Evening star., 1950-11-14
To Meet the Peril

points that VIII certainly stir up sharp debate in
Congress, Gordon Grays report on our foreign
economic policies is on the whole so sobering and
persuasive in its basic arguments that it should
have the earnest attention of all Americans
official and unofficial-interested in promoting
the security of the United States and the rest of
the free world against the mounting menace of
Communist aggression.
The study that has led to this report began
last March when the President called upon Mr.
Gray-who had just resigned as Secretary of the
Army-to undertake 1t as an interim assignment
before quitting Washington to become head of the
University of North Carolina In the weeks i'm
mediately following, both Mr.. Gray and his able
staff had reason to believe that further American
grants to the European members of the Marshall
Plan would become unnecessary by 1852 or even
earlier" But then on June Is the outlook sud-
denly changed when the Kremlin-led legions of
international communism made clear in Korea
that they were ready to resort to armed force to
attain their dominance seeking ends.
That ominous fact at once demonstrated to
the free nations that it had become imperative
for them to build up their defensive strength as
fast and as thoroughly as possible. At the same
time according to the Gray report it left no room
for doubt that our Western European allies would
continue to need Marshall Plan aid for another
three or four years after the plans scheduled end
IN 1852 though in amounts substantially smaller
than at present. This additional aid-which
would be over and above our arms shipments and
which would go only to those countries under
taking "a genuinely adequate defense effort
should be extended, in Mr.. Gray's opinion, to
enable our friends abroad "to meet the short-run
burden of their own military production, in so
far as it exceeds the sacrifices which it is within
their ability to make"
In addition, besides suggesting that Japan
may need external aid after 1882 the Gray report
mas come out strongly in favor of an accelerated,
large-scale effort to promote the economic de-
velopment of backward areas in Latin America.
Africa, the Middle East and Asia. To that end
the report advocates an annual outlay in excess
OF 81 billion through private investment channels
loans from the World Bank and from the Export
import Bank and an expansion of the limited
Point Four program already approved by Con-
gress. 1t describes this as pressing requirement.
that must be met not only to head off internal
unrest by betterng the lot of the peoples involved
but also because these areas-in terms of their
geography and as sources of vital raw materials
are important to the security of the free world
Although highly controversial in many re-
spects-particularly in a number of specific
recommendations on how best to help Western
Europe and the underdeveloped regions-the
Gray report is far from being plea for lavish
handouts with no strings attached. Recognizing
that our limited national resources will be severely
strained in the years ahead, 1t emphasizes that
our economic aid must be channeled to those
areas and for those purposes where reasonable
performance" can be expected. That Is to say.
such aid in all its forms-which Mr. Gray would
coordinate with our overall foreign policy
through special new agency-must be extended
only on condition that it will really be effectively
Nm fho hnCf &,,+n
selves and the free world at large
OF course, all this assumes that the United
States and its friends abroad will have three or
four more years to build themselves up defensvely
and economically. Needless to say, the subject
will become rather academic If the Kremlin. in
concert with its satellites, decides to precptate
a big war in the near future. Barring that. how
ever the Gray report-even though controver-
sial-should serve as an important guide to the
kind of action we and our allies must take with
the least possible delay to counter the grave peris
now before us.