Evening star., 1947-09-22
BY the Asseeiotsd Pres,


PARIS, Sept. 22.-The official
summary of the report OF the
Committee of European Eco
1on1tc Cooperation:
l. The report is designed pri.
marily as close and careful analy.
sis Of the maladjustments which
have resulted from the war and as
an examination of what the par.
ticipating countries can do fol
themselves and for each other te
work toward a lasting solution.
g. The scale of the destruction
and dislocation of the Second Worlc
War was greater than that Of the
first. Agricultural and industrial
production was severely reduced
traditional sources of food and raw
material supply were cut off, so that
when the war was over the devas-
tated countries had to start again
almost from the beginning. Thanks
to the great efforts of the European
countries themselves and to the
generous assistance of the United
States, other countries, and
UNRRA, recovery proceeded fast.
But is was not maintained in the
winter of 1946-47, and the European
economy suffered serious setback
Coal continued in short supply and
the lack of it curtailed industrial
production. Food and other COM
modities remained scarce and the
prices Of food and primary prod
ucts rose. The foreign exchange
resources of the participating coun-
tries had, therefore, to be drawn
upon heavily. An exceptionally Sc
we're winter was followed by long
drought which intensified these diff
ficulties, so that by the summer Of
1947 the earlier hope of quick re-
covery had receded
g. AS the work of the Committee
of Cooperation was proceeding, the
foreign exchange crisis continued to
gather momentum. A number of
countries had to impose further i'm
port restrictions, except for the pur-
chase of cereals, coal and other es-
sential supplies. Action on similar
lines is likely to become necessary
in the near future in most of the
participating countries.
Crisis Is Deepening.
The early recovery is now halted
and the crisis is deepening. The cir
cumstances in which the report has
been drawn up give it the character
of an initial report. To deal with
any amendments which appear de-
sirable it may be necessary to pub
lish supplementary reports which
take account of the development of
the international economic situa-
ton.
4. The purpose of the report is to
formulate an economy recovery
program for the participating coun-
tries which is aimed at putting
Europe on its feet by the end of 1851.
This recovery program is based upon
four lines of action:
A. A strong production effort by
each of the participating countries.
B. The creation of internal finan-
cial stability.
G. The maximum cooperation
between the participating countries.
D. A solution of the problem of
the participating countries trading
deficit with the American continent,
particularly by exports.
5. The participating countries are
normally dependent on a large vol
ume of imports-raw materials.
feeding stuffs and, in certain cases,
food-from the rest of the world.
Traditionally these were paid for
partly by export of gods and services
and partly by income from overseas
investments. Because of the dis
location caused by the war, import
needs are temporarily larger than
normal, investment earnings have
been reduced, and exports have not
yet been able to attain the level
to redress the balance.
Revival of Production.
The problem before the participate
Ing countries and the basic aim of
the recovery program is thus to re-
vive and expand their production,
so as to eliminate abnormal demand
on the outside world and produce
for export the increased volume of
goods required to pay TO. the i'm
ports the participating countries will
continue to need.
6. The report assumes a high
degree of self-help by the countries
concerned and mutual help between
them. In order to ascertain what
could be achieved, technical COM
mlttees were set up to make a spe-
cial examination of agriculture, fuel
and power, steel, timber and Trans
port, together with the related in
dustries, such as agricultural and
mining machinery, and the general
problem of manpower. The recovery
program is designed to achieve the
following total results by 1851:
Cd restoration of prewar bread.
grain and other cereal production.
with large increases above prewar in
sugar and potatoes, some increases
in oils and fats, and as fast an ex-
pansion In livestock products as sup
plies of feeding stuffs will allow.
CID Increase of coal output to
64,000,000 tons. lie. 145,000,00O tons
above the 1947 level (an increase of
one third and 100000 tons
above the 1888 level.
Gid Expansion of electricity out
put by nearly 10 billion XVIII. or
40 per cent above 1947 and a growth
of generating capacity by Is per
million XIV. or two thirds above
prewar.
Expansion of Refineries.
Iv) Development of oil refining
capacity in terms of crude oil
throughout by II million tons to
two and a half times the prewar
level.
(V) Increase of crude steel pro-
duction by 80 per cent above 1947
to level of IS million tons or 10I
million tons GO per cent? above
1888.
(VD Expansion of inland trans
port facilities to carry Is per cent
greater load in 1851 than in 1898.
VID Restoration of prewar mer-
chant fleets of the participating
countries by 1851.