Evening star., 1947-10-29
Old Political Battles
Sure 10 Be Revived
On Marshall Plan
stote Toriff Fights Likely
On Some Proposals; Labor
Eyes Foreign Competitors
By David Laurence

A.p DUptu AUWY eNCf
While there will be no partisan
ship as such in the Forthcoming
session Of Congress in considering
the Marshall plan, there will b,
plenty Of politics behind the scenes
In a sense, the tariff fights Of ole
will be revived. Various States
which may see their situations i'm.
paired will offer opposition to thos,
proposals which can affect then
adversely.
1t would not be surprising, either
to find labor-union leaders ranged
alongside of business men in opposi.
ton to those features of the Mar.
shall plan which look toward the
building up of European competitors
to American producers, especially tr
Latin-American markets.
Thus If, as planned, 100000 tons
Of steel are exported to Britain tc
supplement her existing production
this is bound to result in flow OF
finished products to parts of the
world which American sellers had
expected to reach.
Prewar Markets Eyed.
In general the idea of supplying
raw materials to European coun-
tries to. use in competition with
America has back of it the theory
that the Europeans must be able to
sell in world markets or at least to
recover some of their preWar mar
kets. But American producers,
looking toward the time when sur
pluses may exist for them-particu-
larly when domestic demand is
Satisfed-have been eyeing these
same markets as an outlet for their
excess production of the future.
The argument will run along the
same lines as that which is heard
from the protectionists when
tariff reduction is proposed. AS
matter Of fact, If certain tariff bar
riers were removed so that Ameri-
cans might purchase more goods
from the rest Of the world. there
would be no need of any Marshall
plans.
The protectionist doctrine will
come in for attack in more than one
respect as the Marshall plan un-
folds. 1t will certainly be interest
ing to see how senators and repre-
sentatives vote on the issue grant,
ing large quantities of American
goods-already short and in demand
at home-to Europe, while domestic
users wait.
The proposal to increase the ex-
ports of farm equipment is a case
in point. Secretary Krug urges that
so per cent more than current
export be shipped. The farm equip
ment industry has felt severe criti-
cism because 1t has been exporting
IL per cent. An 18 per cent figure
might arouse the farm belt. Yet
the European countries do need
farm equipment to plow and culti-
vate their fields so that America
will not have to send so many tons
of food for relief purposes in
definitely.
Expert Timing Necessary.
Some expert timing will be neces-
sary so that the equipment does not
lie idle for months abroad between
seasons while American farmers
wait. This is only one example of
the political repercussions that can
flow from the Marshall plan If 1t is
not properly synchronized with
needs.
Incidentally, too many people
have been given eXtravagant i'm
pressions about the sums of money
to be voted. Much that is author
lied will not be spent in the next
year, because Europe cannot digest
and manage in IL months all the
aid which it is repeatedly set forth
that America is TO furnish.
When the whole program is fully
analyzed by Congress, the sums |
voted will not exceed $4,500,000. 900
anu Hldy IlUG De dS lIluCl DIS 9o,Uuu,-
100000. This is because, unless
every part of the plan is safe
guarded and there is some proof of
the effectiveness that can be con-
expected. Congress will not
vote it. The administration theory
that Congress will write a blank
check to conduct a world wide
pump priming" will be dispelled !
when the congressional committees
get down to actual consideration of
The program.
Politically, the administration will
not be able to cry that opponents
do not favor the Marshall plan.
They will favor it but they will insist
hat safeguards be written into the
appropriations so as to insure GER
ain methods Of disbursing the
money and the goods. Otherwise,
he Marshall plan will be stalled
Indefinitely and stop-gap aid will be
handed out on a scanty basis In
separate pieces of legislation.
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