Evening star., 1947-12-19

tdined in his message to Congress
today tolloaos::
pie Of the United States is the
creation Of conditions of endur-
ing peace throughout the world.
In company with other peace
loving nations, the United States
is striving to insure that there
will never be a World War III.
80
Considered in terms of our own
economy, European recovery is
essential. The last two decades
have taught us the bitter lesson
that no economy, not even one
50 strong as our own, can remain
healthy, and prosperous in
world OF poverty and want. '''
The next few years can deter
mine whether the free countries
of Europe will be able to pre-
serve their heritage Of freedom.
If Europe fails to recover, the
peoples of these countries might
be driven to the philosophy Of
despair-the philosophy which
contends that their basic wants
can be met only by the surrender
of their basic rights to totalitari-
an control. 80
In the light of all these fac
tors, an integrated program for
United States aid to European
recovery has been prepared for
submission to the Congress.
In developing this program,
certain basic considerations have
been kept in mind:
First, the program is designed
to make genuine recovery pos
sible within a definite period OF
time, and not merely to continue
relief indefinitely.
- Second. the program Is de-
signed to insure that the funds
and goods which we furnish will
be used most effectively for
European recovery.
Third, the program is designed
to minimize the financial cost to
the United States. but at the
same time to avoid imposing on
the European countries crushing
financial burdens which they
could not carry in the long run.
Fourth, the program is de-
signed with due regard for con-
serving the physical resources OF
the United States and minimiZ-
ing the impact on our economy
Of furnishing aid to Europe.
Fifth, the program Is designed
to be consistent with other inter-
national relationships and re-
sponsibilities of the United
States.
Sixth, the administration OF
the program is designed to carry
out wisely and efficiently this
great enterprise of our foreign
policy.
Recovery-Not Relief.
The program is designed to as
sit the participating European
countries in obtaining imports
essential to genuine economic
recovery which they cannot
finance from their own resources.
It is based on the expectation
that with this assistance Euro
pean recovery can be substantial
ly completed in about four years.
The aid which will be required
from the United States for the
first IS months-from April l,
1948. to June 80, 1949-is now
estimated at $500, 900, 900.
The requirements of the re-
manning three years of the pro-
gram are more difficult to esti-
mate now, but they are expected
to decrease year by year as
progress is made toward recovery.
The best estimates we can now.
make indicate that appropria-
tions of about SIC, zoo, 900, 900 will
be required for the last three
years.
recommend that legislation
providing for United States aid
in support of the European re-
covery program authorize the ap-
preparation of $1,000, ,0OO, 600
from April l, 1948, to June 80,
1852. Appropriation for the pc
riod from April l, 1948, to June
80, 1949, should be made in time
for the program to be put into
effect by April l, 1948. Appro-
prlations for the later years
should be considered subse-
quently by the Congress on an
annual basis.
The funds we make available
will enable the countries OF Eu-
rope to purchase goods which will
achieve two purposes-to lift the
standard Of living in Europe
closer to a decent level, and at
the same time to enlarge Euro
pean capacity for production.
Insuring Proper Use of Aid.
A second basic consideration
with regard to this program is
the means by which we can in
sure that our aid will be used to
achieve it's real purposes-that
our goods and our dollars will
contribute most effectively to Eu-
ropean recovery. Appropriate
agreements among the partici-
pating countries and with the
United States are essential to
this end.
At the Paris conference the
European nations pledged them
selves to take specific individual
and cooperative actions to &C
complish genuine recovery.
In addition, each of the coun-
tries receiving aid will be ex-
pected to enter into an agree
ment with the United States af-
firming the pledges which it has
given to the other participating
countries, and making additional
commitments.
Under these agreements, each
country would pledge itself to
take the following actions, except
where they are inapplicable to
the country concerned:
/. To promote increased in
dustrial and agricultural produc-
ton in order to enable the par
ticipating country to become in
dependent of abnormal outside
economic assistance.
2. To take financial and none
tary measures necessary to sta =
bilize its currency, establish or
maintain a nrorer rate 0f nv