Evening star., 1950-02-27
Tax Reforms in France
And Italy Proposed in
House Report on ERp
By Chris Mothisen

A special House subcommittee
today urged the Economic Co.
operation Administration to press
insistently for tax reform in
France and Italy" as a major
requirement for success of the
European Recovery Program.
The subcommittee of the House
Foreign Affairs Committee de-
clared that ways must be found
to overcome "the disinclination OF
the French to pay taxes" and tc
create "a public morality about
taxation" in Italy.
Noting that ERP is scheduled
to end in 1852, the subcommittee
recommended an immediate study
by committees of the Congress
and the Executive Department to
find ways to expand markets for
all countries participating in the
Organization for European Eco
nomic Cooperation.
The group, headed by Repre-
sentative Pfeifer. Democrat, of
New York. made these other prin-
cipal recommendations:
/. That the United States give
renewed consideration to whether
1t should continue to aid European
nations directly, or channel as
sistance through the OEEC, the
agency set up by the beneficiaries
of ERP to coordinate their par
ticipation.
2. That colonial powers" such
as Great Britain, be logged on the
matter of getting their non-self-
governing territories to, carry a
larger share of the recovery bur-
den.
8. That consideration be given
to the advisability of giving
credits directly to lesser units of
the sterling bloc. instead of aid
ing them through Great Britain.
4. That special attention be CIV
en- to the extra burdens of Great
Britain and, to a lesser degree
France, because of their partici-
patton with the United States in
international responsibilities in
Germany, Austria, Trieste and the
Far East.
Point Four Program.
5. That President Truman's
Point -Four program for the de-
velopment of backward areas of
the globe be related directly to
the expected. termination of ERP
In 1852.
6. That consideration be given
to whether it might be advisable
to give ECA authority to assist in
the financing of emigration from
participating countries to "reset-
tlement areas outside Europe"
Representatives Gordon, of Illi-
nois and zablocki Of Wisconsin,
Democrats. and Representative
Javits. Republican, of New York
Joined Mr.. Pfeifer in the on-the-
spot study last November and De-
cember.
Mr.. Pfeifer credited Mr.. Javits
with gathering much of the de-
tailed information contained in
the report.
It covered France, Italy and
the United Kingdom.
These were among the COM
ments:
Italy-"The Communist tide in
the Italian political arena and in
the trade union movement has
subsided. It would be premature
to say that its retreat is perma-
nent. For the time being, how
ever. the political outlook is reas-
suring. Until 10 months ago, the
Communists in the General Con-
federation of Italian Labor domi-
mated the Italian labor movement.
Claiming between 5 million and 6
million members. That member
ship now is estimated at approx
mately 3 million" ..
Reform in land holding is ur-
gently necessary as a step toward
increasing agricultural production
Up to now reform has Jagged
unduly. -"
THE burden of revenue falls
where it is most compatible with
the Italian tradition and where it
Is easiest to administer from a