Evening star., 1950-11-13

The tert OF a statement by
President Truman on foreign
economic policy. together iDith
recommendations submitted to
him By Gordon Gray:
The foreign economic policy of
the United States is Of key impor-
tance in influencing the course OF
world events. 1t is one of the CEN
tial instruments with which we
can promote the security Of the
United States as part Of free
world. Since the ending of World
War II, we have come increasingly
to realize that our foreign economic
policy must be worldwide in con-
cept, that its many parts must
follow a single broad stream OF di-
rection ana purpose, and that it
must be continuously adapted to
changing circumstances both at
home and abroad.
For these reasons, last March I
asked Mr.. Gordon Gray, upon his
resignation as Secretary Of the
Army, to study the whole complex
of our foreign economic relations
and to develop appropriate recon-
mendations designed to assure
ourselves that our own policies are
those which will serve best to re-
inforce our economic strength and
that of the other free nations Of
the world" Mr.. Gary's work was
in full swing when outright Com
munist aggression in Korea dem.
onstrated to the free world the
urgency of a more rapid increase
in its military power. The expand
ing rearmament programs of the
United States and other free ma
tions, while not basically altering
our long-term objectives, created
major changes in the immediate
outlook for the world economy. Mr..
Gray and his staff, therefore, have
re-cast their work to take account
OF the changed outlook.
The report now submitted by Mr.
Gray represents a comprehensive
analysis of the whole range of for
eign economic problems facing the
United States. Behind the report lie
many months of intensive labor by
Mr.. Gray himself, his immediate
staff assistants, and a large number
of consultantS in all walks of pri-
vate life and in the many govern
mental agencies concerned with
these problems. The Nation is in
debted to Mr.. Gray and his asso-
ciates for their fine response to a
most challenging and difficult as
signment. The report deserves the
attention and study Of all citizens.
Unity Of Forign Policy. II
The guiding concept of Mr.. Gray's
report is the unity of foreign policy
in its economic, political, military,
and International aspects. Our ma
tional security can be assured only
through effective action on all these
fronts. I fully endorse Mr.. Gray's
statement on the basic objectives
of our foreign economic policy. In
his words:
1.-THE objective Of our foreign
economic policy has been and is to
encourage among the nations Of the
free world those economic condi-
tions and relationships essential for
the development of stable demo-
cratic societies willing and able to
defend themselves and raise the
living standards Of their peoples.
These objectives are the result Of
all peoples; their national interests
are bound up with our national in
terests; our security and well-being
are clearly connected with their
security and well-being. Neither we
nor they can live alone or defend
ourselves alone. This fundamental
unity of interest underlies our ef-
forts both to achieve long-term
progress and also to meet the i'm
mediate necessities presented by
Soviet aggressive designs"
Mr.. Gray's report should be OF
great value to the Congress and the
executive branch in developing spe-
cific measures to further these OBJ
iectives. Certain of Mr.. Gray's rec
concentrations call for a follow
through on present lines of action,
notably in the development Of an
integrated program for the defense
of the North Atlantic treaty area,
and in the promotion of sound COM
mercial and financial relationships
among free nations.
In other respects, Mr.. Gray has
recommended changes in existing
policy to meet emerging problems
of our foreign economic relation
ships. This is particularly the case
with respect to underdeveloped
areas and economic development
programs.
Board to Study Proposals.
I recently announced my inten-
ton to appoint Mr.. Nelson Rookie
feller as chairman of the advisory
board created under the new act
for international development to
advise and consult with respect
to general or basic policy matters
arising in connection with opera
ton of the program" I am ask
ing Mr.. Rockefeller to have this
board, as its first task, consider
Mr.. Gray's proposals concerning
our policy toward the underdevel-
oped areas in the context of the
full report, in order that this
board will be able to give us its
views early in the coming year on
the types and size of programs
which it considers desirable for
the United States to undertake in
this field.
Meanwhile, the various execu-
tive agencies concerned will draw
fully on Mr.. Gray's report, and on
the background studies under
lying it, in developing appropriate
administrative action and legisla-
tive recommendations in the
whole area of foreign economic
policy which is so. crucial to our
national security.
RECOMMENDATIONS OF