RECOVERY IS TOO SLOW

Chronicle (Levin), 2 September 1949, Page 5

RECOVERY IS TOO SLOW

(N.Z.P.A.-

-Reuter.

Need For Early Solution Of Euro{ie's Problems

Copyright)

Received Friday, 10.25 a.m. PARIS, September 1. More' than £1,250,000,000 in Ameriean aid had failed to put Europe on the road to self support, says a report submitted today to the Council of the Organisation for Europe an Economic Co-operation by the organisation's chairman, Baron Snoys, and secretary-gehe-ral, Mr. Robert Marjolin. The report said: "It was at one time our belief that European recovery was proceeding fast enough to make it possible to achieve visibility in 1952. We must now admit that the rate of progress is not sufficient. "The dollar problem, despite the, improvement over the last two years, is not on the way to solution. This is not solely a European problem. It is a problem for the United States as much as for Eur- l ope and also for the whole of the : free world. The fundamentals of this problem must be reco'nsidered at a very early date. As soon as the present difficulties have been overcome the organisation will have rn concentrate all its energies to this end. "The amount of aid available is not sufficient to meet all deficits as they have been inereased by the recent decline in Europe's gold and dollar earnings. All participatirig countries will receive not. . only lewer dollars than requested, but even less than they themselves consider to be .the irreducible minimum. The only possible solution is an equitable distribution of the reductions which such a position is bound to entail." The report referred to. the worsened conditions in Britain and said that the United Kingdom would be less able than other countries to cover its deficit in gold and dollars. The report aeeompanied the Marshall Aid allocations and Mr. Marjolin emphasised that it was his and Baron Snoys' opinion and ; not an official expression by the | council.