Evening star., 1951-03-12
By the Associoied Press

By the Associoted Press
KEY WEST, Fla, Mar. IA
multi-billion dollar spending pro-
gram under a powerful new for.
eign economics czar has beer
proposed to President Truman tt
"break the back of hunger anc
famine" and halt Soviet aggres.
sion short of war;.
The proposal came from the
International Development Ad.
visory Board headed by Nelson
Rockefeller as a means of COM
batting military aggression anc
subversion" on the one hand ano
hunger, poverty, disease and
illiteracy" on the other.
The report drew immediate
praise from the President who said
it would be of great help" in the
drafting of recommendations he
will send to Congress in "the near
future" for foreign defense and
economic assistance in the next
fiscal year.
Telling Mr.. Rockefeller that
economic stagnation is the ad-
vance guard of Soviet conquest"
Mr.. Truman said he is sending the
report to the Senate Foreign Re-
lations and House Foreign Affairs
Committees for their considera-
ton.
The nine-point program would
involve:
/. Uniflcation Of major foreign
economic activities Of the Govern
ment under one overseas eco
nomic administration headed by
a commanding administrator who
would work in close collaboration
with Secretary of State Acheson
and Defense Mobilization Direc-
tor Wilson. He would be mem
ber of the National Security
Council, of the National Advisory
Council on international Finan-
cial and Monetary policy and an
ex-officio director of the Export
Import Bank. ECA and the State
Departments Technical Co-opera-
ton Administration and Institute
of Inter-American Affairs would
be brought under his jurisdiction
He would have an assistant ad-
ministrator to work with interna-
tional agencies and voluntary
groups and another charged with
making the most effective use o1
private enterprise"
2. Appropriations Of $500 mil
lion a year for several years fol
improvement Of economic ano
health conditions in the Middle
East. Africa, South Asia and
Southeast Asia to provide basis
for production of critical ma
terials needed for the defense o1
the free world. as was recon-
mended last year by Gordon Gray
former secretary Of the Army.
International Agency Proposed.
3. Creation of an international
development authority with q
fund Of $500 million to operate
under a management contract
with the International Bank fol-
Reconstruction and Development
to help finance public works II
underdeveloped areas. The func
would be subscribed by the United
States and other countries in pro.
portion to their subscriptions tc
the international Bank.
4. Creation of a new Interna.
tional Finance Corporation, as ar
affiliate of the international Bank
as part of the f1ve-point program
to stimulate the flow of private
investment capital in underde.
veloped areas from the present S.
billion a year to a minimum o.
50 billion.
The corporations authorized
capital of $400 million would in.
clude $3.50 million of United State.
funds. 1t would make loans ir
local and foreign currencies Il
private enterprise without the re.
quirement OF Government guar.
antee and make non-voting equit,
investments in local currencies II
participation with private in.
veStorS.
Investments Would Be Tax Free.
AS further inducements, new in
vestments abroad would be freec
Of United States tax, negotiations
would be undertaken to prevent
foreign tax determinations against
American investors and the Ex-
port Import Bank would use $10(
million of its authority to under
write for fee the transfer risk
on new foreign debt obligation;
purchased by private United States
investors.
S. Development, by the proposed
Overseas Economic Administrator
OF a program for bringing about
private investment of 81 billion
in production facilities abroad over
the next few years which coulo
swell the flow of critical material.
to this country and to Europe
by a billion dollars a year." i
suggested the projects be under
taken under long-term Govern
ment purchase contracts or accel.
Grated amortization as defense ia
cilities.
Both immediate defense needs
and longer-range peace needs
warn Of grave consequences unless
such a development program Is
undertaken promptly" the report
said. It added:
Soviet shipments to the United
States Of chrome and manganese
so essential for stee1-nnakinu how.