Evening star., 1947-09-24
Congress Sure 10 Ask
Who Will Operate
Marshall Program
Stute Department Held
Unqualified to Garry Out
Disbursinq Of Billions
By David Laurence

Disbursine Of Billions
By David Laurence
Who is going to operate the Mar
shall plan? Will the State Depart
ment be given the billions to spend
or will the money be turned over to
the various governments abroad to
dispense as they wish?
II the American Government de-
pends on other governments, there
will be no check as to the contribu-
ton being made toward rehabilita-
ton. Under wartime conditions,
there were joint boards with over
all authority and, in sense. the
decision rested primarily with the
officials of the various agencies of
the United States Government
sach as lend-lease. But the foreign
governments dtsbursed the money
they got or were required to buy
goods In America.
When the Marshall plan is exam
med, Congress will want to know
what machinery Is to be created to
disburse the money or distribute the
products and what system is to be
instituted to secure the maximum
return on any loans made.
More Than Meets the Eye.
This is far more important prop
oeition in a business way than
meets the eye. The State Depart
ment is not qualified to operate the
Marshall plan because it is made up
Of personnel logically concerned
with maintenance Of international
relations and not with business or
industrial experience. 1t doesn t
have the technical training needed
in the different categories In which
aid is to be furnished.
When the Marshall plan is pre-
sented to the American people, 1t
will be in the form of grants to q
certain extent from which no sums
will be recovered but there also
will be lending on a large scale.
This means that it is expected the
loans will some day be repaid.
The best way to insure recovery
Of the principal sums is to set up
machinery to watch the outgo. If
the initial sums are not being ef-
ficiently handled or being used for
the intended purposes, 1t must be
the right of the American Govern
ment to terminate the aid at will,
no matter what authorization or
commitments have been entered
into relating to four-year program.
The Russian Communists, of
course, will attack such a plan as
confirming their original objections,
namely that the Marshall plan
would constitute an infringement
on the sovereignty of independent
nations. The answer to this will
be that during the war these alleged
infTingements also occurred when
materials and men were allocated in
accordance with decisions taken at
the top level by the allied govern
ments. It is not an infringement
Of any nations sovereignty for that
nation to agree to use funds from
America in certain way and to
agree to current examination or in
spection so as to make sure that the
desired results are being attained.
Thus, there were certain condi-
tiofis attached to the British -Ameri-
can loan. When some of them be-
came onerous, discussion between
the governments ensued and re-
vision was considered as a PROPOSE
ton Of mutual consent. The same
thing may happen with reference
to changing conditions as the Mar
shall plan Is put into operation
over a period of time.
Biggest Question.
The biggest question, however, is
whether the American billions are
to be used to build up socialistic
governments abroad, which are a
short step from the Communist
stage Of social evolution. Many
Americans are critical Of the Labor
Socialist government in Britain and
are opposed to the Marshall Plan
because they believe what Win
ston Churchill said about the pro-
ceeds Of the British-American loan
being frittered away.
Then there is the matter of the
relations between foreign govern
ments and private enterprise. Will
these governments play politics with
favorites or will there be some eff
fort to cooperate with existing
companies which have had expert
ence in the management of certain
economic enterprises which are to
be the subject of financial assist
ance?
The Reconstruction Finance Corp
handled this delicate problem with
unexampled efficiency during the
war and before the war under the
able leadership of Jesse Jones
Somewhere in the younger genera
ton Of international business is
another Jesse Jones who knows
how to make loans and yet is
mindful of the leaders RESPONSE
bilities to the people who put
up the money. Somewhere abroad
will have to be found private citi-
zens who can be encouraged to
rebuild with American funds the
national economy of their respective
countries with a minimum of politi-
cal interference and graft. It is not
too soon to say that much will de-
pend on what the Labor govern
ment in Britain can do with respect
to the maintenance there Of the free
enterprise system.
1t Is easier to make the decision
TO lend the funds than to work out
plan for the distribution of such
FUNDS. 1t will be interesting to ex-
anime the restrictions or Limitations
which the European governments
themselves are going to suggest as
q basis for borrowing or receiving
from the American people more
money than it cost to pay the ex-
penses OF the First World War.
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