Evening star., 1954-05-30
7 Touring Senator'S
Urge Reappraisa
OF Foreign Aid
By ]. A. 0'Leor

A careful reappraisal Of the
foreign aid program before any
more funds are authorized was
recommended last night by q
two-man Senate subcommittee
which toured Europe several
months ago.
Senators Bridges, Republican
Of New Hampshire, and Syming-
ton. Democrat of Missouri, also
warned in their report that Com
munist strength in France and
Italy is "a grave threat" to the
stability of Europe and to
ratification Of the European De-
fense Community.
The two Senators visited
France. Germany. Italy. Great
Britain and Spain. Senator
Bridges went as chairman Of the
Appropriations Committee, and
Senator Symington as a member
of the Armed Services Commit
tee.
The administrations request
for a $3.5 billion foreign aid
authorization for the year start
ing July l will be acted on soon
by the House Foreign Affairs
Committee. After the enabling
act goes through both houses,
the Appropriations Committees
of House and Senate will have
the last word as to how much
will be made available.
Improved Conditions Found.
The two-man subcommittee
found that. as a result Of past
American aid, the standard of
living. industrial production.
military strength and currency
stabiliZation in Europe are much
improved over prewar conditions.
But among the major recon-
mendations in their report are
the following:
/. That American representa-
tives in the foreign aid program
should realize "the resources of
this country are not inexhausti-
BILE, and that the United States
Treasury is not a bottomleSS
pit" They urged "hard-headed
bargaining" so that practical
benefit will be realized by the
United States.
2. That air bases in Europe
and North Africa should be re-
examined in view of the new
bases to be developed in Spain.
3. That we should not allow
foreign firms to make too much
profit out of arms contracts un-
der our off-Shore procurement
program.
4. That standard military
items should be substituted for
sensitive items in areas of Com
muniSt-dominated labor unions
in the off-Shore procurement
program.
NATO Held Cumbersome.
The Senators said they found
the present machinery for set
ting the NATO forces in action
in the event of aggression is
cumbersome and needs clarif1-
cation. They reported that Gen.
Alfred M. Gruenther, as head of
NATO, could not put his forces
into action until the North At
lantic Treaty Organization rec
ognized a state of war.
This mistiness in command
authority should be cleared
promptly" they reported. "Other-
wise, in case of aggression
against the free world. the bill
lions of dollars the United States
has invested in the defenses of
Europe may turn into total
waste"
The tWo-man subcommittee
recalled that since World War
II the United States has author
lied $50 billion of aid to all
parts of the world, of which
more than $45 billion already
has been delivered.
The amount delivered to West
ern Europe up to last June 80
was $33 billion, including $6.4
billion of military assistance and
$26.6 billion of economic aid.
Competition Created.
One Of the main reasons for
the trip of the two Senators
was to inspect the off-shore pro-
curement program. The United
States has placed 81 billion in
contracts in other countries,
three-fourths of which is for am
munition, aircraft and ships, in
cluding $50 fighter aircraft. This
program has the dual purpose
Of strengthening other NATO
countries and to enable them ul-
timately to sustain their mill
tary-force commitments with
their own funds.
The subcommittee said it was
Informed. however, that mot a
single off shore procurement
contract had been placed against
the funds appropriated last Au-
gust"
Viewing the foreign aid pro-
gram as a whole, the Senators
said it was wise. because 1t kept
some of the European countries
from falling to Communism. But
they pointed out that this aid
has built up basic industries
abroad, such as chemicals, steel;
textiles and aircraft. which have
become formidable competitors"
Of the same industries in the
United States.
They said this might be mu-
tually advantageous If the for
eign industries were competing
on comparable terms. but that
too often the European indus
tries get further help from their
governments through subsidies,
taxation or cartelS. On top Of
this, the report added, the United