Evening star., 1950-03-02
Plan Studied 10 Unity
Foreign and Domestic
Economic Policies
BY the Assoeiofed Press

BY the Associoted Press
A plan designed to provide
greater unity for the Governments
foreign and domestic economic
policies was reported today to be
under consideration at the White
House.
The proposal. on which Presi-
dent Truman will have the final
decision, was initiated in the State
: Department. This was in line with
q a belief of Secretary Acheson that
the United States must prepare to
fight the cold war in a more COM
plete manner than it has hereto
fore.
At his press conference today
Mr.. Truman said no such plan
has reached his desk.
1t is understood that the pro-
posal provides for an interdepart-
. mental committee, composed of
representatives of such agencies
as State, Treasury, Commerce and
Agriculture, which would function
under White House direction. Pro-
vision is also made for a White
House co-ordinator to direct the
work OF the committee.
Some Realignment Urged.
Mr.. Acheson and some other
high Government officials have
argued that a realignment Of
American domestic economic poll
cies in some degree is necessary to
make this Nations foreign eco
nomic policies fully effective.
For example, he favors tariff
reductions and other measures
which would open up American
markets to greater sales of foreign
goods. The idea is to promote
prosperity and economic stability
in other areas, especially Western
Europe.
Some State Department officials |
also say that the United States |
should consider the effect of its i
domestic agricultural programs on
the world generally. They partic-
ularly want a study of whether
a foreign use may be found for
this Nations agricultural surpluses
that would help the anti-Com-
munist world. |
Europe Biggest Problem.
Perhaps the greatest problem
involved lies in the field of Euro
pean recovery. Mr.. Acheson, ECA
Administrator Paul Hoffman and
other top officials have already
begun to work on the problem of
what to do after the European
recovery program ends in 1852.
Preliminary estimates indicate
that the European Marshall Plan
countries, on the basis of present
conditions, would still have a gap
of several billions between dollars
earned and dollars required for
their essential imports.
To meet this situation State
Department officials believe sew
eral lines of action will be neces-
sary.
It is now thought that Amer
lean imports in the next two to
three years should be increased
by about SO billion, that European
purchases of American exports
may have to be somewhat re-
duced and that American aid to
European countries may have to {
run at the rate of 81 billion a
year for several years after 1852
Other Plans Pressed.
While the post Marshall Plan
problem is No. / on the list, {
there are others which are con-
sidered hardly less urgent. These
include:
/. The so-called sterling bal !
ances"-Egypt, India and some
other nations are creditors to
Britain for many millions of
pounds sterling. Payments on
these war debts are a drain
against Britain's postwar econ
omy. American and British off,
cials have long discussed the
possibility that some adjustments
might be made in these debts in
such a way as to ease the burden
on Britain.
@. The point four program
legislation for Mr.. Truman's long
range project for economic devel-
opment in Africa and Asia is still
pending in Congress. If and when
Congress approves, specific pro-
grams will have to be prepared;
officials feel that those should be
in line with general plans for the
strengthening of the non-Commu-
mist world.
3. Non-European aid-with the
spread of Communism southwark
in Asia, there has been increasing
talk here of aid by the United
States to Southeast Asian coun-
tries. It is argued that this should
be on some more swiftly moving
basis than the long range point
four project.