Evening star., 1951-07-29
otes Decides to Take the Spanish Bull by the Horns
Millions COMING
In Economic Aid
By Herbert Brotter

0Pdul has al ecOuOInlC SiuG DIS well
as strategic side. Attention in
the United States naturally Is
focused benefits we hope to gain
through use of Spain's air and
naval bases. So far as Spain is
concerned, however, the bargain
seems to be primarily an economic
one.
It is now clear we are prepared
to pay Spain's price for the stra-
tegic services she offers. The price
is likely to be high and payments
are likely to continue for long
time. Spain wants our economic
aid-loans and gifts. From strictly
dollars and cents point of view, the
advantages to us are dubious
except in the sense that, without
economic refurbishing, Spain will
be a weak ally. For Spain is
desperately poor country.
For the past several years, of
course, through special representa-
tiveS in Washington, Spain has
sought in vain for xport-Import
Bank money. The bank, which
operates under Congressional
mandate to make only sound loans,
could never be convinced that loans
to Spain would be repaid, owing to
the near impossibility of that coun-
try's earning the extra dollars
needed to meet the interest and
amortization payments on new
loans.
Thonks to McCorron
1t was in the Senate that the
Spanish loan-Seekers had their
first succeSs-after Senator Pat
McCarran, Nevada Democrat, took
up the cudgels for them. Largely
as result of his efforts, the Gen.
eral Appropriation Act of 1851 in
cluded $625 million for ECA loans
to Spain, loans which the Export
Import Bank would administer as
ECA's agent. And 1t was Senator
MeCarran who more recently took
the unusual step of summoning the
Export Import Banks head to his
Office on Capitol Hill-along with
Spain'S Ambassador and high State
Department officials-and demand
ed an explanation of why the money
was not moving out faster.
AS the story of our Spanish nego-
tiations has been developing, there
is no doubt that ECA and the
Export-1mport Bank will now be
getting a move on with regard to
putting out the $62.5 million as
Congress directed.
Senator McCarran says he will
try next to get frances government
another $100 million.
This, however, is a mere drop in
the bucket, compared to what the
Spaniards have indicated they
would like to get. Two years ago,
for instance, the Export-Import
Bank was informed by Andres
Moreno, the Franco governments
special financial envoy, that it
would take more than $12 billion
to put the Spanish economy on a
sound basis-quite apart from
defense needs.
History of Poverty
Spain has been poverty-ridden
land for centuries, but it has seldom
been deeper in the doldrums than
it is today. It's transportation and
communications facilities are in
deplorable condition. For many
essentials it is dependent upon
imports: Fuel, food and clothing,
for example. This year, fortunately,
the peninsula has been blessed with
wonderful weather and large crops
are expected. Yet, over all, agricul-
tural output today is Is per cent
below what it was before the Span
ish civil war.
Spain's needs may be seen in the
use being made of the $62.5 million
loan, of which some SIT million
worth of projects had been approved
by Washington through June 80.
The money is being used to buy
coal, wheat and cotton-all items
which are quickly used up. Spain
has plans to use loan money to buy
fertilizer, iron and steel and to
finance power development. It
would like money to develop potash
and mercury mining. But first 1t
must solve the hand-to-mouth
phase of its problem.
American dollars spent on build
ing bases in Spain, and the money
our GIs may spend there, can hardly
be expected to fill the gap. Rather
having once invited the camel into
the tent for a drink, the problem
will be how to get it out again.
Spain will be added to the list of
our foreign aid clients, and will
stay there.
The aid we will be expected to
provide, presumably, will fall into
three principle categories, in the
initial phase. In the first place, we
must help the nation get back to
a situation where it is self-support-
ing, or nearly so, as to food.
Secondly, we must restore the
Spanish transportation system.
This means not only providing ma
4~~;.ln sx,iAI~ ,~xLa3nL -.aA