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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 CONFIDENTIAL CONFIDSKTIAL -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, CONFIDENTIAL CONFIDENTIAL 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 CONFIDENTIAL 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 CONFIDENTIAL 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 CONFIDENTIAL 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