President McCloy testifies that the ERP, or the Marshall Plan as it became better known, is essential to the future of Europe.
The European Recovery Program (ERP), more commonly known as the Marshall Plan, was designed to help restore the European economy through aid provided by the United States. The goal was for the participating countries to become independent through an increase in industrial production and agriculture. World Bank President John McCloy recognized that the ERP had similiar objectives as the World Bank and that the plan was essential for the future of Europe. On January 16, 1948, President McCloy appears before the United States Senate Committee on Foreign Relations regarding the proposed ERP. McCloy testifies in favor of the program, even though this had the potential of putting the Bank out of business. At the 1948 Annual Meetings, McCloy will articulate the impact the Marshall Plan will have on World Bank operations, saying that, with the passing of the ERP in April, 1948, "the Bank can now, as I see it, come much closer to playing the role originally designed for it, namely to finance within its resources the creation and maintenance of the sort of productive and bankable enterprises or projects for which, for the time being at least, no sufficient amount of private capital is available."
President McCloy was the Bank's second president, serving from 1947 to 1949 (30084208; Credit: The World Bank).
Jan. 27, 1948
President McCloy's letter to the Chairman of the Foreign Relations Committee responds to a request for information on the amount of assistance required for European recovery (1580828).
Jan. 20, 1948
The memo contains President McCloy's statement before the Senate Committee on Foreign Relations on Jan. 16, 1948 (1780059).
On pages 12-13 of the transcript, Demuth discusses President McCloy's testimony to the US Congress on European reconstruction.
On page 51 of the transcript, Garner discusses President McCloy's recognition of the importance of European reconstruction.
The report looks at the organization and financing of the European Recovery Program.
The report contains Bank analysis of the European Recovery Program as passed by the U.S. Congress.
Beginning on page 602, the transcript contains discussion by the Board on the request for the World Bank president to appear before Congress.