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COMFIDSiNTIAL
IKS.OPINION ON EUROPEAN RECONSTRUCTION
Developments: October 23—November 5* 194?
Report No, £

November 10, 194?
i

I.

Pyes8> Radio and Other Leadership Opinion

Following several weeks of grtimbllnf? at the Administration1 3 handling of the European Recovery Profcranu commentators
have widely acclaimed the Presidents call for a special session of Congress• Commentators have not* however• minimized
the difficulties which they feel will arise at the special
session as a result of the Presidents emphasis on domestic
prices and indications of party squabbles on this Issue. The
President's action came shortly after a round of applause for
the Krug report on national resources and the Secretary of
f
State*s l stirring11 address before the CIO In Boston. The subsequent report of the Presidents Council of Economic Advisers
on t ? impact of foreign aid on the national economy has also
h>
been w^ll received. Except for sporadic demands for more factual Information and rather general criticism of the mechanics
of the food-saving program, the ERP appeared to be getting a
more favorable press than at any time since the original outburst of enthusiasm for the SecretaryS Harvard address*
Articulate comment in both Republican and Democratic
circles has been overwhelmingly In favor of granting aid to
Europe, Renewed pressure for hasty action resulted from the
formation of the Comlnform in Eastern Europe* and the antiCommunist trend of tne elections in Western Europe made observers feel that these countries had improved their eligibility for aid. The opposition* while small* continued to question
the wisdom of "pouring billions of dollars into Europe every
year to rout the Communist threat" (John 3. Knight* publisher)*
l
(
* D ?
lamented that past aid had been wasted (John 0*Donnell,» ?at
terson columnist, Henry Taylor (MBS), or held that the U.S.
would be financing Ideologies "foreign to its own" (Coj.
McCormlek),
Administration of
Foreign Aid

While there had been little previous dls~
cusslon of the issue of administration of
foreign aid, news reports that Rep.
g
,
p
y
C i
F
Ald
(chairman of the House S
Select Committee on Foreign Ald)# favored
a government corporation and that Sen. Taft favored administration by a special agency with responsibility also on domestic
DIVISION OF PUBLIC STUDIES

OFFICE OF PUBLIC AFFAIRS




DEPARTMENT OF
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-2prlces* have Intensified discussion on this issue. While few
81ands have been taken publicly, speculation as to what Congress might approve or the Administration propose has been
heavy.
A government corporation has been favored In the past by
such Influential spokesmen as Wlnthrop Aldr1ch (chairman of
the board of the Chase National Bank)> Alfred P» S^oan of
General Motors, and Charles S. Dewey (former Representative
from Illinois) , and more recently by the H»Y» Journal of Commerce* Joseph and Stewart Alsoa and the San Francisco Chronicleo
Most recently, Governor Pewey has suggested the creation of a
special bipartisan authority to supervise aid on a businesslike basis* A corporation has been opposed by Helen Fuller
(New Republic) and the Detroit Free Press.
But most observers have dwelled on the arguments for or
against such an ageqcy without adopting a position* Like Newsweek, commentators have observed: ^Creation of an RFC-type
government corporation*..Is under serious discussion both in
Congress and the Administration.••Tne principal argument for
corporate administration Is that it would be flexible enough
to cope with the complex and varied problems that rehabilitation of the sixteen participating nations will raise. The
strongest argument against it is that the corporation would
have tremendous foreign-policy making powers and might exercise them at cross-purposes with the President and his Department of 3tate*. Similar observations came from Ernest Llndley
and Marquis ChiIds (Wash, Post), ChiIds paying particular attentlon to the controversy that might arise between t a e i p »
f# o?*
oration and Ambassadors in the various countries. Llndley
rejected both the corporation idea and State Department administration in favor of a special govt. agency responsible
to the fresident• Arthur Krock discussed the possibility of
a "gentlemen*s agreement" between the President and Congress
on the issue, whereby the President would appoint a Republican
administrator of the ERP
Like otners, Krock felt the Administration leaned toward a new agency with a single administrator.
Of those discussing the issue, many have been feartUl
that the creation of a special agency might be regarded as interference in the Internal affairs of the European nations*
Gabriel H*atter, for example, felt people would claim that %h$
corporation * would kill the real purpose behind the Marshall
Plan which is not to play with any private group In Europe Dut
to support all the people who stand ready to oppose Communism11.
James Reston reported that 16 European governments had addressed an aide-memoire to the United States suggesting that
any supervision of aid be arranged In such a way that It would
not be regarded aq interference,




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The Washington Poqt> Wendell Berge and Harold Staesen
have hp*n in the forefront In arguing In favor of a "Peace
Production Board11 which would In the words of the Poetf •manage
limited allocations necessary to channel food, machinery* steel
and so forth Into countries and Industries where It can render
the preatefit service to the cause of European reconstruction11
.Information Policy

Sideswipes at the Administration^ Information policy on the European Recovery ~$ropr*\m
have bran appearing at frequent Intervale In recant comment,
Like Jiraes McGr^w (McGraw Hill Publishing Co.), several have felt
that t W American people hrxve not been told clearly the alternci tlves tn undertaking a recovery Drogram (Peg Molnqs Register>
Christlt|fi Science MonifjOTs Baltimore Sun, Washington News*
Fdffblftan in the Los Angeles flaeiTI Moreover• criticism of
the Drcartroent's public relations has come from ioattered
sourcen: Doris Pleeeon (Wash* Star)*James Restpru Klpllnger.
Wash! i / t o n i o st. Miss Fleeson suggested that t i State De~
i* , >
l«
T)art»#nt oauld, "If it wished, do what ex-Secretary Hughes d r
it
In former times of tension, report to a press conference dally
on the situation*. Klpllng«r# saying that Sec, Marshall Is a
•poor wooer of people*# criticised hla public relations system
•where only a select few of Influential big bug citizens are
Invited to the White Rouse and State Department to be told In
whispers of the Marshall Plan".
In two articles, James Reaton scored inadequate public
relations on the ERP# Said Reston: *So far as one can discover, there is no puolic relations plan at the State Department to deal with It (Marshall Plan) and It la still extremely difficult for reporters at the Department to find out whj|t
the state Department thinks about the P a A s proposals for; European aid*. The trouble la, he added: "the people who have
the facts there are too busy dealing with the or 1 sis to d^al
with the public and those who are not too busy to deal with
the public do not have the facts* • He was particularly concerned, as was Ml as Fleeson, that Congressmen •have not been
getting the attention from the State Department that they
think they should be getting11.
Progpecta for
Success of ERP

While political news analysts are almost unanlmous In predicting Congressional approval of a
program of emergency relief for Europe, there
Is tome reluctance to predict the outcome on the ERP at the
present time—due probably to lack of a concrete legislative
program* Most agree with David Lawrence that Congress Is
"united In principle11 out that questions will arise over the
quantity of aid and the method of granting It (Kewsweek, Llndlqy»
Reston). Kipilnger has stated: *fhere will be a Marshall Plan.*
with 8trlnga...but liberal*. Reston, Impressed by the change in




CONFIDENTIAL

attitude among Congressmen since the Greek-Turkish legislation
was passed, has declared: *The political climate Is comparatively sympathetic and an appropriation of over #6,000,000,000
plus a European stabilization fund of an additional $3#000,000i000are being discussed as If the last three ciphers were not attached11
Most feel that Congressmen returning from overseas are more sympathetic than when they left, Arthur Krock remarking that the
Administration would soon find "cause to rejoice* that these
members made first-hand Inspections11 .
II.

Congress

Emergency Aid Members of Congress returning from overseas tours
appear to have been deeply Impressed by starvation and distress abroad and appear to be In general agreement
tnat some kind of emergency relief Is needed If ohaos and Communistic Infiltration are to be averted* For example, Rep.
Dirksen (R,» 111.)-—a frequent critic of past foreign policy
measures-•declared upon his return: "The United States is obligated for moral reasons as well as for the protection of Its
ideals to help Europeans as much as It is able*. Similar
sentiments were expressed by Rep. Mundt (R., 3.D.) and by
Republican mera&ers of the subcommittee of the House Appropriations and Armed Services Committees* While newspapers played
up the "sour solos" of Reps. Taber (R.$ N.Y.) and Andresen
(R. f Minn*) who claimed they saw "no hunger" abroad, Taber also
declared: "America must assist the war stricken countries to
recover"
Long-Range Aid Prominent attention in the past few weeks hap
been focused on Sen, Taft's various statements
on foreign aid and on the observations of the House Select Committee on Foreign Aid. The press has played up Sen. Taft f s
call for a celling of |4 1/2 billion yearly; for establishment
of a separate agency; and for consideration of both long-term
and emergency aid at the special session* While the presa reported the Herter Committee to be sympathetic to foreign aid*
observers noted the committee's11 caution that the European nations might be "over optimist 1c and the committee members9
calls for strict supervision* More recently, attention has
been given to Sen, Vandenberg^ first pronouncement on the
"Marshall Flan", In which he said he would approve *lf selfhelp and self sufficiency can be made to work*. While Vandenberg called for Information as to the *total bill—including
China"* he quoted Sec* Marshall at length and indicated agreemento
In other recent Congressional statements, a European
Recovery Program has been defended by Sen. Johnson (D»* Colo.)#
who found the Marshall approach a decided Improvement over
the British loan which he had opposed,and by Sens. Mcftrath
(D ## R.I.), and Smith (R., N . J J . But Sen. 0'Daniel (P7* fex,)



CONFIDENTIAL

held that the program would ruin the UoSe economy and Sen*
Wllqy (H., W i ^ ) addressed several questions to the Administration,
VUley wanted to know! 1) whether or not Europe would keep
Its pledgee; 2) what assurance the U.SO has that aid will not
be a mere palliative; 3) whether or not the U*S. Intends to
* spoon-feed11 Europe permanently; 4) what assurance the U«8,
has that Europe will utilize its own resources to the maximum;
5) whether aid would be dispensed if countries break pledges;
6) whether aid would be dispensed regardless of strikes and
showdowns abroad; 7) whether the U.S. would give aid regardless of political complexion of borrowers; 8) whether consideration was being #ivan to an international development corporation; 9) chances for collateral; 10) chances for ©ore information; 11) whether the word 'loan* was being substituted for
"gift*; 12) whether tha U.S. would 'recklessly subsidise socialism^ and 13) whether tr.e U 8 S 6 intended to show preference for
the free-enterprise system,
Other members were disturbed by some of the same issues as
those raised by Sen. Wiley* Sen* Bridges (R** H.HL) was especially concerned about French strikes although he did not
rule out flupport for aid, With Sen, Brooks (R«i 111.)»Bridges
suggested administration of aid through an RFC-type organisation.
Bridges added, however, that while the UoS* favors free enterprise* "we should ask nothing of Europeans except that they cooperate with us on a reasonable basis** Brooks declared: •The
United States has ne^er yet tried to dictate any people 9 8 government; but It can determine what sort of a government it Is
prepared to subsidize*. Sen. Wilson (R.» Iowa) also favored a
special organization to administer aid on a * hard-headed11 business basis, and favored restricting aid to yearly payments.
Sen, Kern (R,* Mo.) and Sen. Byrd were concerned about the results of former grants to Europe and Sen. Brewster (Ro* Me«)
suggested granting war-surplus ships to Europe—an idea which
has been publicly favored only in a few scattered newspapers.
III.

General Public

While 80# of the general public approves the general idea
of granting aid to Europe, confidential polls (NORC) reveal
that the public splits about evenly on supporting a large-scale
aid program if it is to Involve high prices and continued
shortages. Moreover, a substantial segment of the population
does not feel that Europe's economic plight is extremely serious
and there is considerable feeling that Europeans are not working 11
hard enough. As in the past, few can Identify the •Marshall
Plan (46#) and only 2l£ know that it is postulated on selfhelp. On the basis of these findings, it appears that the




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COMFIPEHTIAL

greatest opposition to foreign a t c n e s from those In the
l? otf
lower educational nM income brackets«
To measure the intensity of feeling for and against a
European aid program. the National Opinion Research Center
asked the following questions;
*Would you approve or disapprove of the U*S# sending
machinery and other supplies to help the countries of
Western Eurone get their factories and farms running
again?*
Those approving were asked:
1
1

Would you still approve If this meant that shortages
of things you want to buy would continue and prices
remain high?*
High
Grade
Cplleae School School
National
Approve despite high prices

49*

72*

48*

3556

Disapprove in principle
Disapprove If high prices

16)
44
28)44

14)25

3D 4 6

15)46

21)55
34)55

No opinion

7
100*

-10
100*

100*

100*

An analysis of public comment mall written to the State
Department by the general public reveals that the number of
letters has increased from 9 in June to 313 during the first
16 days of Octoberc Of these tne majority have been favorable
to European aid though many took an Indefinite position or
suggested their own plans for an aid program. Confusion as
to the essential nature of the Marshall proposals was evldentt
with little recognition of the difference between the "Marshall
Plan19 and emergency relief measures. Opposition letters stressed
the following points: 1) Charity begins at home; 2) Aid will
serve no useful purpose except to keep Europe on the dole;
3) Europeans have foreign assets in this country which they
could use for recovery; 4) Europe Is beyond saving*




CONFIDENTIAL

APPfcNPXX
The breadth of support for a program of large-scale al<1
Europe Is Indicated by the following lists which inolude trie
•lews of all sources noted as commenting on long-term foreign
aid since the 16 European nations submitted their request for
aid to the United States;
1. SUPPOHT
Press
Bangor (Me.) Commercial
Baltimore (Md.) Sun
Christian Science Monitor
Hfew York Herald Tribune
New York Journal of Commerce
New York Post
Mew York Times
Washington News
Washington Post
Washington Star
Charlotte (!«.C.) Observer
Louisville Courier-Journal
Taapa (Pla.) Tribune
Detroit Nevm
Des Moines Register
Indianapolis News
Milwaukee Journal
St. Loula Globe-Democrat
Denver Post
San Franclaco Chronicle

Columnists
Baldwin, Hanson (New tbrla ftmes)
Chllds, Marquis (WashingtonPost)
Gustin, Bruce (Denver Post
Hughes, C*S\ (N6w York times)
Krock, Arthur (New York Tines)
Lerner, Max (PM)
Lindley, Srnest (WashinRton Pont)
McCormick, Aftne Oflarii (Ne^ York Times)
Movrer, Edgar (New York Post)
Hoverf Barnet (Washington Post)
Phillips, Joseph B. (Newsweek)
Reston, James (New York Times)
Soule, George (Denver Post)
Stakes, Thomas L. (Washington News)
Stone, I.F. (PM)
Sullivan, Mark (New York Herald TrlbJ
Thotapson, Dorothy (Washington Star)

Magazines

Radio Coamentators

America
Canham, Erwin
Davis, Elmer
Business Week
Heatter, Gabriel
Christian Century
Murrow, Edward
Cammonveal
Smith, Howard K*
Export Trade and Shipper
Stove, Leland
Fortune
Swing, Raymond
Nation
Wlnchell, Walter
New Leader
Saturday Evening Post
Organisations*
American Association of University Women
American Federation of Labor (AFL)
Americans for Democratic Action
American Legion
American Veterans of World War II
"Based upon statements in moat cases appearing In tht prtss




CONFIDENTIAL

Organisations (Coht'd.)
Committee on Public Affairs
Congress of Industrial Organizations (CIO)
Council for Democracy
Federal Council of Churches of Christ in America
Freedom House
Human Relations Commission, Protestant Council of N.Y*
Jewish War Veterans
Lutheran World Federation
National Farmers Union
Postwar World Federation
Society for the Prevention, of World V*r III
United States Junior Chamber of Commerce
Women1s Action Committee for Lasting Peace
Young Women1s Christian Association
Prominent Leaders and Individuals*
Acheson, Dean, former Under Secretary of State
Aldrlch, Wlnthrop, chairman of the Board, Chase Natfl B*nk
Arnold, Thurman, attorney
Berge, Wendell, former government official
Bowles, Chester, former chief of OPA
Brown, Lewis H.9 Johns-Manvllle Corp*
Byrnes, James F., former Secretary of State
Carey, James, CIO
Cherne, Leo, Research Institute of America
Coogan, Walter, Sylvanla Products
Dean, Vera M*f Foreign Policy Association
Dewey, Th#magf Governor of Hew York
Dodge, Joseph, president, American Bankers Association
Driacoll, Alfred, Governor of Hew Jersey
Emeny, Brooks, Foreign Policy Association
Fay, 81dney, Harvard University
Gideonse, Harry, president, Brooklyn College
Hellbroner, Robert, economist
Helser, Victor, author
Hoover, Calvin B., Duke University
Hoyt, Palmer, Denver Post
Iekes, Harold, former Secretary of Interior
Jacoby, Neal H., University of Chicago
Kline, Allan, Iowa Farm Burean Federation
Landon, Alf, former Governor of Kansas
Lattlmore, Owen, Far Eastern expert
Lewis, Lafayette, Elks
McKlttrlck, T.H., Chase National Bank
McNutt, Paul, attorney
McVey, Frank, University of Kentucky
Meyer, Eugene, Washington Post
*B&«ed upon statements in most oases appearing in the press




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CONFIDENTIAL
Prominent Leaders and Individuals (Confd,)
O'Neal, Edward, American Faria Eureau Federation
Patterson. (Jrove, Toledo Blade
Reed, Philip, General Electric Co,
Rleve, Emil, CIO
Rockefeller, Nelson, former Asst. Secretary of State
ftuml, Beardsley, R.H. Macy Co.
Sloan, Alfred P.# General Motors Corp.
Truslow, Francis, H.Y. Curb Exchange
Turner, Roy, Governor of Oklahosia
Warburg, James, former government official
Withers, Carl K« # American Bankers Association
11

•

SUPPORT WITH BTROHO QUALIFICATION OR RESERVATION
Press

Columnists

Philadelphia Inquirer
Miaul Herald
Kansas City Star

Brown, Conatantlne (Wash. Star)
Chamberlln, Wm, Henry
(Wall St. Journal}
Edson, Peter (Washington Neva)
Kingdon, Frank (Hew York Post)
Lawrenoe, David (Washington Star)
Holey, Raymond (Washington Star)
Royster, Vermont (Vail St. Journal)

Magaglnes
Collierfs
Magatine of Wall Street
New Republic
Unltet States News

Radio Commentators
Knltenborn, H.V«
Lewis, Fulton
Organlsatlens*

American Association for the United Nations
American Bankers Association
American Veterans Committee
Association of National Advertisers
National League of Women Voters
National Peace Conference
Prominent Leaders and Individuals*
Abbink, John, McGraw-Hill Publishing Co.
Donnelly, J.L., 111. Mfg. Association
Kennedy, Joseph P., former Ambassador to Britain
"Based upon statements in most cases appearing in the press




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CORFIDENTIAL

$S(Pn*Vfl*

ProminentLeaderg jgnd

McGraw, James, McGrav-Hlll Publishing Co*
Patton, James, Ni-tiornl Farmers Union
Stassen, Harold, former Governor of Minnesota
Wallace, Henry, editor. New Republic
Ward, V/llbert, Rational City Bank of Hew York
III. OPPOSITION
Columnists

Press
N.X. Saratogan
Wall Street Journal
Washington Times Herald
Chicago News
Chicago Tribune
Detroit Free Press
Hearst Press

Bargeron, Carlisle (Commercial
(and Financial Chronicle)
Brotm, George Rothwell (Hearst)
Hatilttf Henry (Newsweek)
O'Donnell, John (Patterson)
Sokolsky, George (Hearst)

Ratio Commentator
Taylor, Henry
Organisations*
Aaerlcan Tariff League
Progressive Citizens of America
«
Prominent Leaders and Individuals11
A4am8, Donald, Brig. General
Bromfleld, Louie, author
Gannettt Frank, publisher
Garett, Garetf American Affairs
Jacksun, Mayor, former mayor of Baltimore
Jordan, Virgil, National Industrial Conference Board
Ketterlng, Charles, General Motors inventor
Knight, John S*f publisher
McCorralck, Colonel, publisher
Weir, Ernest, National Steel Corp*
White, C.M.t Republic Steel Co.

•Based upon statements In most eases appearing In the press
P8:BARS:ae:Kb