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

Europe,   pp. 196-654 PDF (168.7 MB)

Page 231

  4. Some of the principal items in these deficits:
    From the U.S.: Coal, 30 million tons ......... $  1600 million
      "    "    " : Bread grains, 12 million tons.  1, 400
                    Shipping services at very highi
                      rates ion imports land ex-
                      ports  .......  .............  x xxxx
  Before the war, Europe was self-sufficient in coal and imported very
little bread grains from the United States.
  Europe must again become self-sufficient in coal (the U.S. must
take over management of Ruhr coal production) and her agricultural
production must be restored to normal levels. (Note: No inefficient
or forced production through exorbitant tariffs, subsidies, etc., is here
  Europe must again be equipped to perform her own shipping serv-
ices. The United States should sell surplus ships to France, Italy and
other maritime nations to restore their merchant marine to at least
prewar levels. (To do it, we will have to lick the shipping lobby, fat-
tening as it is off the U.S. Treasury).
  5. Without further prompt and substantial aid from the United
States, economic, social and political disintegration will overwhelm
  Aside from the awful implications which this would have for the
future peace and security of the world, the immediate effects on our
domestic economy would be disastrous: markets for our surplus pro-
duction gone, unemployment, depression, a heavily unbalanced budget
on the background of a mountainous war debt.
  These things must not happen.
  How can they be avoided ?
  6. Mr. Baruch 2 asks for the appointment of a Commission to study
and report on our national assets and liabilities in order to determine
our ability to assist Europe.
  This is wholly unnecessary.
  The facts are well known.
  Our resources and our productive capacity are ample to provide all
the help necessary.
  The problem is to organize our fiscal policy and our own consumption
so that sufficient surpluses of the necessary goods are made available out
of our enormous production, and so that these surpluses are paid for
out of taxation and not by addition to debt.
  This problem can be met only if the American people are taken into
the complete confidence of the Administration and told all the facts and
only if a sound and workable plan is presented.
  2Bernard M. Baruch had served as Chairman of the War Industries Board
in 1918, as an adviser to the Director of War Mobilization, 1943-1945, and
U.S. Representative on the U.N. Atomic Energy Commission in 1946.

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