Evening star., 1949-01-16
European Production
Exports Near Prewar
Level, ECA Reports

Encouraging" progress in West
ern Europe has raised factory pro-
duction and exports close to pre-
war volume, the Economic Coop
Grafton Administration announced
yesterday.
The report was issued as ECA,
aided by a score of staff officials
from the Marshall Plan Council in
Paris, pushed preparations to ask
Congress for second-year program
of s4,500,000,0
| The ECA reported that almost all
the II actively participating coun-
tries also have met some success
in fighting the imitation which has
disrupted their postwar trade and
investment.
Total output Of mines and fac
tories last fall was 10 per cent above
1947 and nearly equal to the 1888
rate"-the last year of peace in
Europe. Exports. excluding shat
tered Germany. are at about the
prewar, or 1888 level.
Many Difficulties Ahead.
The report also contained a sober
note. Nathaniel Knowles, ECA sta
tistcial chief, who analyzed the
European country-by-cou fig
ures, said the nations still have
many difficulties to overcome before
satisfactory balancing of inter-
national accounts is achieved"
This paralleled the warning given
the European nations last week by
Robert Marjolin, secretary general
of the organization for European
Economic Cooperation. Mr. Mar
JOHN is here with the Paris group
advising ECA on the 1850 program
A $3,0O0,0 100000 annual deficit in
foreign trade will confront Europe
when the Marshall Plan ends in
mid-1952, Mr.. Marjolin said, unless
the governments themselves stabilize
their currency, curb imports further
increase productivity and wage a
vigorous campaign to broaden their
overseas markets.
Export Import Gap Reduced.
The ECA's own study reported a
reduction of the gap between Euro
pean exports and imports, including
narrowing of "the very large trade
deficit with the United States" But
the slow expansion of European
trade within Europe and commerce
with other nations remains "a major
obstacle to recovery" ECA said.
Based on European figures up to
date as of October !. ECA's recovery
barometer showed:
Steel production. excluding West
ern Germany, well above the 1888
rate and equalling the prewar high
of 1887"
Cement output. a basic factor in
industrial construction. ahead of
preWar-"far ahead" if Germany
and Italy are excepted
Electric power output we'll above
prewar. The gain is so per cent,
excluding Germany.
Farm Yields Increasing
Farm crop yields estimated at 20
per cent above 1947, though still
about per cent below preWar in
calorie content
Railway freight traffic, again ex-
cepting Germany, one-third aboye
preWar.
Improvements in living condi-
tions. transportation, and supplies
Of materials and fuels are permit
ting increased OUTPUT per worker,
although productivity has not gen.
orally regsined prewar levels" the
ECA report said.
The wartime diSlocation of the
labor force has been largely over
come, but scattered labor shortages
hinder the expansion in production.
Unemployment Serious.
"On the other hand, unemploy-
ment is serious in Italy and Greece
and among displaced persons"
The position of the consumer has
not improved as much as these
figures might indicate. ECA noted.
A greater part of Europe's resources
now are being thrown into plants,
railroads, machinery and equip
ment: the outlays therefore do not
show an immediate return in in
creased supplies of consumer goods.
s"The SlIpply for fond and c1otlino