Evening star., 1948-05-13
Personnel Limit
Is ECA Goal, Hoffman
Tells Fund Hearinq
Senators Question
Need for Full Sum
Asked for Europe

The Economi, Cooperation
Administration hopes to limit
it's organization to approximate
ly 500 employees at home and
about 1000 abroad, Congress
was told today. Thus far, ECA
has more than $4,000 job appli-
cations.
ECA Administrator Paul 6. Hoff-
man gave the figures as he testi-
fed at the opening day of hearings
by the Senate Appropriations Com
mittee on request for $4,245 600, COO
to carry out the European Recovery
Program through June 80, 1949.
1t was Immediately apparent in
committee questioning of Mr.. Hoff-
man, that the Senators will have to
be convinced the total amount is
needed before they will vote it. The
ERP bill carried an authorization
of IS 300, 0,0G0, 900, but S55,000,000 al
ready has been voted and $1,000
100000 for loans will be handled by
the sale of Treasury notes.
Operation Shift Planned.
Mr.. Hoffman made these points
/. ECA expects a shift from re-
lief to recovery items in shipments
abroad in the quarter beginning
July /. In the last quarter Of 1913
ECA expects the emphasis will be
on the recovery items.
2. ECA expects to survey the en-
tire economic program of all of the
16 Marshall Plan nations to which
it will extend aid.
He made the statement wher
Senator Saltonstall, Republican, o1
Massachusetts referred to a report
that Britain has shipped jet engines
to Russia made from steel imported
from the United States. Mr.. Hoff.
man earlier had pointed out that
the ERP Act makes clear Congress
intention that no war goods shall
find their way behind the iron cur
tain, directly or indirectly.
Netherlands Plans Questioned.
Several Senators wanted to know
why ECA contemplates large fooc
shipments to the Netherlands
$165, ,000,0 900 worth through June 80
1949-in view of reports that the
Dutch would have to destroy some
food because they could not ship il
abroad.
Mr.. Hoffman pointed out that the
overproduction was only in fresh
vegetables and that the only way te
solve such problems, in the long
run, is to increase production Of
goods in other countries to be sold
in exchange for surplus food
The ECA chief said the United
States is, "in sense, investment
bankers for Europe" in its efforts
to break the currency restrictions
which hamstring trade. Mr.. Hoff-
man said he would not have taken
his job as head of the agency if he
did not believe the pledge of the
Marshall PLAN nations to work to-
gether to break such restrictions
and to further European production
by mutual aid:
Requests Will Be Screened.
Requests for aid from European
nations will be thoroughly screened
first by ECA missions in each ma
ton, then by the Marshall Plan or
ganization known as the Organiza.
ton for European Economic Co.
operation. then by ECA in Washing
ton, Mr.. Hoffman said.
ECA is operating on three basic
assumptions in determining alloca'
ton of funds to individual countries
They are that the aid should bt
based on economic and not merel,
financial considerations; that tht
proportion of the aid to be financed
by loans will be determined on s
capacity-to-pay program, and tina
loans will be for projects designed
to increase production rather thar
supply consumer goods.