Evening star., 1950-01-01
Army Blamed by OAR ECA Countries Report
For Interior Damage Record Output in 49,
Ito Historic Lighthouse See 50 as Better Year
BY the Associated Press

Jce " as DcIIcI ItoI
BY the Assoeiotsd Press
Marshall Plan countries Of Eu-
rope last night reported 1949 in
dustrial and farm production was
the highest in history and FORE
cast even more in 1850.
Announcing this, the Economic
Cooperation Administration OBJ
served that year-end summaries
of the countries top economists
also reported the checking of in
f1ation, relaxation of trade re-
strictions and improved financial
stability"
While gratified by this progress,
ECA Chief Paul Hoffman sternly
told Western Europe that its
hardest recovery task lies ahead.
He reiterated outspoken insist
ence that Western Europe lower
its production costs, reduce and
remove trade barriers, raise ex-
ports to dollar areas, and raise
the standard Of living of Euro
peans generally. He declared:
Without undue delay, Europe
must achieve an economic unfit
cation which will create a. single
market Of 275,000.000 consumers
for whom European industry and
agriculture can produce economic
cally and to whom European man
ufacturers and farmers can sell
freely.
| 8 Billions Spent.
only within such a framework
can Europe begin to become truly
self-supporting - and achieve a
rising standard of living"
The United States has invested
SO, 1000. 100000 in 20 months in its
gigantic experiment to strengthen
Western Europe and keep back
Communist aggression.
But Mr.. Hoffman said in his
statement that Europe will not be
politically stable until the stand
ard of living is raised. He called it
too low for the peace of the world,
i ECA took note of European
promises Of a whole hearted ef-
fort to stand on their feet" when
the aid plan ends in mid 1852,
They pledged greater efforts to
remove trade obstructions and in
crease exports to North America.
MIR. Hoffman's views were
echoed by Paul Van iceland,
chairman of the Organization for
European Economic Cooperation,
which serves as ECA's overseas
counterpart in administering the
flow of American aid under the
Marshall Plan. He said:
Europe will not regain its eco
nomic health unless it again be-
comes a single market where
goods. services. capital and men
without hindrance enjoy a free
dom built on order. generosity and
intelligent cooperation"
OEEC Problem Ignored.
The report made no mention of
possible differences of opinion as
to OEEC's effectiveness in guiding
the foreign destinies of the re-
covery effort. Dispatches from
Europe-and sources close to ECA
headquarters here-hint that top
Marshall planners are disap-
pointed that more hasn't already
been accomplished in the removal
OF trade barriers through OEEC
action. There has been talk that
OEEC may be reorganized to give
it more power to lead the Marshall
Plan nations toward economic
unity.
Highlights of the countries in
dividuals reports included:
Great Britain-Industrial pro-
duction reached the highest point
In history, 6 to 7 per cent above
l948 and Is per cent higher than
prewar .. Government expenses
have been cut and the upward
swing Of internal prices slowed
since the pound was devalued last
September Exports increased
to the United States and Canada
since devaluation Britain's
economic ties have been strength
ened with other countries of
Western Europe.
Sir Stafford Cripps said, "the
fact that this extraordinary as
sistance must cease before long,
makes balancing of trade between
sterling area and dollar area the
most urgent task"
France-Emphasized the i'm
portance Of Marshall Plan aid in
bringing closer cooperation be-
tween all Of Europe Cited the
construction Of three steel mills
which will be put "at the disposal
OF Europe as a whole" as out
standing example of such progress.
| Italy's Income Rises.
1taly-National income, thanks
to Marshall Plan help, reached 81
per cent of the 1888 prewar base
level =. Infationary pressures
halted ~. Prices stabilized :.
Production increased and unem-
ployment reduced somewhat :.
Government cost adjusted.
Belgium - Rapid strides In
achieving higher production and
balancing the flow Of export-im
port trade,
The Netherlands-A return to
more normal economic relations
-. government controls relaxed
on economic activity and busi-
ness competition increased i
increased exports. and, during re-
cent months, reached a level equal
| to rs per cent of imports which Is