Evening star., 1948-06-03
GIoba| Aid Fund
S|ashed 25Pct.
By HouseGro
Hot Debute on Floor
Likely Tomorrow on
6-BiIIion Measure
By the Assoeioted Press

A Is per cent cut in funds for
the Marshall plan and other
foreign aid programs was rec
commended today by the House
Appropriations Committee.
The committee sent to the House
floor for probably hot debate to-
morrow a $500, ,710,22S global as
sistance measure.
This is reduction of 1888 ,000,-
900, or rs per cent, in the amount
Congress itself authorized and Presi-
dent Truman asked.
But the effect is a one-quarter
slash for this reason: The authorize
tion law provided that the money
could be spent during II months.
But the committee said the cash it
Is willing to put up must be stretched
out over IS months.
81 Million a Month.
Slightly more than $4,000, 900 900
OF the total asked had been budgeted
for use during the II months ending
next April 3, or at the rate of SAT-
100000 per month.
The committee trimmed that total
to S4663 900 900 for IS months, a
spending rate of $3l1 100000
monthly.
Informed Of the committees ac-
tion, Economic Cooperation Ad-
ministrator Paul G.. Hoffman
promptly called for the full $4,245, :
100000 requested for his agency.
The committee pared the European
recovery item to $4,000, 100000
'The less money we have. the
less recovery we can expect to get"
Mr.. Hoffman told a news confer
ence.
He said he certainly hoped" final
action by Congress would provide
the full sum. With the funds al
ready made available for ECA, that
would supply the $5,30O,OOO,O0O orig
inal proposed for the Marshall Plan.
Other funds in the bill were cut
s150.000000 with the money to be
spent during a 12-month period as
originally planned.
In explaining the cuts and spread
ing out the spending period, the
committee said the programs con-
templated will not permit the ex-
penditure of more funds than has
keen provided -" on an intelligent
basis" before July l, 1949
Should an emergency arise before
then, it added. Congress will be in
session again next January to take
action.
Four Billion for ECA.
In summary, here's what the COM
mittee recommended to finance the
Economic Recovery Act passed by
Congress two months ago:
Economic Cooperation Admin
istration. for aid to 16 non-Com-
munist European nations and West
ern Germsny-S4, ,245 100000 asked,
$4,000 100000 recommended. Con-
gress had authorized SIS 300 900 900
for ECA and already has made
available $1055 100000.
Aid to Trieste-S20,0O00 900 asked
as separate item; the committee
recommended that this come from
the general ECA allotment.
Assistance to Greece and Turkey
-s275,0OO000 asked. S200,000,000
recommended, with no stipulation
as to how the ctit should be applied.
Aid to China-S400,0 100000 re-
quested and granted.
International Children Emergency
Fund-s60,0O00 requested and
granted.
Government and relief in occu
pied areas, administered by the
Army-$1, 400, 100000 asked, $780,
100000 recommended. The COM
mittee estimated that bizonal Ger
many would receive S706,0QO, 900,
Japan and the Ryukus. S424 900 900;
Korea, SLOT 100000, with the bal
ance to be used for maintaining
law and order" in occupied Austria.
International Refugee Organiza-
tion-S70,7 710,22S asked and granted.
Cuts Expected to Stick.
There appears to be little doubt
that the House will follow the
recommendation of the committee
and vote the fund cuts As usual,
in such instances, the administra-
ton will pin its hopes on the
Senate to restore at least a part
of the original amount asked
The Senate Appropriations Com
mittee has been holding its own
hearings to be ready for swift ac-I
ton once the House passes the
money bill.
While the authorization measure
carried an implied promise that
Congress would provide the full
amount to carry out the program as
drafted in that bill. there were
widespread predictions at the time
that the funds would be trimmed
sharply.
The House committee said that
since July /. 1945, the United States
has provided foreign aid totaling
s18,162 100000, much of which has
been wasted and all OF which has
tended to deplete this countrys re-
sources.
No one. it said. can estimate
tSee FOREIGN AID, Page A-4D