Memorandum of the Press and Radio News Conference

Xx (NOT FOR THE PRESS) (FOR DEPARTMENTAL USE ONLY) DEPARTMENT OF STATE NO. 32 MEMORANDUM OF THE PRESS AND RADIO NEWS CONFERENCE, WEDNESDAY, SEPTEMBER 6, 1950 LABOR UNIONS' "DEFENSE OF FREEDOM" At his press and radio news conference this morning, Secretary Acheson said that he would like to pay tribute to the Labor Day statements of President William Green of the American Federation of Labor and President Philip Murray of the CIO. (See Press Release No. 906) EUROPEAN RECOVERY PROGRAM A correspondent said that, concerning the economic aid given under the Marshall Plan to Marshall Plan countries, within the last few weeks four American labor leaders of the CIO and the AFL who had supported the Marshall Plan had charged that in western Europe the Marshall Plan had not reached the workers in the countries benefited to a sufficient extent, and therefore they were probably more open to Communist appeal and propaganda than they would be otherwise, and they felt strongly there should be a change in the emphasis of the Marshall Plan so that greater benefits of rebuilt factories and reconstruction facili- ties would reach the workmen. Asked if he had any comment on those statements, the Secretary replied that he should think that it was demonstrably in error to say that the whole rather dramatic recovery of western Europe had not benefited the workers. Mr. Acheson continued that he was quite aware of the fact that in certain countries there had been complaint and that he imagined there was a good deal of substance to the complaint, that in the economic adjustments which had been made, some classes of workers, and in some countries very large classes of workers, had not benefited as much as the general population. He stated that for instance, in some countries, it was believed that people on the land had benefited more from the recovery than white collar workers and other places than factory workers. He said that was a matter which was very complicated, that it was a matter which had rested primarily upon the internal eco- nomic administration of the country and had to do with the attempt to hold prices and wages fairly steady. He added that that always caused difficulty. The Secretary commented that the great underlying fact, he thought, was that the recovery had benefited everybody, but that some had not benefited as much as they would like to, and perhaps some had legitimite complaints. KOREAN SITUATION Bombing Secretary Acheson made a statement concerning the bombing in Korea. (See Press Release No. 909) Russian Plane Incident A correspondent asked if there were anything the Secretary could say which might give the correspondents a clue as to what he regarded as the significance of the Russian plane incident. Mr. Acheson replied that he found it hard to wrap his