Evening star., 1948-01-19

COUlttfy CELL SxpSuO lS1p 4b1SA0
without wrecking ourselves"
He said 1t should be full meas
ure Of help, under an organized pro-
gram to promote world peace, add
ing:
"We cannot do a thing and not
do IL at the same time. II we are
to undertake European Recovery
Program, let us do it well. Doing 1t
well involves far more than merely
appropriating money, however many
billions.
"It means organizing the job
soundly and administering 1t skill
fully. It also means that each OF
us-not Just the Treasury-must
contribute what Is required in mod
Grafton, self-restraint and, If neces-
sary, sacrifice, 50 rs to be sure to
see 1t through
Wisdom and Restraint Called For.
Mr.. Baruch said that by inclina-
tion he is opposed to Government
controls except in wartime.
But he expressed the opinion that
"few controls would be needed to-
day-and then for only q short
time until production had caught
UP with denand-if. imitation were
tackled vigorously by putting OF
less essential activity both Of gov
ernments and individuals, post
poning tax reduction, reducing farm
prices, holding wages stable, tax
ing smaller profits and increasing
production"
"If we do not show the wisdom
and restraint to make these rather
small present denials for greater
future gains," he said, "then I can
see no other alternative but to i'm
pose q ceiling over our entire econ
orfiy as in wartime, to save America
from being wrecked.
II would not like to see that hap
pen., But, the longer the delay
in acting wisely, the more severe
measures which will have to be
adopted or the country--and the
world-will suffer the tragic con-
sequences"
Sees Russia Joining in Time.
. Mr.. Baruch said the United States
must not interfere with the right OF
European nations to socialize. their
industries, If they wish.
If the United States takes the
lead in guaranteeing Europeans Will
not be subjected to another eco
nomic. political and spiritual
"scorching," Mr.. Baruch predicted
that "in time" Russia would be will
ing to- join In q mutual defense pact
The committee recessed at noon
until 10 am. tomorrow, when 1t
will hear John Foster Dulles, q
leading Republican authority On
foreign affairs.
Senator Smith, Republican, o1
New Jersey, described as very In!
teresting" Mr.. Baruch's suggestion
that farmers be asked to take
major cut" in agricultural prices
in exchange for q guarantee o1
stable prices for the next three
years.
Senate Minority Leader BarkleJ
congratulated MIR. Baruch for hav.
ing made "a very bold" presenta.
ton of the problem.
Senator Barkley added, philo-
sophically, that home people may
not want to do all that you sug'
gest."
Offers Compromise Plan.
On the controversial question oi
how to manage the European Recov.
cry Program, Mr.. Baruch outlined q
plan of his own, which appeared *
offer a basis Of compromise. Ths
administration bill calls for single
administrators outside the State De-
partment, but subject to the direc'
ton and control OF the Secretary o.
State on questions Of foreign policy
Mr.. Baruch agreed that "on al
matters Of foreign policy, full au'
thority and final responsibility
should remain with the President
and the Secretary of State"
He went on, however, to suggest q
detailed plan which took in some Of
the general objectives of an infiuen-
tial group of House Republicans,
such as bipartisan board Of direc-
tors to act as advisers to the admin
istrator.
Mr.. Baruch's plan would place the
recovery program in the hands oi
q new authority, with corporate
power If not in corporate form, hav.
ing q bipartisan boasd Of directors
Of five civilians, plus the heads o!
the Government departments mos'
directly concerned-State, Defense
Treasury, Commerce and Agricul'
ture"
Powers Vested In Chairman.
There would be as many civilians
as Government members, but the
boards function would be advisory
with full powers Of the authority
vested in the chairman, who woulc
be one OF the five civilians. This
chairman would be the admins
traitor, and would have full power tt
carry out the foreign policy decisions
given him by the Secretary OF state
On domestic matters, the admin
istrator would exercise all powers
directly granted the authority by
Congress. He would coordinate
and direct all purchasing for for
eign governments to eliminate COM
petitive buying.
Overseas, the authority would
function apart from the State De-
partment, but the American Am.
bassador in each country would be
kept fully informed of every devel-
opment affecting that country.
The debate over how much thi.
country can spare for European re.
covery and how it should be man
aged went on unabated over tn,
week end In statements and radi,
broadcasts, with Senator Taft
Republican, OF Ohio, calling for al
independent administrator will
cabinet status.
Reed Warns Against Dispute.
Senator Reed Republican, o
Kansas, without going into details
urged his fellow Republicans h
avoid a foreign-aid dispute tina
might break the party in two"
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