Evening star., 1947-11-10
Text Marshall Foreiqn Aid Statement to Joint Committee Session

Session
program which will be the first item
of business presented to you can
not be dealt with by the Congress
without understanding its relation
ship to the program Of long-range
reconstruction of Europe.
I would, however. urge upon you
the necessity Of speedy decision
in regard to the interim aid pro-
gram. What is Immediately needed
is aid to maintain the status quo
in food and in the material neces-
sary to keep the wheels turning and
people at work.
It will do little good to discuss
the merits of a recovery program
for Europe If in the meantime
political and economic conditions
have deteriorated to a point where
such program could not possibly
succeed. The problem Of overseas
payment has become particularly
acute in the case of Austria, France
and Italy. It Is clear that the peo-
pie of these countries in the absence
of immediate assistance will, dur
ing the next few months, begin to
suffer from a lack of food and other
necessities of life and the whole
economic and social life Of the
people will be seriously affected.
Within short time these countries
will have exhausted all Of the dol
lar resources which they can mus
ter to maintain the flow of essen
tial supplies.
Austria, whose economy is carry
ing the weight of a military occupa-
tion of four powers, has been able
to survive in recent months largely
through the assistance rendered to
her under the United States foreign
relief program. These funds will be
exhausted shortly after the begin
ming of the year. The dollar re-
sources of France will permit her
to procure essential food and fuel
from abroad only until the end of
December. Because of her rapidly
dwingling reserves, she took steps
at the end of August to reduce
sharply the placement of contracts
for most other imports. Italy's
financial situation is even more seri-
GUS than that of Austria or France
Last June the italian government
took steps to eliminate the pur-
chase Of most of the raw materials
and supplies which she required for
the operation of her econemy. The
United States foreign relief program
has been able to provide food and
coal until the present time. Funds
are not in sight, however, beyond
the first of December to maintain
the flow of these necessary COM
modities.
In order TO meet this emergency,
T recommend that you give i'm
mediate and urgent consideration
to q bill authorizing the appropria-
ton of sufficient funds to provide
the supplies necessary to permit the
people of these three countries to
continue to eat, to work, and to sur
vive the winter. This is not a re-
covery program. 1t Is designed to
help provide the essentials of exis-
tence to the people of these three
countries.
Proposals Listed.
To accomplish this purpose 1t is
that the Congress
authorize an appropriation of $597,-
10000. OF this amount Austria
needs $42,O00,000, France needs
1928, 100000 and Italy needs $227.-
100000. These funds should be
sufficient to meet the situation until
March 81, 1948, before which time
we hope. that some decision may
have been taken by the Congress
regarding broad recovery program.
In the absence of a recovery pro-
gram the problem of maintaining
existing levels in Europe rapidly
become more complex after March
81. Additional countries will by that
time practically have exhausted
their dollar resources, and the
cumulative effect of the uncertain
ties as to the future and the con-
tinued low level of production and
consumption will have serious con-
sequences throughout Europe.
The program OF interim aid would
be concentrated largely on such
items as food, fuel, fertilizer, fibers,
seeds and medical supplies. With
such resources as they can make
available, the countries should be
able themselves to procure other
imports needed to prevent economic
deterioration. The program should
be sufficiently flexible to take ac-
count of such changes in require
ments and availabilities as may
occur.
Interim aid should be given to
these countries under agreement to
make efficient use of the commodi-
ties which we would supply. The
bilateral agreements would also re-
quire that the local currency equiv
alent of the value of the commodi-
ties which We supply would be used
only for such purposes as we and