Evening star., 1948-10-03

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countries has shifted in emphasis
from relief to rehabilitation goods.
Only a short time ago, the Organi-
zation for European Economic Co.
operation, consisting of representa-
tives of the participating countries,
agreed on how the first years
$4,875, ,O0O,0 900 of Marshall Plan as
sistance is to be allocated among
them.
A major stumbling block, where
progress has been, to most OBJ
servers, less than encouraging, is
tagging intra European trade, but
Paul G. Hoffman, ECA admins
traitor, refuses to be discouraged.
He said the other day he thought
real progress was being made by
the participating countries in STEP
ping up their efforts in that d.
rection.
1t is still too early to measure,
statistically, how Marshall Plan aid
has stimulated European economic
recovery. Mr.. Hoffman is well
aware that before he goes to Con-
gress early next year to seek funds
for the second year Of the program,
he must be in a position to point
to measurable gains as result of
the first years expenditures. He is
confident he will be able to do that.
But the first job in getting Eu-
rope back on its feet was to provide
food for hungry workers and up to
September 1.-The first five months
Of the operation-57 per cent Of
ECA funds, other than for ship
ping. went for food and agricul-
tural commodities. The first pur-
chases were almost wholly food, but
authorizations for industrial prod
ucts have stepped up gradually and
now are about 10 per cent Of the
total each week and still growing.
Production Increases
Even within the industrial pro-
portion of ALLEGATIONS the pattern
has been changing. As Samuel w.
Anderson, head of the ECA indus
try division, explained, its first job
was to fill up the pipelines and in
ventories Of raw materials and now
industrial equipment is assuming
greater Importance. Coal, for in
stance, has been the largest item
in the list of industrial products
exported, but these exports are now
declining and Anderson looks to the
day when they will be at the van
ishing point.
Europe had been making strides
toward industrial recovery even be-
fore there was q Marshall Plan.
The Economic Commission for Eu-
rope, United Nations agency which
has no connection with EcA, re-
ported recently that last year in
dustrial production in IA countries,
excluding Germany, rose to los per
cent Of its 1898 level. With Ger
many included, the percentage fell
to 81.
ECA's own figures show produc-
ton levels In Great Britain, prin-
cipal beneficiary under the Mar
shall Plan, have risen "a per cent
since 1916 and are now 10 to IS per
cent above the 1898 rate. In France,
despite political instability, the in
dex OF production has risen to II
per cent over 1888. Belgium, Sweden
and Denmark have had even more
rapid recovery.
Hope to Copy u. S. Methods
Not only raw materials and equip
ment are needed to increase pro-
duction Of Western Europe, but
some means must be found to in
crease the productivity Of its labor.
A start in this direction was made
this week with the establishment Of
the Anglo-American Council of
Productivity, including industrial
and labor leaders Of both countries.
Chairman of the American group is
Philip D. Reed, board chairman Of
the General Electric CO.
This council, which will meet in
London next month, will seek to
adapt American methods of produc-
ton to stimulate the output of Brit
ish mines and factories. Mr.. Hoff-
mans hope is that the council will
arrange for delegations of British
industrialists and labor leaders to
visit the United States so that they
can see American methods in opera
tion themselves and make their own
decisions on what would be useful
in their situation. He is treading
here, to avoid the appear
ance Of sending efficiency experts"
to tell the British how to run their
business, and 50 arouse the resent
ments which would defeat the pur-
pose of the plan.
Labor Lacks Incentive
European labor generally is far
less productive than American labor.
This arises not only from the greater
degree of mechanization and organ
ization Of effort here. but also from
the fact that, given the same tools
and organization, the American
workman produces more. He has,
Of course, incentives lacking in coun-
tries such as Britain, where neces-
sites are strictly rationed, so that
the laborer has nowhere to spend
whatever he could earn in excess
Of what might be regarded as nor
NAL. This lack of incentives tends
to curtail production, which makes
it impossible to provide the incen-
tives, is a vicious circle that must
be broken If Europe Is to recover
economically.
While the production trend in
Western Europe is on the upgrade,
intra European trade has fallen of.
Countries are importing less from
each other and more from the
United States.
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