WESTERN EUROPE ASKS FOR MORE MARSHALL AID AGAINST RED TIDE

Small cut in aid acceptable

---Washington, February 7.

The Economic Co-operation Administrator Paul Hoffman,

Washington, February 7.

Western Europe has asked for another $4,700,- 000,000 to $5,000,000,000 in Marshall aid over the next two years to hold the line against Communism.

This is asked in a survey by European member areas _at_the_half-way mork of the recovery pro- gramme inspired 32 months ago by the U.S. ex-Secretary of State Mr. George C. Marshall, The $8,257,000,000 already poured in, the raport said, has removed the immediate threat of bankruptcy and economic dissolution with the political threats which would follow. -

ministration might accept á small cut in Marshall Plan spending, below President. Truman's US$8,100,000,000 re- quest for the fiscal year 1951. But at the same time he told They sal also that the pru. the Senate Foreign Relations duction effort a rucceeding he

with zond expectations Committee that a drastic cutgures on everything from arti would be tragic because West- chokes to zinc oxides up 25. per ern Europe remained the No. cent from 1947. 1 battlefield in the fight against Communism.

is reckoning-the reckoning of life or death for Western Europe the rst two years of the E4 upcan Recovery Programme have been unreservedly success- ful,"

Mr. Hofman met the Commit- Ler

for threo hours to set the stage for the hearings on the third year renewal of the recovery programme. The hearings open on February 21.

Afterwards, the Committee chairman, Senator Tons Connally, told newsmen he had an intima- tion that Mr. Hoffman was ready

1040

The experts said: "Considerable progress has been made in...In- ternal Anancial slability...and the habit of working jogether has been formed in all the OEEC countries."

Still to be solved, however, Is the pro

problem of how Europe can get the dollars to buy the Ami- rican goods it needs after Mar- shall ald ends in 1952,

The document, 325 pages of economics scnt- closely-printed

tered with tables and graphs,

by will be closely scanned

the

to go down a bit below Mr. TruU. S. Congress before hearing st nun's budget figure. Soine Ap- propiations Committee Senators appropriations for 1950-51 start ulready have called for a cut of

un February 21. between $800,000,000 and $1,000,- 000,000,

According to the statement re- leased by Senator Connally after) the meeting. Mr. Hoffman des- cribed as discouraging the fallure of Western Europe to eliminate the "dunt pricing" system under which export prices are higher than those charged for goods sold within

purtletpating countries.

Also in the discouraging category was failure to move toward in- creased convertibility of currency within Europe.

disappointment on this score," Kald Senator Connally.

The report's Agure on needs for this perlod 13 roughly $3,000,000,000 dollars-not includ ing military nid.

Cut foarod

President Truman has asked for $3,000,000,000, but fourc that this wilt be cut by Att econombally-minded Congrass. For 1940-50, the total of Mar. chall ald WAL $3,778,000,000,

$400,000,000 plus about special assistance for Germany..

in

Western

On the credit side, Mr. Hoffman cited the European decision to

The experts who drafted the "Mr. Hoffman expressed great report calculated that the OEEC countries could continue their recovery if they get 75 per cent of that for 1950-51 and 50 per cent for 1051-52. This declining gure and the complete halt for ginal plan. mid-1952-was part of the ori-

free 50 per cent of inter-Europe an trade from quantitative res-

Written by a committee under trictions and the appointment" of Dr. Dick Stikker of the Nether-the Chairmanship, of the British economist Mr. Erle Roll, the rd- Junds to a high politler post' in a

port keeps diplomatically silent on move to free trade barriers.

the wide-spread European hope for longer-range ald.

Battle plan

Senator Connally indicated that Mr. Hoffman laid down his battle plans for the forthcoming fight over the renewal progam- "mo ̄along"thana ̈ffney?"

1:

A request that all legisla-

from they

they are classified £15 "luxury. earthenware." Carpets pay 25 to 30 per obst-unlezi have fringes, in which case the rate goes up to 45 per cent. Associated Press.

U.S. gives Vietnam recognition

Washington, February 7,

The United States, today gove full diplomalle recogni- ilon to the French-backed Gov. ernments of Vietnam. Lads and Cambodia in Indo-China.

The United Siates recognition followed by a few hours the re- cognition of

the three Indo- Chinese Governments by Britain. The action of the United States In recognising the Governments, including the French-supported Boo Dai regime, recalled the comment by Mr. Dean Acheson, United States Secretary of State, on Russian recognition of the Ho Chi-minh regime.

"Russia's action should remove any illusions as to the Nationalist alms nature of Ho Chi-minh's

and reveal Ho in his true colours as the moral enemy of native in- dependence in Indo-China," Mr. Acheson said.

Minister named

The United States announce- ment cald that the American Consulate at Salgon would be ralued to the status of a Lega- tion, and that a single' Minister would be appointed by Presi dent Truman

represent United States

three The State

sald,

States.

to In

Department "After the middle of 1932," it | "Our diplomatic recognition of suys, "Western Europe. will in these Governments Is based on any case have to balance its the formal establishment of the dollar accounts."

State of Vietnam, the Kingdom of Laos' and the Kingdom of states within the French

that

Cambodia as Indepon."..

The Department warned

But the

the experts wonder who ther this will have to be done by cutting down-European imports from the U, S.

The report points out that the United States was consider tors refrain from passing · judge | althouonsiderably since

the dollar gap has berning what netion it could take to the ensure that the development of war, it will still be more than Indo-China would not be hinder- A broad gulf to bridge $2,000,000,000 wide In 1951-52ed by Internal dissension fostered

all at from abroad.-Neuter.

ment on the ECA fund request until evidence is in.

2. A declaration that Wester Europe remained the chief testing ground in the struggle between democracy and Communismi and that drastic ECA cuts would uni dermine the West's position.

3. Although Mr. Hoffman has had a good deal of trouble in pressing his single market or in- tegration

plan

for Western Europe, some progress in this direction has been mude. But trade barriers, currency restric- tions and lower tarifls must come soon to make United States ald more effective.

+

4. The Uniteci States must learn that it must inake it possi bic for Europe to carn dollars'të buy United States goods if "heal- thy" world economy la to be as- aured.

Into

once.

The report was divided four parts-progress to dute plans for 1950-52, the policies of full recovery and the abend,

course The dollar gap is the differen ce between what Western Europe sells to "America and the much larger amount that it has been buying and' paying for with Marshall funds.

Polish envoy quits Belgrade

"

THE CHINA MAIL,

DAY, FEBRUARY 9, 1930,

An idea that will travel

The children of Exster's Murzały Echool--opentu recently and one of only two of its kind bullt under the 1944 Education Act--had their "elavensct" served by an unusual- vialtor. She was 35-year-old, Mica Buk: Budlardjo, who had travelled 9,000 miles to study Britain's most up-to-date educational development. Mica Budlardjo, 'ataletant to Indonesia's Kiintotdr.of Social Affairs, baw 32 children between two and five learning their first lesson in citizenship: rely on yourself-but don't be celfith. (Accociated Press Photo),

British recognition of

Vietnam counter

to

spread of Communism

London, February 1.

Britain's Labour Government, In what was prob- ably its last act in foreign offairs before the General Election on February 23, recognised the French-sponsored Vietnam rogimo of Bab Dai in Indo-China os a counter to the spread of Communism in

in South East Asia.

Britain's action morked the culmination of three

years of negotiation between the moderate Nationalists in Indo-China and the French government, during which the Communist- inspired Viet Minh movement led by Moscow- trained Ho Chi-minh has persistently opposed all French authority in Indo-China. Russia and her satellites have recognised Ho Chi~ minh's regime.

·1

Red zealots

4-

Office said was a seditious action against o member of the United Nations,

Bao Dai's position

The Ruzalana have recognis ed Ho Chi minh, because they

UR.

are, confident he will win the civil war in Vietnam, but Bri- tish officials bolleve Boo Dai

not nearly as position is promising as the Russiano ap- pear to think. Commonwealth relations officials said B20 was gaining support avery day.

sald,

that

British roped, they not only

tend

--

recognition

Western Union

to extend *co-operation to opposing

Large section

Com-

munism in Asia, but also would encourage a

of Asin.... who hitherto had Joined with the Communists, to

tic Nationalists

support

Hồ Chl-minh dà a native of Ho Chl-minh and the other by throw sup to Bao Dai, Annam who went to Moscow at Bhɔ Dat." 1023 to study the revolutionary technique. Since then, he has been actively engaged in carrying out his part of the Communist programme in Soul East Asia.

He charged that about 80 per would

cent of Ho chi minh sup portors were genuine nation British recognition of the Bo alista" and the remaining 20 Dat regime was advocated by the

per cont "Communiet zoalots." Commissioner General fir South

"It is this Communist minorily, East Asia, -Mr. Malcolm Mac- Donald, at-the-Colomba confer-however, which controls the Vict ence at the Commonwealth For-Minh movement," said Mr. Mac- elga Ministers in January. Donald,

Mr. MacDonald appealed to all. Mr. MacDonald said Commun- Commonwealth members to sup-

ists held the chief posts on. Ho port the French-sponsored Gay Chi-minll's administration, which arriment, which he sold was. was proclaimed In August 1945, result of policy in line with Com-mimediately after the Japanese monwealth recognition of genuine curreader, when France was not riationalism in dependent terri- In a. position to occupy Indo- torics.

Chins.

:

"If they win the civil war in Mr. MacDonald said Indo China included three territories Vietnam, Ho Chi-minh's move- Belgrade, Feb. 7:

Laos, Cambodia and Vietnamment will hand thels, countrymen over to the control of their over- which are recognised as fully it was disclosed today that Jan self-governing within the frame MacDonald.

Jarda in Russia," declared Mr. Narol Wende, Polish Ambassador ·work of the French Union.

move Bao Dal's nationalist to Yugoslavia, left Bolgrade Inst Fand

America' has to work at.mak- week-end, completing the diplo-boding "with Andersonit, he gald, was led by sincere

Д

dent sovereign status within the Indo-Chinese natrials (who) wish ing trade more of. two-way matle embargo imposed by the French Union," he said, were their country to breume, free street, the report suggested. It Cominform against Marshel Tilo's tranquil and free of trouble- touched on one of the constant Government.

complaints of Europeans who try

··

yaars

foreign do-

2 CM the Calombo confer-

the

French

Government

rutifled an agreement made with

Dal in

maker, Vietnam, on the other from both French tutelage and to call their goods in the U. S- There are no more chiefs of hand, was "tofn by elvil war busion or any other Custom House red tape,

mission—Ambassadors er Miniscause, the Nationalist Government

Belgrade

the is split in two; one part led by "For

from the experts tersin example,"

Com- wrote, "cut flowers, delivered by seven Eastern European alr are sometimes withered bomunist countries who two inclu-fore, they, are released by Cus- ago were Tilu Yugosinvin's closest used the usual diplomatit phrase all March 1910, Hlving allies. Only few junior diploma "short stay" to describe his vidit Russia countered by recognising toms."

And what does got in may cost tle and service attaches, living in to Poland. However, at the Polish Ho Chi-minh's "democratie re the buyer more because of the ever greater isolation, remained Embassy it was learned that Mpublle of. Vietnam. Britain's whim of p Customs amelal, Clay to carry out the business of the Wende was shipping his personal recognition of Bao Da! was le effects home and that, while he retaliation for Russia's support idi ashtrays, they pointed out, pay seven Embassies and Legations.. only 15 per cent duty if they are Polish Ambassador, who he definitely would not romaln

wi inight_return to Belgrade briedy, | Ho Chi-minh, which the Foreign The found to be "household articles,"

(Continued On Next Col.)

5. Western Germany's alon in European integration plans

is mandatory because without the inclusion of Germany there is no Buropean unification worth talk ing about.

Mr. Hoffman himself told re- porters that the speech of John McClby, United States High Com- missioner for Germany, had his enthusiastic support. He reiterat- ed t to newsmen that those nations which had followed a policy of trade co-operation and currency convertibility: * would "have our eticouragement and assistance.”— United Press.

30 bor cent if they are smoking was dean of the diplomatic corps, here. United Press.

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Particularly it was hoped that the British lead

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members in recomising the French-sponsored regima follow India to encourage suit. So for the Indian Prime Minister,

Jawaharlal Nehru, scen no disposition to recogulse either Ho Chi-minh or Bas-Dal,

dian recognition of but 'British Melais believe In- Vietnam would tip the scales against Ho Chiminh and retard Communist activity. In Southern Asla United Press.

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