Evening star., 1947-12-20

the resources of the participating
country, and to take the neces-
sary steps to assure efficient use
In the interest Of European eco
nomic recovery Of all goods and
services made available through
United States aid.
5. To stimulate the production
Of specified raw materials, as may
be mutually agreed upon. and to
facilitate the procurement OF
such raw materials by the United
States for stockpiling purposes
from the excess above the rea-
sonable domestic usage and COM
mercial export requirements OF
the source country.
6. To deposit in a special
account the local currency
equivalent of aid furnished in
the form of grants, to be used
only in manner mutually
agreed between the two govern
ments.
Z. To publish domestically and
to furnish to the United States
appropriate information con-
cerning the use made of our aid
and the progress made under the
agreements with other partici-
pating countries and with the
United States.
The United States will, Of
course, retain the right to de-
termine whether aid to any coun-
try is to be continued If our pre-
vious assistance has not been
used effectively.
Financial Arrangements.
A third basic consideration in
formulating the program OF
United States aid relates to the
financial arrangements under
which our aid Is to be provided.
recommend that our aid
should be extended partly in the
form Of grants and partly in the
form of loans, depending pri-
marily upon the capacity of each
country to make repayments, and
the effect of additional inter-
national debt upon the accom-
plishment of genuine recovery.
No grants should be made to
countries able to pay cash for
all imports or to repay loans. "+'
AS economic conditions in Eu-
rope improve and political con-
ditions become more stable, pri-
vate financing can be expected
to play an increasingly important
role. The recommended pro-
gram of United States aid in
cludes provisions to encourage
private financing and invest
ments.
Impact on U. S. Economy.
A fourth basic consideration is
the effect of further aid for
Europe upon the physical re-
sources of the United States
and upon our economy. ."
While the burden on our people
should not be ignored or mini
mized, neither should it be exag-
gerated. The program of aid to
Europe which I am recommend
ing is well within our capacity
to undertake.
Its total cost, though large, will
be only about per cent of the
cost Of our effort in the recent
war.
1t will cost less than 8 per
cent Of our national income dur
ing the life OF the program. -"
Under the proposed program
OF aid to Europe, the total exports
to the whole world from this
country during the next year are
expected to be no greater than
our total exports during the past
twelve months.
This level OF exports will never
theless have an important impact
on our markets. The measures
I have already proposed to the
Congress to fight general domes-
tic imitation will be useful, as
well, in cushioning the impact of
the European aid program.
The interest of the United
States will be served best by per-
mitting the sale or temporary
transfer of some of our war
built merchant ships to the
European countries. **
Other World Questions.
A fifth basic consideration is
the relationship of our aid to
the European recovery to other
international questions. -
The productive capacity of the
highly industrialized area Of
Western Germany can contribute
substantially to the general CO.
operative effort required for
European recovery. It is essential
that this productive capacity be
effectively utilized, and it is espe-
cially important that the coal
production of the Ruhr continue
to increase repidly. -
AS an occupying power in
Western Germany, the United
States has a responsibility to
provide minimum essentials
necessary to prevent disease and