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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 414


FOREIGN RELATIONS, 1t947, VOLUME III
  b. 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 inter-
fere with the reactivation of the most efficient existing productive
facilities. The latter must have first priority. The financing of long-
term projects must be obtained from sources outside this program.
  e. The participating countries to undertake the necessary internal
financial and monetary measures to stabilize their currencies, establish
and maintain proper rates of exchange, and generally restore confi-
dence in their monetary systems.
  f. The participating countries to take concerted steps to facilitate
the greatest practicable interchange of goods and services among
themselves, adopting definite measures directed toward the progressive
reduction and eventual elimination of barriers to trade within the area,
in accordance with the principles of the ITO Charter.
  g. The participating countries must regard the conditions men-
tioned above as a common European responsibility and, therefore,
should envisage use of some continuing multilateral organization
which from time to time will review and take stock of the progress
achieved by participating Govts under the program.
  8. In communicating these views, US reps made clear that they
were not attempting to dictate, and that no commitment by US was
involved.
  9. US believes that genuine acceptance and vigorous application of
foregoing principles and maximization of inter-European coopera-
tion in restoration of production and economic patterns of trade and
finance will make possible dynamic program in which Europe, with
minimum external aid, can start on path toward healthy economic
recovery. When this recovery begins, resources, now latent or hoarded,
should emerge and become part of productive effort and further reduce
necessity for external assistance.
  10. US recognizes that problem of workable European economy in-
dependent of special outside aid at end of four years divides into
problems of 1) Europe's ability to produce goods and services; 2)
Europe's ability to market such goods. While existence of latter prob-
lem is recognized, its immediacy is far less than former. First problem
and immediate concern of US is production.
  I11. From point of view of public reaction both in Europe and US,
  our view is that report should put primary emphasis on positive steps
  being taken by Europe; the manner in which commodity aid from US
  can assist positive steps rather than plea for continuing flow of US
  dollars.
414


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