of the sterling area and its products to the defence of the free world and of Britain as “the banker and trading centre of the world’s largest currency area.” It urges the encouragement of the convertibility of sterling and states: “that when and if Britain has met conditions essential to convertibility other than an accumulation of adequate gold dollar reserves, it may be in the interests of the United States to assist Britain in proceeding the rest of -the way by making available financial assistance, such as the stabilisation of credit sufficient to supplement Britain’s own gold dollar reserves.”

It adds, however, that such credit should not be extended unless convertibility is accompanied by a reduction of trade discriminations.

The report also stresses the Importance of Japan to the economic growth and improvement of living standards and the maintenance of peace in the Far East. It states, after reviewing United States aid to Japanese economic recovery: “Further appropriations for Japanese aid should be carefully considered and measured against the effect of the favourable circumstances brought about by current developments.”