Evening star., 1948-01-14
ForeignAid
Continued From First Page.)

Massachusetts,, agreed with Mr..
Snyder that ii would be unwise~ to
require liquidation Of these assets,
but announced that he will try to
write into the European Recovery
Program some formula to require
foreigners with private investments
IN this country to do their fair share
toward achieving recovery of their
homelands. >sssz.----
II don't see how you can defend
the proposition that people Of mod
crate means in this country should
be taxed for a European recovery
program If the well-to-do people
abroad are not contributing to it."
Senator. Lodge said. 80 ss~ =
II don't defend It," Mr.. Snyder
replied, adding that the Treasury
is now engaged in a study of the
best possible use that should be
made of these foreign investments
in the United States to bring about
Europe's recovery.
Chairman Vandenberg also sought
to pin the Secretary down on what
is being done to find and bring out
any gold and dollars that may be
boarded in Europe.
Are you going to discuss boarded
gold?" Senator Vandenberg asked.
THE charge is made, and I think
substantiated in part by the Treas
ury, that there is substantial
boarding of gold and dollars
abroad"
There is a great deal of intima-
tion, but no actual proof" Mr.. Sny-
der replied. I'VE assume there is
some"
Vandenberg Cites U. s. Law.
When the Secretary added that
there is no law that could possibly
make hoarders produce gold in Eu-
rope, Senator Vandenberg broke in:
I'VE made people produce it by
law over here" presumably refer
ring to the Governments action in
calling in gold here before the war
and storing it at Fort Knox.
Mr.. Snyder replied: 1--WE are able
to do a lot of things European
nations cannot do because the
United States has stable Gov
ernment."
Senator Vandenberg suggested the
agreements to be made with each of
the 16 Marshall Plan countries could
contain a stipulation that an effort
would be made to prevent indiyid-
ual boarding.
The Secretary agreed and added
kne RI hr{Y,p hidden
gold or dollars into circulation in
Europe would be to stabilize eco
nonic conditions, and make use OF
these assets desirable.
Barley Offers Suggestion.
Senator Barkley, Democrat, Of
Kentucky contended that in any
country it would take a policeman
in every home and farm to make
sure there was no boarding. He
asked Mr.. Snyder:
THAT being true, isn't the only
way to do it, to make investments
attractive?"
Senator Vandenberg broke in to
agree, with this qualification, until
the governments (abroaO are strong
enough to institute and sustain
orders"
Referring to the utilization of
assets held by individual foreigners
in this country, Senator Lodge said
"the impression has been given that
these are untouchable."
Il don't subscribe to any un-
pledgibility of these assets" Mr.
Snyder answered. repeating that it
is a question of how they should be
used. Pointing out that some of
these assets are already pledged for
loans, his statement went on:
Some of the governments, how
ever, will decide to liquidate some or
all of their holdings so as to pay for
imports. In practice this may be an
alternative to borrowing from the
United States. We certainly will not
object to the governments using
these funds. The question of policy
for use to decide is the extent to
which we can help these countries
In, obtaining control of these assets" !"
When Mr.. Snyder said he saw mo
objection" to use of individually held
foreign assets ,rin this country to