Evening star., 1951-12-30
Marshall Plan Dies,
Spent. $12.5 Billion;
New Agency Steps il
BY the Associated Press


BY the Associated Press
The Marshall Plan dies at mid
night Monday -a after spending
nearly $12.5 billion in an ambitious
effort to rescue Europe from bank
Iruptcy and Communism.
Stepping into its place will be
the new Mutual Security Agency
directed by w. Averell Hartman,
until recently President Truman's
foreign policy adviser.
This newest agency has the
critical task Of building a solid
economic footing upon which to
base Europe's growing re-arma-
ment drive.
Fading out of existence also will
be the agency which has directed
the Marshall Plan the past three
years and nine months-the Eco
nomic Cooperation Administra-
EtiOn.
Since it was born April 3, 1948.
this agency spent more money
for foreign aid than was ever be-
fore laid out in peacetime. It's
|2.400 employees In Washington
headquarters and Is countries
overseas pumped American dol
lars into Western Europe in a
mammoth stream.
New Crisis Gathering.
AS Mr.. Hartman takes over,
however. a new crisis appears to
be gathering over the European
continent because of the heavy
Irearmament burden now dumped
on the shaky financial structure
built by the Marshall Plan.
Mr. Hartman is to supervise
spending of a total of about $7.3
billion in the fiscal year ending
July /. But, all but 81 .022 900, 900
will go to provide weapons and
military supplies.
Behind the scenes, Britain,
France, Italy and other Marshall
Plan countries are complaining
that they need more economic
help If they are to rebuild their
rearmament industries.
Confronted with a money-con-
scious Congress, Mr.. Hartman is
due for a stormy reception if he
requests more economic aid and
more leeway in spending rearma-
ment funds for aid purposes.
The present Marshall Plan chief,
Richard M. Bissell, jr., goes over
to Mr.. Harriman's new agency as
deputy director in charge of eco
nomic aid to Europe and technical
aid to Southeast Asia.
Cold statistics show that during
the Marshall Plan period, Europe
got pretty much back on it's feet
compared with the hunger, chaos
and fright that gripped the Con-
tinent in 1947.
Industrial production, yardstick
by which European recovery is
measured. now is Al per cent
higher than pre-war.
Many Achievements are Listed.
The Marshall Plan and ECA
point to these achievements to
show that American recovery dol
lars have gone long way toward
accomplishing the original OBJ
jective set forth by former Sec
retary of State George Marshall in
his address at Harvard University
June S. 1947:
Steel production-now nearly
go million tons as compared to
81 million in 1947. This is nearly
double the capacity of Russia and
her satellites, which figures about
IS million tons.
Food production-24 per cent
higher than the 1947 level and 8
per cent higher than pre-war.
Motor vehicle production =
Boosted to $4,000 vehicles in 1851
as compared to $4,000 in 1947.
Agricultural production-About
9 per cent higher than pre-war
and around "a per cent above
1947.
Crude oil refinery capacity
Now has risen to 46.S million tons
annually. nearly four times the
pre-war rate.
Electrical output-Now huns
along at rate of 201a million
kilowatt hours monthly as COM
pared to 131a million in 1947.
Overall. Europe's gross national
output has jumped Is per cent
during the life of the Marshal
Plan. This now stands at oboutI
125 billion dollars. a Is per cent
increase over pre-war levels.
Despite these successes, it Isl
apparent the Marshall Plan has
failed in these important prob
lens:
Coal production-Output from
Germany's Ruhr mines, the French
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