In February 1950 the annual report of the Organization for European Economic Cooperation was presented to the United States Economic Cooperation Administration. The report stated that future progress of European recovery would depend to a large extent upon the level of economic activity in the United States, upon United States tariff policy; and upon international investments made by the United States. The forecasts of European trade were based on the assumption that United States business activity would remain at least as high as in the second and third quarter of 1949; it was pointed out that even small setbacks in the United States economy would have disproportionately large consequences for western Europe whose reserves were not great enough to stand much strain. The report insisted that what remained to be done to solve the dollar problem was not a task for Europe alone but was rather a “joint problem.” Western Europe's dollar deficit could not be eliminated unless its exports to the United States amounted to 75 percent of its imports in value. It was necessary that the emphasis shift from the expansion of total production to the development of dollar earning and dollar saving types of production, as well as a reduction in costs. Inflationary pressure had been greatly relieved but nearly all the Marshall Plan countries were still suffering from some inflationary pressure which tended to reduce their exports and increase their imports. This pressure was likely to continue unless a world depression developed.