The allocation among countries is one item. The allocation among economic reconstruction and economic relief, the two items-relief and rehabilitation-I assume must also have been taken into account by your studies in order to determine the totals; were they not? Mr. WEBB. Yes, sir. All the information that we had. (See table V, p. 66.) Senator BREWSTER. I have read all the releases, the Harriman report and the other reports and the State Department report and it seems very difficult to determine what part is coming from this country and what form offshore countries of the Western Hemisphere, and I think the latest tabulation on which you base your figures would be extremely important in appraising the point which the chairman makes as to their dependability. Mr. WEBB. Thank you, sir. I will put that in the record. (The information requested is as follows:) TABLE III.-Estimated foreign-aid expenditures, by type and source of purchase [In millions of dollars] TABLE III.—Estimated foreign-aid expenditures, by type and source of purchase— Commodity totals shown below are in terms of estimated shipments for period Apr. 1, 1948, through June 30, 1949, expressed in prices as of July 1947. To get to estimated expenditure total for entire program, the over-all adjustments shown below were made for average price increases, shipping savings, entering pipeline of shipments financed from pre-ERP sources, and time lag between shipments and payment. These adjustments have not been broken down by commodities, so that expenditure estimates for each commodity are not available at this time. Commodities for western Germany to be financed from the appropriation "Government and relief in occupied areas" are included in the detail below, but adjustment is made in the total. Senator BARKLEY. Would it really make any difference as far as the budget figure is concerned whether it comes from this country or an off-shore country, if we have to pay for it? Mr. WEBB. If you add those last words, except that Senator Byrd has indicated a desire to see the internal structure. Senator BARKLEY. I understand. But inasmuch as we are obligating ourselves to purchase these things, whether in this country or some other country, the budget figure would be the same. There might be a variation according to the price we would have to pay in different countries, but you have to overestimate the over-all. Mr. WEBB. That is right. Senator BREWSTER. I want to make clear to the Senator from Kentucky that I contemplate we may get a little more participation from our comrades in the Western Hemisphere and that is why I think it is of possible significance. Senator BARKLEY. I hope so. So far as our own legislation and program is concerned, it contemplates the payment. Senator BREWSTER. That, I gather, is to be determined. Senator BYRD. Mr. Chairman, I would like to make clear my question. As I understand, the total program is $17,000,000,000, the European recovery program? Mr. WEBB. That is the total estimate on which the plan was based. Senator BYRD. My inquiry was directed at the distribution of that entire program, not only the expenditure in this fiscal year, or the next fiscal year. Mr. WEBB. We will give you the best information that we have. (The information requested is as follows:) TABLE IV.-Break-down of total ERP program by countries and fiscal years [The following table shows the estimated composition of the full 44-year ERP program by countries and fiscal years. It has not been possible to estimate with exactness how much of the total needs of each country will be met by sources other than ERP appropriation (International Bank and private credits, unexpended existing credits, assistance from other Western Hemisphere countries, etc.). The total expected from such courses cannot, therefore, be allocated by countries but is shown as an over-all deduction from the total requirements for all countries.] ESTIMATED SURPLUS (+) OR DEFICIT (-) OF ERP COUNTRIES ON CURRENT ACCOUNT WITH TOTAL WESTERN HEMISPHERE, BY COUNTRY AND BY PERIOD, 1948-52 [In millions of dollars] TABLE IV.—Break-down of total ERP program by countries and fiscal years—Con. ESTIMATED SURPLUS (+) OR DEFICIT (—) OF ERP COUNTRIES ON CURRENT ACCOUNT WITH TOTAL WESTERN HEMISPHERE, BY COUNTRY AND BY PERIOD, 1948-52-Continued [In millions of dollars] The last item is an estimate of the net deficits of the participating countries with the Western Hemisphere. The following further adjustments are necessary to arrive at an estimate of United States apropriated funds needed: It is to be expected that favorable price and other factors will reduce the cost of the program below the higher figure in the range of estimates. However, it would be unwise to count on the full measure of price declines and other favorable factors reflected in the lower figure. The estimated 44-year requirement is, therefore, $17,000,000,000. This lies between the high and low estimates and would cover somewhat more than two-thirds of the contingencies which are reflected in the range. The CHAIRMAN. Mr. Webb, will you agree with me that due to the necessary imperfections in the estimates on our foreign-aid programs, due to the shortness of time in which to prepare them, that it becomes necessary that we lodge the largest discretion with an administrator of the ERP program? There is no alternative to that, is there? Mr. WEBB. I think wide discretion will be required. |