Evening star., 1948-01-08

ance under existing circumstances.
The Western European participat-
ing countries, with a present pop
ulation almost twice our own,
constitute an independent area
containing some Of the most highly
industrialized nations Of the world.
AS q group they are one Of the
two major workshops Of the world.
Production has become more and
more specialized, and depends in
large part on the processing Of raw
materials, largely imported from
abroad, into finished goods and the
furnishing of services to other
areas. These goods and services
have been sold throughout the
world and the proceeds therefrom
paid for the necessary imports.
The war smashed the vast and
delicate mechanism by which Euro
pean countries made their living,
It was the war which destroyed
coal mines and deprived the work.
shop of sufficient mechanical
energy. It was the war which de-
stroyed steel mills and thus cut
down the workshops material for
fabrication. 1t was the war which
destroyed transportation lines and
equipment and thus made the abili-
ty to move goods and people made
quate. 1t was the war which de-
stroyed livestock herds, made fer
tilizers unobtainable and thus re-
duced soil fertility. 1t was the war
which destroyed merchant fleets and
thus cut off accustomed income from
carrying the worlds goods. 1t was
the war which destroyed or caused
the loss of so much of foreign invest
ments and the income which 1t has
produced. 1t was the war which
bled inventories and working capi-
tai out of existence. It was the war
which shattered business relation
ships and markets and the sources
of raw materials. The war dis
rupted the flow of vital raw mate
rials from Southeast Asia, thereby
breaking the pattern of multi
lateral trade which formerly pro-
vided directly or indirectly, large
dollar earning for Western Europe.
In the postwar period artificial
and forcible reorientation to the
Soviet Union of Eastern European
trade has deprived Western Europe
OF sources of foodstuf and raw ma
terial from that area. Here and
there the present European situa-
ton has been aggravated by un-
sound or destructive policies pur-
sued in one or another country, but
the basic dislocations find their
source directly in the war.
Vicious Circles.
The inability of the European
workshop to get food and raw ma
terials required to produce the ex-
ports necessary to get the purchas-
ing power for food and raw materi-
ais is the worst of the many vicious
circles that beset the European peo-
Piles. Notwithstanding the fact
that industrial output, except in
Western Germany, has almost re-
gained its prewar volume, under the
changed conditions this is not
nearly enough. The loss Of Euro
pean investments abroad, the de-
struction of merchant fleets and the
disappearance of other sources OF
income, together with increases in
populations to be sustained, make
necessary an increase in production
far above prewar levels, even suf-
ficient for living standard consid-
erably below prewar standards.
This is the essence of the eco
nomic problem of Europe. This prob
lem would exist even though it were
not complicated by the theological
struggles less in Europe between
those who want to live as free men
and those small groups who aspire
to dominate by the method of police
states. The solution would be much
easier, Of course, If all the nations
of Europe were cooperating. But
they are not Far from co-operat-
ing, the Soviet Union and the Com
munist parties have proclaimed their
determined opposition to a plan fo1
European economic recovery. Eco
nomic distress is to be employed to
further political ends.
There are many who accept the
picture that I have just drawn but
who raise further question why
must the United States carry so
great a load in helping Europe?"
The answer is simple. The United
States is the only country in tine
world today which has the economic
power and productivity to furnish
the needed assistance.
I wish now to turn to the other
questions which we must answer.
These are "how much" aid is re-
quired and "how" should that aid
be given.
H-HOW MUCH?
Three principles should determine
the amount and timing of our aid.
1t must be adequate. 1t must be
prompt. 1t must be effectively
applied.
Objective: Recovery.
The objective of the European
recovery program submitted for your
consideration is to achieve lasting
economic recovery for Western Eu-
rope; recovery in the sense that after
our aid has terminated, the Euro
pean countries will be able to main
tain themselves by their own efforts
on a sound economic basis.
Our assistance, If we determine
to embark on this program to aid
Western Europe, must be adequate
to do the job. The initial increment
of our aid should be fully sufficient
to get the program under way on a
broad, sound basis and not in a
piecemeal manner. An inadequate
program would involve a wastage
of our resources with an ineffective
result. Either undertake to meet
the requirements Of the propl en- or
don't undertake it at all.
Time Is Vital.
think 1t must be plain to all
that the circumstances which have
given birth to this program call Tor
promptness in decision and vigor
in putting the project into opera
ton. The sooner this program can
get under way the greater its
obopcec of stIccesS Careful COnSid-