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United States Department of State / Foreign relations of the United States, 1947. The British Commonwealth; Europe
(1947)

Europe,   pp. 196-654 PDF (168.7 MB)


Page 392


FOREIGN RELATIONS, 19 4 7, VOLUME III
2. Objective:
  The objective of the European recovery program, as we see it, is to
provide for the speediest possible reactivation of the European eco-
nomic machine and for its restoration to a self-supporting basis, while
at the same time meeting the essential consumption requirements of
the people. It is our belief that once determined steps toward this end
are taken and tangible results achieved, the latent resources olf Europe
will begin to make their contribution to recovery. Common European
effort, initially assisted by special American aid, should give rise to a
further liberation of trade and to the emergence of fresh supplies of
capital and technology, both from within Europe and from outside
sources.
3. General comiment:
  The Conference's preliminary estimate of dollars 29.2 billion of
required outside aid would appear in the US as much too large. The
size of the estimated deficit and the fact that it remains same at the end
of the period reflect the unsatisfactory nature of the methods by which
it was calculated and the assumptions on which it was based. The most
important standards by which the program will be judged in the US
are the purposes which it is intended to serve and the basis on which
it has been prepared. Congress and the American public will have to
be convinced that there is an urgent need for this program, that its
fundamental objectives are sound and can be accomplished within a
specified period of time; that it represents a considered and critically
analyzed statement of requirements; that the program has been pre-
pared with a view to reducing to a minimum the outside aid required;
and that at the end of the period the European economy will be re-
stored to a balanced condition in order that its long run expansion will
be assured.
4. Conditions:
  It is believed that the probability of widespread acceptance of this
program by the American public will be enhanced if it meets the
following main essentials:
  a. It must provide for the achievement within the four year period
of a workable European economy independent of special, outside aid.
  b. It must provide for continuous and progressive reduction in the
special outside aid required by the participating countries to the point
where it will become eliminated by the end of the period.
  c. The participating countries must from time to time during the
period of the program show convincing evidence that they have made
substantial progress toward the scheduled goals of production of items
essential to European recovery especially food and coal.
  d. Long run development projects should not be allowed to interfere
with the reactivation of the most efficient existing productive facilities.
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