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Foreign Relations of the United States

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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 387

but recognizes importance to realistic program guidance on general
form of possible outside assistance. In this connection:
  1. Assumed that in any event major part U.S. aid would be specified
commodities or commodity groups. Extent of possible untied dollar
assistance, either to support clearing system or otherwise, should be
left open for review on merits.
  2. Program should minimize dollar aid for purchases outside U.S.
It is not intended to satisfy entire world's appetite for dollars under
guise European Recovery program. Efforts should be made to main-
tain existing commitments from other suppliers (such as Argentine
and Canadian contracts for wheat to U.K.), with dollar aid being
limited to increments beyond these commitments. This approach de-
sirable both to limit total assistance requested Congress and to limit
inflationary effects within U.S. of maintaining heavy export demands
from other areas as well as Europe. Partial relief for dollar shortages
outside Europe may of course be subject of negotiations apart from
European program. Moreover, program should not exclude expendi-
tures outside U.S. which would increase flow of essential goods to
Europe and make real contribution to European recovery. A firm
position on this point should not be taken until appraisal is possible of
cost of financing extra-European trade and alternative means of secur-
ing and financing supplies for Europe from non-U.S. sources. Note
press reports of possible large-scale Canadian loan to be floated pri-
vately in New York.
  3. Distribution of aid by U.S. should take into account recom-
mendations by continuing European organization or where appro-
priate by other international allocating bodies (e.g., coal and food).
However, U.S. aid will not be provided in totals for subdivision by
Europeans. UNRRA precedent will not be followed. U.S. would hope
to be guided by European recommendations but must retain freedom
to modify allocations to assure most efficient use of aid and to enforce
any agreed conditions.
  On trade and financial relations of participating countries with
Eastern Europe, Dept recognizes necessity of existing trade between
Eastern and Western Europe and desirability of its increase.. Program
cannot, however, include provision of U.S. direct dollar or commodity
aid to Eastern Europe because of political inacceptability here. U.S.
will consider international measures of help for Eastern European
countries designed to aid Western European recovery, e.g. World
Bank loan to expand production and transport Polish coal; and
recognizes necessity expanding production in Western countries in
lines furnishing exports to Eastern Europe, to be exchanged against
     3,1.0-099  '72  26

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