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they must be the most frustrated and I shall vote against foreign aid, as I Mr. President, there is nothing I can disillusioned people on earth. have always done in the past.

do about it. I cannot stop it. It is not As for the foreign officials whose visits Mr. RUSSELL. Mr. President, I have a new custom, although all of it is not to the United States are subsidized, I just read an article which was published as vicious and as open and flagrant and wonder how much understanding they this afternoon in the Washington Star. maliciously false as is the article to really gather in their tours of the United The article was written by one Joseph which I have referred. But I shall conStates. Do they see only the shell of Kraft; and in the article he undertakes tinue to protest it and to have embalmed America? Contrary to the recently pop- to deal with the debate on the floor of in the volumes of the CONGRESSIONAL ular song, “Getting to Know You” does the Senate on the pending legislation. RECORD the fact that some men who are not always mean "getting to like you”; Mr. Kraft seizes on the very popular supposed to be devoted to a cause that in fact, “getting to know you” frequent- approach to every subject today, when it is protected in the Constitution of the ly means "getting to despise you.” For is desired to prejudice any case by sub- United States—the freedom of the on a short-term basis, people of different stituting fancy for fact and by seeking press—abuse that freedom by attributvalue systems come to realize that they to don the mantle once worn by ing evil purposes to all those who do not disagree with those of another value sys- Ananias-by indulging in the most con- agree with their views on all legislation. tem about things that never even oc- temptible kind of falsehoods in attempt- It ought to stop. Those who own the curred to them before they came into ing to prejudice the opposition to the newspapers should see to it that this contact.

foreign aid bill by reciting the fact that kind of yellow journalism is eliminated Real international understanding is a some southern Democrats are opposed to or else there will be a time when they cumulative thing and should be thought the bill.

will have finally made

finally made the circuit of in terms of generations. An official

The writer has made the statement around and distorted the position of on a subsidized visit naturally has on that the southern Democrats, in a secret everyone, and there will be some curtailthe blinkers of his own society-blinkers caucus, had agreed that they would sup- ment of the right of the press to slander, through which he must look and which port the efforts of the Senator from Ore- libel, and falsify, as is done in the article cloud his vision. In a few short months gon to rewrite the foreign aid bill on the to which I have referred. he could not possibly gather much un- floor of the Senate. He went on to at

Mr. MANSFIELD. Mr. President, will derstanding of the United States and its tribute that support to a great many the Senator yield? people. For one never understands an- ulterior purposes in an effort not only to Mr. JOHNSTON. I yield. other country and its people until one prejudice the opponents of the bill now Mr. MANSFIELD. Before I make the absorbs the beliefs and customs of that before the Senate, but also to prejudice request which I intend to make, I should country and its people and thus is able any opposition that might ensue later like to say that the writer to whom the to judge its people by their own value to the so-called civil rights measure. Of distinguished Senator from Georgia has system.

course, that man is a contemptible falsi- referred, whoever he may be, I am sure Mr. President, this has been a long fier, which is evident from the vote taken underestimates very drastically the inreview of the question of foreign aid. on the floor of the Senate just a few tegrity of the Senator from Georgia as But I conceived it is my duty to state minutes ago, before I had read the ar

well as the integrity of the Senator from my opposition more clearly than ever ticle. He said:

Oregon. during this year of great decisions.

All the southern Democrats had met and Mr. President, I referred previously to I am tired of giveaway programs. I had agreed on this course.

an amendment offered by the Senator am weary of oversimplifications. I am

I have checked the yea-and-nay vote

from South Carolina [Mr. JOHNSTON). disgusted with waste and unfulfilled briefly, and I think I am correct in say

It is my understanding that a prior promises of accomplishment. ing that every one of the southern Demo

amendment to the Mansfield-Dirksen I am annoyed by those nations which crats followed the voting pattern he has

amendment had been offered by the play the role of international coquettes; always followed with respect to foreign Senator from Florida (Mr. HOLLAND), who openly say that they will take aid aid. Those who are in favor of foreign and is now pending. I have been trying from any nation, Soviet or Western. aid voted against the motion to recom

to locate the Senator from Florida to I am also irritated by those leaders mit, and those who are opposed to in

ask him to make certain that his amendwho suggest that their countries will turn creasing foreign aid voted in favor of

ment would not be called up this afterto communism if we do not sign a blank the motion to recommit. I do not have

noon because of the commitment which check. In July 1961, the President of the actual yea-and-nay vote before me,

the leadership has given to the Senate Pakistan, Ayub Khan, said that if we but the Senator from Alabama (Mr.

that there would be no further votes gave his country billions of dollars, Paki- HILL) has not yet completely deserted this afternoon. I am quite

certain that stan would embrace democracy and be the little group of embattled southern the distinguished Senator from Florida our friend.

But if not, Pakistan would Democrats; the Senator from Florida will agree to the arrangement, because turn to communism. Moreover, it was

[Mr. HOLLAND] has not; the Senator he has had to leave the Chamber temalso reported in 1961 that Ambassador from Alabama (Mr. SPARKMAN) has not; porarily, and therefore I cannot at the Habib Bourguiba, of Tunisia, stated, as

the Senator from Arkansas [Mr. FUL- present moment see him. But I desired he left the conference table with Secre- BRIGHT] had not at the last account that to put the Senate on notice that there tary of State Dean Rusk:

I had from him. All of them voted will be no further votes this afternoon. I suggest the free world act now before an- against the motion to recommit.

Mr. JOHNSTON. Mr. President, the other world does.

All of those who voted in favor of the Senator from Florida said that he inForeign aid is the vehicle of special in- motion to recommit have a consistent tended to file the amendment, so that terests. Foreign aid is the vehicle of record of voting to reduce the foreign aid he could call it up on Monday. I beselfish interests. No matter how its cloak authorization or opposing the program

lieve that the Senator will find there is shines with humanitarianism and empty in its entirety.

no difficulty. promises of economic progress, foreign

We have come to a pretty pass in our

Mr. MANSFIELD. I have stated inaid is still not in the national interest. country when men of the fourth estate, formation I received from one of the At times like this, I am reminded of who are supposed to be men of honor

attachés. this message from the words of one of and most of them are—seize on every is- Mr. MORSE. Mr. President, will the our greatest Presidents, Woodrow sue that comes before the Senate in an

Senator yield? Wilson:

effort to twist, distort, and wilfully and Mr. JOHNSTON. I yield. When I think over what we are engaged in malignantly falsify in order to attempt Mr. MORSE. I regret that I did not doing in the field of politics, I conceive it this to prejudice the case in favor of the hear the Senator's comment. I came

Men who are behind any interest pending civil rights legislation, which into the Chamber as the Senator was always unite in organization, and the danger has not yet reached the floor of the closing. I understood that the Senator in every country is that these special interests will be the only things organized, and Senate, or—as, in this case, attempt to made some reference to the Kraft colthat the common interest will be unorga- prejudice the efforts of all those who are umn. nized against them. The business of Gov- opposed to the foreign aid program or Mr. RUSSELL. I said that he was ernment is to organize the common interest seek to reduce the authorization there- a candidate for the mantle of Ananias against the special interests. for.

and had demonstrated more ability to wear it than anyone I have known re- ator from Georgia brought up, I believe security of the free world depends on our cently.

I, too, have attended every one of the continuation of an effective foreign aid Mr. MORSE. That is an appropriate southern caucuses.

southern caucuses. I can truthfully say program. This belief is supported by description of that journalist. Earlier that the proposal of the Senator from the fact that almost all industrial natoday I had paid my disrespects to him Oregon was never discussed before the tions of the West have adopted programs for his lying column published today group at all. I believe he will agree that to economically assist the underdevel

Mr. RUSSELL. I regret that I did neither I nor any other Southern Sen- oped nations. Even the Soviet Union not hear the Senator. I was out of the

ators has come to him and acknowledged has recognized the effectiveness of this Chamber when he made his statement. anything about it.

approach by adopting an economic assistMr. MORSE. I made it clear that I

Mr. LONG of Missouri. Mr. Presi- ance program to bring underdeveloped had been advised by Senate colleagues dent, since the American Revolution, the nations under Communist influence. that there had been no such secret people of our Nation have had one fun

Our economic assistance program to caucus as is reported. I also made it

damental dream with respect to the Western Europe after the war had draclear that the writer had done a great world family of nations. That is, that it matic results and its success was easily injustice to my southern colleagues. I

be made up of free and independent na- measured. Unfortunately, this cannot expect that kind of justice to be done to tions. While for many years our role in be true of our present program. Europe me by men of the yellow press of Amer

achieving such a world was passive, time had all the necessary requirements for ica. That does not concern me, except and events have brought us to a role of economic development other than capithat I attempt to keep the record world leadership. Our own security pre- tal and plants. The underdeveloped straight each time I observe such arti- vents us from turning our backs on this

vents us from turning our backs on this nations are beginning from scratch. It cles by paying my disrespects to such leadership. The basic question before will be a long but necessary road. kept journalists.

us today is how can we as a nation best Our actions on the pending bill should Mr. RUSSELL. The writer evidently

exercise this leadership to accomplish be aimed at carrying out the policy enundertook not only to prejudice the case the longstanding dream of freemen and visioned when the Foreign Assistance Act of the Senator from Oregon, but also thus advance our own security.

of 1961 and the Alliance for Progress undertook to make a case against the efforts of the southern Democrats in recognize the forces working against a

To answer this question, we must first were initially enacted. connection with a proposed civil rights world of free and independent nations. ALLIANCE FOR PROGRESS bill. He is trying to kill two birds with

Of course, the foremost enemy of freeone falsehood, to besmirch all those dom is Communist imperialism.

Mr. INOUYE. Mr. President, recently

The whose consciences will not permit them Communists are hard at work attempt

I had the opportunity to visit the small to support the foreign aid bill as well ing to penetrate and dominate the un

nation of Uruguay for the dedication of as those who will be opposed to a so- derdeveloped nations of the world. In

a statue to George Washington. During called civil rights measure when it comes Latin America, Asia, and Africa, the

my visit, I had occasion to talk with before the Senate. Communists are utilizing every weapon

many members of the Uruguayan GovHe endeavored to create a monumental at their commandsocial, political, and

ernment, business and civic leaders, as falsehood in order to accomplish a dou- military-in their efforts to make this a

well as our personnel in the Embassy ble purpose with one falsehood.

and related missions. Although I have Mr. MORSE. I wished the Senator fight against freedom are poverty, disCommunist world. Their allies in this

always been interested in the Alliance to know that I paid my disrespects to ease, ignorance, and desperation.

for Progress, and have offered it my supthat kind of journalist. I desire that the Record be clear again that there is overcoming all of these forces. Foreign program that has developed under the

Our efforts must be directed toward view in operation the vast hemispheric

port, this was my first opportunity to no arrangement between the Southern Senators and the Senator from Oregon. aid has proved an effective instrument in

sponsorship of President Kennedy, to I know that on the merits and the de- this struggle and I believe it can be made

promote the economic and social develmerits of the bill Senators will exercise achieving a world of free and independan even more effective instrument in

opment of Latin America. their independent judgments.

In the numerous discussions I had in ent nations. I also suggested that the writer take

Uruguay, the Alliance for Progress rea look at the division of the southern

Mr. President, critics of foreign aid

peatedly became the topic of interest and Senators in this body on the question. almost always include in their charges

concern. A number of Uruguayans were I suggested that he look at the record of the assertion that you can't buy friends.

unhappy with the slowness of the implethe Senator from Alabama [Mr. SPARKThis is a very easy charge to make since

mentation of this program. On the MAN) and the chairman of the Commit- it is axiomatic. However, the charge is other hand, I was extremely impressed tee on Foreign Relations, the Senator completely irrelevant to foreign aid since by the dedication of the Uruguayan Govfrom Arkansas [Mr. FULBRIGHT).

the program is not intended to buy ernment and the people of Uruguay in Mr. RUSSELL. As well as the senior friends. The military support phase of

following a course of action within the Senator from Alabama (Mr. HILL) and the program, of course, is for the pur

framework of the Alliance for Progress, the Senator from Florida (Mr. HOLLAND], pose of strenthening the military might

although it was apparent that they,

The nonmilitary who voted in the negative. Unfortu- of the free world.

themselves, were not moving as fast as nately they have persisted in the error phase is intended to help less fortunate

possible. of their ways by supporting all foreign underdeveloped nations strengthen their

Since the time of my visit to Uruguay, aid legislation, economic and political independence.

I have been devoting a considerable Mr. MORSE. Nevertheless, I appreThat is, to help the people of the nations

amount of my time reviewing the ciate the fact that the Senator from win their struggle against poverty, dis

Alliance. Georgia has joined in nailing this vi- ease, ignorance, and desperation.

Certainly, neither party can claim excious, lying article to the mast.

Paramount to success in this endeavor clusive authorship of our present Latin Mr. LAUSCHE. Mr. President, will is a desire on the part of underdeveloped American program. It was during Presthe Senator yield?

nations to achieve economic and political ident Eisenhower's regime that the Act Mr. JOHNSTON. I yield.

independence. All our Nation can do is of Bogotá, calling for mutual cooperaMr. LAUSCHE. I commend the Sen- help those who are willing to help them- tion, was adopted It was also at the ator from Oregon for his bold and direct selves. As a general rule, economic aid request of President Eisenhower that approach and purpose to reveal the truth. should not be extended unless the re

Congress, in 1960, authorized $600 milUnless journalists are truthful, we will cipient nation undertakes to carry out lion for the Inter-American Program for run into calamity. The Senator from the necessary social, political, and eco- Social Progress. Oregon has exhibited his usual, objective, nomic reforms. This was the intent of

Then, under President Kennedy, the and courageous approach to problems in Congress in enacting the Foreign Assist

Alliance itself was inaugurated in August regard to foreign aid. ance Act of 1961 and the Alliance for

1961, at a meeting of finance ministers Mr. MORSE. I appreciate the Sena- Progress.

at Punta del Este, Uruguay. It was contor's comments.

Mr. President, I believe the basic in- ceived as a vast, dynamic program, enMr. JOHNSTON. Mr. President, to tent of Congress in enacting these two gulfing the northern and southern congo back to the discussion that the Sen- programs is sound. I believe the future tinents of America, and dedicated to the eradication of poverty, ignorance, and ica.” Tomorrow the hemisphere may have As stated by Tad Szulc in the New York disease, which have plagued Latin Amer- more Cubas to deal with. Yet any program Times of October 6: ica through its long and turbulent hisas complex and ambitious as the Alliance

Because this (Washington) is a town that tory. Twenty nations signed

the Charter requires time to get moving, and the results
are not likely to be apparent overnight or

has accustomed itself to think in the blackof Punta del Este, and dedicated their even within the first few years. Economic

and-white terms of definitive victories or programs and their efforts to the ac- development historically shows a tendency

definitive defeats, the instantaneous inclinacomplishment of such goals as: elimina- to accelerate from slow beginnings.

tion here was to begin composing the obitution of adult illiteracy by 1970; increas- Its machinery is inadequate. Much more

ary of the Alliance for Progress. ing life expectancy at birth by a mini- needs to be done to improve coordination

To me it is quite apparent that these mum of 5 years; an annual rate of among the United States, the IDB, the OAS, setbacks should not reflect adversely on growth of 2.5 percent per capita per ECLA, and the other international institu

the Alliance for Progress program, since year; and encouraging and expanding chinery itself, particularly the Panel of Nine, tions which will participate. The OAS ma

these military coups are not a result of such related enterprises as housing con

needs to be strengthened and its role clarified the failure of the Alliance, but rather a struction, sewage and sanitation facili- National planning for the Alliance in Latin most vivid manifestation of the trementies, agrarian reform, and increased pro- America is just getting underway, but AID dous problems which the Alliance is atductivity; and to the development of and other U.S. agencies could improve their temping to overcome. long-range programs which would in- coordination. As one leading U.S. news

The New York Times, on Monday, Ocsure the self-sustaining growth of each paper has put it: "Latins thought they had a

tober 7, in referring to these last violent nation.

monopoly on manana and they were both Since its inception, I have heard some

perplexed and dismayed when they discov- death throes of the Latin military and

ered that this was another field where Wash- oligarchy, correctly stated thatcritics prophesy the failure of the Al- ington was first.”

The Alliance needs time, persistence, and liance for Progress, while others have The U.S. contribution is inadequate. At that elusive quality-faith. It must not be predicted its eventual failure unless cer- this stage most of the Latin American coun- used to bolster military reaction, but it must tain changes which happen to fit their tries have not completed their plans, much not be given up because these vestiges of a own ideas are made immediately. less undertaken the varied and complex self- dying past are making last stands in some

Sentiments like these could indicate help efforts necessary to make U.S. aid effec- Latin American countries. that there exists an impatience to get

tive.

Latin American governments have not met moving, to get the job done, and that

I do not deny that what has happened the conditions to which they agreed. This

in Honduras and the Dominican Repubwould be all to the good; I am afraid, is one of the thorniest problems for the Al

lic is sad-sad for the Alliance for Proghowever, that this attitude reflects de

liance, because of the inclination of AID and ress, sad for the Dominicans and Honfeatism and a deep misunderstanding of other agencies to provide aid, as in the past durans, and sad for those around the what we have undertaken. whenever an emergency arises. On the other

free world who strongly believe in the These people have forgotten what hand, 18 Latin American countries have

principles of self-government and President Kennedy said when he first taken positive steps toward sounder long

democracy. outlined his proposals for the Alliance range planning, self-help, and reforms. at the White House on March 13, 1961.

The emphasis is on social development

Even though we have taken one step rather than the real need for investment in backward in these instances, the story The 10-year plan for the Alliance, he productive enterprise. In this respect, view- of the Alliance is not yet finished. Even said, will be the years of maximum ef- points differ widely. Many experts feel that the Dominican and Honduran stories are fort, the years when the greatest ob- there is not enough time to follow the pat- not yet finished. I remind you that even stacles must be overcome. tern of the United States and Europe, and

in the cases of the military coups d'etat And, if we are successful

that social and economic development must
be pursued simultaneously if either is to

in Peru and Argentina, they have eventuHe said succeed.

ally resulted in free elections and repreif our effort is bold enough and determined The reforms envisaged by the alliance are

sentative democratic governments. enough, then the close of this decade will unfair. Members of the so-called oligarchies I cannot promise you that there will mark the beginning of a new era in the of Latin America have made this charge. not be similar setbacks in the future in American experience. This is the group which stands to be most

Latin America before the Alliance for I would like to stress his use of the policies. However, these oligarchies stand to immediately affected by altered land and tax

Progress achieves its ultimate goals. . word “beginning.” Those who complain iose more in the long run if they are unwill

Battles are lost, but wars are still won. that the Alliance has failed in 24 months ing to relinquish some degree of the control

What is at issue is whether, in the face to correct the economic and social dis- which they now enjoy. As one Peruvian of adversity such as we have recently entortions of 250 years of colonialism and aristocrat said, “Either we give or they take." countered, we have the necessary forti150 years of frequently turbulent po

The Alliance gives too little emphasis to tude to continue this war against comlitical independence should go back and the role of private enterprise. If this invest

munism, or whether our frustrations will read Mr. Kennedy's speech to discover ment is to materialize, Latin American gov

result in our withdrawing from the the full dimensions of the job we are to provide the conditions necessary for the ernments must make more strenuous efforts

affray. Upon this decision will rest the tackling. free enterprise system to function ade

ultimate success of the Alliance for As stated by the U.S. Chamber of Com- quately. Among other things, many coun

Progress. merce in its recent report on the Alliance tries will have to reexamine policies on ex- Support for this program by the Amerfor Progress:

propriation and compensation, state plan- ican people unfortunately ebbs and flows These criticisms reflect not only the ob- ning, state investment in enterprise, and

with every intermediate small advance or stacles facing the Alliance, but also the business regulation. Of the total $80 billion

setback. Our fickleness in this regard enormous problems that called it into being. expected from the Latin American countries over the 10-year period of the Alliance, nearly

leads our Latin American friends to feel Certainly, the Alliance for Progress has three-fourths is to be in the form of pri

that possibly we are incapable of the not been a total success. However, the vate domestic investment by the Latin Amer- long-sustained effort necessary to reach great progress that has been made is ican businessmen themselves.

the goals set by the Alliance. Castro and miraculous in the face of the problems it

The alliance lacks a mystique. The U.S. his communistic cohorts in Latin Amerfaces. As Tad Szulc, noted columnist Government has so far failed to create a

genuine enthusiasm for the Alliance in this on Latin American affairs, has said:

ica play continually on this fear as part country, and in much of Latin America it is

of his campaign to destroy the program Social and political unrest are rising ver- still largely unknown or misunderstood.

that stands between Latin America and tically like a maddened fever chart.

Without broad popular support, the task of Communist domination, Castro, reThe chamber of commerce has pointed the Alliance will be infinitely more difficult. cently on the Havana radio, happily out the principal criticisms brought was launched in July 1963, to create greater

commented: against the Alliance in the light of its public consciousness of the Alliance and to

The North American Congressmen have objectives, accomplishments, and po

stress, particularly in Latin America, the cut in half certain funds which the administential. These criticisms, and the cham- partnership nature of the program.

tration has asked for the Alliance for Progber's answers, are as follows: It hasn't gotten off the ground. The need

The Alliance for Progress has recently ress. Of course, that famous Alliance was

always conceived on a false basis, as an infor speed is urgent. As U.S. Alliance Coordi- been faced with a series of blows, more

strument of aggression against the Cuban nator Teodoro Moscoso constantly stresses: particularly the military coups d'etat in

revolution. It was from the beginning "It is 1 minute to midnight in Latin Amer- the Dominican Republic and Honduras. doomed to failure.

The Chilean Communist newspaper, El make up for 150 years of under- that 65 percent of the resources within Siglo, tolled the death knell of the Alli- development. It calls for changes in the Latin America must come from private ance as follows:

outdated and brittle structure of the sources there. Also, $300 million a year The $2 billion annual aid promised 2 years

Latin American economies and societies, will be needed over the course of the 10ago was mere propaganda and was actually so that the money and the other re

year program from U.S. and other forreduced to $600 million. The result has been sources that are poured in are chan- eign private investors. What is needed stagnation, even retrogression instead of neled to the people who need them most. is the maximum cooperation and pooling predicted growth, since in this period North Nor is the Alliance just another aid pro- of resources from both the private and American monopolies have withdrawn from

gram. It puts the burden of the effort, public sectors. For what we are after Latin America more than AID furnished. With the House cut to $450 million, the

as far as internal reform as well as the are modern economies in the GovernAlliance has died. May it rest in peace.

generation of funds are concerned-on ment serving the people and in which It is miraculous that, considering the

the Latin American countries them- private initiative has the opportunity to

selves. United States and other outside play the productive role it must assume problems faced in Latin America, we have had the degree of success that has aid can and will become effective only if the country is to prosper and the peoaccrued to the Alliance in short time of to the extent that the Latin American ple are to be free. its operation. The U.S. Chamber of members of the Alliance carry out their

Development toward fair tax loans and Commerce sums up its report, as follows:

end of the bargain. President Kennedy proper administration is another thing

has said repeatedly that this is “a vast that is right with the Alliance for ProgIn the face of these difficulties, the Alliance

cooperative effort in which the United for Progress stands as a bold program calcu

ress. lated to make at least a start toward the States is the junior partner."

Twelve Latin American countries have long-range solution of Latin America's di

Not only are they required to institute either passed new and tighter tax legisverse problems and toward assurance of basic reforms in order to better respond lation or improved their tax and customs social and economic progress in the years to the needs of their people—not only collection systems. In seven cases, the ahead. is the principal burden of generating 80

reforms have been of major scope. This In order to place the progress of the percent of the necessary funds within

area is of great concern to the founders Alliance in its proper context, I would their own countries—but even on those

of the Alliance both here and in Latin like to tell you some of the things that programs with which we assist them,

America. I know are right with the Alliance, and they provide a substantial portion of the

It is also, as we know from our own exsome of the accomplishments that the funds.

perience in the tax field, one of the most

In Mexico we have authorized a $20 politically sensitive and difficult. program has already achieved. One thing right with the Alliance is million credit for loans to small farmers.

However, the beginning that has been that it represents an awakening of our It is expected that Mexico's own contri- made in countries as far apart as Guatenational interests and responsibilities in bution to this program will be $185 mala and Chile, Colombia, and Bolivia,

million. Latin America.

is impressive. At the same time we real

AID is providing a $30.5 million loan to Until a couple of years ago, very few

ize that it is only a beginning.

One of the most valuable services that of us in the United States were aware of Argentina for the construction or im

provement of 1,200 miles of highways. the real nature of the problems of Latin

our American technicians are providing America, and few of us cared. As Mr. Argentina will provide $160 million.

today in Latin America is advice on tax Moscoso recently stated in the Saturday trust fund, we have made a credit of $2 Internal Revenue Service in a short time

In Chile, through the social progress collection and fiscal administration. Our Review of October 12:

million available to build 1,900 homes. has built up a fine and efficient record Latin America was a region we took for The local contribution is in excess of

in this field. granted. We went there as tourists, and

$512 million. counted on it to supply us with coffee, ba

Rational comprehensive modernizananas, and raw materials. It was also an area

A grant of $310,000 for technical as

tion of agriculture is another thing right to which we exported a large volume of our sistance in the formation of credit un

with the Alliance for Progress. manufactured products. Through these dec- ions in Latin America has resulted in

As in most underdeveloped countries ades, Latin America either failed to develop stimulating and creating some 500 credit

in the world, agriculture is the backbone modern economies and societies, or it reared unions. New credit unions are being of the economy of Latin America. Yet, distorted economies dependent on only one created at the rate of 60 a month.

much as these countries depend on it, or two products-tin in Bolivia, oil in Vene

In Central America the social progress agriculture is at the root of much of zuela, coffee in Brazil. All this time, bliss

trust fund has made a $2,925,000 loan to Latin America's economic and social diffully ignored by all but a few, tensions and problems were growing. Revolutions made

the five Central American universities, ficulties. It is either turning out too colorful, but unimportant, reading. Dicta

for improvement of the training of their much of a few products such as coftorships and political convulsions drew from

technical and professional personnel. fee or it is producing too little of the most of us a yawn rather than a quest for This is being matched by an equal desperately needed staples like wheat and understanding. Only intermittent amount from the countries themselves.

corn. What is more, agriculture is highlargely ineffective attempts were made to get to the root of the problems that were grow- alliance is that it is not a government- percentage of the population and thus

Another thing that is right with the ly inefficient, employing far too high a ing in Latin America and that sooner or later

to-government program. were bound to command our attention.

unable to give those masses more than

It recognizes candidly that roads, a few crumbs of the small pie they all Then came Fidel Castro, and suddenly, ports, communications, and other infra- have to share. So, naturally, it did not North America awoke to Latin America. structure facilities are generally beyond take much imagination when the char

The Alliance is not a carbon copy of the ability of private enterprise to pro- ter of the Alliance was drawn up, to make the Marshall plan which merely—yes, I vide. So, to the extent that these basic agriculture a big chapter. Agrarian resaid "merely”-set itself the tack of re- ingredients need to be provided, we have form was the watchword. And it gave constructing war-ravaged economies. to work with governments.

rise very quickly to the misconception This is a program, as Alliance Coordi- Even most of the loans that are made that all that was wanted or needed was nator Teodoro Moscoso has put it, which under the Alliance for Progress to recipi- the splitting up of the large landed esseeks to build—not to rebuild-econ- ent governments end up in the private tates, which were owned by a few wealthy omies and societies ravaged by history. sector. For example, the supervised ag- men who also played a decisive role in

Against this background, it seems to ricultural credit loan to the Government controlling the political destiny of their me that the expectation of quick results of Mexico, which I have referred to, is countries. But it is not this simple. in the shape of a flourishing, contented, for the purpose of distribution through The fact is that, in a number of cases democratic Latin America after 2 years private banks, for small agricultural

private banks, for small agricultural where land was divided and given to of treatment, is as ludicrous as it sounds. credit loans under a controlled rate of individual farm families, production did

Another thing that is right with the interest, to farmers for the purchase of not increase. Instead, it fell and, in Alliance is its concept. It does not seed, equipment, fertilizer, and the other some cases, drastically. Bolivia, which gloss over problems but faces up to basics required for full utilization of the went through this experience beginning them honestly. It does not say that, land.

in 1952, is a case in point. So I prefer with a few million dollars poured into But beyond this, private enterprise to speak rather in terms of modernizing technical assistance projects, we can must carry the burden. It is estimated agriculture. By that we do not mean taking land away, dividing it up and re- to create greater confidence and thus plishments that have occurred, and on distributing it, but orderly reorganiza- more productive investment from pri- the other hand by the immense task still tion, including possible changes in land vate sources within Latin America. confronting Latin America. I share tenure, supervised credit and extension U.S. loans to intermediate credit in- with President Kennedy his views on the services, and farm-to-market roads stitutions in Latin America under the Alliance for Progress. As you remember, which make it possible to get a product Alliance so far exceed $100 million, he said: to the places where it is needed. This These loans are used for credit to farm

We have a long, long way to go, and in fact is the rational way in which the Al- ers, small and medium size private busi- in some ways the road seems longer than it liance is tackling the problem of agri- nesses precisely to develop the kind of was when the journey started. culture. It is the right way. Under healthy, decentralized business activity

Probably the greatest roadblock to the this kind of program, Venezuela, with which is so vital both to economic prog

success of the Alliance for Progress has relatively little help from us, has suc- ress and to the development of social

been the unwillingness of the Latin ceeded in resettling close to 60,000 farm and political stability. For example, American Nations to mobilize their availfamilies

on land of their own since Pres- with the assistance of the United States, able resources at the pace demanded by ident Kennedy visited there just a little five private development banks have

the rising expectations of Latin Amerover a year ago. In Chile, Colombia, Bo- been formed or are in the process of for

ica. However, thanks to the firmness of livia, and many other places in the area, mation in Colombia.

Teodoro Moscoso in insisting that resimilar programs are getting into high As for U.S. private investment, the forms be a condition to assistance, we gear. In these efforts, American land Agency for International Development is

are seeing increasingly that the Latin grant colleges, like the Universities of carrying on a program of loans in local

Americans are beginning to realize that Wisconsin and Iowa, are playing a major currency in the Latin American coun

this is not just another aid program, but role. Experts from these universities tries from funds generated from the sale

one requiring that they, themselves, make are in Latin America or are training of surplus U.S. food stocks; loans in dol

the principal efforts. Latin Americans in this country, thus lars; sharing of the cost of investment

We have, as has been said quite often, making available the best knowledge surveys; and, most important, guaran

only one minute to midnight in Latin that we have developed and put to use tees of new investments by U.S. firms

America. And the clock continues to in this field.

against the triple risk of expropriation, move. The Castro-Communist design of Bringing other free world developed inconvertibility, and war. This makes it nations in to help provide the funds for clear that we are in full agreement with coercion in this hemisphere has been

dealt with in considerable depth on many modernization of Latin America in the those who want the Alliance to make use previous occasions in this chamber. It joint interest of all free countries is an- of the resources and the know-how of would be unnecessary for me to dwell on other thing that is right with the private enterprise.

the subject, which I know is well underAlliance.

Vision, the largest circulation news stood by others of my colleagues. HowThe notion that the United States is magazine in Latin America, published footing the whole bill for the Alliance in both Spanish and Portuguese, has re

ever, I must remind you that the Alliance

for Progress is the only alternative to has been removed even further from the cently issued a report pointing out that

communism in this hemisphere. truth because of some recent develop- from U.S. private enterprise the net cap

If we consider the facts which are ments in the consortium approach to ital flow to Latin America, plus rein

available to us, we will see that we have aiding less-developed countries—a tech- vested earnings, and expenditures for nique which the World Bank pioneered depletions, depreciations, amortizations,

no choice but to support Latin America

to the fullest. Historically, Latin Amerin India. After preliminary discussions and other plant retirements, amounted on Colombia's development program, we to about $1 billion.

ica, and the United States have been now have the prospect of West Euro

bound tightly together. The United

Those American firms which have pean participation in Alliance efforts to shown faith in the future of Latin

States and Latin America have enjoyed bolster Latin American economies.

a mutually beneficial exchange of goods America and in the success of this proA consultative meeting in Washington gram by making new investments in the

and services. Presently Latin America was held under the sponsorship of the region are to be congratulated.

accounts for the purchase of 20 to 25 World Bank and yielded clear-cut indi

percent of total U.S. exports sold abroad.

The Alliance is fulfilling many of the Likewise, the United States purchases 40 cations of commitments from that or- goals and aspirations of the Charter of ganization and from European countries Punta del Este. The amount of accom

to 45 percent of Latin America's total exto join us and Colombia in financing the plishments that have occurred in this

ports. Without question, the pattern initial stage of Colombia's 10-year na relatively short period of time since the

on economic interdependence has joined tional development plan. This is the inception of the Alliance can be meas

together the continents of North and first case in which our efforts to spread ured as follows: 140,000 new homes or

South America, and unless we are willing the financial burden of Latin America's family dwelling units have been con

to abrogate the existing trade and comeconomic and social development to the structed in Latin America; 8,200 new

mercial ties between the United States other industrialized nations are bearing classrooms have been built, and more

and Latin America, we must continue to substantial fruit. There is reason to than 4 million textbooks have been

support the Alliance for Progress. For hope that in the case of Chile, a similar printed and distributed in the drive for

the Alliance is the only substantial determultination financing pattern can be educational improvements; 160,000 agri

rent to the influx of Castroism in this worked out.

hemisphere. If it fails, the vast markets cultural loans have been made to Latin Under the leadership of my good American farmers for the purchase of

and storehouse of natural resources in friends and esteemed colleagues, Sena

Latin America will no longer be available

to this country. tors HUMPHREY and JAVITS, the Atlantic individually owned farms, for improved

seeds and broodstock, for modern agriCommunity Development Group for

Therefore, it is quite apparent that, in cultural implements; 700 communities Latin America, known as ADELA, is for the first time have sanitary water

addition to our security interests and the being formed to add its efforts in induc- facilities, and 900 hospitals and health

eleemosynary aspects of the Alliance, ing the more developed countries to par- centers have been established in a part

there is also economic justification for its ticipate in the economic development of of the world where disease traditionally

continued support.

The contrary is also true. The Alliance The promotion of a vitally increased has snuffed out the lives of 85 children for Progress has carried the brunt of the role for private enterprise in the pro- This compares to a similar mortality rate

out of every thousand before the age of 5. attack against the United States from grams of the Alliance and the hearten

Castro and his Communist cohorts. of 28 per thousand in the United States. ing response in recent months of some

Their vehemence against the Alliance is American firms are more things that are

Gentlemen, as you look at these figures, the best evidence of their fear that right with the Alliance.

I believe that we are all struck with what through the Alliance for Progress their Another important point that needs seems to be quite a large accomplish- ambitions for conquering Latin America mention is the extensive program this ment, but I venture to say that this rep- will be thwarted. All of us are concerned administration is carrying on to attract resents only a dent in the great shield with the problems that are presented by more funds from American private in- of poverty in Latin America. I am im- . this little island. However, what has vestors into Latin America, as well as pressed on the one hand by the accom- happened in Cuba is of relatively small

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