Evening star., 1950-12-13
Funds
ToBritainH Halted
Effective Jan. |
U. 5. Cites Economic
Coins Made Under
Recovery Program
BY the Associoied Press

LIE united otaCeS To-Day cut on
all Marshall Plan aid to Great
Britain, effective January l.
William C. Foster, the Marshall
Plan administrator. said Britain S
economic comeback in the last
year is the reason.
Since the recovery program
started in April of 1913, Britain
has been allotted a total of 81
694 100000
The program, named for Gen.
George c. Marshall who proposed
it while he was Secretary of State,
has had dual purpose: To help
European nations recover from
damages of World War II and to
strengthen friendly nations against
the threat of communism.
Recovery Not Complete.
The move to stop all Marshall
Plan aid to the British comes five
weeks after conversations between
Marshall Plan officials and the
British government. Britain is
the first nation to step out of
the program.
In an announcement issued at
the same time that British Chan
cellor Of the Exchequer Hugh
Gaitskell was breaking the news
to the British House of Commons,
MI. Foster said:
THE suspension of aid under
the European Recovery Program
does not mean that the recovery
OF the British economy is COM
plete. or that financial resources of
the sterling area are adequate.
Reconsideration Possible.
The United States action. Mr..
Foster said. does not near a
permanent end of Marshall Plan
aid. If Britain's economic position
worsens, there can be "reconsid-
Grafton. If necessary" of the cut
OIL order, he added.
Britain's agreement to suspend
further aid means she will 20 her
economic way alone a year and
seven months before the July,
1852. date set for the termination
of Marshall Plan Aid.
This year Britain has received
only SITS million of an expected
S400 million.
Britain will be permitted to use
the funds granted for the last six
months of this year.
The joint Americana British an
nouncement also stressed that the
end Of Marshall Plan aid to Brit
ain will in no way affect the ar
rangements which are now being
worked out by the North Atlantic
treaty organization for the assess
ment and distribution of the bur-
Cen of the defense programs of its
members"
Britain Expresses Gratitude.
Mr. Foster said the United
States Government is especially
pleased to see so prominent an ex-
ample of the success of the Euro
pean recovery program at this
early date"
Ihe British government, in the
joint announcement, expressed its
deepest gratitude" to the United
States for its unprecedented gen.
erosity' in giving freely to Britain
at a critical moment in history
the means to regain her economic
independence and power.
When Britain and the United
States started reviewing the need
for Marshall Plan help October
81, Mr.. Foster emphasized "any
new economic relationship should
be one of standby rather than of
termination of all American help.
Today's announcement pointed
out that new difficulties and bur-
dens" are certain to hit the Brit
lsh economy in 1851 as result of
increased defense spending and
the necessity for paying higher
costs for raw materials.
Initiated by United States.
Britain's agreement to step out
was described as voluntary. How
ever, the United States ini-
tiated the conferences on review
ing the situation and in actual ef-
feet the discontinuance was a
matter for the United States to
decide.
The Economic Cooperation Ad-
ministration said the ending of
direct aid to the British would not
affect the granting of money to
Britain for development of over
seas territories. technical assist
ance and for increasing the output
OF strategic materials.
The United States has given
Britain a total of SIT million for
these three projects since the Mar
shall Plan started. About $40
million has been allocated to in
crease strategic materials output;
SO million has gone to help de-
velop British overseas territories
and $2.4 million for technical as
slstance which includes the bring
ing of British workers and pro-
duction experts to the United
States to study American produc-
ton techniques.