Evening star., 1947-11-09
Partial Text of Summary of Foreign Aid Report
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fSecond, there may be private financ-
ing. Third, a large part Of the
European deficit with the American
continent is with countries other
than the United States.
In its own interest, the United
States will probably have to supply
funds to cover a part Of this deficit
but we should not have to finance
it in full. When allowance is made
for these deductions, the resulting
figures are those given above for
the cost to the United States
Treasury.
1t is helpful to compare the
figures for the cost to the United
States Government with what the
United States has been doing for
Europe in the past. Before the run
on sterling in July the annual rate
of Withdrawals on the British loan
was about $4,000, 100000 In addi-
ton, in the first half of 1947, the
rate of withdrawal ON other Euro
pean aid programs-relief, UNRRA
and special grants-was about ST.
600 100000. In 1947 the United
States assumed only half of the
cost of German occupation, but in
1948 it seems likely that 1t will have
to assume the whole burden,
amounting to about $l,000, 900, 900.
ALI Factors Considered.
When all these factors are taken
into account, the program of aid
proposed for 1948 proves to be q
moderate increase on what the
United States has in the recent past
been spending in Europe and what
will probably have to be expended
in any case. In addition the pro-
gram calls for increased lending op-
erations by the International Bank.
Looking to the years beyond cal
endar 1948, the committee empha-
sizes that any estimates are alto
gether speculative. The American
people have an understandable in
terest in trying to ascertain the
drain on their resources in the flu
ture. But 1t is totally impossible,
and indeed unwise, to attempt to
calculate this with accuracy. The
Paris conference suggested that the
total European foreign exchange
deficit for the four-year period 1948-
1851 would be about $4,000 ,000, 900.
The committees estimates range
from II to % billions. When de-
ductions are made for various types
of financing, the range Of possible
appropriations would be IL to II
billions. But the committee can
not emphasize too strongly that any
aid extended to Europe must be on
a year-to-year basis. 1t must be
subject to constant, vigilant review
of the Congress.
v. FINANCE AND
ADMINISTRATION.
Even to carry out prudent pro-
gram In 1948 entails the execution
of certain fundamental policies on
the part of the United States Gov
ernment and the most careful ad-
ministration. The committee be-
lieves that any aid to Europe offered
by the United States should be
financed out of taxes, not out of
borrowing. The maintenance Of a
surplus in the United States Treas
ury is necessity in this inf1ation-
ary period.
A foreign aid program will require
means to make available goods that
are in short supply. Voluntary
measures should be relied upon
wherever possible, If and when they
are not, the Government will prob
ably require authority to set priori-
ties in order to insure the available
ity for export of limited amounts
of the items most critically needed.
1t might also have to issue limited
orders to control consumption of
critical materials such as those still
in effect for tin. Especially in the
field of food 1t might be necessary
to use the device of requiring that
limited quantities be set aside for
export.
It must be emphasized that these
suggestions apply only to- the for
eign aid program and not to the
broad problem of imitation. The
committee is convinced that infa-
ton Is serious deterrent to the
stability OF the American economy,
but any consideration of a program
to control imitation would have been
beyond its competence and its terms
of reference.
Administration Is Vital.
The committee Is convinced that
the administration Of the program
is of primary Importance because 1t
will be necessary, for reasons given
above, to adjust the program as it
goes forward. To insure unity of
administration, it is recommended
that a new independent agency be
set up in the Federal Government
The head of this agency should be
appointed by the President and con-
firmed by the Senate. A board of
directors should be appointed, rep
resenting the departments of gov
ernment concerned with the pro-
gram, including the Secretary of
State and such other persons as the
Congress may see At to add.
The head of the new organization
should be chairman of this board,
which should have power only to
establish and adjust general policies
within the framework of congress
sional action.
The operating decisions should be
made by the head of the new organ
ization, but it will be necessary for
him to work out effective means for
cooperation with the State Depart
ment concerning these major deci-
sions which have an important bear
ing on the foreign policy of the
United States.
The closest possible relations
should be maintained between the
new organization and the Congress.