Evening star., 1947-08-15
Multi-biIIion Pools
Expected 10 Be Used
In Marshall Plan
BY the Associated Press

BY the Associated Press
The multi-billion-dolla World
Fund and Bank appear certain
Today to play part in the Mar
shall plan to revive Europe's
war-crippled economy.
Camille Quit, head Of the s,8O0,-
100000 monetary fund, will leave
for Paris today to discuss the Joint
recovery plans being drawn up there
by representatives of 16 nations.
Although no official announce
ment has been made, the purpose
of Mr.. Cults trip undoubtedly will
be to advise the 16-nation COM
m1ttee how his international agency
can help.
President John ]. McCloy already
has pledged the full cooperation
of the $s,1o0, ,oOo, 900 International
Bank, companion institution to the
fund, in carrying out the Marshall
formula for reconstruction.
Opens Another Source.
Similar assurances of aid from
MIR. Gutt would greatly facilitate
the European planning, since it
would open up another source OF
funds.
American Government officials
are known to be hoping both the
fund, and bank will step in with
loans and thus reduce the amount
the United States will have to
provide.
The 16-nation program Is Europe's
answer to Secretary Of State Mar
shalls implied promise that the
United States will provide additional
billions for their recovery If they
agree to a co-ordinated approach to
the problem, making full use of all
European resources.
Mr.. Quit, noted Belgian finan-
cial expert, will take with him E. M.
Bernstein, his director of research.
and Robert Rolin, special aide
The three plan to spend up to two
weeks in the French capital con-
ferring with the planning commit
tee
Under its charter, the main pur-
pose of the International Monetary
Fund is to keep the currency of it's
43-member governments on an even
keel. However, it can lend funds to
nations temporarily short Of money
needed for current trade transac-
tions.
Since beginning operations about
year ago, the fund thus far has
extended such assistance only to
France and the Netherlands. The
World Bank likewise has made only
two loans, one to France and the
most recent to the Netherlands.
Mr.. Quits summons to Paris CO.
incides with news that the United
States has granted new help to nom
Communist Italy, major key to
European recovery, and is preparing
to hear pleas for help from Britain
In a move to help the moderate
De Gasperi regime Withstand Com
munist pressure, the United States
yesterday wrote OF $1,000, ,O00. 900 in
assorted debts owed to this country
by the Italian government.
Scftens Italian Treaty.
This agreement, climaxing three
months of discussions, was designed
to take some Of the sting out of the
italian peace treaty, which the
American Government tried vainly
to soften during the peace con-
ference.
Waving eight separate claims
against the Italian government, the
State Department announced it will
seek no repayment for $523, 900 600
In postwar relief supplies, $685.
100000 in occupation expenses or
SITS, 100000 in smaller items.
simultaneously, the United States
"unfroze" $60,O00,0O0 in vested
Italian property and frozen assets,
turned over % merchant ships and
promised to pay up to s15, ,0o0,O00 to
Italian prisoners for work done in
the United States.
AS its contribution, Italy agreed
to turn over $5,0O0,OO0 to meet the
claims Of American citizens who had
property and other assets or claims
destroyed or damaged during the
war. Six claims against the Ameri-
Seii AIl11tdly dIlu clVuldll IUICcS diSO
were dismissed by the Italian gov
ernment.
Restores Pre-Wsr Ties.
The chief aim of the understand
ing, signed with visiting Italian
economic delegation, is to restore
the close commercial ties that ex-
listed in pre-war years between
Italy and the United States.
AS another step In this direction
the State Department announced it
is ready to begin talks in Rome this
fall for a standard treaty of friend
ship, commerce and navigation.
This would replace the 1871 pact
denounced by the Mussolini gov
ernment.