FOREIGN RELATIONS: Problems of Success

The first EGA bill had been presented as a calculated and desperate risk; the second with an air of "you can't afford to quit now." Last week EC Administrator Paul Hoffman could point to a record of proud accomplishment. Western Europe's recovery "has exceeded our fondest hope," Hoffman told a joint congressional committee on foreign affairs. He asked just 'under $3 billion to keep EGA going on its winning way in its third year.

But ECA's very success in shoring up Europe's economy (though it had failed to "integrate" the continent for the long pull) had created a new problem. Europe's booming factories were turning out all the goods Europe could use and more; the problem now was to sell the excess where it would earn dollars — that is, in the U.S. market. That meant that the U.S. would have to accept more imports, said Hoffman. ECA's target was modest — an increase in imports of "several hundred million dollars " within the next two years, amounting to only a drop in the bucket of U.S. production. But it would be enough, Hoffman conceded, to "create problems in a few localities — competition always does . . .

"There is little appeal in such a pro gram," Hoffman admitted, "but . . . Europe must have dollars to buy goods from us, and if we don't want to give her those dollars, we should let her earn them." To ease the shock, Hoffman suggested some form of direct "relief" for victims of foreign competition. Secretary of State Dean Acheson agreed that "very substantial steps" would be necessary. Said Acheson: "I should not think we could say: 'Well, we must do it and the chips will have to fall, and whoever suffers will have to suffer." I should think it would be a matter of governmental concern to see that help was given where help was needed, within the United States, to adjust to these new situations."

The notion of relief payments to U.S. manufacturers as a means of helping "foreigners" would have amazed 1930"s tariff-conscious U.S. citizen. But the logic was compelling and the need was real. 1950"s citizen, accepting the responsibility for a world he never made (but seemed to be charged with remaking) would probably take this newest oddity in stride.