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Partial Text of Truman Long-Range Aid Program
A. partial text of President Truman’s program for United States aid for Europe as con tained in his message to Congress today follows: . A principal concern of the peo ple of the United States is the creation of conditions of endur ing peace throughout the world. In company with other peace loving nations, the United States is striving to insure that there Will never be a World War III. • • • Considered in terms of our own economy, European recovery is essential. The last two decades have taught us the bitter lesson that no economy, not even one so strong as our own, can remain healthy, and prosperous in a world ol poverty and want. • • • The next few years can deter mine whether the free countries of Europe will be able to pre serve their heritage of freedom. If Europe fails to recover, the .peoples of these countries might be driven to the philosophy of despair—the philosophy which contends that their basic wants can be met only by the surrender of their basic rights to totalitari an control. * * • In the light of all these fac tors, an integrated program for United States aid to European recovery has been prepared for submission to the Congress. In developing this program, certain basic considerations have been kept in mind: First, the program is designed to make genuine recovery pos sible wthin a definite period of time, and not merely to continue relief indefinitely. Second,, the program is de signed to insure that the funds and goods which we furnish will be used mo6t effectively for European recovery. Third, the program is designed to minimize the financial cost to the United States, but at the same time to avoid imposing on the European countries crushing financial burdens which they could not carry in the long run. Fourth, the program is de signed with due regard for con serving the physical resources of the United States and minimiz ing the impact on our economy of fttmishing aid to Europe. Fifth, the program is designed to be consistent with other inter national relationships and re sponsibilities of the United fifafoc Sixth, the administration of the program is designed to carry out wisely and efficiently this great enterprise of our foreign policy. Recovery—Not Relief. The program is designed to as sit the participating European countries in obtaining imports essential to genuine economic recovery which they cannot finance from their own resources. It is based on the expectation that with this assistance Euro pean recovery can be substantial ly completed in about four years. The aid which will be required from the United States for the first 15 months—from April 1, 1948, to June 30. 1949—is now estimated at $6,800,000,000. * * * * The requirements of the re maining three years oi the pro gram are more difficult to esti mate now, but they are expected to decrease year by year as progress is made toward recovery. The best estimates we can now make indicate that appropria tions of about $10,200,000,000 will be required for the last three years. I recommend that legislation providing for United States aid in support of the European re covery program authorize the ap propriation of $17,000,000,000 from April 1, 1948, to June 30, 1952. Appropriation for the pe riod from April 1, 1948. to June 30, 1949, should be made in time for the program to be put into effect by April 1, 1948. Appro priations for the later years should be considered subse quently by the Congress on an annual basis. Th% funds we make available will enable the countries of Eu rope to purchase goods which will achieve two purposes—to lift the standard of living in Europe closer to a decent level, ftnd at the same time to enlarge Euro pean capacity for production. Insuring Proper Use of Aid. A second basic consideration with regard to this program is the means by which we can in sure that our aid will be used to achieve its real purposes—that our goods and our dollars will contribute most effectively to Eu ropean recovery. Appropriate agreements among the partici pating countries and with the United States are essential to this end. At the Paris conference the European nations pledged them selves to take specific individual and co-operative actions to ac complish genuine recovery. In addition, each of the coun tries receiving aid will be ex pected to enter into an agree ment with the United States af firming the pledges which it has given to the other participating countries, and making additional commitments. Under these agreements, each country would pledge itself to take the following actions, except where they are inapplicable to the country concerned: 1. To promote increased in dustrial and agricultural produc tion in order to enable the par ticipating country to become in dependent of abnormal outside economic assistance. 2. .To take financial and mone tary measures necessary to sta bilize its currency, establish or maintain a proper rate of ex change, and generally to restore or maintain confidence in its monetary system. 3. To co-operate with other participating countries to reduce barriers to trade among them selves and with other countries, and, to stimulate an increasing interchange of goods and service.-. 4. To make efficient use, within the framework of a joint pro gram for European recovery, of the resources of the participating country, and to take the neces sary steps to assure efficient use in the interest of European eco nomic recovery of all goods and services made available through United States aid. 5* To stimulate the production of specified raw materials, as may be mutually agreed upon, and to facilitate the procurement of such raw materials by the United States for stockpiling purposes from the excess above the rea sonable domestic usage and com A mercial export requirements. of the source country. 6. To deposit In a special account the local currency equivalent of aid furnished in the form of grants, to be used* only in a manner mutually agreed between the two govern ments. 7. To publish domestically and to furnish to the United States appropriate information con cerning the use made of our aid and the progress made under the agreements with other partici pating countries and with the United States. The United States will, of course, retain the right to de termine whether aid to any coun try is to be continued if our pre vious assistance has not been used effectively. Financial Arrangements. A third basic consideration in formulating the program of United States aid relates to the financial arrangements under which our aid is to be provided. * * * * I recommend that our aid should be extended partly in the form of grants and partly in the form of loans, depending pri marily upon the capacity of each country to make repayments, and the effect of additional inter national debt upon the accom plishment of genuine recovery. No grants should be made to countries able to pay cash for all imports or to repay loans. * * * As economic conditions in Eu rope improve and political con ditions become more stable, pri vate financing can be expected to play an increasingly important role. The recommended pro gram of United States aid in cludes provisions to encourage private financing and invest ments. Impact on U. 8. Economy. A fourth basic consideration is the effect of further aid for Europe upon the physical re sources of the United States and upon our economy. * • • While the burden on our people should not be ignored or mini mized, neither should it be exag gerated. The program of aid to Europe which I am recommend ing is well within our capacity to undertake. Its total cost, though large, will be only about 5 per cent of the cost of our effort in the recent war. xt win tuoi icoo luaii o j/ci cent of our national income dur ing the life of the program. • • * Under the proposed program of aid to Europe, the total expbrts to the whole world from this country during the next year are expected to be no greater than our total exports during the past twelve months. This level of exports will never theless have an Important impact on our markets. Hie measures I have already proposed to the Congress to fight general domes tic inflation will be useful, as well, in cushioning the impact of the European aid program. • * * The interest of the United States will be served best by per mitting the sale or temporary transfer of some of our war built merchant ships to the European countries. * * * Other World Questions. A fifth basic consideration is the relationship of our aid to the European recovery to other international questions. • • • The productive capacity of the highly industrialized area of Western Germany can contribute substantially to the general co operative effort required for European recovery. It is essential that this productive capacity be effectively utilized, and it is espe cially important that the coal production of the Ruhr continue to increase repidly. • * • As an occupying power in Western Germany, the United States has a responsibility to provide minimum essentials necessary to prevent disease and unrest. Separate appropriations will be requested for this purpose for the period through June 30, 1949. * • • Another significant area of the world which has been considered in developing the recovery pro gram is Eastern Europe. A num ber of the governments of Eastern Europe which were invited to par ticipate in the work of the Paris Conference on Economic Co-op eration chose not to do so. Their failure to join in the concerted effort for recovery makes this effort more difficult and will un doubtedly prolong their own eco nomic diffculties. .mis snuum not, nowever, pre vent the restoration of trade be tween Eastern and Western Europe to thfe mutual advantage of both areas. • • * While our present efforts must be devoted primarily to Western Europe, as the most important area in the world at this time for the future of peace, we also have a special concern for the war-tom area of Asia. In Japan and Korea, the United States has sup plied extensive aid to support life and commence reconstruction. Since the war’s end, we have pro vided China with varied and im portant assistance which has aided that nation substantially. The United States should con tinue to do all it appropriately can to assist in the restoration of economic stability as a basis for recovery in the Far East. Exten sive study has been given during the last few months to the means by which we might best aid in meeting the special needs for relief and rehabilitation in China I expect to make recommenda . tions on that subject to the Con gress during its next session. Administrative Arrangements. I have set forth several basic considerations which should govern our aid to the recovery of Europe. One further considera tion which vitally affects all the others is the necessity for effec tive administrative arrangements adapted to the particular require ments of the program. If the work to be done is not well organ ized and managed, the benefits of our aid could be largely dissi pated. The administration of our aid will involve the performance of several major functions. The needs of the participating coun tries must be reviewed in clow co-operation with them. • * • I therefore recommend the establishment of a new and sepa rate agency, the Economic Co operation Administration, for this purpose. It should be headed by an administrator, appointed by the President and directly re sponsible to him. The adminis trator should be subject to con firmation by the Senate. • • • I expect that the Economic Co operation Administration will need only a small staff. No vast new agency or corporation is needed to perform functions for which government facilities now exist. • * » The Administrator must be subject to the direction of the Secretary of State on decisions and actions affecting our foreign policy. In order to maintain unity of United States representation abroad, our ambassador in each country must retain responsibility for all matters requiring con tacts with the government to which he is accredited, including operations under this program. Some additional personnel, tech nically qualified to perform spe cialized functions arising out of the program, should be placed in the embassies to represent and carry out the responsibilities of the Economic Co-operation Ad ministration abroad. In addition, I recommend that provision be made for a special United States Representative for the European Recovery Program. He would represent the United States at any continuing organi zation of the participating coun tries and he would exercise gen eral co-ordination of our opera tions in Europe under the pro gram. He should be appointed by the President, subject to con firmation by the Senate, and have Ambassadorial rank. Be cause of the joint interest of the Secretary of State and the Ad ministrator in his activities, the special Representative must serve both as the President may direct. The activities of this Represent ative in promoting mutual self help among the European nations will be of the utmost importance in achieving the success of the European recovery program. * * * VvllvlllBlvUt In proposing that the Congress enact a program of aid to Eu rope, I am proposing that this Nation contribute to world peace and to its own security by as sisting in the recovery of 16 countries which, like the United States, are devoted to the preser vation of free institutions and enduring peace among nations. It is my belief that United States support of the European recovery program will enable .the free nations of Europe to devote their great energies to the re construction of their economies. On this depend the restoration of a decent standard of living for their peoples, the develop ment of a sound world economy, and continued support for the ideals of individual liberty and justice. In providing aid to Europe we must share more than goods and funds. We must give our moral support to those nations in their struggle to rekindle the fires of hope and strengthen the will of their peoples to overcome their adversities. We must de velop a feeling of teamwork In our common cause of combatting the suspicions, prejudices and fabrications which undermine co-operative effort, both at home and abroad. This Joint undertaking of the ' United States and a group of Eu ropean nations, in devotion to the principles of the Charter of the United Nations, is proof that free men can effectively Join to gether to defend their free insti tutions against totalitarian pres sures, and to promote better standards of life for all their peoples. I have been heartened by the widespread support which the citizens of the United States have given to the concept underlying the proposed aid to European re covery. Workers, farmers, busi nessmen and other major groups have all given evidence of their confidence in its noble purpose and have shown their willingness to give it full suport. I know that the members of the Congress have already given much thoughtful consideration to the grave issues now before us. I know that the Congress will, as it should, consider with great care the legislation necessary to put the program into effect. This consideration should proceed as rapidly as possible in order that the program may become effec tive by April 1, 1948. It is for this reason that I am presenting my recommendations to the Con gress now, rather than awaiting its reconvening in January. I recommend this program of United States support for Eu ropean recovery to the Congress in full confidence of its wisdom and necessity as a major step in our Nation's quest for a Just and lasting peace. Truman (Continued From First Page.) ern Hemisphere nations and addi tional sources might raise the tota of outside assistance tc betweei *20,024,000,000 and *22,685,000,000. Needs Placed at *22,000,000,000. The 16 nations placed their tenta tive four years need, originally, a *22,400,000,000. The participants are Italy, Austria Belgium, Britain, Denmark, Eire France, Greece, Iceland, Luxeim bourg, Netherlands, Norway, Por tugal, Sweden, Switzerland ane Turkey. America’s war aid bill already 1 *15,000,000,000. The President said the funds woul< accomplish two major purposes— ‘lift the standard of living in Europi closer to a decent level,” and enlargi productive capacity. Grain, food, fertilizer, agriculture machinery, fuel and mining machin ery, and certain raw materials, in eluding cotton, are among the item whose purchase American dollar will finance. "The fundamental objective o further United States aid ti European countries is to help then achieve economic self-support and to contribute their full share to a peaceful and prosperous world,” the President amplified in his 9,000 word message. “Our aid must be adequate to this end. If we provide only half-hearted and half-way help, our efforts will be dissipated and the chances for political and economic stability in Europe are likely to be lost.” Notes Effect on U.S. At the same time, however, the President took cognizance of the effect that large-scale exports will have on this country’s economy and said, for that reason, relief pur chases should not be restricted to the United States, with the resultant inflationary pressure that would be created by this enlarged demand. “The measures I have already proposed to the Congress to fight general domestic inflation will be useful, as well, in cushioning the impact of the European aid pro gram,” he said. The President dealt at length with the background of the Marshall plan, which was drawn up in the fall, with Russia refusing to par ticipate. He pointed out the countries con cerned are pledged to an all-out productive effort, coupled with the establishment of financial stability. Self-Help Necessary. "A successful European recovery program will depend upon two es sentials.” he continued. “The first is that each nation separately and all the nations together should take vigorous action to help themselves. The second essential is that suffi cient outside aid should be made available to provide the margin of victory for the recovery program.” Actually, the President explained, this “margin” is only about 5 per cent of the total national produc tion of the 16 nations. He said, too, that this country expects others which are able, to lend what assist ance they can. As now contemplated, Mr. Tru man said, “the program is designed to make genuine recovery possible within a definite period of time, and not merely to continue relief in definitely,” and it is intended also to make certain that “the funds and goods which we furnish will be used most effectively for European recovery.” Decision Rests With U. S. “The United States will, of course, retain the right to determine wheth er aid to any country is to be con tinued if our previous assistance has not been used effectively,” he said. The President noted that “a num ber of governments of Eastern Europe” declined to participate in the Paris conference at which the Marshall plan was devised, and “their failure to join in the con certed effort for recovery makes this effort more difficult and will un doubtedly prolong their own eco nomic difficulties.” This, however, the President said, should not stand in the way of a resumption of trade between East ern and Western Europe. and he ex pressed the conviction it will be “gradually restored.” The President also repeated his assurance that, in embarking on the long-range European aid program, this country is not ignoring “our long-established interest in eco nomic co-operation with our neigh bors in the Western Hemisphere.” In policy and broad outlines the program is regarded by officials who helped prepare it as conforming closely with the recommendations of the receiving countries. In de tail, as shown by the background material Mr. Truman sent to Con gress, many differences appear. For example, the Government fig ures that the 16 countries will be able to import less grain, fats and oils, meat and sugar than those countries estimated. They may, how ever, be able to get more tobacco, cotton and dried fruit than they counted on. The countries concerned had asked (3,000,000,000 for currency stabiliza tion, but this was omitted. Mr. Truman said something might be done about this later. He ex plained that the entire program had been scaled down whenever it seemed to include nonessentials or whenever supplies were too scarce to meet demand. vancer Leaves lourtroom In Tears as Trial Ends ly »h« AwoclatMl Pr«ss •HAVANA, Dec. 19. — The man slaughter trial of Patricia (Satira) Schmidt, who is accused of the yacht shooting of John Lester Mee, Chicago naval veteran, ended at 11 a.m. today. The verdict is noj, expected for several days. Following a half hour of conclud ing argument by the defense attor ney, the Audiencia Court adjourned and Patricia left the room in tears. She walked to an automobile be tween spectators who murmured good luck wishes to her. She addressed the court for a few seconds in her own behalf before the adjournment, saying she hoped the court would not treat her as a common criminal. She thanked the three Judges for giving her a fair trial. When the closed court convened today Miss Schmidt, fearful of a prison sentence which she said would be “worse than death,” went nervously into the chamber to hear her lawyer finish his summation. Venezuela Seeks Beef Although beef is plentiful in cities in Venezuela, the government, fear ing that this is at the expense of future supply, is seeking a foreign source of frozen beef. Mumps Keep Santa Away EASTON. Pa.. Dec. 19 UP).—'The annual visit of Santa Claus to the Easton Children’s Home has been canceled—because of an outbreak of mumps. 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