Evening star., 1948-07-11
Little Pleasure
For Europeans
Hard Work Necessary to
Reach Self.Support
Goal by 1852
By Siorid Arne

oooI Wy I/o-
By Sierid Arne
Europeans think they will have
to live even more poorly and work
even harder to meet the main hope
of the Marshall Plan-to be able to
pay their day-to-day bills without
help by the end of the plan in
1852.
/ This comes from the Economic
Commission for Europe, part of the
United Nations machinery. 1t has
just met in Geneva.
! The commissions report draws a
picture of European treadmill on
which the workers are running
faster but falling farther behind all
the time. Yet European industry is
working so hard that it has already
passed its prewar 1888 production
rates
Europe almost has to meet its
daily bills by 1852. There is little
hope that the United States, or the
rest of the world, will keep on sub
sidizing Europe indefinitely.
Congress recognized the fact that
the pull would be hard when it
wrote the Marshall Plan Act. The
act says it hopes Europe can get
along by 1852 without "extraordi-
nary aid" from the outside That
is, it foresees some help may still
be needed.
Better Than First War
+ Government experts add that if
Europe does still need help by 1858
they hope it will have recovered
enough so that it can swing loans
/ instead of taking more gifts.
The irony for Europe is that it is
doing a much better job of recovery
now than it did after World War I.
That's despite the fact the second
war lasted longer and caused more
destruction.
Factory workers have done the
best job. Factories had passed their
1888 production quotas by last
/ December, If you leave out Ger
many, which was producing only
one third of 1888.
The heavy industries recovered
faster than those that turn out con-
sumers' goods, which is all to the
good, because Europe had to rebuild
factories, railroads, docks before it
could enjoy new radios, dresses,
table linens.
Steel was up to 1O43 per cent Of
1888 by last autumn. Textiles were
still 10 per cent behind.
To compare the two postwar
periods the ECE report says it took
Europe six years to get back to
prewar production in the '20s. This
time is took only year and a half.
Farms have been slower. Crops
we're only up to IA per cent of pre-
war in the 1867 season. And
Europes population has grown, so
the smaller crops have to go to
10000 more people, boosting still
more the need for food imports.
Italy, which has had some of the
biggest chunks of American help,
now has 100000 more people, the
largest jump in population in Eu-
rope
Loss of Invisible Funds
The figures prove that Europe
has consciously gone hungry in Or
der to make the best use of its
money. The ECE report shows that
although food crops were low. Eu-
rope was buying 10 per cent less
/ food from overseas in 1947 than 1t
did before the war. But at the
same time it was buying 20 per cent
more raw materials and manufac-
lures - the things it needs to get
back to work.
/ In 1947 Europe sold 64 per cent
of what it sold in 1898 and bought
about 70 per cent.
The important hole in Europe's
pocket lies in the loss of the Sin
visible" income it had before the
war-dividends on investments and
profit from such services as insur-
ance.
Britain in particular had to cash
in a lot of such wealth to pay for
the years since And Britain has
suffered the greatest self-denial
since the war of any European ma
tion. 1t is the only one for which
the export index is higher now
than imports.
/ Since 1888 Europe has lost 81, ,700,-
100000 in invisible" income which
used to help pay its bills for food
and raw materials. Presumably the
gap will have to be filled by turning
out that much more goods to SELL
And beyond worry over daily bills
is Europe's debt to the rest OF the
world. 1t was $500. .000, 600 by the
end of 1s47.
/ distributed By the Associated PressJ