Evening star., 1947-11-10

days joint congressional near
ter and Undersecretary Rober
indicate the Importance, even from
purely economic point Of view, ol
the 16 nations who have joined to.
gether to develop a program fol
their mutual recovery. Their re.
sponse to our suggestion Of June
was q remarkable cooperative effort
in a postwar world in which thai
element has hitherto been distress.
ingly lacking.
Congress will wish to go into the
objectives and the details of the Eu-
ropean recovery program at some
length, but feel that a brief sum-
mary of the tentative conclusions we
have reached may serve the useful
purpose of making clear the distinc-
ton between the long-range recov-
cry program and the stop-gap pro-
gram, which we refer to as interim
aid.
Long Term Program.
The Committee OF European Eco
nomic Cooperation, meeting In
Paris, produced recovery program
extending over four years. After
the most careful checking, with the
assistance of experts drawn from
many governmental agencies, we
have concluded that the Paris re-
port correctly Identifies the courses
of action necessary to produce re-
covery and indicates on approximate
order of magnitude Of the cost for
the full four-year program. On the
basis of present indications, the es-
timated cost to cur Treasury OF this
program may be Of the order OF
magnitude of $4,000, ,0o0, 900 to s20,-
900, ,O00,0 We feel, however, that the
uncertainties of weather and crops,
supply availabilities, prices, ct
cetera, inject a degree Of assump-
ton which makes the total cost i'm
possible to forecast with accuracy at
this time. I, therefore, will not rec
ommend to the President that the
Congress appropriate for the full
four-year period.
I feel, however, that we can es-
innate with reasonable accuracy
and assurance the sum required for
the first stage of the recovery pro-
gram, which will cover a IS month
period from April l, 1s48 to June
30, 1949.
Our tentative estimate of the cost,
subject to final checks In the light
of the Hartman report, Is some
thing under $1,5oo,000,00o for the
last three months of the fiscal year
1948 and somewhat less than $6,O0o,-
100000 for the fiscal year ending
June 30, 1949. The findings con-
tanned in the Krug report, the
Nourse report, and the Hartman
report, together with the studies
made by our interdepartmental
committees, make it clear that a
program in this order of magnitude
can be safely undertaken by this
country. I shall therefore recon-
mend to the President that the
United States support the European
Recovery Program and that an
amount be appropriated for the 15-
month period ending June 80, 194e.
Principles Important.
It is of cardinal Importance that
an able and effective United States
administration manage the funds
which may be made available by the
Congress. How best to achieve this
and the other essential elements of
an organizational and administra-
tive structure for the program Of
aid to European recovery is a mat
ter which the Congress will wish to
examine with great care. There are
several important principles which
I believe should determine the ma
ture of this organization:
(a) The operation of this program
will in many ways define and ex-
press the foreign policy of the
United States in the eyes of the
European countries and the world.
Therefore, the operation must fully
accord with the foreign policy of
the President as expressed through
the Secretary of State.
CD The organization, If it is to
afford successful and dynamic man
to the complex recovery
program, must be granted the wild
est practicable flexibility both in its
operations and in the use Of the
funds placed at it's disposal. The
of United States support
will achieve its objective only if 1t
is kept responsive to changing situ-
ations and varying supply condi-
tions.
Co Full use should be- made Of
the existing governmental agencies
in carrying out those parts Of the
program which fall within the scope
Of their present activities. The
of Commerce, Treas
ury, Agriculture, Interior, the Ma
tional Military Establishment and
other agencies are well equipped to
perform many of the necessary
The National Advisory
Council and other competent inter-
departmental agencies will have
parts to play.
d. Strong central administrative
direction is essential in a complex
and varied program of this kind.
There must be high degree of in
tegration in our operation, both in
the United States and overseas.
Unity of command, rather than diff
fusion of authority and response
bility is required.
Truman to Offer Plans.
The President will submit to the
Congress his recommendations con-