Evening star., 1950-04-09
ECA Sets Up Division to Hell p
Marshall Plan Countries Earn
Dollars by Selling More in U. S.
Promotion Experts
Going Abroad to
Spur Exports
By J. A. O'Leory

A new division was set up in
the Economic Cooperation Ad-
ministration yesterday to help
Marshall Plan countries earn more
dollars by selling more goods in
this country.
It was announced that ECA will
send a number of trade promo
ton experts abroad to work closely
with regular commercial attaches
to stimulate European exports to
the United States.
1t was not revealed who will
head the new trade promotion
unit. One name mentioned was
that of Wayne G.. Taylor, an as
sistant to Paul G.. Hoffman, ECA
head.
Early last week, President Tru-
man designated retiring Army Sec
retary Gordon Gray to undertake
a special survey on how to in
crease the flow of trade.
One function of the new division
will be to help in staging inter-
national trade fairs.
Sell Less and Buy More.
Mr.. Hoffman reiterated yester-
day what he has told Congress
in recent months, namely, that
the United States must sell less
to Europe and buy more if the
dollar shortage abroad is to be
brought down to manageable size
by the time ECA ends in 1862.
There is little appeal in such
a program, Mr.. Hoffman wrote
to Senator Smith, Republican,
of New Jersey. The Administra-
tor added, however, that unless
the flow of trade from Europe
increases 1--WE must either con-
tinue our aid or see the Euro
pean economy placed in grave
danger. which. in turn, would
seriously endanger our own pros
perity and security"
At the same time, the directors
of the United States Chamber of
Commerce agreed that "the only
substitute for a gift dollar is an
earned dollar"
The directors approved the re-
port of a Chamber committee,
which warned that Europe prog
ress toward stability in the next
two years must be of such in
tensity and integrity" that i'm
petus gained under ECA will not
yield to excessive nationalism"
after the American aid program
ends.
Debate Due in Senate.
The $3,096, 100000 Foreign Aid
bill, of which $2,85O,OOO,OOO is for
the next year of Marshall Plan
aid. is due for Senate debate
within a week. 1t has passed the
House.
Senator Smith, supporter of
the ECA program, said yesterday
one of the primary purposes of
American policy is to reduce the
dollar-gap in foreign trade. He
said "it is clear" that this policy
requires an increase of imports
from Europe, and limits on the
amount of American dollar goods
exported to Europe.
The Senator said both of these
necessities have created anxiety
among some American producers.
He forwarded to ECA recently for
comment two typical letters from
manufacturers.
The first was from an Ameri-
can businessman, concerned be-
cause he cannot sell textiles to
willing customers in Western
Germany and Europe.
Dollars Not Available.
In answering this letter. Will
liam c. Foster, Economic Coop
Grafton Administrator, pointed out
that German marks and most
other currencies are not freely
convertible into American dollars
There is no question, Mr.. Foster
said, that the demand from pri-
vate consumers in Western Eu-
rope for dollar goods is very
real" The trouble is, he explained
that the sum of these demands
both in Germany and elsewhere
far exceeds the amount of dollars
available for such purchases.
The second letter presented the
reverse side of the problem. II
was from an American business
man who was very much dis
turbed" by the prospect of COM
(See ECA, Page A-2)