TERMS OF REPAYMENT

Otago Daily Times, Issue 26619, 15 November 1947, Page 7

TERMS OF REPAYMENT

American Foreign Aid PROPOSALS BY SENATE “Strategic Bases and Critical Materials ” Rec. 10 p.m. WASHINGTON, Nov. 13. The Senate foreign policy spokesman proposed to-day that Europe pay for United States aid with strategic bases, critical materials, and uranium, the source of atomic energy. At the same time, the secretary of Commerce, Mr Averell Harriman, suggested that America hold out Marshall Plan help as a reward to Soviet satellite nations when and if they “ free themselves from Communist domination.” The suggestion that uranium be used to pay for American aid was made by Senator Vandenberg, chairman of the Senate Foreign Relations Committee during the fourth day of the committee hearings on aid programmes. Senator Vandenberg asked Mr William Phillips of the State Department’s International Trade Policy Office if uranium would be obtained from Belgian Congo in return for contemplated long-term Marshall Plan aid. Mr Phillips replied: “ Higher sources ” in the Government are giving thought to such procedure and Senator Vandenberg said that his committee would demand some information on this score from “ top levels ” during the course of the current foreign aid hearings.

Senator Henry Cabot Lodge, jun., a said that he thought vigorous action should be taken to obtain raw materials in return for aid, declaring that there ought to be as much mutuality as-possible about this programme. Senator Alexander Wiley suggested that somebody ought to inquire if any of the nations receiving help would be willing to turn over strategic air and other bases in return for help. Representative John Dapis- Lodge proposed that the United States should invoke economic sanctions against Russia and its satellites, and Mr Harriman agreed immediately that America should cut off any exports which would contribute to the military strength of the Soviet bloc. Mr Harriman, a former Ambassador to Russia, said: “Export licences can be used to invoke economic sanctions, but I prefer persuasion. I don’t think

it would be proper to attempt to shut off trade, but I believe we should not ship our materials which are a direct contribution to the military strength of Eastern European countries. I believe we should carry out our recovery programme and restrict our resources and equipment to the co-operative countries.” President Truman to-day, discussing aid to Europe, agreed with the Harriman Committee’s recommendation that long-term aid be financed of taxation rather than by borrowing. Mr Truman declined to say whether he would recommend the return of the excess profits tax, which was repealeo after the war.