chapter  III
36 Pages

The European Recovery Programme

If all other forms of dollar provision are counted, Interim Aid, military aid to Greece and Turkey, aid to China, the special programme for the Philippines and so on, the net outflow of foreign aid, both loans and grants, from July 1 945 to the end of 1 946 was $7444 million, in 1 947 $5681 million, and in both those periods higher than in any calendar year under the Marshall Plan .7 On the other hand the proportion of ERP aid provided as grants was very high, 92 per cent in 1 949, and the loans were on favourable terms, for thirty-five years at 2 . 5 per cent interest rate and repayments not having to start until 1 952. Marshall Aid systematized the outflow of dollars , reduced the cost to the recipients and concentrated the dollar outflow geographically on Western Europe, but it did not increase the relative size of the dollar outflow compared to the earlier years when the theme was relief rather than recovery.