Evening star., 1947-03-24
Project in Greece
Is No British Pact,
Senators ToId
By J. A. O'Leory

ACQeSOIl T6V6dltO W GIlC oClloOS
Foreign Relations Committee to-
day the administrations belief
that the Greek and Turkish aid
programs will have to be fol-
lowed by some financial assist
ance to the American-occupied
section of Korea.
Asked specifically about Korea by
Chairman Vandenberg, Mr.. Ache
son said the failure thus far to
bring about unification of Korea
because Russia has blocked agree
ment has created economic prob
lens in the American sector of that
country.
He predicted financial aid-he
did not say how much-will be
necessary TOR the next three years.
The State, War and Navy Depart
ments are working on the estimates
now, he said, and they will be sub
mitted to Congress later
$50, we must contemplate SINH
lar program in Korea?" observed
Senator Vandenberg, referring to
Greek Turkish aid program on
which the committee was holding
hearings.
Mr.. Acheson said he did not
know how similar it would be, but
that I'VE must look ahead to some
thing in Korea
Southern Area Referred To.
In answer to Senator Vanden-
berg's query, Mr.. Acheson said, THE
prospect in regard to Korea is there
will be a requirement for expendi-
lures, probably over the next three
years." in the area below the 38th
parallel, which has been occupied
by American forces since the surren-
der of Japan. The Russians occupy
the northern part of the country
which contains most of Korea's nat
ural resources.
Mr.. Acheson said this government
has been attempting to bring about
the unification of Korea, but has
not succeeded because the Soviet
government has not been able or
willing to proceed with the discus
sions.a
The point on which the negotia-
tions reached a stalemate, he re-
lated, was the Soviet contention
that, in setting up an over all Ko-
rean government, only those Ko-
reans should be dealt with who do
not oppose a trusteeship plan pro-
posed in 1945. Expressing the view
that that was not a tenable posi-
ton, Mr.. Acheson said the United
States has insisted all Koreans
should be considered.
Aid Already Being Given.
(Korea already is sharing in
appropriations to the War De-
partment for relief purposes in
all occupied areas. 1t is esti-
mated that more than $125,000.-
900 will be spent this fiscal year
to supply food, medicines and
other relief needs in Southern
Korea. Plans now being worked
out would expand this program
to help rehabilitate Korean in
dustrieS and finance importation
of some raw materials in an ef-
fort to make the country econom-
ically self-sufhcient.)
The discussion switched to the
Pacific area after Mr.. Acheson had
assured the Senate committee that
the proposed aid to Greece and
Turkey is to be an American pro-
gram and not an underwriting OF
British policy there or elsewhere.
He also made more emphatic his
House testimony of last week that
financial aid to Greece and Turkey
does not contemplate sending troops,
and is not aid of the kind likely
to lead to war.
Aid Would Be Virtual Gifts.
Both Mr. Acheson and Under
secretary Clayton, who appeared at
the same time before the House
Foreign Affairs Committee on the
same issue, limited strongly that
the proposed aid for them may
have to be gift.
Mr. Clayton said all but $780,
100000 of the 100000, 900 proposed
total would go into military expen-
ditures. And he said that assistance
for military purposes, being essen
tial to our own security" should be
an outright grant.
Mr.. Acheson, in his testimony ap-
parently ruled out the idea of a
loan by saying, Greece is not in a
position to borrow; it is in state of
collapse and it must be put on a
sound financial basis"
Senator Connally, Democrat, of
Texas. ranking minority member of
the Foreign Relations Committee,
joined Mr.. Acheson in asserting that
the proposed aid is not a case of
taking over British commitments.
The Texan said he wanted to stress
the point because a great many
people in the country who doesn't
like Great Britain are saying that"
"As a matter of fact, if Great
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