GOVERNMENT PUBLICATIONS UNIV OF WASH. LIBRARIES DEC 02 2015 U.S. DEPOSITORY COPY EUROPE STARTS TO REBUILD Emergency Economic Committee for Europe European Coal Organization European Inland Transport Organization Prepared by the Office of Public Affairs Department of State UNIVERSITY OF WASHINGTON LIBRARIES March 1946 Seattle Public Library'APR £ :c'TABLE OF CONTENTS Page SUMMARY .................................. • 1 I. THE FOOD PROBLEM ...... 3 A sample diet of less’than 1500 calories ...............3 Extent of Food Needs ................ 4 World Wheat Shortage ............... . , , 6 II. COAL AND TRANSPORT PROBLEMS .......... * Impact of food, coal, and transport shortages on each other .. ,.....,. 7 Destruction of Means of Transport and Ports ,.................., . 7 German Requisitioning of Equipment fr B III. ESTABLISHMENT OF THREE EMERGENCE - ORGANISATIONS ..................... 9 Purposes and Membership ............. 9 Reason for United States Membership . 9 IV. EMERGENCY ECONOMIC COMMITTEE FOR EUROPE ............................ 9 Subcommittee on Food and Agriculture. 9 . Recommendations for Action .......... 10 United States Export Goals and Problems ......... . ,....... ......... H What Other Countries are Doing About Wheat , .................... 11 Goals of Exporting Countries ..... 11 Actions by Importing Countries and UNR-'A ......~............. 12 Actions by United Nations ........ 12 Other Activities of the Emergency Economic Committee for Europe .... 14 Exports from Germo.ny ............. 14 Exchange of Information on Technical Advances ............... 14 List of Other Subcommittees of Emergency Economic Committees for Europe ....................... V. EUROPEAN COAL ORGANIZATION ........... 15 VI. EUROPEAN CENTRAL INLAND TRANSPORT ORGANIZATION ...................... 17! EUROPE STARTS TO REBUILD SUMMARY The problems af food, transportation, and coal ore so great in Europe that it has been necessary to set up three emergency organizations to cope with immediate? problems, and to bridge the gap between the end of German control over economic life and the beginning of cooperation through United Nations. During the occupation even decisions as to what was to be, planted and how the harvests were to be dis*-tributed were.made in Berlin. The disorganization following liberation was general but the most desperate needs of the liberated people were for coal, transportation and food, as was pointed oih by President Truman on September 17, 1945, During 1945 progress was made in Europe’s coal and transport problems, but the food situation increased in urgency. Although there was a record wheat crop in the United States, the European, Mediterranean and North African wheat harvests have been abnormally low due to extreme droughts in all of these areas, the damages of war, the shortage of seed and fertilizers, and the direct impact of war on the farmers of Europe. The failure of the rice crop in many parts of Asia created another acute demand for wheat which can in some instances be used as a substitute for rice. Many European countries now possess only enough bread grains to last for a.short time, and this on a. pitifully low br,ead ration. More than 140 million people in Europe are gating less than 20 p,0 calories a day, regardedas the minimum for safety. Ear too many of them are eating only 1500 or 1000 calories,a day, not enough to sustain health or life for more'than a short period. This compares with ° daily diet of 5300 calories in the United States. The countries of Europe where bread is the principal food, and other T,Theat deficit areas in the world, now need over 20 million tons of wheat for the first half of 1946. It has been known for some time that twelve million tons was the largest amount which it would be possible for the four" major wheat exporting countriescountries - the. United States^,. Canada, Australia and Argentina- -to ship. Half of this amount - six million tons - is the goal which the United States hopes to ship. The .gap of about 8 million tons between the minimum need for 20 million tons .and the maximum available supply of 12 million tons threatens- the war-torn areas with widespread starvation. The coal, requirements of factories and power plants come'before the use of coal for warmt^. In spite of 'destroyed houses, flooded fields, and acute shortages, of seed, fertilizers, livestock and farm machinery, farmers are trying to grow food. Unless this .food can be moved from farms to towns and.processing plants, much of the food grown will not reach the towns. : • . f It.-was to. tackle such problems t^at the three emergency 'International orgahizations were formed -the Emergency.'Economic Committee for Europe to work on the.. problems of production, supply and distribution of food, seeds, fertilizers, timber, textiles, enemy exports and raw''‘material's ; the-'European- Coal Organization"to divide, cod fairly between claimants during the period of•acute shortage; and' the European Central Inland'Transport'Organization, to re-open the international flow, of traffic by rail,' road and water. ' Many of the' tasks of these emergency committees seem routine. and. technical. and undramatic. It is our hope- that- they will become more'routine and technical and .undramatic. For .when they are really running routinely, the world will have made lang steps forward toward reconstruction. • I. TEE FQ-'D PROBLEMI. THE FOOD PROBLEM In the first months of l°k6 oven lk0,000,000 people in Europe will have to live on a diet which averages less than 2,000 calories a day, regarded as the minimum for safety. About 100,000,000 will he eating 1,500 calories or less a day, enough.to sustain life for a time hut not health or working ability. ' One wpy of looking at what a diet of 1,500 calories or less means • is to realize tb5.h Americans eat 5,500 calories a day. It Is as though we received only a half or a third of what we now eat.. The average diet recommended by nutritional authorities as needed for full health" arid efficiency is about 2,650 calories per day. The only countries m Europe where the non-farm populations will'have a dail'T diet of more than 2,500 .calories this winter arc England, Denmark, Sweden and Switzerland. A Sample. Diet of Less than 1500 Paleries Another way of understandlng what a diet of less than lg00 calories a day means is to look at the menu of a typical .Italian non-farm consumer who receives a daily diet of about 1500 calories. Breakfast Cun of imitation coffee (chicory) and bread Lunch One dish of plain tasteless rice• One very*thin slab of srlami A small square of cheese A roll (This was an office workers’ lunch served in a state run restaurant for about 25 cents In the autumn of 10k5)« Since then the rice ration has been drastically cut as has the spaghetti and macoroni ration. Dinner Bread A bo of thin Potato or Vegetable Soup A k little cheese Fruit (occasionallv neat) The official rations which are the -same, all .over the. country amount to less than half of an ordinary loaf of bread a day; one-third of a pound of -fats per month: a little less than half a pound' of 'sugar a month; and a little rice or spaghetti. These amount to 7^0 calories a day. * The official ration is supplemented by approximately another calorics a day from.- locally rationed goods, such as cheese,'from unrationed goods•such as fruits and vegetables, and from goods bought on the black market. than people Alien transport Extent of Food Needs City dwellers get much less food living on farms- or in small villages, is bad and there is nothing to buy in return for their produce.,... it ..is ..hard to induce country .'people to send their food to the cities,.................. The Emergency Economic. Committed1 for Europe, one .of the three-’' interna t ionad. emergency; organizations set up in London, has- reviewed information available to it about food consumption in European countries. It finds’ that- during the coming months approximately 100,000,000 people In the following groups will probably be receiving an diet of 1000 calorics per person per average total dav or less: The non-farm-population of Austria (74k); (Sec Footnote), (The non-farm population in the United States and the United kingdom zones and in Vienna are currently receiving somewhat over l^OO calories, but most recent information indicates that rations may have to be reduced, thereby bringing the diet of the non-farm population In all zones 6f Austria- under 1AQ0 calorics); The farm population of t oty coo ..growing regions FOOTNOTE: The percentage -figures shown In brackets are an estimate of the proportion of the total population of the country corcorned which is in the particular group listed. Thus, a^out 7 IgA total population of Austria arc estimated the non-farm population group. of the t o e in y- regions in Bulgarin (95;) ’> German residents in Czechoslovakia (insofar as they do not rpalify for Czechoslovak citizenship) (16/;) The non-fam population of eastern Slovakia (^%); The non-fam population of Finland (1+5/0; The* non-fam population of Germany (757?). (The non-fam population in the United States and the United Kingdom zones, in the Union of Soviet Socialist Republics zones with certain groups excepted, and in Berlin are currently receiving some-what over 1000 calorics, but most recent information indicated that rations may have to be reduced, thereby bringing the diet of the non-farm population in ail zones under 1500 calories); The non-fam population of Hungary; especially Budapest (BOB); The non-farm population of Italy" (59%); The non-farm population of Romania (zOy); The non-farm population of Spain (h-Of ) may also be in this category. A further kO,OOC ,000 people will probably be receiving an average total diet of over 1500 but less than 2000 calories including: The non-farm population of France (65%) The non-farm population of Bohemia and Moravia, and western Slovakia (507?); The non-farm ponulation of Greece (yYf ) ; The farm and. non-parm population of certain districts of Yugoslavia (ppy). An average of a bare 2000 calories per day appears to be in prospect for the non-farm population of Luxembourg, and possibly Portugal. Somewhat higher dims still under 2500 calories may cmay be anticipated for the non-farm populations of Belgium, Bulgaria, the Netherlands, Norway, Poland (with certain groups at lower levels) and Yugoslavia. World Wheat Shortage Until 1945 supplies of wheat available for export from the United States, Canada, Argentina and Australia appeared sufficient to meet effective requirements and the chief -problems were transport to the ports and shipping. The shipping position has since become easier, but the world supply position has now deteriorated to the point where starvation threatens large areas of’the world. The failure of the rice crop in many parts of Asia created another acute demand for wheat which can in some instances be used as a substitute for rice. The countries of Europe where bread, is the principal food, and other deficit areas in the world now need 20 million tons of wheat for the first halt oX 1946. It has been known for some time that 12 million tons was the largest amount which it would b: possible for the four major -rhea.t exporting countries - the United States, Canada, Australia, and.Argentina - to ship. Half of this amount -6 million tons - is the goal which the United. States hopes to attain.* The gap of about 8 million tons between the minimum need for 20 million tons and the maximum available supply of 12 million tons threatens the war-torn areas with widespread, starvation. Under the Potsdam Agreement we must give priority to the liberated peoples who fought beside us. It may not prove possible under the present supply situation to feed civilians • in the American military zone of G-ermany at the ration scale established. Since the estimate of a world supply of 12 million tons was made, the supply situation has deteriorated. The wheat crop in Argentina is now estimated to be only about two-thirds of the amount anticipated last Fall and Canada’s 1945 --heat crop was cut 10 per cent below earlier indications. The United States had a good crop, but we exported more wheat last Fall than we had. anticipated. More wheat We are falling below 1,000,000 tons a month exports.wheat has also been used for feeding livestock than had been expected. At the rate wheat has been used for feeding, the United. States will not be able to meet its export quota for the first six months of this year, unless drastic steps are taken to conserve our stocks. II, COAL AND TRANSPORT PROBLEDS Impact of food, coal and transport shortages on each other Europe’s major problems are bound up together. Denmark, the only German occupied country with food enough to export cannot send help to needy neighbors unless transportation and coal are aval labile. In one area of Yugoslavia 100,000 tons of a grain crop were lost because of lack of sufficient transport, and starvation In other parts of Yugoslavia was the result. Franco lost much of her IQ?;/} sugar beet crop because transportation had broken down and coal for the rof-lnerics was not there. The coal requirements of factories and power plants come before the use of coal for warmth. In spite of destroyed. houses, flooded fields and acute shortages of seed, fertilizers, livestock and farm machinery, farmers are trying to grow food. Unless this food can be moved, from farms to towns and processing plants, much of the food grown will, not reach t h e t o wns. During the war the Gerr.rns forced m.any so-called ’’slave workers” to mine coal. Dow many of those workers have returned to their homelands but new coal miners have not replaced them. Those who are at mines must devote much of their energy to obtaining food, repairing their homes and restoring their weakened muscles. The process of production Is complicated by wrecked mines, Inadequate repair facilities, lack of skilled mincers, and shortage of food 'with which to feed the miners. Hence, Europe, normally self-sufficient in coal, nesds large scale imports from, the United Ststes, Destruction of Ileans of Transport and Ports Allied, air forces concentrate^ many bombs upon Continental railways and highways, marshalling yards and locomotive factories so that opposition would be smashe’" and our troops could move forward. Dow these reilroads and locomotives and truckstrucks are needed for reconstruction. Ports also were destroyed. The port of Dunkirk, for example-, was almost entirely destroyed and the entrance channel blocked by many wrecks. German Requisitioning of.^Equipment Germany requisitioned locomotives, wagons, trucks, and barges throughout Europe. Tne situation on the Dutch railways is illustrative. In September 1944, the staff of the Netherlands Railways went on strike in the Allied interest. Owing to the course- of events, this strike was kept up for eight months. During the fighting in the- Netherlands, the railways we"-e destroyed and rifled. The following figures give an idea of the extent of the catastrophe:* 20 Per., cent of the stations destroyed or badly damaged; 16 1/2 per cent of the track broken up and carried off; 70 per cent of all railway bridges destroyed or damaged; 40 per cent of the signal-boxes out of working order; 100 per cent of the automatic telephone exchanges out of action; 90 per cent of the electric overhead network taken away; 80 per cent of the electric traction substations had all their equipment removed; 100 per cent of the modern streamline electric . rolling stock carried, off, ruined or rendered useless; 77 per cent of. the streamline diesel-electric vehicles carried off to Germany, and the remaining” vehicles left out of working order; 50 per- cent of the locomotives disappeared; of .the remaining engines 50 per cent were not in working, order; 90 per cent of the passenger carriages carried off to Germany; 98 per cent of- the "good- wagons disappeared. III. ESTABLECRHENT ^FOOTNOTE: The Transport' Situa tion in Europe, -September, 19,45.. Compiled by the Provisional Organization for .European Inland Transport, Berkeley Square House, Berkeley Square, London, N. ± • III. ESTABLISHMENT OF THREE EMERGENCY.ORGANISATIONS Purposes and Membership It was to tacke such problems that the three emergency organizations were formed - the Emergency Economic Committee for Europe to work on the problems of production, supply and distribution of food, seeds, fertilizers, timber, textiles, enemy exports and raw materials; the European Coal Organization to divide coal fairly between claimants during the period of acute shortage; and the European Central Inland Transport Organization to re-open the international flow of traffic by rail, road and water. The following countries belong to all three organizations: United States United Kingdom France Belgium The Netherlands Luxembourg Norway Denmark Greece The USSR, Poland Chechoslovakia and’Yugoslavia are members of the European Central Inland. Transport Organization (ECHO) but not of the European Coal ‘Organization (ECO) or the Emergency Economic Committee"for Europe (EECE), Turkey is a member of ECO and EECE,' Reason f o r Unite d S t a. e s - M e mb e r s hip Since these■emergency organizations came into being to meet European problems, it may be asked why the United States is a member. The United States participates because we believe that the rapid rehabilitation of the European economy is necessary for the existence of a prosperous and peaceful world. As the largest supplier of Europe’s needs, we want to see that the most effective utilization is made of the supplies which We send across the Atlantic. IV.. EMERGENCY ECONOMIC COMMITTEE FOR EUROPE Subcommittee on Food and Agriculture The Emergency Economic Committee(for Europe deals with a varied succession of international problems. In a sense,.it is the emergency'organization to handle immediate economic problems requiring a common solution. Its most active sub-committee is that on Food and Agriculture which‘made the survey of the food position in European countries given -y-given at the beginning. ,o.f this- article. • This subcommittee does not.make allocations -of foodstuffs and agricultural supplies ’but, .may make -recommendations to the Combined Food Board,yin.-Washington on allocations. The 'subcommittee has.;,-analyz,-.d supplies and requirements of wheat and-fceding, stuffs and made recommendations on‘distribution and conservation. ' ; '' , hu ■' • ■ Recommendations" for Action ■ - "The Emergency Economic Committee.: for.Europe .has' recommended to rrheat exporting countries that they reduce wheat carry-over- and -the use of wheat for animal-'feed to :a minimum .and that..'the maximum movement of wheat; to the ’seaboard, be-i'acilitated. It has also recommended to importing, countries that millable wheat"'be used,- only-; f or-.,human food, that the extraction rate be not less than 85 per cent and. that flour diluents be ■ used'-a.s'.'f ar'as possible. .' . .. 1 ■ ../ n 11 ed St a t u s; Export 'Coal g. a nd Probl ems ■ The goal of"the United States is to export 6 million tons of wheat, or mor-e- by .July.-. 1, 1945 -225 million.bushels. -Even then the"shortages of wheat in European countries will be so great that much starvation.will.result. The.: President on February 61, 1146 called-upon all. Americans to : help * in seeing'that foodstuffs and bre'-d. grains ''move forward, to,..the. countries of-Europe, some of .' which now possess oply.': enough bread grains to . last 'for a short time on’-a pitifully low bread ration. The - measures to be taken T’Ter the foll- ' owing: 1 ■ a, -'a 1. Campaign to conserv- food, especially bread ■- -by- consumers, .retailers,-, and. •' ' -bakehs’. 2. Stopping use of wheat and limiting use of. other-, grains--for alcohol and beer. S.avfng.: 20 million bushels' of'grain by dune. 30,..' 1. . .; / ~ 3. Extracting more'flour from-.'^heat 80 per cent • • •instead''of 72,per cent- and limiting distri- bution-‘of flour. Saving:25 million bushels • ■ ■ . of wheat-by June 30. ' ~ ' 4. Control over inventories,of wheat and flour. 5. Rail priorities for wheat, corn,-meat, and other’ essential foods. " / 6. Control I -10- /6. Control ovt.r exports of wheat and flour. 7. Export of 375,000 tons of f‘-t.s and oils, 1.6 billion pound's of meat, and-increase in exports of dairy products, particularly cheese and evaporated milk. 8. Additional shipping for food to Europe /. and for movement of Philippine copra (to produce cocoanut oil). '9. Conservation'of grain used for feeding livestock, The only way in which we c^n raise the calory level in the Eumpeah' countries which were our allies' “o’ the point where- they have enough energy to help themselves and prevent mass starvation -^.mong our ex-enemies to increase our ^heat' exports. Europe is-begging to buy -this wheat. Our present goal of shinning a -million tons of wheat a month to Europe ovc.r the nexL 6 months is'comnlicated by the fact- that we are also trying to 'ship 1,600,000 tons of coal each month to liberated Europe; for coal to get'Europe’s industries and transport system started is also vital. Another'way 'of envisaging■ the size of the problem is to compare the. 1,000,000 'tons of wheat a month which we are determined to snip to Europe in tne first six months of 1946 to the total -of only 790,000 tons per year shipped on th^ average each year between' 1935 'and 1938, or- even with the 3*515,00Q tons which .'we ■ shipped during the last half of 1945. . What - Other Countries are Doim About 'Wheat G-oals of Exporting Countries ' Canada, is making wheat available for export to the limit of her ability. She plans to withold for Canada only a minimum carryover. The goal is 141,400,000 bushels by July 1946. Canada has also fixed nrices for this wheat which for comparable quantities run 30 cents or more lower than United States prices', with the result that importing countries are getting what wheat they get from Canada, about 4a cents cheaper than what they get from the United States. Argentina,Argentina,, because of lack of fuel and a badly'worn transportation system, has not yet begun to export her 1945-*46 crop in any great volume. Ho^*-ever, she is expected to exoort in 1946 down to a minimum, carryover, probably in the amount of 1OO,OO%O0Q bushels. The plan to have her export 65,000,000 bushels during the first half of the year probably cannot be realised. Thirty million bushels of Tdieat is probably the r-st which she can attain, although she is expected to export considerable quantities of corn and other grains. Australia considers that she can provide 30,000,000 to 35,000,000 bushels the first half of 1946. Actions by Importing Countries and UNRHA The Netherlands has indicated her willingness to sell part of her reserve stocks of wheat or to divert wheat already purchased by her in the United States and Canada to France, whose stocks are at present low. Great Britain has taken action to increase her extraction rate for flour and return to the brown loaf of war time. France recently returned to rati nine; of bread and increased her extraction rate to 90 per cent, in an effort to conserve her dwindling operating stocks. UNFPA has indicated a willingness to accept about one-quarter, i.e. about. 1,000,000 tons of stated wheat requirements of countries to be supplied by UNR-'A, in the form ox* rye, corn, barley'and oats, Yugoslavia and Italy in particular are ready to take a considerable part of their bread-grain in the form of corn and oats. Actions by United Nations On February 6, UNRFA appealed to the United. Nations Assembly for help in relieving the grave situation arising from the critical world shortage of bread, grains, rice and fats. The Director General informed the Assembly, of recommendations which had been made by the UNFPA -12-UNBd'A Council's.- Committee, on’ Supplies -and.-.which included: ........................ ’ .......... ' (1) That the governments, copcerned be urged, to reconsider most urgently the decision taken in mid 1S45 to remove wheat and flour, from international allo-cation. : w (2) That, the Cereals - Commit t ee of .the- Combined Food Board, in making allocations or programming exports of -wheat and flour, take into- consideration the extent to which the- claimants .have followed the example -set by -UN.RBA in-making the maximum substitution of other cereals for wheat. (3) That- supplying governments make available and intergovernmental allocating -agencies recommend allocations of additional quantities of wheat, rice, fat.s and other foods for countries receiving UNRRA assistance, even though such action may necessitate some further sacrifices. Previously, on February .2, Mp, Sol Bloom, speaking before the Assembly of the United Nations in London had pointed out ’that during the war the Allies had sent planes over war-stricken territories a-nd dropped pamphlets, and had radioed, and broadcast saying "Help us t.o ’in the-, war-" .... "Burn your .factories, burn your plants,- burn-your railroads and everything that you have' got and help us to T-Tin war1' . They -had done it for up and now it was "up to us to keep faith and do -for. Ve.se people that we.promised them". which . " The United Nations C-en-’ral Assembly urged all governments' and peoples to take "immediate and .2 drastic" action, to save and gr.qw more food, in ...order to avoid the. -.catastrophe of world-wide famine and starvation. . The resolution was moved-by.the British Foreign'Sec.-'e’V-ry, Ernest Bevin, on behalf of Britain, the United States, China, France and the Soviet Union. Edward R. Stettinius, Jr, of the. American delegation, pointed out that "it is not easy to preserve peace and freedom- among hungry men wherever they may live whether it be in Greece, or in Indonesia, or in Iran, or In.any other part of the world. Starvation breeds unrest and'its effects linger' on long after its' causes have been removed". Mr. Stettinius asserted for the United States that "we shall do more.". Other ActivitiesOther Activities of,Emergency Economic Committee for Europe Exports from Germany The economic recovery of Europe and of the liberated, countries in particular, is intimately related to the volume of exports which will be available to them from Germany, This is true particularly of coal, but the liberated countries are also dependent upon Germany for supplies of such commodities as timber, potash, salt, briquetting pitch and replacement parts for machinery manufactured in Gt< many. The low level of German industrial activity and the disorganisation of transport has prevented any significant movement of German commodities, other than coal, to liberated countries. Further, any substantial increase in German industrial activity will make demands upon coal, and as long as the coal situation elsewhere in Europe remains acute, the coal requirements of the liberated countries will have top priority. Unless there is extraordinary improvement in the European transport situation, the movement of bulk items from Germany will be seVcrly limited. Industrial disarmament objectives will substantially preclude the manufacture for exoort of steel, machinery and replacement parts. In addition the liberated countries cannot yet forecast their future requirements from German production, and the limited dollar resources of the liberated countries further limits the volume of their imports from Germany. The necessity of paying for German exports in dollars arises from the fact that Germany’s heavy imports-of food must come largely from the dollar trade are°s.. Notwithstanding these difficulties Enemy Exports Sub-Committee of the Emergency Economic Committee for Europe is trying to assist European countries in securing German Exports, for example, by certifying to Control authorities the urgency of requests for products which might not be in general demand but are of prime importance to a particular country. Exchange of information on Technical Advances During the war, European countries were cut off from scientific developments and are eager to learn about advances which’‘have taken place during these six years. Progress has been made in ’’Infestation” the destructianthe destruction of food in storage through insects, rats, mice etc. In November ten European countries, together with UNRWA and the Control Commission representatives attended a conference on Infestation Control at which it was agreed that a. subcommittee should continue to work on the problem of making available information on the control of infestation of cereals. The Emergency Economic Committee for Europe is also concerned with the exchange a.nd •dissemination of information regarding other technical -and scientific information in such fields as the use of DDT, seed grading and testing/ weed killers, etc, List of Subcommittees of Emergency Economic Committee for Europe . The varied activities in which the Emergency Economic Committee for Europe is engaged may best be grasped by its subcommittees; listed'below; 1. Food and Agriculture Sub-Committee 2, Fertilizer Working Committee 2. Seeds Sub-Committee 4, Infestation Sub-Committee 5.. Timber Sub-Committee 6. Public Utilities Panel 7. Textile Working Party 8. Enemy Exports Sub-Committee 9. Binder Twine Working Party. AW___EUROPEAN. COAL. ORGANIZATION' - ECO The’ prinicpal task of' ECO is to recommend the distribution of coal imports among claimants. These claimants include' certain non-member countries, as well as member countries. For example, UNRWA's .claim for- Italy and Yugoslavia must be taken into consideration, as well as the claim of the former Neutral countries, such as Sweden °nd Switzerland. ECO makes recommendations to the coal allocating bodies of supplying countries and recommendations to the Allied Control Commission on the distribution of German coal. Each country concerned submits a monthly report to the ECO Secretariat, showing how much coal it can produce and what quantity it needs to import. The difficulties of alllcation may be seen from the fact that the consumption requirements for March, April and May 1946 are 31 million tons and the production availableavailable from member countries is about half -of this quantity. This leaves a need for imports-; of about 15 1/2 million tons. ECO estimates- that j 7 l/2 million tons- will be available from- the • United. States-, Germany, England and South Africa. This still leaves . a-shortage. oT just under 8 million tons. In -a'situation; in whi.ch all the claimants need coal desperately, ECO has adopted a ratner unusual technique for making decisions. There is no provision for voting. ..Action is by mutual consent. Since all need coal so desperately, each known tnat a problem must continue to be discussed until an agreem-nt is reached. For if agreement were not reached, those with coal to export, such as the United States, and the Allied Control Council in. Germany, who usually carry out ECO1S recommendations without* change , might;- make allocation arrangements which left one country Very, short indeed. Viewed against the background of continued and serious shortage' the fact that decisions, have so far been unanimous and have been accepted.by, all claimants is no small achievement. The United. States Government is making every effort to do its p°,rt by sending coal to Europe,. This is ah unusual and oulky export and. is costing the importing countries about $20 a ton delivered, a great deal more than the Ruhr and Silesian coal which they bought in pre-w^r years. Between 1935 . 'and 1938 our average annual- solid fuel exports to Furore amounted to only 30, Or’O tons, Fr~-m July 1945 .to. .the' end of the year we succeeded in exporting 5,800,000 tons of coal to Europe and it is hn'ped that we will, be f,ble to export • 1,600,000 tons a month during the first months of 1946. Coal is being shipped out of almost e^ery Atlantic port from Thvr York to Port Arthur, Texas. Some coal is even being sejst from Utah to Europe by way of Long Beach, California. This is the first time in history that coal lias been ■ shieped' to. Europe by that route. The major coal source not within the present scop'0 of ?EC0--whlch is likely to have a substantial .‘xmount of coal available for exrort is Poland. Should any coal purchases from non-ECO sources, such as a purchase ox’ Polish coal by Denmark and Norway, run into sizeable proportions, this fCjct will be taken into consideration by ECO. In a-ddition to recommending allocations, ECO assists member Governments to ascertain sources of mine supplies and. equipment and aids them in solvingsolving their procurement problems; assembles information useful for increasing coal production in the Member countries; and coordinates the coal and equipment eds of its Members with the related activities of the Emergency Economic Committee for Europe and the European Central Inland Transport Organization. (ECITO) VI. EIPCPEAN CENTRAL INLAND TRANCRORT ORGANIZATION (ECITO) ECITO’s first problem has been to see that the best possible use is made of the limited transport available. The end of the war left European transport not only in a state of great physical destruction but also in a s ate of disorganization with respect to international traffic. The problem of organization of international traffic across frontiers has been heightened by the addition of zones of occupation, and the shortage of transport equipment. The shortage of freight cars, for example, is such that there is a tendency for each country to hang on to any equipment which is in its possession and freight cars have a habit of getting lost when they cross front iers. A bordei1 control system has now been established to chech the number of freight cars crossing frontiers with a view to seeing that the same number return. A special committee on Turn-Around was formed by ECITO to speed up the return of cars after each trip. ECITO also watches to see that the quantities of goods shipped by water and rail are kept in balance, The interdependence of transport is nowhere better shown than in the critical problem of getting coal out of the Ruhr. More than half of the pre-war coal transport from th°t area was by barge; the blockage of the Rhine and feeder canals, however, has thrown most of the postwar movement onto the inadequate railroads. The extra demands on the railroads for co-^1 means less capacity for ot^er important traffic. The inability to move Silesian coal to its pre-war markets increases the pressure on Ruhr supplies. At one time it became necessary to arrange for American military authorities to put an embargo on the movement of certain kinds of army stores in order to free the space for coal movements. The problemI ) The problem of supply and repair of railroad equipment is probably the most critical of all transport problems. Facilities are fa.irly adequate for light repairs, but not for heavy repairs. One of ECITO's measures to assist in this situation has been to make available and arrange training for the use oi mobile repair units in several countries. From the longer run point of view, another important ECITO activity was the calling of a Census Conference which agreed to the taking of a census of rolling stock for locomotives and freight stock so that rolling stock may be identified and restored to its original owners. Another desired goal in continental freight and passenger transport is the restoration of the pre-war network of through trains. H start action in this respect two conferences have been called by ECIi0 - one on freight traffic and one on oassenger trafiic. At the Time Table Conference on passenger traffic held in Brussels last October it was agreed that certain through lines should be established as soon as possible and that further conferences should be called to arrange for general improvement of through service connections.. "in November a meeting was held at Lugano to consider the restoration of the Simplon Express from Paris to Italy. The most complicated problem of through services is that of connections between the western countries and Central Europe through Germany. In December a start was made at a conference in Paris on the establishment of the Orient Express between Paris Prague and Vienna, the American Military authorities agreeing to recommend such a service by April first. It is also planned to call conferences to consider extending the Orient Express to Budapest, Bucharest and Belgrade from Vienna, and to Warsaw from Prague.) \