Evening star., 1947-11-08
Bipartisan Agency
To Handle Foreign Aid
Urged by Herter Unit
By J. A. OIeory

All future foreign aid will be
supervised by a new Government
corporation with bipartisan
board of directors # Congress
adopts the plan recommended
last night by the Herter Com
mittee of the House.
Without attempting to fix the
amount of aid that will be required
either for the next few months or
for long-range program. this spe-
cial House group agreed on broad
set of principles that should be con-
sidered by Congress in seeking to
rehabilitate Western Europe.
High lights of the report are:
That new Government machinery
be limited to that necessary to pro-
vide efficient coordination of exist
ing agencies in the field of foreign
ai6.
That this be accomplished through
a new authority in corporate
FORM" with a bipartisan board of
directors appointed by the Presi-
dent and confirmed by the Senate.
Coordination Of Policies.
That any programs formulated by
the corporation should be co-ordi-
ated through a foreign aid coun-
Gil presided over by the Secre-
tary of State, and including all the
top officials of Government agen-
cies concerned with foreign aid.
That the Export Import Bank and
the Commodity Credit Corp. handle
any stop-gap aid to France and
Italy until March 81. If Congress is
unable to set up. the new machinery
soon enough to handle this emer-
gency assistance.
The committee said the new pro-
posed agency should sift all requests
for help in Western Europe. boss
the purchase of materials in this
country, WELD any controls neces-
sary TO protect the economy OF the
United States and make sure that
the aid reaches those for whom it Is
intended"
The committee drafted one set of
suggestions designed to encourage
the recipient countries to make vi
gorous efforts to increase their own
production, and to cooperate with
each other in the exchange of goods.
The committee also outlined a
plan under which any proceeds de-
rived from the relief supplies could
be invested and Utilized for further
assistance within given country.
After recommending that the new
corporation determine the form of
consideration to be obtained. on
the basis of the recipient country's
capacity to pay. the report suggested
how such payments should be ham
died. If the payment was in United
States currency, 1t would be credited
to the corporations capital account.
When payment was in the form of
local currency of the recipient coun-
try, it would be handled by special
board in each country. Such funds
would be invested and utilized to
further the recovery Of the recipient
country.
Representative Herter, Republican.
of Massachusetts,, committee spokes-
man. emphasized that last nights
statement is merely preliminary
outline of the basic principles
adopted by the committee. It's COM
plete report will not be ready before
next week, and may be followed by
later pronouncements on the needs
of specific countries.
The views of this special group.
which toured Europe during the re-
cess, will be available to the Senate
Foreign Relations Committee and
the House Foreign Affairs Commit
tee, when they begin hearings on
the foreign aid problem next week.
Mr. Herter said the findings of his
group we're unanimous. with Is
members taking part. One men,
Der, Representative Case. Repub-
lican of South Dakota, Is still in the
West.
The Herter Committees recon-
mendations were made public as
President Truman checked with his
cabinet final details of the aid pro-
gram he will ask OF the special ses-
sion and went over a report on
United States ability to spend. This
report, submitted by Secretary o.
Commerce Hartman, will be made
public tonight.
Secretary of State Marshall is ex-
pected to outline administration pro-
posals to the Senate and House
Foreign Relations Committees Mon
day. Immediately thereafter the
committees will buckle down sep
artely to work out details of legisla =