The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-01-14
Capitol Hill
Debate Looms
On Aid Money
BY SAM DAWSON

Hill in Washington and at the
Eisenhower headquarters here
they are reported debating today:
How many more billions of Ameri-
can dollars do our allies actually
need as economic and military
aid?
President Truman has asked
that Congress approve another ia
billion dollars for spending in the
future. Actual spending in the cur
rent fiscal year will be around 5s4
billion dollars.
But some Republican lawmakers
say that about 512 billion that
congress already has appropriated
for foreign aid remains unspent
and available now. And they ask
why 7h billion more must be ad-
ded.
Fisca, authorities, meanwhile,
say that in recent months the
"dollar gap" has been shrinking
that other nations reserves of gold
and dollars have been growing, so
that economic aid is not the acute
need it was in the earlier postwar
years.
The Department of Commerce
reports that other nations gained
more than one billion dollars in
gold and dollar assets in trans
actions with the U. S. in the six
months ended last September-a
period in which some 212 billion
dollars of economic and military
aid was given by the u. S.
And the first estimates of 1885
foreign trade available today from
London shows that Britain's ex-
ports to the U. S. passed the 400
million dollar mark for the first
time last year, increased by 10
million dollars over the year be-
fore.
Still another factor making the
economic health of the rest of the
world look better is the continuing
high prosperity within the U. S.
When business conditions flourish
here, our imports both of raw
materials and of finished products
always rise.
|. Optimistic predictions of increas-
ing industrial production in the
first half of 1853 promise more
fertile markets for other nations
here.
The dollar gap", though shrink
ing, still exists, however. u. S.
exports still top u. S. imports
the difference usually being settled
by one form or another of foreign
aid.
Against all the indications that
the need for foreign aid may be
lessening, however, Averell Har-
riman, who is retiring as mutual
security director, makes a plea
for the full ia billions of future
aid on these grounds:
Some 20 per cent of it would 60
for military purposes. This factor,
and President-elect Eisenhower's
interest in the defense of Europe,
may weigh heavily with the in
coming administration.
In the current fiscal year the
u. S. is spending more than one
billion dollars In buying military
equipment and services from our
allies-which also could be con-
sidered as economic aid to their
industries. Continuance of this off
shore procurement is sought in the
new appropriations asked.
Hartman says that despite the
billions appropriated but unspent,
the additional billions should be
promised so that contracts can be
let without delay for delivery at
later dates because tanks and air
planes aren't produced overnight.
About two billion dollars of the
amount asked would go for econo-
mic aid. considerable part of it
under the point four program of
giving technical advice and assist
ance to under-developed lands and
laying the ground work for u. S.
private investments. Many influ-
entail Republican lawmakers favor
the Point Four program.
But to an economy minded con-
gresS, that IA billion dollars looks
tempting as cutting material.