Evening star., 1948-10-27
New ECA Grants
Halted Pendinq
Loan Compacts
Britain and Iceland
Are Only Countries
Signing Agreements
BY the Associated Press

The Economic Co = operation
Administration announced today
it will make no new Marshall
plan grants to European coun-
tries unless they have signed
loan agreements. Only Britain
and Iceland now have loan
agreements.
The action temporarily cuts of
new grants, or outright gifts, OF
recovery aid to France, Italy, Den
mark, Norway, Sweden, Belgium
Ireland, the Netherlands and Turkey
These are the countries eligible
for ECA aid on a repayable loan
basis, with whom negotiations have
been in progress for months.
Exempt from the cutoff order are
nations whose economic condition
is such that ECA is not requiring
them to sign up for loans. These
include Austria, Greece, Trieste and
the Allied zones of Germany.
The halt in new grants will not
stop shipments under grants al
ready made.
British Sign Agreement.
The British yesterday signed a
loan agreement for $4,000 900, and
Iceland also is exempt from the
sweeping ECA decree because she
concluded a $2,300,00o fisheries
credit in the summer.
ECA is obliged under the For
eign Assistance Act to use $1,000
100000 of its Marshall Plan appro-
priation in making loans which are
repayable and which will finance
specific industrial recovery projects
While approximately $2,500, ,000, 600
already has been handed out in
grants, the loan program is behind
schedule.
The Marshall Plan agency de-
scribed its action as a move to
balance the ratio of loans and
grants
Long Halt Held Likely.
Acting ECA Administrator How
ard Bruce said he did not believe
the halt in new grants would last
long, or that it would affect the
overall program of providing aid
under the ECA program"
Yesterday another ECA spokes-
man predicted that all loans nego-
tiations now under way would be
concluded within two weeks.
A loan of about 100000, 900 to
Fire is Imminent" he said.
Larger credits to France-about
$170. 100000 - and the Netherlands,
approximately $4,000, 900 plus s15,-
OcO,oc0 for the Netherlands Indies
shortly.
AS soon as those loans are signed
those countries again will become
eligible for grants.
Nations Are Prodded.
The chief practical effect of the
whole move is simply to prod
France, Italy, Denmark, Norway
Belgium and The Netherlands to
make loan agreements.
Turkey has received no Marshall
Plan grants; has gotten aid under
separate program. But Turkey is
seeking a loan.
Sweden has not sought grants al
though negotiating on a loan.
The only aid to Fire has been in
the form of advances to be charged
against the loan under negotiation.
Switzerland, although a. partici-
pating country in the recovery pro-
gram, so far has asked neither
grants nor loans.
ECA officials said that in all cases
the delays in signing loan agree
ments have been due mainly to de-
cisionS On "the final wording"
Dollar Requests Processed.
Although the daily work of ap-
proving purchase commitments will
continue to be processed without in
terruption. it was stated. The ap-
prevails will be issued, however, only
after the loan agreements are
signed.
The British loan calls for 2h per
cent interest, rate which is expect
ed to govern all other credits grant
ed. 1t is repayable in half-yearly
installments over IS years, starting
in 1856.
The approximate sums of loans
under negotiation with the other
countries are:
Belgium-Luxembourg, $50,O00, 900: /:
Denmark, $25.000,000; Italy, $50,-
OO,00o; Norway, $35, ,O00, 900; Sweden,
$10,000,000; Turkey, $4,000, 900.