Post-WWII - 1947, Committee on Foreign Relations of US Senate, Secretary George Marshall, 10Novr47 Pt. 1 of 2

Post-WWII - 1947, Committee on Foreign Relations of US Senate, Secretary George Marshall, 10Novr47 Secretary George Marshall testifing SOF: “decided to establish. Consideration should be give for a special U.S representative for the European Recovery Program w/ Ambassadorial rank appointed by the President w/ the advise & consent of the Senate. As a general principle aid should take the form of grants or loans depending in each case upon the capacity of the particular country to repay, & the effect which accumulation of external debt would have upon sustained recovery. The precise determination in each case (abrupt end) 04:45:55 “It is obvious that the basic responsibility for European recovery rests upon the European countries themselves; however this government must have assurance that the aid it provides is effectively utilized for the achievement of European recovery as rapidly as possible. It is contemplated that to this end a bilateral agreement will be negotiated between the U.S. & each of the countries participating in the recovery program, setting forth the reciprocal undertaking relating to American assistance. These agreements will vary in form & content as between countries depending upon the nature of the aid to be furnished and the conditions deemed important in each case. The commitment (abrupt end). 04:46:44 MCU “Assistance to Europe will, to a considerable extent, take the form of commodities. The proposal to be submitted to the Congress contemplates the use of funds provided under the program for purchases outside the United States of commodities not readily available in sufficient quantities in this country. This policy will tend to protect our home economy against inflationary price movements which might result from concentrated buying in our markets. It seems clearly in our interest for the greatest amount of these supplies to be obtained for Europe from other countries. 04:47:30 MS “confine my remarks to the European Recovery Program itself, but the economic effects of this program will extend far beyond the boundaries of the 16 countries involved. It is in one important sense a World Recovery Program. The delay in European recovery has created a serious problem for many countries which normally supply the European market w/ raw materials & other commodities. 04:48:01 MCU “The situation in China continues to cause us deep concern; the civil war expressed an increase in intensity. The Chinese Communist by force of arms seek control of wide areas of China. The United States & all other world powers recognize the National government as the sole legal government of China. Only the government & people of China can solve their fundamental problems and regain for China their rightful role as a major stabilizing influence in the Far East. Nevertheless we can be of help, & in light of our long & uninterrupted record of friendship & international co-operation with China we should extend to the government & its people certain economic aid & assistance. A definite proposal is under preparation for submission.... 04:48:54 MS “I would however urge upon you the necessity of a speedy decision in regard to the interim aid program. What is immediately needed is aid to maintain the status quo in food & the material to keep the wheels turning & people at work. It will do little good to discuss the merits of the recovery program for Europe if in the meantime political & economic conditions have deteriorated to a point where such a program could not possibly succeed. The problem of overseas payments has been come particularly acute in the case of Austria, France & Italy. It is clear that the people of these countries, in the absence of immediate assistance, during the next few months begin to suffer from a lack of food & other necessities of life; & the whole economic & social life of the people will be seriously affected. Within a short time these countries will have exhausted all of the dollar resources which they can muster to maintain the flow of essential supplies. continued... 10Nov47; Selections of Testimony; Cold War; NOTE: Both cards sold for price of one reel. This has printer ride throughout.