Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-05-01
Continued From First Page.)

in the north of the country had
been laid waste by the retreating
Nazis. Mining facilities were
wrecked; towns and even whole
forests were burned. Norway's
merchant fleet, which had es-
capped capture and played a vital
role in supplying Britain during
the war, had been cut in half. To
top it off, the Germans had fl
nanced their occupation out of
Norwegian funds. leaving behind
them a debt of some $2.3 billion.
Three PrOnged Attack.
Norway's economic recovery
since 1945 has been the result of
her own efforts, cooperation
with other European countries
and American aid. The attack
followed three main lines:
!. A policy of strict austerity
launched by the postwar Labor
government, aimed at cutting
down import requirements and
Stabilizing the economy. Few
European nations rationed their
people more Stringently. The
last itemS-Sugar and coffee
came off the ration list only last
year.
2. An ambitious program of
government investment, with
special emphasis on rebuilding
the merchant fleet, restoring in
dividual facilities and develop
ing the country'S untapped min
eral and power resources.
3. Reduction of the occupa-
ton debt.
American dollars, which start
ed playing a part in Norwegian
recovery after 1948 have been
an important factor in the sue
cess of this program.
Up to mid-1952. when the en-
phasis switched to defense re-
quirements, Norway received
more than $4.3 millions maid
of all kinds. A large part Of 1t
went to pay for the long and
varied list of things that Nor
way needs to import, leaving
the government free to concen-
trate on it's investment program.
Equipment also was provided
for rebuilding the iron ore in
dustry wrecked by the Germans.
Local funds, built up under the
counterpart system have gone
largely to reduce the occupation
debt. Compared to what has been
spent in many European coun-
tries, Norway's share Of Mar
shall plan help has been a small
one. But the Norwegians are
the first to admit that the prog
ress that has been made could
not have been made without 1t.
Outstanding Progress.
The progress has been out
standing. The tonnage OF the
all-important shipping fleet has
been more than doubled since the
end of the war. It is now II
per cent bigger than in 1883
the third largest merchant fleet
In the world. and the main
stay of Norway's economy. .,
Industrial production is gem
orally we'll above prewar levels,
and the country is considered
to be in good shape in terms OF
exports and shipping earnings.
The standard of living is hard
to compare with that of other
European countries. The Nor
wegians have simple tastes and
very little cash. But the record
shows that wages have at least
kept pace with rising prices, and
that consumption today is above
the prewar per capita level.
There still are plenty OF prob
lens. A country where less than
4 per cent of the land is tillable
must still continue to import
heavily to survive. Industrial de-
velopment calls for more money
than 3 million people can raise
by their own efforts. The Nor
wegianS are worried about COM
petition from our own growing
merchant fleet. They are wor-
ried about government efforts
to substitute our fleet through
shipping regulations written into
foreign aid bills. Above all, they
are worried about the possibility
of even a mild business depres-
sion in the United States, which
would leave them stranded high
and dry.
Her Strongest Asset.
Still, Norway's recovery has
been great enough to provide a
firm base to her post-1950 mil
itary bulldup. And NorwegianS
are determined that never again
will their country be caught fiat
footed and defenseless by an
aggressor.
This determination is rated as
the strongest military asset that
Norway has to draw on. It has
provided the foundation on
which the defense of NATO's
northern flank would rest in
case of war.
Today, Norway is spending
about 80 per cent of her national
budget, and about 4 per cent of
her national income. on her
armed forces. She maintains
active forces of about $4,000,
building toward a mobilization
goal of four divisions supported
by a home guard of 100000. The
navy is small, concentrating on
coastwise defense and running
to deStroyerS. The air force goal
is between 200 to 800 tactical
aircraft.
This modest force is limited
quantitatively by the size of the
population and the strength OF
the Norwegian emonomy. Qt
Is assumed that most of the
necessary equipment ultimately
will be supplied by the United
States.) The planned size Of
Norway's military contingent