Courtesy Reuters

Rearmament and European Integration

IN THE last three months of 1950 a new chapter has been opening in the story of American economic policy towards free Europe and Great Britain. Not, be it noted, a new story--in spite of Korea, rearmament, the imminent end of Marshall aid and the Gray Report[i]--but a new chapter in the story that has been running since Secretary Marshall's Harvard speech of 1947. In a very real sense Marshall aid and the European Recovery Program were functions of a foreign policy that set out to build up convalescent Europe to the point where it could master the Communist virus with its own strength. The United States saw in rising productivity, higher and better-spread prosperity, social improvement and confidence in the future precious allies against the Cominform's cold war. But between the Atlantic Pact meetings of September and the appearance of the Gray Report in the middle of November the emphasis in America's plans for aiding her allies has been moving from economic strength for its own sake to economic strength for the sake of rearmament. To use the crude formula of the Nazis and Communists, the old problem of butter versus guns has forced itself to the front of statesmen's minds; and the decision has reluctantly been made that the desire for butter has now to give way to the need for guns.

Before the execution of that decision is planned in detail and carried out with the zeal and thoroughness that the military situation demands, the allies of the United States on the European side of the Atlantic have to estimate two things: the amount of aid that will be coming from the United States for this rearmament effort, whether in dollars and raw materials or in equipment and weapons; and the type of plan and organization within which the 12 Atlantic Pact governments will be expected to work. Are the habits and methods of three years' work on the European Recovery Plan to be continued, revised or scrapped? Will the

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