Extract from a memorandum by the Department of External Affairs
'The Marshall Plan'

[matter omitted
OBJECT: Many people think that the plan has not only an economic but a political aim. This view would be supported by Mr. Marshall's remarks on the eligibility of countries and would, of course, be in line with President Truman's statements some months ago about the object of aid to Greece and Turkey. It is, indeed, difficult to see how the USA would give large scale assistance to eastern European countries under Governments like that in Hungary which has recently been very forcefully criticised by President Truman and other official spokesmen. For the 'Economist' it is almost inconceivable that political factors will not play a role. Other organs (e.g. 'Times', 'Manchester Guardian') however, stress the primarily economic aspect of the plan and see in this fact a change in US policy, as compared with that announced by President Truman (Greece and Turkey) in March.
SCOPE: Mr. Marshall has made it clear that the plan may cover the whole of Europe. Its scope will, however, clearly be conditioned by the willingness of all States to collaborate in formulating a joint programme. The 'Economist' doubts whether it will extend beyond the Western European and Mediterranean countries. The plan would, apparently, be applicable to Germany.
ASSISTANCE CONTEMPLATED: The Franco-British statement issued in Paris on the 18th June spoke of using the promised American assistance to develop the resources which European countries produced for themselves before the war and which, along with industrial equipment, they must now import from America. Specifically it is suggested that the programme to be drawn up should counteract in solving problems of food, coal and transport.
METHOD OF OPERATION: The Paris communiqué said it would be necessary for all countries 'willing to participate' to draw up 'comprehensive programmes' and spoke of 'liaison with the appropriate organs of the United Nations'. The recently-constituted Economic Commission for Europe (ECE) of the United Nations which consists of 19 members (including USA) and whose specific functions are to deal with the rehabilitation and reconstruction of Europe and which is to absorb existing organisations concerned with food (EECE) coal (ECO) and transport (ECITO) problems would seem to be an obvious agency for co-ordinating the work required. This view has been expressed by the Secretary General of UNO, the Swedish Foreign Minister and Mr. Eden and the Russian Radio, while criticising the Marshall Plan, has stated that the ECE is the proper body to deal with it. Russia is a member of the ECE and its Secretary is at present in Moscow. (A proposal to admit Ireland which was put forward by Norway at the first session in May was ruled out of order). It is being suggested, however, that a special ad hoc body (called the European Economic Committee) may be set up. According to some reports this suggestion is made so as to avoid the delaying tactics which would be encountered in the ECE from Russia if she did not participate in the Marshall Plan and also because the US Government are said not to like ECE.

It has been reported that the British Government might call a conference in July to consider the Marshall Plan. The ECE is to meet on the 5th July and a Special Cereals Conference (at which Ireland will probably be represented) will open in Paris on 9th July.
MOTIVES: It is thought by many that the US Government have been led to put forward the present proposal so as, inter alia, to forestall a slump in prices at home in the near future.
TIME ELEMENT: The programme to be drawn up should be ready within the next few months if it is to lead to any assistance by the end of the year.
GREAT BRITAIN'S POSITION: Great Britain has a considerable interest in any scheme which will make dollars available having already spent almost half (£450 million) of the loan of 1946 which was to last until 1951. She is also very interested in the economic recovery of European countries as a potential market for her production. She seems to be anxious for Russian participation - it is to be noted that a British trade delegation has just returned to Moscow - and to be prepared to work hard to have the proposals put into effect.
WIDER IMPLICATIONS: The 'Economist' believes that nothing short of a scheme envisaging a European Customs Union even in the less immediate future (say 10 years) will enable the American Administration to get the support of public opinion for the enormous expenditure envisaged. The forthcoming Belgo-Netherlands Customs Union has been cited by Mr. Stassen,¹ potential Republican presidential candidate next year, who had already been talking of large-scale assistance for Europe. Several organs have spoken of the 'United States of Europe' idea (of e.g. Mr. Churchill) in commenting on the Marshall Plan.