Evening star., 1950-02-08
West Europeans Hope
Private investors Will
Help as ERP Slows

British general elections expected
to influence how much money
Congress will appropriate for Eu-
ropean recovery, Western Euro
pean officials today were express
ing the hope that private Amer
lean investors will take up where
Marshall Plan funds begin to
taper off in 1852.
Senators said in Washington
today that if Winston Churchill
and his Conservatives return to
power in this months elections
Congress will be less likely to
make a heavy cut in Marshall
Plan spending, but the cut may
be drastic in event of a Labor
victory.
Meanwhile, a high British
treasury official predicted Britain
may be independent of dollar aid
by 1852 If United States business
activity remains at a high level" :"
the Associated Pres reported from
London.
Senator Smith, Republican, of
New Jersey, and a supporter of
the European Recovery Program.
told reporter Congress would
have more confidence in the Brit
lsh governments economic and
social welfare policies under Mr..
Churchill.
Election to Have Effect.
Senator Smith said many men,
bers of Congress do not agree
with the Labor governments ma
tionalization of industries and it's
economic and social policies.
Others agreed. Senator Fergu-
son, Republican, of Michigan, a
member of the Senate Appropria-
tions Committee, said a Conserv-
ative victory would ease the pres
sures against the ECA program.
Chairman Connally of the For
eign Relations Committee also
said he believes the British elec-
ton February % may have an
influence on the recovery plan.
The administration has asked
Congress for $3.100, 100000 to
carry the program through the
coming year. A large share of
this would go to Britain.
Hoffman Hints at Cut.
But Senator Connally said yes
terday that ECA Chief Paul Hoff-
man had indicated he might be
willing to take a cut below this
figure. He didn't indicate how
much.
Senator Connally has said ECA
should be cut down to about
$2,775,0 100000 this year. And
Chairman McKellar of the Senate
Appropriations Committee is plug
ging for a 25 per cent cut.
The organization for European
Economic Cooperation - repre-
senting the Marshall Plan coun-
tries-announced last night that
Western Europe will need from
S4,70O, 100000 to $4,000. 900 900 inl
the next two years to- hold the
line against Communism
The OEEE report said the bil-a
lions already poured into Europe
have removed the threat of bank
ruptcy and the political danger
that would have followed such an
economic disaster.
Senator Connally ], said the
OEEC's two-year figure is not toe,
far out of Sline and there is al
chance that Western Europe will
get most of this money.
Future Needs Estimated. "a
In a survey of the. progress of
the Marshall Plan at the half
way mark, the European member
nations yesterday discussed their
needs for the final two years of
the aid program.
The survey was contained in a
report of the OEEC released by its
Paris headquarters.
The report estimates Europe will
need from $4.700.000,0o0 to S.
000,OO0,000 during the final two
year period to carry out their
plans. This compares with So
100000 already given by the
United States for the first two
years of the plan.
Robert Marjolin, secretary-gen-
eral of OEEC, said in a news con-
ference yesterday the first two
years of the Marshall Plan had
proved "unreservedly successful"
Commenting on the report, Mr.
Marjolin said, "The necessary ad-
justments after the end of the
Marshall Plan will require de-
crease in Europe's imports from
America, at least in some COM
modities."
More Optimistic Than Hoffman.
Mr.. Hoffman, who is in Wash
ington after comforting with
European ministers in Paris, said
the survey is more optimistic, in
some respects, than he is con-
corning Europe'S ability to stand
on it's own feet when Marshall
aid is finished.
Mr.. Hoffman has expressed dis
appointment at the slowneSS of
the European ministers to agree
fully on some of the steps he
considers vital to recovery.
Experts who made up the report
said part of the trade problem
was up to the United States,
which they said must work at
making trade with Europe more of
a two-way affair.
Mr.. Marjolin and a group of
OEEC officials are to come to
Washington in a few days to at
tend the congressional hearings
on the ECA appropriation.
In London Douglas Jay, eco
nomic secretary of the treasury,
said Britain is less dependent on
Marshall aid today than it was
two years ago. The reason for
this, he told Labor party meet
ing, was in huge switch-over in
Britain's traditional import ar
rapoenoents