Evening star., 1949-06-12
Mr.. Hoffmon's Wurninq

AS head of the Economic Cooperation
Administration, Paul G. Hoffman has
played vital role in making the Marshall
Plan effective in Western Europe. It is
doubtful that any American knows the
subject better than he. Accordingly, when
he warns against excessive slashes in
funds for the ECA he speaks with special
authority and he is being frank and
honest, not threatful, when he declares
that he reserves the right to resign if in
his judgment Congress appropriates too
little to permit the European Recovery
Program to maintain the pace it must
maintain to be successful.
In thus making his position clear, Mr..
Hoffman, despite Senator McKellar's in
temperate remarks to the contrary, has
not tried to bully" the Senate Appropria-
tions Committee. He has simply tried to
state the case as he sees it and to transmit
to the committee his own deep and earnest
conviction that meat-ax cut in ECA
funds could cripple the ERP in a way
that would be most pleasing to the Rus
slams. What he wants to prevent is
serious loss in the recovery momentum that
has been of prime Importance to the West
in waging the cC,d war and checking the
further advance of communism in Europe.
Mr.. Hoffmann's feeling is that the Senate
Appropriations Committee will be making
a serious mistake if it limits the ECA to
So, 500, 100000 during fiscal 1850. Under
legislation already adopted by the House,
where cuts have been made in the original
estimates, the figure has been placed at
So, 568, 100000, but it could be spent in
ten and a half months If necessary, and
deficiency appropriation could be made
available for the balance Of the year. In
effect, with its deficiency authorization,
the House bill would enable the ERP to
function with the assurance that bit
more than $4,000.000,000 would be avail
able for the full twelve months If needed.
But the majority view on the Senate
committee seems to be that $500, 900 900
should be the top limit for the entire
twelve-month period This would be half
billion dollars less than the sum appro-
priated and authorized by the House.
Should Congress approve 1t as the final
figure, then a number of important ERP
projects very probably would have to be
cut back or cancelled altogether. Advo-
Gates of the deep slash argue that COM
modify prices will continue to fall during
fiscal 1850 and that therefore there need
be no serious showdown in the recovery
program. But such view is mere guess
work; it is much too fffy" to serve as the
basis of legislation as important as that
having to do with the ECA.
Certainly, Mr. Hoffman's warning ought
not to be lightly dismissed by anybody.
The ERP has done a great deal so far to
hold back the Red tide. But there is still
an urgent need to keep the program going
without letup as an enterprise of topmost
significance, along with the Atlantic Pact,
in the cold war between East and West.
To permit it to lose momentum now would
be merely to slacken our rail- effort
against the threat of Soviet expansionism.
Congress would do we'll to weigh Mr.. Hoff-
mans words most carefully. Economy
moves are as necessary as they are praise
worthy, but in this field 1t is better to err
on the side Of generosity than on the
side of nigga rdlipess