asked the Minister for External Affairs if he is in a position to state whether, in relation to the dollar credits to be made available to this country under the Marshall Plan, any limitations will be placed on the purpose for which such credits may be used or whether this country will be entirely free to use such credit to import such goods as we may require.
Ceisteanna—Questions. Oral Answers. - Dollar Credits.
It cannot be assumed at this stage that any actual dollar credits will be made available under the European Recovery Plan; if, and so far as, dollar credits are made available, they will be appropriated to the specific commodities set out in our programme of imports. According to present arrangements, the mode of operation will be somewhat as follows: Each participating country will prepare, from time to time, a programme covering its production, imports and exports, as well as its requirements from the Western Hemisphere, and, on the basis of these national programmes, the organisation which has been set up will recommend a general programme to the United States Administrator as the basis for his allocations of aid under the Economic Co-operation Act.
In other words, the aid allocated to each country will be based fundamentally on its essential requirements as stated by the country itself, but, even when allocations are made, no country will be under any obligation to utilise them if it does not wish to do so. It is not proposed to seek European Recovery Plan aid for the import of goods that are not essential for the national economy.
If a country desires to utilise such credit as may be available, is there any possibility that it may be constrained to import, say, consumption goods as against capital goods?
No. The only goods would be the goods that the country itself has set out in its own importation programme. If an allocation is made then the country can import those goods or not import them as it wishes.
Will the allocation of credit be made in respect of the types of goods the country desires to import or will the credit only become available in respect of the types of goods that have already been sanctioned by the American Administrator?
No. There is no direct connection between the two except that I take it the American Administrator would not grant credits in respect of commodities which he considered to be unnecessary to the economy of a country. For instance, it would not permit the purchase of goods for re-export or of goods of a purely luxury nature.