Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-04-08
Administration Plans
For Financing Cost Of
Pact Arms Still in Air

Just how the administration
plans to finance the cost of helping
Western European nations in the
Atlantic Pact rearm was up in the
air today as far as Congress and
the public are concerned.
/. The situation resulted from a
news conference statement by
! President Truman yesterday that
the proposed spending is a matter
to be considered separately from
the Government budget already
submitted to Congress.
The Presidents statement was
regarded as an indication that he
may ask additional money above
.the $4,000, 100000 already pro-
posed for defense spending in the
eyear beginning July /.
His views were given in response
to questions about a statement of
fDr. Edwin G. Nourse, chairman
sof the Presidents Council of
I. Economic Advisers.
Statement Made Tuesday.
In a statement to the armed
services Tuesday, DR.. Nourse said
the country cannot afford to make
the cost of the arms program "a
simple addition to other military
plans as they stood before the
alignment" of the Western powers.
Rather" he added, I'VE must
rework the whole operational and
financial plan to gain maximum
security with minimum strain on
our economy"
This was interpreted as mean
ing that most, II not all. of the
spending required for rearming
Western Europe must come from
funds already asked for defense.
However, Mr.. Truman said he
thought DR.. Nourse's statement
had been distorted and quoted out
Of context.
! While ne did not rule out en-
tirely the possibility that other
defense funds might be pared, Mr.
Truman said he stood by his jan
uary budget message. That mes
sage spoke of additional funds"
that would be needed for the
arms program.
No Advance Estimate Given.
/. Mr.. Truman would give no adj
vance estimate on the probable
cost Of the arms program which
some reports from other sources
have placed at 100000. 900 to
$4,000, 100000 next year. The Pres
ident said the program is being
studied by the State and Defense
Departments and the Budget Bu-
reau, and that the question of
financing will be met when it
arises.
The program will be sent to
Congress as soon as it is ready,
Mr.. Truman added.
Immediate Protests Made.
The Presidents statement that
funds in addition to the SAL ,900,-
100000 budget for the fiscal year
1850 may be asked for rearming
Western Europe brought an i'm
mediate and vigorous protest from
Republican as we'll as some Demo
cratic members of Congress.
Senator Wherry of Nebraska,
the Republican minority leader,
said that if Mr.. Truman asks for
more money Congress may have.
to choose between deficit spend
ing and increased taxes. MIR. Tru-
man told his news conference that
he still wants taxes increased.
The only sensible thing to do"
Senator Wherry commented, lis
to put all of the foreign aid pro-
posals together. cut them down
where it is necessary and keep
spending within the limits of cur
rent receipts"
Georges Position Similar.
Chairman George of the Senate
Finance Committee took similar
position.
1T is logically impossible to talk
about a military budget for our
selves and a separate military
budget for the North Atlantic Pact
countries" he declared.
Senator Millikin, Republican. of
Colorado suggested to the Senate
yesterday that funds from the arms
program ought to be taken out Of
the $3.50, 100000 proposed au-
thorization for European economic
recovery. Administration leaders
have opposed this step and Sena-
tor Myers of Pennsylvania, acting
Democratic leader, expressed con-
fidence. necessary funds for the
military program will be provided
If the Atlantic treaty is ratified.
Mrs. I. |. Ames' Burial