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Mr. ELLENDER. Mr. President, there for development loans to $900 million. continent. It is filled with numerous is no question that a close scrutiny and The Senate Foreign Relations Committee natural resources that are awaiting deanalysis of the military assistance pro- elected to leave the authorization for de- velopment. Those resources are not gram, whether it be made by a general, velopment lending as it is in existing controlled by us. They are not in our statistician, accountant, or economist, legislation_namely, $1,500 million-not- hands.

hands. They are not in the hands of the will reveal that the military assistance withstanding the fact that the admin- natives in Africa. Those resources are revised budget estimate for fiscal year istration has only sought $1,060 million owned and controlled by European coun1964 can be reduced by $400 million, as I Last year, when the development loan tries—Britain, France, Portugal, Spain, previously stated.

program was presented to Congress, the and other countries of Western Europe. I point out that both the Clay Com- budget estimate totaled $1,250 million. As I have pointed out many times, if mittee and Secretary McNamara agree This money was programed in the various Africa is to blossom out and expand ecothat a $1 billion military assistance pro- regions of the world as follows:

nomically, it will be necessary that the gram is adequate, and the only difference Africa, $200 to $270 million; Far East, resources in that country be utilized in in their opinions is the precise point in $200 to $280 million; Near East and south order to assist the people there. time when this figure may be reached. Asia, $850 to $950 million; for a total of In order for the population of Africa Secretary McNamara feels that it cannot $1,250 to $1,500 million.

to develop economically and make a good be attained before fiscal year 1968, and Thus, the amount programed on the showing, it will be necessary that the the Clay Committee feels that it is pos- low side was $1,250 million, and on the resources of Africa be developed first for sible within the next couple of years. high side $1,500 million, or an overpro the benefit of the people there. How Regardless of what opinion may be the graming of $250 million. Of course, it is would that be done? By the construccorrect one, even if we are pessimistic normal practice for the agency to en tion of roads, schools, colleges, and the and accept Secretary McNamara's view, gage in overprograming, both on the re like. if this goal is to be attained, it is ab- gional and country levels, and when The money we are now placing in solutely essential that the authorization funds are made available the program Africa is money put down a rathole. It of new obligational authority for mili- can be adjusted to fit within the availa- is used to maintain a few groups that tary assistance for fiscal year 1964 not ble appropriations. Overprograming by are trying to remain in power. There exceed $1 billion. This is necessary be- about 10 percent of country loan plan- is no question that many newly created cause of the abnormal pipeline condition ning figures is employed to provide guid- countries there will never be successful that presently exists in the military as- ance in terms of program priorities, while unless they find a Santa Claus. I do sistance program, and because of the retaining flexibility regarding the screen, not wish Uncle Sam to be that Santa

onsiderable recoupments that will be ing and final app of individual Claus, for the simple reason that Africa made over the years because of the can projects.

is not within our sphere of influence. cellations and changes in the program. Since there is on hand a huge backlog

If our dollars are to be spent in order I point out that we now have in the pipe- of loan applications and since the loan to assist America, let us spend them line, unobligated, $1,500 million, as can approval cycle involves a lengthy process

where they will do us some good; namely, be gleaned from the FAD Report No. 445 of project analysis and screening of ap

to the south of us. I am strongly in fawhich I previously included in the plications, it would seem that when Con

vor of developing South and Central RECORD.

gress made a considerable reduction in America. I am glad that the AID adMr. President, in the interest of hav

the budget estimate of the fiscal year ministrators have virtually accepted the ing a sounder military assistance pro

1963, every dollar Congress appropriated recommendations made in my report of gram, in the interest of getting greater would have been obligated against the

1958 when I returned from South and efficiency in the financial and other man- many loan applications allegedly

on

Central America. agement of this program, in the interest hand.

In countries to the south of us there of fiscal sanity, and in the interest of the

Actually, Congress appropriated $975 is a golden opportunity not only to deAmerican taxpayers, I urge Senators to

million for the Development Loan Fund velop resources for the benefit of the vote to cut the military aid program in

in the fiscal year 1963, which was a re- people there, in the form of roads, the way proposed by me and as called duction of $275 million in the budget schools, colleges, and other facilities, but for by the so-called Mansfield-Dirksen estimate. But notwithstanding this cut amendments. by Congress, as of June 30, 1963, terials to feed our hungry mills here. As

also to provide the necessary raw maDEVELOPMENT LOAN FUND

$71,400,000 of the moneys appropriated Mr. President, as I stated a moment mained unobligated at June 30, 1963. Mesabi Range in Minnesota will be alfor the Development Loan Fund re- extremely limited. I understand that the

everyone knows, our iron resources are ago, I submitted an amendment to cut Thus, even though the agency overpro

Thus, even though the agency overpro- most depleted in about 15 years. The rethe Development Loan Fund from $975 million, as provided in the so-called though Congress made a drastic cut in maining ore in our country grades from Mansfield-Dirksen amendments, amended, to an authorization of $900 unable to obligate all of the funds ap

the appropriation, the agency was still 25 to 30 percent iron, whereas the mines million for development loans for the propriated. unable to obligate all of the funds ap- America produce ore in which the iron

now being exploited in South and Central fiscal year 1964—the same amount as

I submit, Mr. President, that by

content is 68 percent. I am sure that authorized in the bill passed by the making available more money than can making available more money than can the United States will not be able to

the day will come when steel mills in House.

be efficiently obligated by AID, Congress Legislation which already exists pro- is aiding and abetting in the promotion

is aiding and abetting in the promotion compete with a concern in another counvides an authorization of $1.5 billion for of waste and extravagance.

try where the iron ore content is 68 pereach of the 5 fiscal years, 1963 through

I also point out that under the pending cent. That is why in the past I have 1966, for development loans. I point out amendments offered by the Senator from been in favor of developing South and that these amounts have been modified

Central America. They are good neighMontana [Mr. MANSFIELD], for himself, by the Holland amendment which re

bors. the Senator from Illinois [Mr. DIRKSEN), cently was adopted by the Senate, thus and other Senators, a further obligation

If the decision were left to me, I would reducing the authorizations for 1965 and

is imposed on the 'AID administrators; try to find some way by which our own 1966 to an amount not to exceed $975 namely, to submit these programs, when

namely, to submit these programs, when economy could be meshed with the econmillion.

they are in excess of $500,000, to the omies of South and Central America. In Nevertheless, the administration, even Corps of Engineers for approval. If the the long run, it would pay us to do so. in its wildest dreams, could not take ad Corps of Engineers does a good job, it

Let us leave Africa to the Europeans, vantage of the past generosity of Con will take a much longer time in order to because all sorts of natural resources gress; and it originally requested, for properly place this money for projects there—copper, gold, diamonds, uranium, the fiscal year 1964, $1,248 million. The all over the world.

and timber—are owned and controlled ink on this request was hardly dry when Mr. President, as I pointed out a few lock, stock, and barrel, by the Europeans. it was revised and reduced to $1,060 mil

days ago, there is no earthly reason why It is up to the Europeans to utilize those lion by the executive branch.

we should begin—as suggested by the great resources, to develop the country The House amended existing legisla administrators of this program-a large and to assist the people who inhabit that tion by reducing the authorization ceiling aid program in Africa. Africa is a great great continent.

CIX-1328

as

By making more money available than This language is found on page 2 of Mr. LONG of Louisiana Mr. Presican be efficiently obligated by AID, Con- the amendments, beginning on line 16: dent, will the Senator yield? gress is aiding and abetting in the pro (b) Section 611(a), which relates to com Mr. ELLENDER. I yield. motion of waste and extravagance, as pletion of plans and cost estimates, is Mr. LONG of Louisiana. Is it not true I indicated a while ago in the case of amended by inserting before the semicolon

that in practice, not only in this counthe military aid program, at the end of subparagraph (1) a comma and

try but also in practically all other enWhy was the agency unable to obligate the following: "and, in any case in which the reduced amount of money made such estimate of cost and the feasibility of such estimate of cost exceeds $500,000, until lightened countries, no one would under

take to build a project unless he had a available by Congress in fiscal year the project have been approved by the Corps firm estimate of cost? 1963? The reasons are enumerated in of Engineers, United States Army, or by a Mr. ELLENDER. If he were responsithe justifications that have been pre- reputable United States private firm of engi

ble for the money spent, the Senator is sented to the Congress. I would like to neers".

correct. give the Senate these reasons on a coun

That is a fine provision. Some of us Mr. LONG of Louisiana. The only try-by-country basis, but in so many have tried—I, particularly, tried—to put conceivable reason why a person would instances I am precluded from doing so such a provision in the bill in the past, not obtain a firm cost estimate before because the data are classified "secret.” but to no avail.

undertaking a project would be that They are labeled secret and, of course, There were many instances in which somebody else was paying for it, and we cannot give that information to the roads were merely surveyed from an air- therefore it would make no difference American people.

plane traveling over woods, or marsh, or what the cost might be. However, I feel I can make the point jungle. Then it would be said, “This road Mr. ELLENDER. The Senator is corclear by reading some of the reasons into in Vietnam or in some other country rect. That has been the difficulty in the RECORD and deleting the name of the might cost so many millions of dollars.” the past. That is why so much of the particular country and/or project. That was the way the situation was han- money has been wasted, in my judg

1. — Loan applications were not re dled, not only in Asia, but also in South ment. ceived for any of the above projects, and America. In the past, we have embraced Mr. LONG of Louisiana. Of course, if thus the amount programed for

was

many programs which were not well con- U.S. money is to be used to pay completely eliminated from the develop- sidered.

for it, assuming that the applicant ment loan program.

I remember the Rama Road. We

does not accept the responsibility of obIn other words, we expected them to started with the assumption that the taining a firm cost estimate, I am sure run in and put in applications as they cost of the Rama Road would be about $5 the Senator would agree with me that were supposed to under the act of 1961. million. We have now spent in excess of we should assume the responsibility of They did not do so. However, we had $15 million and the road is not yet com seeing to it that there is a firm cost program money for them. plete.

estimate. 2. - Expectations for loan applicaMr. LONG of Louisiana Mr. Presi

Mr. ELLENDER. That is why in the tions in - for fiscal year 1963 have not dent, will the Senator yield?

past several years we have insisted that been met. In addition, AID criteria for

Mr. ELLENDER. I yield to my col

studies be made. The pending amendcompleted loan applications have not been league.

ment contains the provision that I have met for any of the applications which have Mr. LONG of Louisiana. Is it not true read, which is that if a project involves not been received. Therefore, the fiscal year that any engineering firm or construc1963 lending program has been substantially

in excess of $500,000, the Corps of Engition firm offered the opportunity to bid reduced.

neers must examine it and make a find3. -: There has been a delay in re

on construction of a highway such as ing as to its feasibility. That is a good ceipt of the Government of -'s finan

that, would insist that it have the oppor- thing. This will inure not only to the cial feasibility study for the airport. tunity to go onto the land itself and take benefit of the taxpayer, but also to the The anticipated loan application for the test borings to see what kind of founda- benefit of countries which will borrow the

road has not been received. The tion was beneath the land and whether money for various projects. planned school construction loan will not adequate materials could be found nearbe ready for final decision until fiscal year by, in order to reduce the cost of hauling put on the development loan program

Mr. President, unless the brakes are 1964 due to the absence of data from the the fill and the material, to arrive at a Government.

and the amount authorized for 1964 is firm estimate of the cost of building a 4. -; Reductions in this country's

cut back to the amount authorized by program are due to the fact that certain road of that character?

the House, I fear that loans will be made elements of the program originally planned

Mr. ELLENDER. There is no doubt to many countries that really do not will not be ready for financing until fiscal about

that. I cannot see that they could qualify under the criteria that have been year 1964. And yet we have provided for do other than what we do in our own

established for development loans, and these countries.

country. The authorizing process for our 5. — Reductions have been made for projects is very long and tedious.

that funds will be obligated solely for the the following reasons in this country:

purpose of reducing the unobligated It cannot be done overnight. I know balances without regard for the objec1. Slower than anticipated drawdown of the fiscal year 1962 loans. of some projects in our own country, in

tives to be obtained. 2. Deferral of a completed loan to cluding the construction of dams and

Mr. LAUSCHE. Mr. President, will pending an overall supports survey by the even the construction of roads, which re

the Senator yield? World Bank.

quired from 5 to 10 years of study before 3. Increased interest of private investors a conclusion could be reached as to how

Mr. ELLENDER. I yield. in some of the industries for which develop- much the project would cost and before

Mr. LAUSCHE. The remarks of the ment loans were contemplated. 4. Delayed completion of feasibility studies it could be authorized by Congress. Senator from Louisiana are directed at

the amendment now before the Senate. Since the money is loaned to these counon which loan applications would be used.

Is that correct? tries, they should be interested in seeing I could go on, Mr. President, with rea to it that the money is well spent. We

Mr. ELLENDER. Yes. son after reason submitted in the agen should be adequately protected by a

Mr. LAUSCHE. Am I correct in statcy's own justifications to Congress, ac thorough examination of the project to ing that the purpose of the amendment counting for why the Development Loan see that it is feasible, and to see that it is to reduce the suggested authorization Fund could not obligate the reduced can be constructed within the estimate of $975 million to $900 million, conformfunds made available by Congress, but made. All of that should follow, in mying to the figure adopted by the House? I feel the above illustrations make the judgment, for the program to be effec

Mr. ELLENDER. The Senator is corpoint very clearly, and further emphasis tive.

rect. That is the purpose. would only burden the RECORD.

I cannot for the life of me see why I ask: Should we be making threeAs I stated a while ago, there is a new the procedure should be any different fourths of 1 percent loans, with a 10-year provision in the so-called Mansfield from what we do in our own country. grace period and 40 years to repay, to Dirksen amendments which would fur- The fact that added conditions are to a country whose GNP has risen 10 perther delay these applications, since the be imposed is a good thing. It will make cent per annum over the past several approval of the Corps of Engineers would the applicants for the loans more care years from $734 per capita in 1959 to be required on those of large amounts. ful.

$853 per capita in 1962?

Should we be making these loans to a dollar of development "soft loan" money Mr. President, I am not opposed to country whose gold and foreign exchange available to Israel. Yes, Israel is the lending money to Israel, but the ecoholdings have risen at a fantastic rate country that has achieved a very rapid nomic facts of life make it clear that since 1957, from $87 million in 1957 to rate of economic growth. Its GNP has our loans to Israel should be made only $498 million in 1962, an increase of al- risen 10 percent per annum over the on a businesslike basis, and not through most 500 percent? Should we be making past several years, and it is anticipated the soft money route which has been low-interest development loans to a that this growth will be maintained. Its set up for aiding the truly underdevelcountry which has a very favorable per capita output already exceeds the balance of payments, while our own bal- levels attained by some European coun

At this point, Mr. President, I would ance of payments continues to run a tries, and it is comparable to many of the like the record to show how generous considerable deficit ? industrial countries of the world.

we have been with Israel since the counMr. President, I believe not. But this

try came into existence and, therefore,

As I just pointed out, its per capita I request that the schedule I hold in we have done, and this we contemplate doing

in fiscal year 1964 in the case of GNP has risen from $734 in 1959 to $853 my hand covering the status of loans the country of Israel, solely because Con- in 1962. Israel's present level of an

we have made to Israel through Decemgress authorizes and appropriates more nual investment approximates 25 per- ber 31, 1962, be inserted in the RECORD money than this program needs to func- cent of its gross national product, which at this point. tion soundly.

rate, I believe, is exceeded only by Japan. There being no objection, the schedule Mr. President, I submit that there is I might add that our own country's rate was ordered to be printed in the RECORD, not one iota of justification to make one is running at about 15 percent.

as follows:

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Grand total, Israel...
AID.
Government of Israel...
Project assistance..

Feb. 9, 1955
Do...
...do..

May 25, 1955
Do..
-do.

June 29, 1956
Do...
Commodity assistance..

Apr. 29, 1957
Do...
Economic development.

June 25, 1958
Industrial Development Bank | Development bank.

May 12, 1959
of Israel
Government of Israel..
Irrigation and agricultural

June 30, 1960
Do...
Telephone development

Feb. 20, 1961
Do.
Airport construction..

May 26, 1961
Industrial Development Bank. - Development bank...

Sept. 7, 1961 Government of Israel... Development program.

Mar. 21, 1962
Do.----
2d development program.

Aug. 3, 1962
Food for peace.--
Title I, sec. 104 (g) and (d):
Government of Israel. Project assistance...

July 19, 1960
Do..
---do-

Oct. 12, 1960
Do....
.doc

July 14, 1961
Do...

Industrial development bank Apr, 30, 1962
Do....
Project assistance..

Jun. 29, 1962
Do....
do..

Aug. 5, 1955
Doc.
-do...

Apr. 6, 1956
Weisman Institute.
Building program

Mar. 12, 1962
Government of Israel. Economic research.

Dec. 17, 1962
Do.
Project assistance..

July 31, 1956
Do.
-doc-

Aug. 23, 1956
Do...
----do..

July 16, 1957
Do.
---do.

Jan. 9, 1958
Do.
---do.

Aug, 25, 1958
Do.

Oct. 7, 1958
Do..
-do.

Dec. 17, 1958
Do..

Aug. 3, 1959
Title I, sec. 104(e), “Cooley":
Israel Bank of Agriculture, Grain storage facilities.

Dec. 15, 1958
Ltd.
Alliance Tire & Rubber Co., Tire and tube plant facilities--- Feb. 18, 1959

Ltd.
Samson Tire & Rubber Co., do---

Feb. 27, 1959
Ltd,
Dagon Batey-Mamguroth Grain storage facilities..

Mar. 10, 1959
Le Israel, Ltd.
The United Saran Plastic Plastic products facilities ---- Mar. 17, 1959

Corp., Ltd.
Silos & Warehouse Co., Ltd. Grain storage facilities.

Mar, 26, 1959
Moller Textile Corp-
Textile plant facilities.

Apr, 5, 1959
Paradise Mattress & Couch Mattress and furniture facilities.. May 3, 1959

Co., Ltd.
Sonol Israel, Ltd.

Petroleum distributing facilities. May 6, 1959
Mechanico, Ltd.
Rebuild auto parts facilities.

June 9, 1959
Suliatan, Ltd.

Soles and heels products facilities.- Aug. 11, 1959
Serafon Resinous Chemicals Plastics and chemicals facilities.-

Corp., Ltd.
Palestine Milling & Trad-Grain storage facilities..

Sept. 7, 1959
ing Co., Ltd.
Safen, Ltd..

Soft and hard board products facili- | Oct. 26, 1959

ties.
American Israeli Paper Paper mill facilities.---

Dec. 24, 1959
Mills, Ltd.
The Ashdod Co., Ltd... Industrial projects and constructions_ Jan. 6, 1960
"Dawe-Abic,” Ltd.. Animal feeds and medical facilities - Jan, 8, 1960
Silos & Warhouses Co., Grain storage facilities.-----

Feb. 4, 1960
Ltd.
Israel Fine Cotton Spin- Cotton spin mill facilities... Feb. 7, 1960

ning, Ltd. Rastrom, Ltd.

Precast concrete products facilities.- Feb. 17, 1960 Kadimah Chemical Corp.. Chemical plant facilities...

Feb. 23, 1960 Amcor, Ltd.....

Compressors production facilities.... Mar. 2, 1960

2, 498, 461 9, 342, 031 7, 838, 427 21,000,000

1,875, 608 11, 111, 111 16, 697,817

283,000 1, 962, 751

2, 492, 113 9, 311, 029 7, 812, 725 20, 989, 921

1,875, 608 11, 105, 778 16, 697, 817

283, 000

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249, 720
746, 953

626, 734
4,014, 504

193, 123 2, 222, 222 1, 256, 268

24, 762

5, 333

B
B
B
342
31

do...--

1,944, 983

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1,064, 166
193, 700

92,500
387,500

12, 492 112,000 375, 000 12, 500

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28, 339
86, 201
3,859

512

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Mar.

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Food for peace--Continued
Title I, sec. 104(e). "Cooley”-Con.
Haifa Silos, Ltd.
Grain storage facilities...

30, 1960 The United Saran Plastic Zinc oxide manufacturing plant.. May 12, 1960

Corp., Ltd.
Palestine Milling & Trad-Grain storage facilities...

July 19, 1960
ing Co.
Samson Tire & Rubber Co., Tire and rubber plant facilities.... Aug. 2, 1960

Ltd. “Rassco" Rural & Sub- Light industry centers and cosmetic Oct. 16, 1960

urban Settlement Co., facilities.

Ltd.
Near East International Small industry facilities..

Oct. 21, 1960
Financial & Trust Co.,

Ltd.
Assamin (1954), Ltd. Plant manufacturing macaroni.. Dec. 30, 1960
Silos & Warehouse, Ltd.. Grain storage facilities...

Dec. 13, 1960 "Binet" Jerusalem Chem- | Plastic manufacturing plant facilities. Jan. 4, 1961

ical Industries, Ltd. San Kol Chay Central Feed Grain storage facilities.--

Apr. 27, 1961 Mill Corp., Ltd. “Shemen" Israel Oil Indus- Soybean meal storage facilities... May 14, 1961

tries, Ltd. Avia Hotels, Ltd.-- Hotel facilities...

May 16, 1961 Szekely-Hoffman & Co., Electrical control manufacturing July 10, 1961 Ltd.

facilities. Dan Hotel Corp. Hotel contruction.

July 25, 1961 "Dagon" Batey-Mamgu- Grain storage facilities..

Dec. 11, 1961
roth Le-Israel,
Export-Import Bank
State of Israel.
Agricultural production

Jan. 19, 1949
Do.---
Transportation ----

Mar. 9, 1949
Do...
Housing materials...

Mar. 16, 1949
Do...

Telecommunications equipment. Mar. 23, 1949
Do...
Port development...

Sept. 7, 1949
Do..
Industrial development.

Oct. 26, 1949
Do..

Water supply distribution facilities, Feb. 20, 1958

agricultural development.
American Israeli Paper Mills... Paper and pulp plant equipment. Oct. 8, 1958
Mifalei Tovala, Ltd..
Diesel trucks and trailers..

Mar, 17, 1960
El Al Israel Airlines, Ltd. Jet aircraft-Boeing Airplane Co.. Sept. 2, 1960
State of Israel..
Equipment, etc., for airport.

Nov. 3, 1960
Government of Israel.
Port expansion program..

Mar. 16, 1961
State of Israel-Bank of Agri- Agricultural program...

Apr. 13, 1961 culture, State of Israel.

Expansion-Palestine electric --- Apr. 20, 1961 Do.--

Diesel electric locomotives-rail- May 4, 1961

ways. Do.----

Equipment for Negev. Phosphates, May 31, 1962

Ltd.
Government of Israel--- Equipment, etc.-highway mainte- Sept. 13, 1962

nance.
El Al Israel Airlines, Ltd.... Aircraft--Boeing---

Aug. 24, 1961 Israel Petrochem Enterprises. Establishment of chemical plant.---| Apr. 26, 1962

53, 736 34, 076

572 512

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Mr. LAUSCHE. Mr. President, will a businesslike basis. For the adminis- Agriculture and Forestry. In connecthe Senator yield?

trator to take the soft money route by tion with Public Law 480 loans, the threeMr. ELLENDER. I yield.

making loans to Israel on the basis of quarters of 1 percent interest requireMr. LAUSCHE. The Senator from three-fourths of 1 percent interest, with ment and the 10-year grace period has Louisiana is aware of the fact that a 10-year grace period is shameful, to say been used, in reloaning proceeds from the Lausche-Mundt amendment has the least.

sales. In many instances we have sold changed the law with respect to the in Mr. LAUSCHE. I concur in what the surplus commodities at world prices and terest rates that are to be charged. Senator from Louisiana has said. The lost considerable sums. In some coun

Mr. ELLENDER. Yes; I am aware of rule which has thus far been in exist- tries we have even sold at unrealistic that fact, but

ence is neither reasonable nor just- exchange prices, so that another 25 or Mr. LAUSCHE. I believe the amend- namely, to make loans at an interest 30 percent were added to our losses. Το ment is moving in the proper direction. rate of three-fourths of 1 percent, to assist those people to a greater extent, Whether it has gone far enough, I am be repaid in 40 years, with a grace period we are now permitting them to borrow not certain; but the amendment of which of 10 years in which no amortization the proceeds from the sales at threeI speak provides that three-fourths of 1 takes place. Interest was paid in the quarters of 1 percent, payable in 40 years, percent interest shall be chargeable only first 10 years.

with 10 years' grace. for the first 5 years, and thereafter the I concur completely in what the Sena

I am hopeful that the Senate will vote rate of interest shall be not less than 2 tor has said. I repeat, the amendment for the amendment, in which I ask that percent.

moves in the right direction. Whether all references to Public Law 480 in the Mr. ELLENDER. Yes; I am familiar it goes far enough, I cannot say.

act be deleted. It is the hope of the with that amendment. As the Senator Mr. ELLENDER. I agree with what Committee on Agriculture and Forestry has said, it is in the right direction. It the Senator from Ohio has said. In to revamp Public Law 480. We expect is written in the act that the AID ad- my opinion it does not go far enough, to hold hearings on that subject next ministration should, under no conditions, particularly with regard to loans to the

year. The time has come to amend the lend money, except on a businesslike countries that are capable of repaying. basis, to countries that are able to pay As I pointed out the other day, in act. We can then take care of the situaor that are not underdeveloped. The studying our programs abroad, I learned tions that are sought after in the pendpurpose of development loans is to assist that efforts are being made to amend ing bill. underdeveloped countries. That is the Public Law 480 in the pending bill, which

Mr. LAUSCHE. Mr. President, will main purpose of the fund. We have I think is wrong. I believe that consid- the Senator yield? made loans in the past to Israel and eration of proposed amendments of the Mr. ELLENDER. I yield to the Senaother countries, in large quantities, on act should be left to the Committee on tor from Ohio.

Mr. LAUSCHE. I point out that in development loans are contemplated for higher than the amount appropriated in discussions in the Foreign Relations Israel in fiscal year 1964.

1963, the agency is currently operating at Committee some suggestion was made I cannot emphasize too strongly, Mr. the same pro rata rate it had for fiscal that there be a mandatory rate of 2 per- President, that too much money was ap year 1963. Thus, in the first quarter of cent, but, following a discussion, it was propriated for the Development Loan fiscal year 1964, ending September 30, determined that a floor of 2 percent Fund in fiscal year 1963, and unless Con- 1963, a flash report from the Agency for should be fixed-meaning that the ad

gress reduces the amount authorized in International Development covering the ministrator should charge a rate of in the current bill to the amount allowed status of fiscal year 1964 allotments and the borrowing country to meet its ob- by the House—or even lower, if the Sen- obligations indicates that a total of ligation, with an interest rate of 2 per- thing is going to happen in fiscal year

ate could be persuaded to do it—the same $754,121,160 is available for all types of cent or over.

economic assistance. 1964. Mr. ELLENDER. That is the way I

Of this total amount, the Development would interpret the amendment.

As Senators know, the Agency for In- Loan Fund has available for the first I point out that in addition to loans ternational Development is presently op- quarter of 1964 a total of $278,527,370. amounting to $527 million, we have also erating under a continuing resolution And what has the agency been able to made available to Israel economic grants which permits them to obligate funds at obligate out of the Development Loan totaling $352 million.

the lowest of the following pro rata Fund in this first quarter of fiscal year In connection with the schedule of rates: First, the amount appropriated in 1964?

1964? The answer, Mr. President, is a loans I have just included in the RECORD, fiscal year 1963; second, the amount con total of $10,600,000 actually obligated by I would like to direct the attention of tained in the budget estimate for fiscal the Development Loan Fund for the first Senators to two development loans we year 1964; third, the amount allowed in quarter of fiscal year 1964. These data made to Israel in March and July of 1962. the House appropriation bill; or, fourth, are set out in the flash fiscal report I They aggregate $45 million and were the amount allowed in the Senate appro- hold in my hand, and I request that it made on terms of 40 years repayment, priation bill.

be placed in the RECORD at this point. with a 10-year grace period, and bearing Since we have neither a House nor Sen There being no objection, the report interest at the rate of three-fourths of i ate appropriation bill, and since the was ordered to be printed in the RECORD, percent. And I might reiterate that more budget estimate for fiscal year 1964 is as follows:

EXHIBIT A.-AGENCY FOR INTERNATIONAL DEVELOPMENT Flash report-Status of fiscal year 1964 allotments and obligations-Global summary by appropriation as of Sept. 30, 1963

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Mr. ELLENDER. Mr. President, what feasibility studies for projects are not facts in connection with the military aid facts must be presented to the Senate to yet available. We must not plan con- program. show that it will err if it makes avail- struction projects when the recipient I believe the RECORD ought to be clear able $160 million more than the amount government has not furnished us any that in due course of time the Senator allowed by the House to the Development data. I believe we can reach these goals from Louisiana will be offering amendLoan Fund?

if we limit the amount authorized for ments dealing with the military aid proThere is a preponderance of evidence development loan funds to $900 mil- gram, in which he will seek to reduce buttressing the House allowance. In lion, which will be accomplished if my the authorization for that part of the fact, the evidence justifies cuts below the amendment is adopted.

program. The RECORD ought to be very

I urge Senators to vote for it. amount allowed by the House. If the

clear that the amendments will be offlash report on the status of 1964 allot

Mr. LAUSCHE. Mr. President, I com- fered, some by the Senator from Louisiments and obligations were the only evi- mend the Senator from Louisiana for his ana and some by other Senators.

excellent presentation of this subject. dence, it alone would be sufficient. But He is worthy of praise, and I extend to should like to state that I will support

Mr. LAUSCHE. Mr. President, I there is the other evidence which I have him that praise on the basis of his gen- the amendment now pending before the already presented to the Senate.

eral approach to the subject. We must discourage the programing

Senate, offered by the Senate from I thank the Senator. Louisiana (Mr. ELLENDER).

Mr. ELLENDER. I thank the Senator. of development loan funds when firm

Mr. MORSE. Mr. President, I join the applications are not on hand. We must Senator from Ohio in commending the

AMENDMENT NO. 307 have a loan program that is not based Senator from Louisiana for his very able Mr. LAUSCHE. Mr. President, I send on expectations for loan applications. speech, in which he has brought out what to the desk an amendment which, if We must not appropriate funds when I consider to be some of the shocking adopted, would strike from the bill lines

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