they have only given us a bread-down of three or four or five of them. They are going to employ 500 for the District and 1,000 for the foreign field. Mr. Hoffman himself said he had not read these justifications or knew very much about it; so he is not in a position, and neither is anybody in the ECA to justify the appropriations. The justifications were made up by the Department of State through the departmental organization there, and they are the only ones I know of in the Government who are competent to justify them at this time. However, it is the ECA that is going to administer this program following the passage of the legislation making the Marshall plan a law, and we are here to implement that law with appropriations, but the State Department is the only agency of the Government that can give us information as to what the requirements are, because the ECA organization is not yet formulated. Mr. Hoffman says there is no rush about this; Mr. Hoffman says he has $1,000,000,000 to work with, of which $800,000,000 has been allocated, and somebody who has the job and somebody who has the responsibility should be in a position to justify this appropriation before this committee, and I will go along with the chairman to adjourn here until we can get the information from Mr. Hoffman. Mr. NITZE. Mr. Ball of the Department of the Interior and Mr. Levy of the Department of State are here on the petroleum matter. The CHAIRMAN. Well, we can take that up, perhaps, and get somewhere with that. I hope so. But I don't see much sense in going much further into this one. Mr. CASE. I merely wish to ask a question so as to identify this. As I understand, this little table given us this afternoon corresponds to column 3 in the D-4 table of loans and credits? Mr. NITZE. Yes, sir; it does. Mr. CASE. In other words, then, these credits are all applicable against shipments from the Western Hemisphere and apply to the 15 months' period? Mr. NITZE. That is correct. BIZONE- GARIOA APPROPRIATION Mr. WIGGLESWORTH. And, strictly speaking, there is $822, 000,000 in here for the bizonal appropriation. It is not a loan or a credit, but an appropriation. Mr. NITZE. That is correct. We point out in the footnote that it is. Mr. STEFAN. It is misleading and should not be in there. Mr. SPIEGEL. It would otherwise have meant adding another column to the table, and we thought it simpler to do it in this fashion. Mr. NITZE. The footnote explains it. The CHAIRMAN. Perhaps there is one other question. SWISS WESTERN HEMISPHERE SURPLUS What does that Swiss Western Hemisphere surplus represent? Is that something we are going to pay the Swiss for? Mr. SPIEGEL, No. The CHAIRMAN. Or something that the Swiss are going to contribute, or what? Mr. SPIEGEL. It is something we hope the Swiss will contribute. The CHAIRMAN. Have they said they would contribute? Mr. SPIEGEL. No; they have not. The brown-book estimates show a balance-of-payment surplus rather than a deficit for Switzerland with the Western Hemisphere. The CHAIRMAN. But that, so far, is purely a hope? Mr. SPIEGEL. That is a hope. Mr. WIGGLESWORTH. You gave it to us today as $115,000,000 for Switzerland, although from the Foreign Affairs report it would seem the information given them at the time of their hearings was that the sum was $85,000,000 and it represented cash settlements beyond the anticipated deficits not only of Switzerland, but Portugal and Turkey, also. Mr. SPIEGEL. It is true that the figures were revised after the presentation to the Foreign Affairs Committees, and the revised figures show that Switzerland is expected to have a larger surplus than previously anticipated. Mr. STEFAN. They were revised in the Budget, too, after they left the Foreign Affairs Committee, were they not? Mr. SPIEGEL. You mean by the Swiss Government? Mr. STEFAN. No; when you went to the Budget, the whole thing was revised there. Mr. NITZE. These figures were originally prepared on the basis of estimates made last October, and the figures presented to the Foreign Affairs Committee and the Foreign Relations Committee of the Senate were estimates prepared in October and November last year. Then subsequent new information came in which made it look as though a great many of our underlying figures should be revised; so it was felt for the Appropriations Committee that a complete revision. should be made on the basis of the most complete information available. And if you were doing it today, there would be further revisions. STATUS OF PORTUGAL AND TURKEY IN THE PROGRAM Mr. WIGGLESWORTH. Does that mean that Portugal and Turkey are out of the picture now? Mr. SPIEGEL. If you will look at the table on page 3 in this large book, you will find the figures for Portugal and Turkey, and you will find in the Portuguese case that there is a deficit. But we have felt that Portugal had sufficient gold and dollar resources so that we could expect Portugal to finance that deficit out of its own money. In other words, we felt that Portugal was in a different position from the other participating countries. We have not, therefore, included any request for funds to take care of Portugal's requirements. Mr. WIGGLESWORTH. According to the Foreign Affairs Committee report, there was $1,285,000,000 to be financed during the first 15 months from sources other than the United States Government. That included $700,000,000 from Western Hemisphere countries which we discussed? Mr. SPIEGEL. That is right. Mr. WIGGLESWORTH. $500,000,000 from the Export-Import Bank, the International Bank, and the other sources which you discussed? Mr. SPIEGEL. Right. Mr. WIGGLESWORTH. And the $85,000,000 represented settlements from participating countries on a cash basis? Mr. SPIEGEL. Yes, sir. Mr. WIGGLESWORTH. And today you gave us not $85,000,000 but $115,000,000 for Switzerland alone. Mr. SPIEGEL. That is right. Mr. WIGGLESWORTH. My question is, Has the situation changed so that Portugal and Turkey are out of this picture today? Mr. SPIEGEL. Our most recent information is that both Portugal and Turkey will be running deficits rather than surpluses, and that Switzerland's surplus is larger than we had previously anticipated. FINANCIAL SITUATION OF BELGIUM The CHAIRMAN. What about Belgium? Mr. SPIEGEL. The table on page 3 will give you the comparison. Last December the deficit for the 15 months' period was estimated at $545,000,000; in March the revised figure was $637,800,000. The CHAIRMAN. And what does Belgium "dep." mean? Mr. SPIEGEL. That is dependent overseas territories. The CHAIRMAN. That shows a surplus of $37,000,000; is that it? Mr. SPIEGEL. That is right. That amount is an offset against the Belgian deficit. We felt we could lump together the figure for the mother country and the dependencies. ESTIMATE OF CREDITS FROM ARGENTINA IN RELATION TO EXPENDITURES FOR BREAD GRAINS AND COARSE GRAINS In Mr. CASE. In connection with the relationship of this table which you gave us out of the book, in column 3, I note the estimate of credits from Argentina are apparently $400,000,000, and the estimated expenditures for bread grains and coarse grains are $799,700,000. other words, about one-half of the expected credits from Argentine sources are approximately one-half of the coarse grain figures. Does that mean Argentina is to get the benefit of the $5 grain in contributing and getting credit for the contribution of $400,000,000 in credits? Mr. SPIEGEL. Mr. Nitze did explain, I think, a while back that we had expected the Administrator in his negotiations with Argentina to reach an agreement on a price that was reasonable before making any purchases of Argentine grain under the program. Mr. CASE. What was the figure used in estimating the $799,000,000 worth of coarse grains to be purchased out of loans and credits? You must have had a figure in mind there. Mr. SPIEGEL. Yes, sir; but I will have to check. It is my offhand impression that we did not make an adjustment on price, but I would want to check before giving you a definite answer. Mr. NITZE. I would just like to say that this distribution of the $2,136,000,000 among commodities was obviously a very difficult thing to do. In general, the amount which seemed in keeping with the amount of grain which might come from Argentina under credits was put against the grain, and I do not think the particular distribution in that column is necessarily fixed in any way. The CHAIRMAN. Now, for the time being, on this particular item, we will get through with this unless there are some more questions at this point, and will take up the Interior Department and see what they can tell us about the things they have. ESTIMATES OF TOTAL IMPORTS, DOMESTIC PRODUCTION, AND AVAILABLE SUPPLY BY COMMODITIES AND BY COUNTRIES I should like to insert at this point the tables showing the estimates of total imports, domestic production, and available supply in physical quantities by commodities and countries. (The tables are as follows:) 75408 48pt. 1- 10 AUSTRIA ESTIMATES OF TOTAL IMPORTS, DOMESTIC PRODUCTION AND AVAILABLE SUPPLY IN PHYSICAL QUANTITIES gge (Shell equivalent) 50.0 11 15 20.5 6.0 26.5 45. 3.9 48.9 Source: ERP material for appropriations Committee; official Statistics of Foreign Governments; "Available Supply is generally defined as domestic production plus total importa minus exports. Periods: Prewar - 1934-38 average where available; otherwise 1935-37 or 1937-39 BCA Financing Includes shipments to dependent overseas territorier. The physical quantities indicated in this column represent estimated commodity shipment a proposed to be financed by E.C.A. during the 12-month period, April 176 through March 1949. In addition to these commodity shipment financed by E.C.A... it is estimated that B.C.A. funds will be obligated before March 31, 1969 to procure goods which will be shipped after that date. |