There are many aspects of the recovery plans for Norway that justify careful study. In terms of the proportion of national product being devoted to investment the Norwegian program is the most ambitious in Western Europe. This high level of investment is being accepted by the people of the country despite widespread recognition of the consequent severe reduction in the standard of living. General elections in the fall of 1949 indicated wholehearted acceptance of the austerity necessary to carry out the reconstruction and development plans. Lack of communist strength and absence of internal disorder provide encouraging demonstration of the ability of democratic government to deal with difficult economic problems under existing world conditions. But in certain respects the Norwegian recovery effort differs from those of the other Marshall plan countries. Norway, with its population of something over 3,000,000 people, is a sparsely settled country. It still has many undeveloped resources, particularly its potential hydro-electric capacity and the associated chemical and non-ferrous metal industries. Real recovery for the Norwegian economy, therefore, will not be a return to a pre-war level but rather a development which makes more effective use of its resources. Before 1939 Norway had a surplus on the international balance of payments which was enabling her steadily to reduce the net debt to foreign countries which had accumulated during the earlier period of capital investment from abroad. Foreign trade played a very important part in the Norwegian economy as demonstrated by the fact that just before the war the value of her import of goods equalled slightly more than one-fourth of her national product of approximately 4,550,000,000 kroner.' Particularly important in securing the favorable balance of payments was the income earned by her merchant marine. In 1938 these receipts amounted to 689,100,000 kroner, while export of goods (including ships) was only 785,300,000 kroner.2 The most important exports were metals and ores, fish and fish products, pulp and paper, and fertilizer. The more significant imports included grains, coal, steel, petroleum products, textiles, machinery, and ships. The war caused a very heavy loss in Norway's capital equipment. The gross tonnage of her merchant fleet dropped from 4,900,000 in 1939 to 2,700,000 at the end of the war.3 The only significant coal mines were totally destroyed. The main iron ore plants at Syd-Varanger were completely wrecked, and the 1948