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. Hospital officials said
j yesterday that the annual Chrlst
jmas party also has been called off
because several children have con
tracted the disease.
. Gift
Christi»as
and nn
enduri^jnvenment^
_■’Sssa&r’issmi m
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