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FOREIGN AID
APPROPRIATION BILL FOR 1949

HEARINGS

BEFORE THE

di sconques. SUBCOMMITTEE OF THE
FlüesCOMMITTEE ON APPROPRIATIONS.

HOUSE OF REPRESENTATIVES

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16 1949

COMMITTEE ON APPROPRIATIONS

JOAN TABER, New York, Chair man
RICHARD B. WIGGLESWORTH, Massachusetts CLARENCE CANNON, Missouri
CHARLES A. PLUMLEY, Vermont

LOUIS LUDLOW, Indiana
EVERETT M. DIRKSEN, Illinois

JOHN H. KERR, North Carolina ALBERT J. ENGEL, Michigan

GEORGE H. MAHON, Texas KARL STEFAN, Nebraska

HARRY R. SHEPPARD, California FRANCIS CASE, South Dakota

ALBERT THOMAS, Texas FRANK B. KEEFE, Wisconsin

JOE HENDRICKS, Florida NOBLE J. JOHNSON, Indiana

MICHAEL J. KIRWAN, Ohio BEN F.JENSEN, Iowa

W.F. NORRELL, Arkansas H. CARL ANDERSEN, Minnesota

ALBERT GORE, Tennessee WALTER C. PLOESER, Missouri

JAMIE L. WEITTEN, Mississippi HARVE TIBBOTT, Pennsylvania

GEORGE W. ANDREWS, Alabama WALT HORAN, Washington

JOHN J. ROONEY, New York GORDON CANFIELD, New Jersey

J. VAUGHAN GARY, Virginia GEORGE B. SCHWABE, Oklahoma

JOE B. BATES, Kentucky IVOR D. FENTON, Pennsylvania

THOMAS J. O'BRIEN, Illinois RALPH E. CHURCH, Illinois

JOHN E. FOGARTY, Rhode Island
P. W. GRIFFITHS, Ohio

HENRY M. JACKSON, Washington
LOWELL STOCKMAN, Oregon
JOHN PHILLIPS, California
ERRETT P. SCRIVNER, Kansas
CHARLES R. ROBERTSON, North Dakota
FREDERIC R. COUDERT, JR., New York
CLIFF CLEVENGER, Ohio

GEORGE Y. HARVEY, Clerk

SUBCOMMITTEE ON DEFICIENCIES

JOHN TABER, New York, Chair man
RICHARD B. WIGGLESWORTH, Massachusetts CLARENCE CANYON, Missouri
ALBERT J, ENGEL, Michigan

JOHN H. KERR, North Carolina
KARL STEFAN, Nebraska

GEORGE H. MAHON, Texas
FRANCIS CASE, South Dakota
FRANK B. KEEFE, Wisconsin

WILLIAM A. DUVALL, Executive Secretary to Subcomui!iee

II

FOREIGN AID APPROPRIATION BILL, 1949

OM46
HEARINGS CONDUCTED BY THE SUBCOMMITTEE OF THE COM-

MITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES,
IN CHARGE OF DEFICIENCY APPROPRIATIONS ON THE DAYS
FOLLOWING, NAMELY:

TUESDAY, APRIL 20, 1948.

.

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ECONOMIC COOPERATION ADMINISTRATION

STATEMENT OF PAUL G, HOFFMAN, ADMINISTRATOR; RICHARD

BISSELL, CONSULTANT; CALVIN HOOVER, SPECIAL ASSISTANT;
EDWARD MASON, SPECIAL ASSISTANT; F. R. CAWLEY, ACTING
BUDGET OFFICER; W. T. PHILLIPS, ADVISER ON SUPPLIES,
ECONOMIC COOPERATION ADMINISTRATION; ROBERT LOVETT,
UNDER SECRETARY OF STATE; AND PAUL NITZE, SPECIAL
ASSISTANT; WILFRED MALENBAUM, CHIEF, INTERNATIONAL
AND FUNCTIONAL INTELLIGENCE; AND A. M. ROSENSON,
ASSISTANT CHIEF, DIVISION OF FINANCIAL AFFAIRS, DEPART-
MENT OF STATE

GENERAL STATEMENT
The CHAIRMAN. The committee has under consideration this
morning an estimate contained in House Document No. 610 for
$4,245,000,000 for the carrying out of foreign assistance as authorized
by title I of Public, No. 472, approved April 3, 1948.

We have with us Mr. Paul G. Hoffman, the Administrator appointed to head the Economic Cooperation Administration. We should be glad to have a statement from you at this time, Mr. Hoffman.

Mr. HOFFMAN. Mr. Chairman and gentlemen, since assuming office as Administrator of the Economic Cooperation Administration 10 days ago I have found myself confronted with a number of pressing problems. As soon as I was sworn in, the authorization of expenditures by the State Department under the Interim Aid Act ceased. I had to assume responsibility for any further expenditures under that program as well as for initial expenditures under the new program. Up to date my Administration has authorized the expenditure of some $62,000,000 (including some $5,000,000 for ocean freight) to continue shipments of food, fuel, and fertilizer to certain European countries. I have also necessarily had to devote much time to recruiting competent personnel for the key positions in our new organization. The fact that we had over 14,000 applications for positions has not made this task less complicated. It is people who make an organization and selecting the best equipped person for each important position takes time. We have also faced the minor problem of operating in temporary quarters while preparing to set up shop in the Maiatico Building

Whatever success I may have had to date in meeting the responsibilities of this new office is due solely to: (1) The quality and quantity of preparatory work carried on by various agencies of government in the past several months and, (2) the willingness of the heads of

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