THREAT TO STOP MARSHALL AID DENIED

Chronicle (Levin), 3 November 1949, Page 5

THREAT TO STOP MARSHALL AID DENIED

Received Wednesday 8.50 p.m. NEW YORTv, Nov. 1. A threat bv the Unit&fl' States to en-i Marshall Aid prematurely was reported by the New York Times today. Its Washington despateh said the Truman Administration had no intention of askiug Congress for a third appropriatiou "unless the West European Governments can agree by January on a plan of economic integration that cuts across the present State boundaries." This followed Mr Paul Hoffman's demand in Paris for a West European Economic Union. High gov'ernmcnt officials said any other course would ignore the E.C.A. conelusions that the only hope of seperate eontinental economies paying their wav after 1952 was by ■combiiiing into a single mass market. j Officials explained that the Govern-i ment would be risking Congressional repudiation unnecessarily if it request-i ed a i'urther Marshall- Plan appropria-| tion without some concrete evidence | that the West European Governments! were nraking a fundamental attack on! the problcnn E.fi.A, be'lieve.d .the nestor-! atiori 61 WdsT Eui-dp'e "£ to iftp e titi v e ' p o ' I sition in the world markets was basic • to any' sdlution of its economic prob-; lem. Political cireles today expressed snf-j prise at the press report that the Tru-i man Administration would not ask1 Congress for a third Marshall Plan ap-! propriation unless Western Europe' achieved economic unity by 1950, says Reuter'a diplomatie eorrespondent. Offi--cials of the White Honse and State De-i partment said they knew nothing about i such an intention. A Marshall Plan spolcesman said tkei report had caused some surprise at the: Economic Co-operation Administration; headquarters. He said Administratori Paul Hoffman was urging Marshall Plan: countries to produce a plan of economic' integration, but there was no known suggestion that all American aid would: be cut off unless this was done by the: beginning of 1950. The spokesinan said Mr Holfman was' eoneerned about the possibility of aid funds fceing heavily reduced by next session of Congress unless Western Europe unified its economies and took early steps to break down trade and currenpy barriers.