Evening star., 1948-12-21
ECA Suspends
Reconstruction
Work in China
$4,000, 900 Project
Off Until Situation
Clears, Hoffman Soys
T1ENTSIN COMPLETELY Isolated
by Reds, Nationalists Admit.
Page Az.
BY the Assoeioted Press,

ey the Assoeioted Press
Paul G. Hoffman said today
the Economic Cooperation Ad-
ministration had suspended all
reconstruction projects in China.
1t had allotted $70,000,000 for
that purpose.
The ECA administrator told re-
porters about the suspension after
talking with President Truman at
the White House.
Mr.. Hoffman returned only yes
terday from flying inspection trip
of ECA work around the world.
He visited China on the trip.
Mr.. Hoffman said the decision to
hold up the reconstruction spend
ing in China until the situation
clears in that strife-torn country
was made during his recent visit to
Shanghai.
Engineering Plans Halted.
ECA has decided even to stop en-
gineering planning except in iso-
lated cases, Mr. Hoffman said.
The so-called reconstruction prof.
ects were part of ECAs economic
aid to China. They embrace such
things as rebuilding of war shat
tered transportation systems and
docks
Congress voted S275.00O 900 for all
kinds of economic aid to China, plus
$125 000,0 900 of military aid.
M. Hoffman said the only cases
where engineering planning will 90
ahead are few isolated ones in
which no money would be saved by
stopping them.
Will Clear Jobs With Truman.
He said the engineering planning
involves only about s1,000,000 of the
$7o,O00,0oo total.
Mr.. Hoffman also told reporters
that he has been clearing and would
continue to clear with the President
all important policy making jobs in
the ECA.
Earlier, White House source,
commenting on reports that ECA
had not been clearing appoint
ments with the White House,
said the organizatio now has
UCcIl dShcU W UO So.
(This source said Mr.. Hoffman,
q Republican, had been left free
to build up his original staff. 1t
was understood generally that
he was building a staff which
could continue in Office under a
Republican administration.
(The White House source said
ECA had not been clearing pol
icy-making" jobs with the White
House and that only very few
top ECA people were really
known over here.")
Decision May Come Later.
Mr.. Hoffman said he had reported
to Mr.. Truman on his trip to China
and to Korea.
Asked about how much ECA may
ask for its work in China the next
fiscal year beginning July /, Mr..
Hoffman said, mo decision can be
made about China while the Chinese
situation is so full of uncertainties "
He said a decision might be
reached and he might go before
Congress with a request in the latter
part of January or early February
Mr.. Hoffman said tentative allo-
cations for about s30.000,000 of con-
struction work in China already had
been made when the decision was
reached to suspend the projects.
He said that engineering planning
is proceeding on number of Jobs,
including power project at Taiwan
and United States Navy pier at
Tsingtao.
I'VE have had to stop virtually
all the long-term reconstruction
program in China" he said. I'VE
are holding most of those projects in
suspension"
Praises Lapham's Work.
He praised the work of Roger
Lapham, ECA chief in China, and
said it was after a conference with
Mr.. Lapham the decision was made
to hold up construction work under
the S70,000,000 program.
On his return yesterday, Mr.
Hoffman had turned aside all ques-
tions from neWsmen on what he
called controversial matters"
11C loCcU CIIeSe as. III Inc QueS- !
ton of future aid to China; (2)
whether American merchant ships
will continue to get so per cent of
ECA-f1nanced recovery cargoes after
January l, and 90 reported Euro
pean profit making on scrap alum
mum and lead bought with ECA
funds.
He did say there is "a very good
chance" the new republic of Korea
"can be built into a bastion of
democracy" in Asia.
He told newsmen ECA hopes to
take over Korea's economic aid pro-
gram from the Army shortly after
January l." About $125 ,0O0000 was
earmarked for Korean recovery this
year from Army occupation funds,
Mr.. Hoffman said, and Congress
probably will be asked for a similar
amount for next year.
Korea may we'll loom up with
new importance from now on" he
told reporters.