The Wilmington morning star., 1947-03-22
TODAY
and
TOMORROW
Continued From Page one)

S1ollIi 1lOtIl 1GIIIlduy WOulQ LUZ
well over 400 billion dollars.
No one is even asking for any
such sum-. The global figure Of 20
billions, mentioned at Yalta, was
some S per cent Of the estimated
damage. The Soviet and Polish
claim for half this amount would
if it were paid be no more than
5 to 7 per cent of the material
damage which Russia suffered.
This is the estimate in the admir-.
able study just published by the
National Planning Association,
and written by Mr.. David Gins
burg, who was until recently a
close adviser to General Clay and
General Draper.
1t is evident that only a small
fraction of the war damage is 60
ing to be mended by the Germans.
At the very least IS per cent of
the damage will have to be re-
paired by the Allies. The argu =
ment at Moscow is how much OF
the remaining 5 per cent the Ger
mans can and should repair.
3, Here we come upon the fact, that
Germany is also a devastated
country. The problem is how out
of a badly damaged Germany
some contribution is to be ex-
tracted to repair the damage
which the Germans caused. To
make any contribution some of
the damage to Germany will have
to be repaired, and one of the
irritating issues at Moscow is
whether the United States will put
money into Germany in order that
Germany may be able to pay out
money to the other Allies.
Seen this way the problem is in
soluble. But that is because the
Allies are fixing their attention on
the S per cent, which is technical
ly r~eparations, instead of On the
whole 100 per cent which will be
needed to repair the damage of
the war. On the 100 per cent they
could find it to the interest of each
to work together
If we look at the task Of recon
struction as a whole, certain con-
illusions are, l think, inevitable.
The first is that by far the great
est part Of all the damage viii
have to be, can only be, repaired
by the sweat of the people who
suffered it. The victims Of Ger :
many will. on the most optimistic
estimate, have to repair on the
average IS per cent Of the
damage.
The second is that the remain
ing 5 per cent will have to be re-
paired in part by Germany and in
part by North America, principal
Nv the United States. The Ger
mans can perhaps be compelled
to make their contribution out OF
forced savings. in other words by
living at a low standard Of life.
We shall have to be induced to
invest a considerable amount OF
our surplus capital in a project
for the peace and reconstruction
OF Europe
I think it is useful to put the
iss,1e in this bald and elemental
form. The fact is that the recon-
struction Of Europe. and therefore
the establishment of peace, cannot
be accomplished without a large
capital contribution by the United
States. All the various proposals
now being discussed rest on this
premise, whether hidden Or open.
The Soviet claim of reparatlons
from Germany and italy can only
be satisfied if the United States
UNDERWRITERS it. But the same stu
alton exists in a different form in
regard to the other countries.
whether Great Britain or Greece.
That the United States will nave
to make a large capital outlay for
reconstruction and peace is no
longer seriously in doubt. 1t is the
thesis Of the Presidents recent
message. But the form and meth
cd Of that investment are not yet
clearly decided and they are all
important.
The best form and method
would be not a series of doles out
the offer to invest a large sun
over a period OF years in a com
nrehensive political settlement. BY
that I mean the treatment OF Ell
rope not just Germany, as ar
economic unit. If the Soviet gov
eminent would agree to that, we
could not only afford, but would
in the end find it profitable to
allocate a large capital sum to the
European economic union and &c
make a favorable loan to Russia
in lieu Of most of her reparatlons
from Germany and Of all her ex-
actions from the countries OF east
ern Europe.
The cost Of such an undertakln'
could not be greater on the most
lavish calculation than the cost te
us Of waging war for two or three
months. We could have waged wal
for years if we had had to. We
could wage it now if we had to.
and therefore there is no question
but that we could afford such a
policy.
The real issue for us is moi
whether we can afford to invest
in reconstruction and peace. 1t IS
whether we can make the invest
ment productive, whether we car
obtain for the monev a good
enough political settlement to jus
tify us in believing that we are
not throwing good money after
bad.
That will depend upon whether
at Moscow. or later. the Old dis
putes Fan be replaced by a large
project and design for the reor-
ganization Of Europe and the
peace of the world.