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Private investment: Private develop whenever a Latin American nation ini After long deliberation, the committee ment banks have been established or are tiates the social and economic changes voted a figure of 175 million. My in the process of being established in the Alliance calls for.

the Alliance calls for. On a per capita amendment would restore the commitseven countries: Bolivia, Brazil, Hon- basis, countries like Chile, El Salvador,

basis, countries like Chile, El Salvador, tee's figure, reducing it 125 million from duras, Panama, Colombia, Dominican Colombia, and Panama received much the 300 million recommended by the Republic, and Ecuador. Other inter more aid than did Paraguay or Haiti, for Mansfield-Dirksen amendment. mediate credit institutions are relending example.

In this careful study of the continto small- and medium-sized industries In fiscal year 1963, aid was concen gency fund, the Foreign Relations Comhave been established in Peru, Mexico, trated in the countries which performed. mittee discovered that almost half of the and Chile.

It was reduced or held up where self- contingency fund last year went unused. Regional integration: Central America help and reform efforts were shunned or Of the 260 million appropriated last has been most successful in building a lagging. You will recall that the United year, 117 million was not spent. Therecommon market made up of Costa Rica, States spent almost nothing in Peru. fore the committee thought it proper to El Salvador, Guatemala, Honduras, and Funding for Brazil and Argentina was give the President a figure-175 milNicaragua. Their success in this much lower than expected. Brazil had lion-far above what was actually spent strategic area comprising 12 million peo not met her self-help commitments, nor last year-143 million-but, below the ple shows the way to other Latin Amer had it reached the stage of political, and level requested. ican countries, whose progress within the particularly, financial stability which The contingency fund is one of the Latin American free trade area has been would make worth while all of the lend most important items in the foreign aid considerably slower.

ing which was previously estimated. bill and it should not be dealt with To support the increasing self-help ac- Argentina's political problems prevented lightly. However, it should not be distivity—to insure that the momentum of any clear focus on development.

torted into something it was never inreform will increase-AID has requested This year, Peru's new constitutionally tended to be. $650 million.

elected Government has put that hith According to the legislative history It was and is impossible to state pre- erto politically stagnant country on the of this part of the aid program, the concisely the need for loan funds. The Alliance road to reform. Argentina has tingency fund is not to be used by the level of the Alliance lending program de a constitutionally elected Government executive branch to make up cuts unpends upon many factors. Most are be- and the prospects are good for stability passed by Congress. yond the control of the United States. after a year of turbulence. Further de It is my understanding that ordinarily The uncertainty stems from the fact velopment opportunities are evident in the contingency fund will be used for the that no lender, no bank can predict the Central America and Chile, among following purposes: amount it will lend in the future—and others.

First. For emergencies and unforestill remain a sound institution.

AID's development lending operations, seen occurrences. Based on the most careful analysis of like those of a bank, depend a great deal Second. For possibilities that may be the probabilities, AID has stated that it on mutual confidence. The United foreseen, but the amount of which is will need a minimum of $550 million for States has not assumed the posture of unknown at the time of the congresnew development loans and $100 million a hard-hearted leader. Congress has sional presentation-for example, for development grants this year. This placed tight restrictions on AID loan pro- may be relatively sure that our assistamount is designed to meet the Latin cedures, however. The loans must reflect ance program to Vietnam will change as American countries' increasing need for careful feasibility studies and a clear a result of the coup-whether it will be marginal external assistance as the Al- capacity for repayment. AID, therefore, up or down or how much cannot now liance progresses.

has acquired many aspects of a full- be foreseen. The Alliance for Progress program fledged banking operation. It has, Third. For changes after the congreswas also subjected to an examination in moreover, insisted that the Latin Amer- sional presentation has been made to the depth by the Senate Foreign Relations icans live up to their own commitments Congress, but before appropriations—this Committee. Their studied evaluation

studied evaluation on reforms. If we did not do so, the is for ease in preparation of the presreported to this body, concluded that the money we lend would neither benefit the entation. best interest of the United States, as a borrower nor further our Alliance objec Fourth. For increases in a program partner of the Alliance for Progress, tives. On the other hand, to raise hopes after the initial allocation as a result of called for the requested authorization. and aspirations, to achieve worthwhile changed circumstances.

AID's commitment of development bootstrap efforts and then not be able to Supporting the committee's action loan funds for the Alliance in fiscal year back them up with marginal external therefore supports the idea that the aid 1963 gives us a clear idea of how the lending—this causes a loss of confidence agency must use the money for the progprogram operates.

among our Latin American neighbors ress agreed to by Congress. If an unnecDevelopment loans make up the major and a sense of alienation from the Alli- essarily large contingency fund is apAID contribution to the Alliance for ance.

proved, while sharp cuts are made in cerProgress. Over $340 million in develop Right now, today, finance ministers tain parts of the program, the pressure ment loans was used in fiscal year 1963. and development experts from the Alli- will be great to convert the contingency Total commitments for development ance countries are meeting in São Paulo, fund into a slush fund to make up for loans and grants were $465 million. Brazil. This meeting of the Inter-Amer- cuts in parts of the program. The con

This exercise of fiscal responsibility in ican Economic and Social Council is de- tingency fund was designed to meet real the face of a $525 million appropriation voted to an analysis of reform efforts, to emergencies, not to circumvent the will is the best proof that assistance will be methods for improving the administra- of Congress. given only to the extent that it is con- tion of the Alliance, and to strengthen I repeat my conviction that the consistent with Alliance objectives. Two that spirit of mutual confidence which tingency fund is important. The comyears of Alliance experience back up this is the true revolution in this hemi- mittee considered it to be important. method of operation, which has to meet sphere over the past 3 years.

But it is designed for contingencies. two key U.S. objectives. These involve The democratic : leaders in Latin After a careful review of the past histhe assurance that the self-help and re- America today count on us. At the tory of the fund, the committee conform requirements of the Alliance must very moment when they have gained cluded that $175 million is enough. The be met-and, at the same time, the need confidence in us and are exposing them- committee's action should be sustained. to capture the confidence and imagina- selves to grave political hazards in the Mr. President, Members of the Senate tion of the Latin American people.

firm expectation of timely and effective should know that if some extraordinary AID, therefore, has acted on these support from the United States, we must

event did occur requiring extraordinary principles: First, it has refused to com come through.

expenditures, the Senate would stand mit or spend unless convinced that the Mr. President, I turn now to my third ready to heed the President's call. The outlay is clearly in the U.S. national in- major point: Why the figure for the funds would be made available promptly terest, promoting development and free- contingency fund recommended by the if needed. I would strongly support such dom in Latin America; and second, it Senate Foreign Relations Committee

Foreign Relations Committee a request. But at the present there aphas been prepared to offer assistance should be supported by the Senate. pears to be no need for increasing the

committee's figure. Nor should it be the following enrolled bills, and they to suggest the absence of a quorum, and lowered. It should stand as it is.

were signed by the Acting President pro thus to accommodate the leadership. In both instances, in restoring $125 tempore:

Mr. SALTONSTALL. Mr. President, million to the Alliance for Progress, and

H.R. 7405. An act to amend the Bretton under the existing conditions, I ask in reducing the contingency fund to $175 Woods Agreements Act to authorize the U.S. unanimous consent that I may withdraw million the Senate would be wise to sup- Governor of the International Bank for Re- my point of order. port the action of the Foreign Relations construction and Development to vote for The PRESIDING OFFICER. Without Committee figure.

an increase in the Bank's authorized capital objection, the point of order is withMr. President, I now suggest the ab- stock; and

drawn. sence of a quorum.

H.R. 8821. An act to revise the provisions

Mr. KUCHEL. Mr. President, I note The PRESIDING OFFICER. The amounts made available to the States purof law relating to the methods by which

that the leadership has now returned to clerk will call the roll.

suant to the Temporary Unemployment the Chamber. So I shall postpone to a The legislative clerk proceeded to call Compensation Act of 1958 and title XII of subsequent time my discussion of the the roll.

the Social Security Act are to be restored to problem I have in mind. Mr. DOUGLAS. Mr. President, is a the Treasury.

The PRESIDING OFFICER. The parliamentary inquiry in order during

question now is on the appeal by the a quorum call?

Senator from Oregon from the decision The PRESIDING OFFICER (Mr. Nel- AMENDMENT OF FOREIGN ASSIST- of the Chair. SON in the chair). The Chair is advised

ANCE ACT OF 1961

Mr. MORSE. Mr. President, I withby the Parliamentarian that it is not.

draw the appeal. Mr. DOUGLAS. It is not. The Senate resumed the consideration

The PRESIDING OFFICER. The Mr. MORSE. Mr. President, I advise of the bill (H.R. 7885) to amend further question is on agreeing

to the Ellender the Chair that I desire to have a live the Foreign Assistance Act of 1961, as amendment to the Mansfield-Dirksen

amended, and for other purposes. quorum.

amendments, as amended, to the comThe legislative clerk resumed and conThe PRESIDING OFFICER. The mittee substitute, as amended.

Mr. ELLENDER. Mr. President, I cluded the call of the roll, and the follow- question is on agreeing to the Ellender ing Senators answered to their names: amendment to the Mansfield-Dirksen understand that my amendment is now

amendments, as amended, to the com the pending question.
[No. 211 Leg.]
mittee substitute, as amended.

The PRESIDING OFFICER. That is
Allott
Hart

Morse Anderson Hartke

Morton

Mr. MORSE. Mr. President, I believe correct.
Bartlett
Hayden
Moss

a conference which now is underway is Mr. ELLENDER. Mr. President, if Bayh Hickenlooper Mundt

being attended by the majority leader, my amendment were withdrawn, what Beall Hill

Muskie
Bible
Holland
Nelson

the minority leader, the chairman of the amendment then would come up for Boggs Hruska

Neuberger committee (Mr. FULBRIGHT), the Senator consideration by the Senate? Brewster Humphrey Pastore

from Minnesota (Mr. HUMPHREY], the The PRESIDING OFFICER. The Burdick Inouye

Pearson

Senator from Louisiana (Mr. ELLENDER), Humphrey amendment, which proposes Byrd, Va. Jackson

Pell Byrd, W. Va. Javits

Proxmire and several other Senators. It is a very that lines 1 through 11 on page 2 of the Cannon Johnston Randolph

important conference, and I hope it will bill be stricken out. Carlson Jordan, N.C. Ribicoff

Mr. ELLENDER. If my amendment result in the saving of a great deal of Case

Jordan, Idaho Robertson
Church
Keating
Russell

time. Therefore, I think we should wait were adopted, what would become of the Clark Kennedy Saltonstall

until it is concluded; and I now suggest Humphrey amendment?
Cooper
Kuchel
Scott

The PRESIDING OFFICER. If the the absence of quorum. Cotton

Lausche Simpson
Curtis
Long, Mo. Smathers

Mr. HOLLAND. Mr. President, I rise Ellender amendment were adopted, and Dirksen Long, La. Smith

to a point of order: No business has been if the Humphrey amendment to strike Dodd

Magnuson Sparkman Dominick

out lines 1 through 11 on page 2, as Mansfield Symington

transacted since the previous quorum Douglas McCarthy Talmadge call.

amended, were then agreed to, it would Eastland McClellan Thurmond

carry with it the Ellender amendment.

The PRESIDING OFFICER. The Edmondson McGovern Tower

However, the Ellender amendment could Ellender McIntyre Williams, N.J. point of order is sustained.

be offered later, as an independent propFong

Mechem Williams, Del. Mr. MORSE. Mr. President, I appeal osition, if desired.
Fulbright Metcalf

Yarborough
Gore
Miller
Young, N. Dak.
from the decision of the Chair.

Mr. ELLENDER. Then it would beGruening Monroney Young, Ohio

The PRESIDING OFFICER. The

come inoperative, would it not? The PRESIDING OFFICER. A question is, Shall the decision of the

The PRESIDING OFFICER. Yes. quorum is present. Chair stand as the judgment of the

Mr. ELLENDER. Then, Mr. PresiSenate?

dent, I ask leave to withdraw my amendMr. SALTONSTALL. Mr. President, ment. MESSAGE FROM THE HOUSE

I respectfully state that, in my opinion, The PRESIDING OFFICER. The A message from the House of Repre- such an appeal is frivolous. So I make

So I make Senator from Louisiana has a right to sentatives, by Mr. Bartlett, one of its that point of order.

withdraw his amendment, and it is withreading clerks, announced that the House The PRESIDING OFFICER. The drawn. had agreed to the amendment of the Chair would have no authority to pass on Mr. HUMPHREY. Mr. President, the Senate to the bill (H.R. 1989) to author this point of order.

this point of order. This appeal is de- present parliamentary situation, as I ize the government of the Virgin Islands batable.

understand, is that the question is on to issue general obligation bonds.

Mr. KUCHEL. Mr. President, under agreeing to the amendment I offered yesThe message also announced that the my right to debate the pending question, terday—the amendment relating to the House had agreed to the report of the I shall use a few moments to describe Alliance for Progress funds and the committee of the conference on the dis- briefly an issue in regard to which I in- military assistance funds. agreeing votes of the two Houses on the tend subsequently to offer an amend The PRESIDING OFFICER. Is that amendments of the Senate to the bill ment. I trust that by the time I finish the amendment to strike out lines 1 (H.R. 6143) to authorize assistance to this brief discussion, the leadership on through 11, on page 2? public and other nonprofit institutions of both sides will have returned to the Mr. HUMPHREY. Yes. higher education in financing the con Chamber.

The PRESIDING OFFICER. Then struction, rehabilitation, or improvement Mr. MORSE. Mr. President, will the that is correct. of needed academic and related facilities Senator from California yield to me for Mr. HUMPHREY. Mr. President, I in undergraduate and graduate insti 30 seconds?

wish to modify that amendment. tutions.

Mr. KUCHEL. I yield.

Mr. GORE. Mr. President, I rise to a Mr. MORSE. I wish to explain that parliamentary inquiry: What business

although the Senator from Massachu- before the Senate requires the presence ENROLLED BILLS SIGNED

setts may think my appeal frivolous, I in the Chamber of so many persons who The message further announced that am really being cooperative, because I are standing around the walls and enthe Speaker had affixed his signature to made the appeal only in order to be able gaging in conversation? Has the Chair

any official notice of a need for such pedite the work of the Senate on the Mr. MILLER. I thank the Chair. visitors ? Foreign Aid bill.

Mr. LAUSCHE. Mr. President, will The PRESIDING OFFICER. The The proposal has been discussed with the Senator from Minnesota yield? Chair has not.

the appropriate officials of the adminis Mr. HUMPHREY. Mr. President, Mr. GORE. Then, Mr. President, I tration. They are not particularly happy first, I ask for the yeas and nays on my ask for enforcement of the Senate rule about it, but I am sure that they can amendment. in that connection. Under the Senate live with it. Like myself, they would The yeas and nays were ordered.

prefer the full $650 million recomrule, unless a Senator has specifically prefer the

Mr. LAUSCHE. Mr. President, will requested the presence in the Chamber mended by the committee. But they the Senator now yield? of his aid, his aid is not entitled to the have not expressed what I would call Mr. HUMPHREY. I yield to the violent objection.

Senator from Ohio. privilege of the floor. The PRESIDING OFFICER. All per

Mr. DOMINICK. Mr. President, a Mr. LAUSCHE. The recommendation

of the Foreign Relations Committee ensons now in the Senate Chamber who parliamentary inquiry.

a The PRESIDING OFFICER. The tailed

total authorization of do not have authority to be present will

Senator will state it. leave the Chamber.

$4,202,365,000.

Mr. DOMINICK. Do I correctly un Mr. HUMPHREY. Yes. Mr. HUMPHREY. Mr. President, I

Mr. LAUSCHE. To what amount should like to say a word, and then i derstand that the so-called Humphrey shall yield to the majority leader. As amendment, as it was stated yesterday in would the cuts which have thus far been

in that sum bring the a word of background, there has been a connection with the original amend- made very good discussion this afternoon on ment, is subject to division? Several of authorization?

us may not wish to accept the package Mr. MANSFIELD. Mr. President, if the amendments before the Senate. as a whole.

the Senator will yield to me, I may be I wish to modify the amendment

The PRESIDING OFFICER. The able to supply that information. which I offered yesterday in the light of

Mr. HUMPHREY. I yield to the mathose discussions, so that the effect of amendment would be divisible.

Mr. HUMPHREY. It is subject to jority leader. the amendment will be as follows: division.

Mr. MANSFIELD. On the basis of the My proposal of yesterday would have

I suggest respectfully to our good adoption of the amendment of the Senarestored to the committee bill, in lieu friend the Senator from Colorado that tor from Oregon [Mr. MORSE] yesterday, of the Mansfield-Dirksen amendments, the amendment as it now stands is not there would be a $25 million reduction. the full sum of $650 million for the Al

now exclusively my amendment.

amendment. It If the amendment now before the Senliance for Progress as recommended by represents a consensus. At the present ate is adopted, the figure will be brought the committee rather than the $525

mil- moment I happen to be the spokesman. down to the extent of $460 million, leavlion as proposed in the Mansfield-Dirk- The amendment has been discussed with ing a total authorization of $3.742 billion. sen amendments.

Senators on both sides of the aisle. I Mr. LAUSCHE. If no further reducSecond, it would maintain the com

am hopeful that it will meet, if not with tions in the authorization were made, the mittee's recommendation of the sum of general approval, at least with accept- amount authorized would be $3.742 $175 million for the President's contingency fund instead of the $300 mil- claim any pride of authorship at all. I ance. I wish to make clear that I do not billion ?

Mr. MANSFIELD. Yes, a cut of $460 lion which was proposed in the Mans- am appreciative of the fact that many million below the amount contained in field-Dirksen amendments.

Senators who are concerned about prog- the bill reported by the committee. However that solution would be my ress on the bill have been able to agree Mr. LAUSCHE. What was the origifirst preference after discussions with on the amendment. For example, I wish nal amount in the budget of the Presimany Senators today I wish to modify to thank the Senator from Louisiana dent for the fiscal year 1964, which my amendment. I shall place the ap- [Mr. ELLENDER), the Senator from Ore amount he cut on his own volition? propriate technical legal language before gon (Mr. MORSE), the Senator from Iowa Mr. MANSFIELD. First, it was $4.9 the Senate, but I can easily explain the [Mr. HICKENLOOPER), the Senator from billion; then on his own volition he reproposal. The Alliance for Progress Illinois [Mr. DIRKSEN], and the chair- duced the amount to $4.529 billion. funds authorized would be $600 million. man of the committee in particular, the Mr. LAUSCHE. If we stopped at the The Mansfield-Dirksen original amend- Senator from Arkansas [Mr. FULBRIGHT), present time in making cuts, the amount ments called for $525 million.

The the Senator from Alabama (Mr. SPARK- of the authorization would be $3.742 amendment would increase the figure by MAN), the Senator from Montana [Mr. billion? $75 million, so that $600 million would be MANSFIELD], the Senator from California Mr. MANSFIELD. The Senator provided for the Alliance for Progress. [Mr. KUCHEL), and others who sat in and correct.

The contingency fund would be cut discussed the proposal, along with other Mr. LAUSCHE. I thank the Senator. back to $175 million. With the Mans- Senators whom I have not mentioned. Mr. HUMPHREY. Mr. President, I field-Dirksen amendments, as modified So let us be clear about it. It is not any yield to the Senator from Oregon. yesterday by the amendment of the Sen- one Senator's proposal.

Mr. MORSE. Mr. President, I wish ator from Oregon [Mr. MORSE] it would

Mr. MILLER. Mr. President, a par- to vote quickly, but I have certain obligamean a net saving in the bill of $460 liamentary inquiry.

tions that I owe to Senators who have million as the bill came from the com The PRESIDING OFFICER. The been working with me and with whom mittee. It would mean an additional Senator will state it.

I have not had an opportunity to confer. reduction of $50 million in the reduc

Mr. MILLER. If the Humphrey I want to quickly outline what the tion provided in the original Mansfield- amendment, as modified, were adopted, situation is. As the Senator from MinDirksen amendments, as modified by the would the $175 million authorization nesota [Mr. HUMPHREY] and the Senamendment of the Senator from Oregon for the contingency fund be locked into

ator from Montana (Mr. MANSFIELD] [Mr. MORSE). the bill forevermore?

have pointed out, I want to vote, but I As of last night, the Mansfield-Dirksen The PRESIDING OFFICER. If the do have an obligation to the Senators amendments, as amended, would provide $175-million proposal for the contin- who have been working with me and a reduction of $410 million. The Hum- gency fund contained in the amendment with whom I have not been able to talk phrey amendment now to be offered as of the Senator from Minnesota were since these negotiations have taken a modification of my proposal of yester- adopted and subsequently incorporated place. I want them to know what the day would add an additional $50 million in the Mansfield-Dirksen amendments, situation is.

situation is. I want them to feel perreduction. So my amendment would it would not be subject to change there- fectly free to vote as they believe they mean that the Mansfield-Dirksen pro- after.

should vote. I have not spoken for posal, instead of providing $525 million Mr. MILLER. Do I correctly under- them, nor have I purported to speak for for the Alliance for Progress, would pro- stand further that if the amendment is them. vide $600 million; and instead of pro- adopted, it will be locked into the Mans It is true that the Senator from Minviding $300 million for the contingency field-Dirksen amendments?

nesota has talked with me, and I confund, it would provide $175 million.

The PRESIDING OFFICER. The sulted briefly with the majority leader. I believe that if the amendment were Parliamentarian has advised the Chair I had a conference with the Senator adopted it would do a great deal to ex- that it would be.

from Louisiana [Mr. ELLENDER] and he

is

pointed out to me that if his amendment Mr. MORSE. The Senator may be One further point. I have the assurwere adopted, it would be wiped out by correct, but I do not believe the Senator ance of the Senator from Minnesota the Humphrey amendment if the Senate is correct.

is correct. We are merely saying that [Mr. HUMPHREY] that he will support adopted the Humphrey amendment. there is going to be a contingency fund me in this. I wished to incorporate in Therefore, he was inclined to withdraw of $175 million; that is all. It is not the so-called package an agreement to his amendment. So he and I went to the linked to the Alliance for Progress pro reduce the military aid program for Senator from Minnesota (Mr. HUM gram.

Latin America from $50 million, as the PHREY] and asked the Senator to go Mr. RUSSELL. No, but the proposal committee recommended, to $40 million, along with us on $150 million for the would take $175 million, as I understand and add the saving of $10 million to ecocontingency fund. The Senator from it, out of the contingency fund?

nomic aid for the Alliance for Progress Minnesota graciously considered it and Mr. MORSE. No.

program. I intend to offer that amendsaid he did not feel he could go below Mr. ELLENDER. It would remain at ment, and the Senator from Minnesota the committee figure, which is $175 mil $175 million.

assures me he will support it. lion. It happened that I voted for $150 Mr. MORSE. It would remain at $175 Mr. HUMPHREY. I will give the million in the committee but could not million, as reported by the committee. Senator my individual vote, but I made go along with the $175 million.

Mr. RUSSELL. What did the SO it crystal clear that from now on we This must be a give-and-take com called powerhouse amendment propose

would consider the amendments one at a promise situation, when we write a bill to make the contingency fund?

time, as they come. on the floor of the Senate-which we are Mr. ELLENDER. Three hundred mil Mr. MORSE. If the Senate adopts doing. lion dollars.

the Humphrey amendment, many other I consulted with the Senator from Mr. MORSE. Three hundred million amendments will be offered that will inLouisiana [Mr. ELLENDER] and it was dollars.

volve further cuts in the amounts. If with some reluctance that we said, as Mr. RUSSELL. That is the point I am the Senate votes to adopt the Mansfieldto that amount, that if we could get making. I look upon that as a consider Dirksen amendments, that will not mean some further concession we would accept able saving. If the money is taken out that we shall be stopped from making the $175 million in the contingency of the action programs, where we know further savings in the foreign aid profund.

it is going to be expended, and put in the gram. Many other amendments will be I hope Senators will read the debate contingency fund, the chances are it will in order and can be adopted. They inon the contingency fund when they re

not be expended. If we put the money volve a saving that can run into milceive the CONGRESSIONAL RECORD tomor

in one of the action programs, it will be lions of dollars. We shall offer them. row, because the Senator from Louisiana spent to the last dime.

Mr. ELLENDER. Mr. President, will and I pointed out that the contingency

Mr. MORSE. I say to the Senator the Senator yield? fund, as it has been operating, has in

from Georgia that there is nothing to Mr. HUMPHREY. Mr. President, if volved the expenditure of a great deal stop the President from spending the

I still have the floor, I yield to the Senof money, not for American national money, if given $300 million for spend ator from Louisiana. emergencies, but for emergencies in

ing. The effect would be the equivalent Mr. ELLENDER. Mr. President, I other countries. More than half the of what could be spent under the Alliance wish to make it crystal clear that, if the money has been used for budget balanc- for Progress program, even if used for

contingency fund were used in the maning, for balance-of-payments problems, a balance-of-payments problem or for

ner some of us believe it should be used, and for budget support money in other budget-support money. That is why I

I would be in full agreement with the discountries, such as Brazil and Argentina. do not like to give such discretion to the

tinguished Senator from Georgia. But, In some instances those countries in turn President.

as I pointed out this afternoon, $100 milhave been paying off American creditors.

Mr. RUSSELL. I can understand lion of the $250 million that Congress We believe this is not the proper use for that, but I was looking at the overall

provided last year was returned to the the contingency fund. Most people be- savings. I listened with interest to the

Treasury, and only $35 million was used lieve the contingency fund should be remarks of the Senator from Ohio. As

for contingencies during the first 9 used to meet U.S. emergencies and not a practical matter, less than $150 million

months of fiscal year 1963. The balsome other country's emergencies. But, was spent out of the contingency fund

ance of it was used, as I pointed out, to be that as it may, that was our argument

in the past fiscal year, so if we put $300 balance the budgets of some countries this afternoon. That was why we said million in the fund, the chances are that

in South America and some in Asia. we could not go along with the proposal $150 million of it will not be expended.

Mr. RUSSELL. What would prevent to raise the amount for the contingency But if we put the $175 million in the

the $175 million from being used for the fund to $300 million, but that if we Alliance for Progress, we would know

same purpose? could obtain some other concessions we beyond any peradventure that it would

Mr. ELLENDER. We could write would go along with $175 million. be spent.

something into the bill that would direct We were speaking only for ourselves.

Mr. HUMPHREY. Mr. President, will

how it could be used. the Senator yield? The Senator from Minnesota wanted to

Mr. SALTONSTALL. Mr. President,

Mr. MORSE. I do not make the go to $650 million on the Alliance for

will the Senator yield? Progress. We said we could not support assumption that the Senator makes. I

Mr. HUMPHREY. Mr. President, I believe there is a clear intention to exthat proposal. He asked if we could sup

yield to the Senator from Massachusetts. port $600 million. We said we would pend the money. If they can get $300

Mr. SALTONSTALL. I say to the million, we will find that much of the favor having a vote on it.

Senator from Minnesota that I dislike to $300 million will be used. I believe there I can speak only for myself, but that has been that kind of shift. I feel much

vote to cut the contingency fund, more would be an additional saving, and I

than all the others. I am perfectly willbetter with $175 million in the fund than would be willing to take that adjustment. with $300 million in it.

ing to see this fund cut back, if that is Mr. RUSSELL. Mr. President, will

the will of the Senate.

Mr. RUSSELL. I proposed to supthe Senator yield? port the amendment of the Senator from

I repeat that Secretary of State Rusk Mr. MORSE. I yield.

testified before the Committee on ForLouisiana, which he has withdrawn. Mr. RUSSELL. As I understand the

Mr. MORSE. So did I.

eign Relations thatcontingency fund, it has never been ex Mr. RUSSELL. But I was hoping to It is of the greatest value in being able to pended in whole. get the best I could out of the situation.

move promptly in some of these unforeseen Mr. MORSE. We brought that out, It seemed to me it would be better to

situations to make commitments. too.

leave the money in the contingency That was testimony by Secretary of Mr. RUSSELL. So it seems to me that fund, where it would not all be spent, State Rusk before the Foreign Relations we are asked to transfer this money to a rather than to put it in the fund for the Committee. position where we know it will be ex Alliance for Progress, where we know As the Senator from Louisiana has pended, taking it from the position every dime of it will be committed. said, the amount of $100 million on the where, the chances are, it will not be Mr. MORSE. .

I believe it will be spent. contingency fund was returned in 1963 expended. That is the position I have taken.

and not spent, because it was not needed.

Personally, I would rather see a flat com- man of the committee, I have received Mr. ANDERSON. Does the Senator mitment, with respect to funds that will certain information, but, for the pur- feel it would be helpful to Senators to probably be spent, as the Senator from pose of the RECORD, I should like to make know how the chairman of the commitGeorgia said, leaving a certain flexibility an inquiry. Is it true that after the tee and the ranking Republican member in the fund. That is my own feeling. specified period is over, the President, of the committee feel about it? It seems I would dislike to see a cut made in the by law, must make a full accounting of that the Foreign Relations Committee is contingency fund and see other funds of the purposes for which the contingency acting in the capacity of an investigatory a specific character left alone. funds were used ?

committee, and that the final decision is Mr. HUMPHREY. Historically, the Mr. HUMPHREY. The Senator is being reached by the leadership. I do contingency fund indicates that there is correct. The bill provides, under chap

The bill provides, under chap- not object to that procedure, but I have a considerable degree of flexibility, with ter 5, section 451(b):

great faith in the Senator from Arkanother items of flexibility and transfer

The President shall provide quarterly re

sas, and I would like to know how he ability, plus the amount in the military ports to the Committee on Foreign Rela- feels about it. It is pretty difficult to assistance fund for military need. The tions and the Committee on Appropriations

tions and the Committee on Appropriations know how to vote. I should like to be emergency fund of some $300 million, of the Senate and the Speaker of the House able to vote with some semblance of with the $175 million recommended by of Representatives on the programing and intelligence. I thought the suggestions the committee, involves a considerable the obligation of the funds under this sec

of the Senator from Minnesota were tion. amount of flexibility.

eminently sound. Other Senators may I want to be frank. I do not find that Mr. COTTON. Does not the Senator not think so. The chairman of the comthis is the most happy situation, but I from Minnesota believe, as the Senator mittee

mittee and the ranking Republican have talked with some of our colleagues from New Hampshire is inclined to be- member should let us know how they as to what we might be able to do to pro- lieve, that the foreign aid program hav feel. ceed with the bill that would let us arrive ing assumed the dimensions it has as Mr. HUMPHREY. I have been disat something constructive. I believe this sumed, and having gathered the mo cussing the question with the chairman amendment, which is a compromise mentum it has gathered, in the long run, of the committee. It has been the amendment, which was arrived at after whoever may be President, we should desire of the Senator from Minnesota to the give and take of Senators who have lean toward giving a larger contingency support the committee all the way.

. rather strong views, will help us proceed fund to the President, in view of the fact Mr. ANDERSON. I do not question with the proper consideration of the bill. that it will be fully accounted for and

that it will be fully accounted for and that, but I think the Senator from ArIn reference to the funds for the Al- used, in the President's discretion, for kansas should speak for himself. liance for Progress, there are specific emergencies, and should reduce the Mr. LAUSCHE. Mr. President, will standards which must be followed in the amounts that go into the working pro the Senator yield? programing of those funds. To date grams?

Mr. HUMPHREY. Let me yield first those funds have been programed about Mr. HUMPHREY. First, I think $175 to the Senator from Ohio. about as well as any in the history of the million is enough for the contingency Mr. LAUSCHE. There has been some foreign aid program. That is the rea- fund, in view of the experience over the question as to which funds should be son why I have suggested a higher years. Second, the Alliance for Progress provided by appropriating them to the amount. That is the reason I have

reason I have funds are well programed. I do not contingency fund or appropriating them fought hard for this amendment. The say they are perfect by any means, but to the Alliance for Progress. I call the House has authorized a figure of $450 there is a full accounting for them. attention of Senators to page 47 of the million. The Senate committee recom I am deeply concerned over the sharp testimony, at which point Mr. Rusk was mended $650 million. It is quite obvious cut made in the other body. Otherwise testifying. He said that the Clay report that we are not going to come out of the I would not be as adamant as I have recommended a minimum of $4.3 billion. conference with our exact figure. I am been. I have great sympathy toward the Mr. Rusk said that while he recomsure the Senator from Massachusetts, contingency fund. I think my record in- mended $4.3 billion, it may not all be who has had much experience in con- dicates that I have supported it, with spent, because General Clay was doubtference with the House, knows that we its flexibility. But with $450 million ful in his own mind “that $300 million are lucky if we can hold reductions to authorization in the other body, if this of the prospective loans to Latin Amera minimum.

body were to authorize only $525 million, ica would in fact be used because of the After that, there must be an appear. I am afraid we would cripple the pro- unlikelihood they would be qualified for ance before the Appropriations Commit- gram. What I am looking for is a better by action taken by the Latin American tee, where the Senator from Massa- figure, a more rational figure, for the countries." chusetts and other Senators scrutinize Alliance for Progress, and I am confident The Latin American funds or the Alvery carefully the countrywide pro- that we can arrive at a better figure. liance for Progress funds can only be grams. I believe we will come up with Mr. COTTON. Does the Senator feel used when certain conditions are met by a good proposal after action is taken on that every cent allocated will be spent the members of the Alliance for Progress. the Mansfield-Dirksen amendments. A Mr. HUMPHREY. No, because the My own belief is that there has been substantial saying will be provided.

funds will have to be programed under a weakness in the meeting of those conMr. SALTONSTALL. Mr. President, certain criteria. They did not spend all ditions and that it does not follow that for about 10 years I have had experience that was appropriated last year. I be- all the money appropriated to the Alin conferences between the House and lieve there was a carryover of something liance for Progress will be more certainly the Senate. Under President Eisen- like $50 million from the $525 million used than if the money were put into the hower, President Truman, and President appropriated.

President's contingency fund. Kennedy, where commitments had to be Mr. COTTON. But essentially this Mr. MANSFIELD. Mr. President, will made and cuts had to be made, the ad- amendment, in its present form, holds the Senator yield briefly? ministration always wanted to keep the down the contingency fund and restores Mr. HUMPHREY. I yield. contingency fund up and cut the other some cuts in the working programs?

Mr. MANSFIELD. In view of the inamounts. I always thought that was the

Mr. HUMPHREY. It holds it down to quiry of the distinguished Senator from fund that provided fluidity in the pro- the recommendation of the Committee New Mexico, the chairman of the Space gram, if the program had otherwise on Foreign Relations and reduces by $50 Committee, former chairman of the been cut too low. If that was done, and million the recommendation of the Com- Joint Committee on Atomic Energy, and the contingency fund was kept at a

mittee on Foreign Relations with respect former chairman of the Committee on reasonable amount, it was satisfactory. to the Alliance for Progress.

Interior and Insular Affairs, I am sure Mr. HUMPHREY. I hope this fund Mr. COTTON. But it is far in excess the Senator knows, and the Senate will be kept at a reasonable amount. of the House figure?

should know, that the leadership never Mr. COTTON. Mr. President, will the

Mr. HUMPHREY. It is in excess of makes a move on any bill brought before Senator yield? the House figure.

the Senate until and unless it has the full Mr. HUMPHREY. I yield.

Mr. ANDERSON. Mr. President, will concurrence of the chairman of the comMr. COTTON. Through the courtesy the Senator yield?

mittee and usually also the ranking of the Senator from Iowa and the chair Mr. HUMPHREY. I yield.

minority member of the committee. The

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