In his inaugural address in January President Truman outlined a four point legislative program for passage by the 81st Congress. The last point called for technical and financial aid to underdeveloped countries. This was to be separate from any economic or military help to Marshall Plan--or later, Atlantic Pact--nations.

Action on the plan began immediately with government officials drawing up necessary legislation, and the United Nations making provision to include American aid in its own plans for poorer nations. Several bills have been passed this session for increased appropriations to the U.N. for use in its economic assistance programs, but it was not until September that the main legislation went to Congress.

In keeping with the strictly economic nature of aid under Point Four, the proposed bill is entitled "International Technical Cooperation Act of 1949," it calls for $35,000,000 the first year, to be used through the U.N. and in direct loans of money and assistance to poor countries throughout the world. Most of the funds would probably be distributed through the U.N.'s Economic and Social Council.

American Nations Benefit

Under the Administration's plan loans would be made to countries putting up one-third of the total amount needed. The world would be divided into three geographical areas: the American Republics, Near East and Africa, and Far East and Asia, with the American group of countries benefitting the most. Part of the program would be paid for by the U.N. itself.

According to Acting Secretary of State James E. Webb, who presented the bill to the Senate Foreign Affairs Committee, first consideration would be for improvement in health standards, then for teaching better methods in agriculture and industry. Webb argued that Point Four would strengthen the U.N., expand markets for American business, and generally raise living standards throughout the world.

Arguments Against

In the Foreign Affairs Committee several arguments have been raised against this aid. First of all there is the question of cost to this country, which is already committed to the European Recovery Plan, and to arms aid to Atlantic Pact countries, not to speak of heavy military expenditures at home. Although the Administration expects private capital to provide most of the funds in future years, it admits that the government must do the initial financing, and continue to give some help thereafter for as long as the program is necessary.

Secondly it is possible that the plan may not produce the desired markets, in which case business investments would probably not be forthcoming, and the government would either have to back out, or carry the whole load itself. On the other hand, if Point Four succeeded too well, foreign goods might undercut American markets, and this, too, would be unpopular.

Lastly, and perhaps most important is the argument that U. S. money could mean U. S. "economic imperialism." Indeed the National Association of Manufacturers has asked to have certain political strings attached to any American aid given to countries under the program.

Positive Action

On the other hand, Point Four's protagonists state, the program need not entail domination of foreign peoples and would be a positive action against any advance of communism into these areas. It would show, they say, that nations can find means of taking care of their needs without giving up their freedoms, and would win many friends for the U. S.

The Administration's bill got a cool reception in the Committee, and will have more tough going on the floor of the House and Senate. Congress must now decide whether Point Four is economically and politically unsound or whether, as Representative Javits of New York said, it is "top flight foreign policy thinking--a real American answer to Communism."