Evening star., 1948-01-12
Business or Politics
Held Issue in Fight fol
Marshall Plan Control
Congress Won't Gront
State Department Power
To Allocate Funds
By David Laurence

Shall the Marshall Plan be ad-
ministered on business or a politi-
cal basis?
This is the heart of the issue that
divides the administration and Con-
gress today.
The State Department has spread
the idea that it would be uncon-
stitutional for Congress to set up
an independent agency to admin
lister the Marshall Plan. The argu-
ment has been advanced that the
country cannot have two Secre-
taries of State" This is a specious
objection. No such conflict need
arise. Actually. financial and eco
nomic matters have been handled
by independent agencies for many
years and nobody has risen to ques-
ton the constitutionality of the
method.
Congress, for example, created the
Export Import Bank, which contin-
uously is carrying on negotiations
with foreign governments. Congress
also created the Lend-Lease Admin
istration, which during the war
handled billions of dollars, and 1t
was not under the control of the
State Department either.
No JurisdictiOnaI Problem.
From time to time other govern
mental departments here have con-
Quoted negotiations with other gov
ernments and there has not been
any difficulty about jurisdiction
Thus the Treasury Department has
handled the negotiations with the
British Government in connection
with the recent loan. All through
the war period different agencies OF
the executive branch of the Gov
ernment had their own representa-
tives abroad and conducted their
business with foreign governments
1t would appear that in attempt
ing to control the disbursement OF
funds from a political standpoint,
the State Department might be in
adyertently confirming Russian
charges that the plan is basically
political and not economic.
So far as Congress is concerned,
It wants the money used to re-
habilitate Europe and it wants the
whole thing done on a business
basis. The political objectives are
recognized but at the same time
Congress does not want money
thrown away on the recommended
ton of some diplomatic representa-
tive, who thinks that a little more
money here or there will assist in
stabilizing some political faction or
party in a foreign country.
Safeguards U. s. Economy.
Congress, moreover, is interested in
q husiness-like procedure because it
wants to be sure that commodities
taken out Of the United States will
not weaken the American economy.
A diplomat situated 5000 miles away
could report what he needs by way
of "boondoggling" and the Depart
ment of State could conceivably give
greater weight to his recommended
ion than to the crisis that may be
facing an industry here short OF
needed materials or supplies.
It seems improbable that any ma
tority in Congress would vote for a
scheme that turns over $4,000, ,000,-
600 to the diplomats of the State De-
partment to spend for what they
conceive to be benevolent purposes.
1t seems more likely that Congress
will insist on the appointment of
an administrator and board to dis
burse the funds as Congress may di-
rect. Certainly the Secretary of
State should be a member of the
executive board of the agency or
commission, but the agency should
be the boss of what money or COM
modities shall be forthcoming and
the formula used fulfilling the points
in the whole plan.
Either the Marshall Plan is an
economic project and should be op-
Grated on that basis or else it is just
piece of international politics sub
ject to the desires of the State De-
partment. Congress will never vote
the money without setting up sep
arate agency with direct control of
the whole operation.