Evening star., 1948-09-12
Western Europe Turns
1oCurreneY Exchange
To Back Up ERP Help
BY the Associated Press

hIhlD, ocpl. l1--"eSleIH Euro
pean nations agreed today on divi-
sion Of American aid funds and
turned their attention to exchange
OF their ctlrrencies to back up their
American-financed European Re-
covery Program.
Robert Marlolin. secretary general
of the Organization for European
Economic Cooperation. in announc-
ing the OEEC'S accord on alloca-
tons for the 1948-49 program, said
currency exchange was the next
hurdle in Europe's attempt to
Coordinate its reconstruction.
The 16 countries and three mill
tary regimes participating in the
ERP must now. he said, establish
the mechanism for trading currency
so as to promote the freer and
greater flow of goods and services
among themselves. This must be
done before the complete program
can be finally submitted to the
American administration.
. Automatic Conversion Asked.
Belgium and certain other nations
want trading balances to be auto
matically convertible into other
European currencies. a process
which Britain is opposing The
British do not want to make the
pound sterling freely convertible
at this time.
' Figures on the division of the
S4,875 900, 900 American aid fund as
announced by Mr. Marjolin differed
IN only few points from those re-
leased by OEEC officials early today
In the official tally Italy's share
was cut to s601 900 900 from the pre-
viously announced total OF $685.
100000.
The s5,000,O00 taken from the
italian total and other amounts
taken from the original ALLEGATIONS
for France, Holland and Britain
went into the $50O00.00o extra al
lotted the bizone OF Western Ger
many.
OEEC Council Praised.
Mr.. Marjolin also listed Britains
SIIdJS 11 ,SUO .UbUOOU vi Rt,-
223000,000, but the higher total in
cludes the s4OOOo,OOO in sterling
credits which Britain is to give the
bizone OEEC officials had figured
this $40,00O,000 as part. of the BIZ
zonal allotment.
Mr.. Marjolin praised the OEEC
council for completing its agreement
under difficult conditions" on
subject of unprecedented COM
pleXity."
The European Recovery Program,
he pointed out. is based on European
assistance AS we'll as American aid.
since creditor nations in Europe
have agreed to use part of their
ERP funds to finance purchases by
some of their debtor customers.
Thus. six creditor nations-Bel-
eium, Italy, Sweden, Turkey, Britain
and the bizone-are to set aside a
total of 1854, 100000 in their own
currencies for the benefit of debtor
nations.
Beneficiaries Named.
The beneficiaries of these funds
will be Austria, Denmark, France,
Greece, Netherlands, Norway and
the French zone of Germany.
Britain and Belgium are to sup
ply the major portion of these
funds - the so-called "intra- Euro
pean payments system" Britain is
10 furnish 1882 100000 worth OF
pounds sterling, and Belgium $207,-
100000 in Belgian francs.
Sweden will supply s25, ,OO0, ,00O
worth of her own currency; Italy
SIC. 300. 900 in lire. Turkey 100000
and the bizone s1O,200,000 worth OF
marks
France is to be the chief bene-
Aciary of intra European aid with
total of 1923 100000 worth of other
national currencies.
The Netherlands will draw ST.
100000 worth; Greece $66,80O 600;
Austria $63,O0O,5OO; Norway, s3l,-
SOC 1000; Denmark S6,800,000: the
French zone of Germany 100000.
Each to Redraft Program.
On the basis of the ALLEGATION
OF American and ra-European
assistance. each participating nation
is to reCraft its own recovery pro-
gram and return it to the OEEC
next week. The OEEC will then
consolidate them in a final draft,
and submit the whole project to the
American Economic Cooperation
Administration before the enc OF The
month.
At the same time, the OEEC is
also to adopt its currency exchange
system and statement of joint
commercial policy. Both Greece
and Turkey approved the division
with reservations that the amount
Of American dollars allotted them
was not large enough.
Herve Alphand, chief French dele
gate, told a news conference that
France would receive the larees,
amount of aid If the American and
intra- European assistance figures,
were totalled.
He pointed out that France woula
receive s989, 100000 directly from
America, and 100000 worth of
credits in ether European nations
notably Britain and the hizone.
Mr.. Alphand said the total is
more than so per cent of total
French import needs for the 194o-49
fiscal year,
ERP- Declared Enalino