Evening star., 1950-03-28
Domestic Budget Slash
Cited by Republicans
In Move 10 Cut ECA
By J. A. O'LeaN

0y ). -. ~ Leofy
The 81 billion cut recommended
by the House Appropriations
Committee in domestic spending
Is being used by Republican lead
ers today as a lever to force a
reduction in the $3.3 billion for
eign-aid program for the coming
year.
If we are going to cut on the
domestic front. we've got to cut
on the foreign front as WE'LL"
Minority Leader Martin of Massa-
chusetts said.
He called the Republican Policy
Committee to meet at 2 pm. for
joint consideration of the pend
ing foreign aid bill, and the s29
billion omnibus appropriation
measure to run all government
agencies next year.
Third Day of Debate Due.
The House itself entered the
third day of debate on the for
eign aid bill, with all signs point
ing to some changes in the COM
mittee bill. Republican strate-
gists want to make a drive for
further reductions in the budget
as a whole, and they don't believe
House members generally will
want to vote to kill projects in
their home districts unless they
have also shaved something off
the overseas spending program.
When the Appropriations Com
mittee acted on the S29 billion
domestic budget last week, it left
the size of the foreign program
to oe settled later, because the au-
thorizing bill, now before the
House, must pass first.
Chief targets of the economizers
In the foreign aid bill are: the
$2,950,000.000 for ECA and s45
million to carry on President Tru-
mans Point 4 plan of American
technical help to backward areas
to develop their industries.
ECA Cash Cut.
Before reporting the bill the
Foreign Affairs Committee cut the
cash for ECA to $3.50, 900 900,
and directed the administration
to send 81 billion worth of surplus
foods already in Government
warehouses to Western Europe,
instead of buying that amount in
the open market for the ECA
program.
The farm bloc in the House is
up in arms against this amend
ment, and may defeat it.
The farm group contends the
amendment would have the effect
of forcing the agricultural price
support program to carry" the
foreign air program. The other
side argues that if the Government
must buy another 81 billion worth
Of food for Europe when it already
has that much in surpluses on
hand, the ECA program would be
carrying" the burden OF support
ing domestic farm prices.
The farm bloc will support a
motion to restore the 81 billion
cash, and let it be used to buy
food, editor from the Commodity
Credit Corp. or in the open mar
-ket. In this way, CCC would be
reimbursed for any of its existing
surpluses sent to Europe.
Even if this food money is re-
stored on the House floor, it may
be followed by some overall cut
in ECA. Representative Smith,
Republican. of Wisconsin is pre-
pared to move to cut out the $3.50
million unspent balance of last
years ECA fund, which the COM
mittee bill reappropriates.
Mr.. Smith also is considering
an amendment to tie a string to
the $500 million earmarked out
of the ECA allotment to establish
a new European Payments Union
to help work out currency ex-
change problems among the ECA
countries. Mr.. Smith said he
wants a stipulation that this
money would not be spent until
the cooperating countries have
taken the necessary steps to solve
their exchange difficulties.