Evening star., 1949-11-19
To Prevent Disuster


To Prevent Disaster
In his latest report to Congress on the
operations of the Marshall Plan, President
Truman has vigorously underscored all the
major points made within recent weeks by
Economic Cooperation Administrator Paul
G. Hoffman. They are points we'll deserv-
ing Just such re-emphasis, for they are
among the imperatives of our time-the
facts that must be kept constantly In mind
If we and the rest of the free world are
to succeed In the vital task of promoting
our common prosperity and security.
AS the Presidents report observes, the
Marshall Plan has already accomplished
number of near-miracles. BY helping to
step up industrial and agricultural produc-
ton to new highs in the participating
countries, 1t has saved the Western Euro
peans from the all-engulhng economic
disaster that would surely have struck
them If there had been no such plan In
addition-and this Is its greatest achieve
ment to date-it has stabilized the CO.
operating nations in such q way as to
discountenance the Communists and stop
the further advance Of the Kremlin-
directed Red tide.
But this splendid accomplishment,
though it constitutes q rich dividend
amply justifying the billions We have in
vested in the project, does not alter the
fact that when the Marshall Plan ends
in 1852, Western Europe will still be in
serious economic difficulties If certain
fundamental actions are not taken In the
meantime. The Presidents report, echo
ing Mr.. Hoffman's own warnings, Is careful
to make that point very clear. Two years
from now, unless concrete measures are
promptly set in motion to eliminate 1t,
the so-called dollar shortage" or dollar
gap" will continue to plague our friends
abroad with the potentials Of disaster.
This means that the Western Europeans
cannot afford to lose time in acting singly
and together to get out of the tx which
finds them selling much too little to US to
earn enough dollars to pay for al the
goods they want and need from US. As
Mr.. Hoffman has repeatedly said. and as
the Presidents report reafnrms, they must
therefore, among other things, % move
toward the integration Of their separate
economies by lowering trade barriers
among themselves and taking kindred
steps aimed at eventually converting West
ern Europe into q single marketing and
producing area; and (2) launch q special
drive to increase exports to the United
states-an objective requiring not merely
better merchandising methods but mod
ernization of plants and improvement Of
labor-management efficiency to increase
output, decrease costs Of production, and
bring sales prices down to 4 point where
they can compete with those offered by
our own producers.
Such an export drive. howevak will re-
quire American cooperation. II Western
Europe is ever to overcome the dollar prob
lem, the United States will have to
continue to lower tariffs as much as pos
sible, simplify customs procedures, and In
general act In keeping with the reality
that 1t Is not good either for Us or for our
overseas allies when We sell far more to
them than we buy from them. In fact,
that imbalance Is one Of the root causes
of the free worlds troubles. and it must
be eliminated by freer trade II we are ever
to have the kind of long-range economic
and political stability that Is needed for
our common security and lasting peace.
Thus, as the President has reported to
Congress, the crucial task Of restoring
enduring vigor to Western Europe calls for
continuing Joint effort by our friends
abroad and ourselves. In Mr.. Hoffmans
words, 1t Is an effort that involves tre-
mendous stakes, both for them and for US.
Not to undertake it would be to invite the
return of another grave economic crisis
in 1o52-a crisis that would encourage q
renewal Of the Kremlin's drive to subjugate
the whole continent. On the other hand,
If we and the Marshall Plan countries do
what clearly needs to be done, that drive
can be permanently halted and the free
worlds safety and economic well-being
greatly enhanced.