SPECULATION AS TO WHAT WILL REPLACE MARSHALL AID

Wanganui Chronicle, 22 December 1950, Page 5

SPECULATION AS TO WHAT WILL REPLACE MARSHALL AID

LONDON, Dec. 21 (Recd. 11.20 pm). —Correspondents in Continental capitals suggest that, following the suspension of Marshall Aid to Britain on January 1, assistance to the rest of the participating European countries will end next June. The “Financial Times” Paris correspondent says that emphasis in European capitals is no longer on dollars, but on raw materials and, manpower for rearmament needs. He suggests that those nations still needing help over a further prolonged period— Greece and Austria, particular'y—may, instead, receive dollar grants, but under special bilateral, agreements with the United States Government.

“Other countries, possibly T taly and Western Germany, might require some support beyond the first half ot 1951, so exception may also be made in their favour.”

The correspondent says special experts who forecast a premature ending of the Marshall Plan, support the theory by three arguments:— (1) The primary target of the plan already has been achieved (2) Europe has recovered beyond original hopes. (3) Europe no longer has a dollar deficit and is now earning dollars and gold from the United States at an annual rate of 2,000,000,000.

"The return of the United. States to war economy and greatly increased financial needs for rearmament, including an American contribution to Europe's defence programmes, are bound to give a strong impetus within the Congress to forces striving far an economy drive. It is also hard to see how the American administration would be able to make a good cause for continued Marshall help when some countries are no longer in real need of it. The recent suspension of Marshall Aid to Britain can thus be considered a warning to other beneficiary nations." Special N.Z.P.A. correspondent.