Evening star., 1948-01-08

can people to make the sacrifice
necessary under this program is the
vital stake that the United States
has in helping to preserve democ-
racy in Europe. As democratic gov
ernments they are responsive, like
our own, to the peoples Of their
countries-and we would not have
it otherwise. We cannot expect any
democratic government to take upon
itself obligations or accept condi-
tions which run counter to the
basic national sentiment Of its
people. This program calls for free
cooperation among nations mu-
tually respecting one another's. sin
cerity of purpose in the common
endeavor-a cooperation which we
hope will long outlive the period of
| American assistance.
The initial suggestion Of June S
last, the concept OF American as
sistance to Europe, has been based
on the premise that European initi-
ative and cooperation are pre-
requisite to European recovery.
Only the Europeans themselves can
finally solve their problem.
Effective Measures Pledged.
The participating nations have
signif1ed their intention to retain
the initiative in promoting their
own joint recovery. They have
pledged themselves to take effective
cooperative measures. They have
established ambitious production
targets for themselves. They have
recognized the need for financial
and monetary stability and have
agreed to take necessary steps in
this direction. They have agreed
to establish a continuing organiza-
ton to make most effective their
co-operative work and the appli-
cation of American assistance.
When our program is initiated we
may expect that the participating
European countries will reafirm as
an organic part of that program
their multilateral agreements.
The fulfillment of the mutual
pledges of these nations would have
profound effects in altering for the
better the future economic condi-
tions of the European continent.
The Paris Conference itself was one
major step, and the participating
nations have not waited on Ameri-
can action before taking further
steps, many of which required a
high order of political courage. They
have moved forward toward prac-
tical working arrangement for the
multilateral clearing of trade.
France and Italy, whose financial
affairs suffered greatly by war and
occupation, are taking energetic
measures to establish monetary sta
bility-an essential prerequisite to
economic recovery. British coal pro-
duction is being increased more
quickly than even the more hopeful
forecasts, and there is a prospect of
the early resumption of exports to
the continent. The customs union
among Belgium, the Netherlands
and Luxembourg is now in opera
ton. Negotiations for a Franco
Italian customs union are pro-
ceeding.
Application Of American Aid.
Our aid will not be given merely
by turning money over to the Eu-
ropean governments. The Eu-
ropean countries will prepare pc
riodic statements OF their needs,
taking into account the developing
programs of mutual aid worked out
through. the CEEC continuing Or.
ganization after review by the spe-
cialist economic cooperation officers
in each country and by the special
United States Ambassador to the
continuing CEEC organization, they
will be transmitted to the admin.
istrator of the American agency
carrying out our program of assist
ance.
The administrator, in collabora-
ton with other appropriate agencies
of the Government, will determine
to what extent the European re-
quirements are justified and to what
extent they can safely be met. The
administrator will also decide which
specific requirements. from among
the overall requirements will be
financed by the United States, tax
ing into account the ability. Of the
country concerned to pay for some
portion or all of its total needs. For
those needs which cannot be paid
for in cash, the administrator will
further decide, in consultation with
the National Advisory Council,
whether aid will be provided in
loans-where a sound capacity to
repay in the future exists-or in
outright grants. When the program
has been determined in detail, the
administrator will either advance
requisite funds to the participating
country concerned to enable the
purchase of the approved imports
or, more generally, he will reim-
burse the countries when they have
procured and received these import
items.
A substantial amount OF the essen
tial needs of Europe must come from
countries of the Western Hemisphere
other than the United States. In
some cases the quantities required
will not exist in the United States,
in others the impact on the Amer
ican economy will be greatly relieved
if commodities can be procured else
where. A sizable proportion of the
funds appropriated for the European
recovery program should therefore
be available for the financing of
purchases made outside the United
States.
The application Of American assist
ance will be in accord with bilateral
agreements to be negotiated with
each Of the participating countries.
The terms Of these proposed agree
ments are outlined fully In the docu-
ments submitted to your committee
on December 10.
Organization for the Program.
The administration OF the pro-
gram will demand the best talent
and the greatest efficiency that our
country can muster. The organiza-
ton bearing the central responsible
ity should be small and select. It
| ro,,et hold tho Y1,11 apd copplefe