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shortened. The development loan fund costing us millions of dollars which could be given assurance that recipient nations is a financial instrument, and ought to be well used in our own country.
would be paying back the full costs of be looked upon as a part of our overall The amendment would remove the gift making the loan as well as the amount of national security policy.
element from development loans. It the loan itself. None of this country's Mr. FULBRIGHT. Mr. President, will would take out the subsidy—the subsidy experiences with Western European nathe Senator yield?
for which the American people are now tions would indicate to me that their Mr. HUMPHREY. I yield to the picking up the tab. It would differenti- leaders are not good businessmen, seekchairman of the Foreign Relations Com ate more sharply between our loan and ing first of all to strengthen their own mittee.
our grant programs in foreign assistance. financial structure, so that they can conMr. FULBRIGHT. I wish to empha- It would make the loan program faithful tinue to improve their positions in the size the point that we have not intended to its name, and give the American world. and it is not now intended, to have this people some assurance of getting back all The argument has also been offered fund operate as a moneymaking bank- of the money they put into it.
that many of the recipient countries, ing institution. It is, as the Senator has
The adoption of the amendment would particularly those whose economic said, a tool in our foreign policy. The not, as some have suggested, make us growth is vital to the United States, canoriginal Marshall plan, as most people look like Uncle Shylock, and blur the not take on the added financial burden believe, was a successful operation. It image we have so carefully and pains- of increased interest rates. I have been was never considered to be a money takingly built up. Instead, it seems to told that their debt servicing capacity making operation. When we look back me, it would only cement the picture of a cannot sustain it. If I remember coron it now, perhaps it would have been good friend who is willing to help out rectly, the same argument was made wise if the program had been based on
over the rough places—who says, “Sure, when the development loan program itsoft loans—that is, loans requiring re- I'll loan you the money, but I'll have self was first inaugurated—that the unpayment with low interest-because we
to borrow it first myself. I don't want derdeveloped countries could not underwould be very fortunate indeed with such
anything extra for my trouble. All I ask take at this time to pay back many loans, loans coming due at this juncture.
is to be covered in costs and the amount no matter how long term they were. Yet At the same time, we know that a small of the loan itself.”
there is no question that the developpercentage of the original program was
Who could ask a friend to do more?ment loan program has been a signal in the form of loans, and we are now re Mr. President, we are currently facing success, and is admittedly one of the ceiving an average of $300 million a year our largest public debt in history, and a most salutary changes in the foreign aid in repayment on the part of the program long-continued imbalance of interna- program since its inception. Surely unwhich was in the form of loans.
tional payments has brought our gold derdeveloped countries that are finding Therefore the lending part is quite reserves to their lowest reserve level since in the loan program a solution to many sound, and the committee and the Con- 1939. I am sure there is not a Member of of their pressing problems will not disgress have gone along with it.
the Senate who does not agree that we card it—or us—because we ask them to On the judgment of the best author- must retrench wherever possible, and pay as much themselves for the money ities I know in this field, if we put the who is not seeking ways to do so.
as it costs us to get it for them. minimum as high as the Senator from
In the past 3 years, we have done much As Senators know, I have long been a Alaska would have it, for all practical to set our economic house in order— supporter of the foreign aid program. I purposes it will, in effect, price us out of particularly in foreign assistance. For agree with it both in principle and in the market. The underdeveloped coun- example, we have reduced the amounts philosophy. I am convinced that it has tries are much less likely to be able to of grants to foreign governments, while been, from the beginning, a program bear that kind of loan with a high in- still giving them aid for mutual benefit. which is in our own self-interest; and I terest rate than the original Marshall We have set the pattern of more and know in my heart that it is in our great countries would have been able to do if more lending of aid rather than giving it American humanitarian tradition. we had imposed it at that time.
away. The share of development loans But I do feel that as we vote to conI therefore hope that the Senate will in foreign assistance programs has in- tinue it, we should consider from every not further emasculate the bill by adopt- creased by $450 million between 1961 and angle the current condition of our own ing this amendment.
1964, while development grants have in- people and the current condition of our Mr. MOSS. Mr. President, I support creased $100 million. During this time, own financial resources, and should give the amendment offered by the distin- supporting assistance has been reduced them first call. We must trim our forguished Senator from Alaska [Mr. by $600 million. This is all encouraging, eign assistance program whenever and GRUENING]. I do so because I think it but it is not enough.
wherever we can without endangering represents sound economics for this
I feel that the report submitted by the its objectives. The adoption of this country, and reasonable loan repayment Committee on Foreign Relations on H.R. amendment is one concrete way to do terms for recipient nations.
7855 is one of the most remarkable in the this. Very simply, the amendment provides history of the foreign assistance program.
In conclusion, let me stress that we that governments which receive foreign I compliment the distinguished chair- must not attempt to profit from the ecoassistance development loans from the man, Senator FULBRIGHT, and the mem- nomic conditions of the lesser developed United States must pay the same rate bers of the committee on it. The frank- countries, but by the same token we of interest on these loans as our Govern- ness with which the entire foreign should not provide a subsidy at the exment had to pay to borrow the money in assistance program is discussed will pense of our own economy, and at a time the first place.
undoubtedly lead to further improve- when we can ill afford to do so. I realize that the Foreign Relations ments in it.
I strongly urge the adoption of the Committee has made some progress in I was pleased, of course, that the com- amendment offered by the Senator from this respect. Under the term of H.R. mittee made the recommendations it did
Alaska. 7855, as reported, the interest rate on on the rate of interest on development
Mr. HUMPHREY. Mr. President, I development loans has been set at three- loans. I am glad the members agreed suggest the absence of a quorum. fourths of 1 percent for the first 5 years that this is an area in which action
The PRESIDING OFFICER. The of the loan, and 2 percent thereafter. should be taken. But, in my opinion, the clerk will call the roll. This is an improvement over the present committee did not go far enough.
Mr. GRUENING. Mr. President, I ask method, which gives the administration I must disagree with the thinking, ex- unanimous consent that the order for the discretion to set interest rates at even pressed in the report, that by continuing the quorum call be rescinded. lower, long-term levels. But it still "soft" loans, the United States will en
The PRESIDING OFFICER. Withleaves the American taxpayer digging courage other European nations to re- out objection, it is so ordered. down in his pocket to pay a consider- duce interest rates and lengthen matu- Mr. GRUENING. I ask that the roll able difference. Our Government is rity of foreign aid loans. Why is not the be called on the amendment. borrowing the money it lends at the rate reverse more likely to be true? Why The PRESIDING OFFICER. The of 3 percent plus. In any way one figures would it not be easier to get Western Eu- question is on agreeing to the amendit, there is a gap of from 1 to 3 or 4 per- ropean nations to assume an even larger ment offered by the Senator from Alaska cent which must be made up. This is share of foreign aid lending if they could [Mr. GRUENING] to the committee
amendment. The yeas and nays having Mr. KUCHEL. I announce that the The PRESIDING OFFICER. The been ordered the clerk will call the Senator from Utah [Mr. BENNETT), the amendment to the committee amendroll.
Senator from Kentucky [Mr. COOPER), ment, as amended, will be stated. The legislative clerk called the roll. the Senator from Arizona [Mr. GOLD The LEGISLATIVE CLERK. On page 42
Mr. HUMPHREY. I announce that WATER), the Senator from Kansas (Mr. of the committee amendment, as amendthe Senator from Virginia (Mr. BYRD), PEARSON), and the Senator from Massa- ed, between lines 11 and 12, it is prothe Senator from West Virginia [Mr. chusetts [Mr. SALTONSTALL] are neces- posed to insert the following: BYRD], the Senator from Oklahoma [Mr. sarily absent.
(b) At the end of section 601 add the folEDMONDSON), the Senator from North If present and voting, the Senator lowing new subsection: Carolina (Mr. ERVIN], the Senator from from Massachusetts [Mr. SALTONSTALL] "(c) (1) There is hereby established an Tennessee (Mr. GORE), the Senator from would vote "nay."
Advisory Committee on Private Enterprise Indiana (Mr. HARTKE), the Senator from On this vote, the Senator from Utah
in Foreign Aid. The Advisory Committee
shall carry out studies and make recomFlorida (Mr. HOLLAND), the Senator from [Mr. BENNETT) is paired with the Sena- mendations for achieving the most effective South Carolina [Mr. JOHNSTON], the tor from Kentucky [Mr. COOPER). If utilization of the private enterprise proSenator from Missouri (Mr. LONG), the present and voting, the Senator from visions of this Act to the head of the agency Senator from Louisiana (Mr. LONG], the Utah would vote “yea," and the Senator charged with administering the program Senator from Minnesota [Mr. Mc- from Kentucky would vote “nay.”
under Part I of this Act, who shall appoint CARTHY], the Senator from Wyoming On this vote, the Senator from Ari
the Committee. [Mr. McGEE], the Senator from Michi- zona [Mr. GOLDWATER] is paired with the shall represent the public interest and shall
"(2) Members of the Advisory Committee gan [Mr. McNAMARA), the Senator from Senator from Kansas (Mr. PEARSON). If
be selected from the business, labor, and Connecticut [Mr. RIBICOFF], the Senator present and voting, the Senator from professional world, from the universities and from Virginia [Mr. ROBERTSON], the Sen- Arizona would vote "yea,” and the Sen- foundations, and from among persons with ator from Georgia [Mr. RUSSELL), the ator from Kansas would vote anay." extensive experience in government. The Senator from Florida [Mr. SMATHERS),
The result was announced-yeas 30, Advisory Committee shall consist of not more the Senator from Mississippi Mississippi [Mr. nays 44, as follows:
than nine members, and one of the memSTENNIS), the Senator from Georgia
bers shall be designated as chairman. [No. 219 Leg.]
"(3) Members of the Advisory Committee [Mr. TALMADGE), and the Senator from
shall receive no compensation for their servSouth Carolina (Mr. THURMOND] are ab
ices but shall be entitled to reimbursement sent on official business
in accordance with section 5 of the AdI also announce that the Senator from Bible
ministrative Expenses Act of 1946 (5 U.S.C. California (Mr. ENGLE) is absent because Burdick Jackson Symington 73b-2) for travel and other expenses in
Cannon of illness.
Jordan, Idaho Tower
curred in attending meetings of the Advisory Curtis Lausche
Walters On this vote, the Senator from Vir
Magnuson Williams, Del.
Committee. Dominick ginia [Mr. BYRD) is paired with the Sen
“(4) The Advisory Committee shall, if Eastland Mechem Young, N. Dak. possible, meet not less frequently than once ator from West Virginia [Mr. BYRD). If Ellender Morse
Young, Ohio each month, shall submit such interim represent and voting, the Senator from
ports as the Committee finds advisable, and Virginia would vote "yea,” and the Sen
shall submit a final report not later than ator from West Virginia would vote Anderson Hickenlooper Morton
December 31, 1964, whereupon the Commit“nay.”
tee shall cease to exist. Such reports shall
be made available to the public and to the On this vote, the Senator from Vir
Congress. ginia (Mr. ROBERTSON] is paired with the Brewster Javits
“(5) There is hereby authorized to be apSenator from Indiana (Mr. HARTKE). If
Jordan, N.C. Pell
Case present and voting, the Senator from
propriated such sum as may be necessary to
enable the Advisory Committee to carry out Virginia would vote "yea," and the Sen
its functions." ator from Indiana would vote “nay." Cotton
On page 42, line 12, strike out “(b)”
and insert "(c)”. sippi (Mr. STENNIS] is paired with the Fulbright Metcalf
On page 42, line 16, strike out “(c)” Senator from Wyoming [Mr. McGEE). Hart
and insert “(d)”. If present and voting, the Senator from
On page 43, line 12, strike out “(d)"
, Mississippi would vote "yea," and the Bennett Hartke
an insert “(e)”. Senator from Wyoming would vote
Byrd, Va. Holland Robertson
Mr. JAVITS. Mr. President, the “nay.”
Long, Mo. Saltonstall Senate Foreign Relations Committee reOn this vote, the Senator from South Edmondson Long, La. Smathers
port on H.R. 7885 clearly indicates that Carolina [Mr. THURMOND) is paired with
the foreign aid program needs major the Senator from Michigan [Mr. Mc- Goldwater McNamara Thurmond reorganization and reorientation. It is NAMARA). If present and voting, the Gore
my considered view that nothing less Senator from South Carolina would vote
So Mr. GRUENING's amendment to the than the assignment of a major role for “yea," and the Senator from Michigan committee amendment in the nature of private enterprise in foreign aid will save would vote anay." a substitute was rejected.
this vital program from successive even On this vote, the Senator from South
Mr. HUMPHREY. Mr. President, I deeper appropriation cuts. Since 1958, I Carolina (Mr. JOHNSTON] is paired with move that the vote by which the amend- have been urging the Senate to take the the Senator from Minnesota (Mr. ment to the committee amendment was lead in studying specific proposals for MCCARTHY). If present and voting, the rejected be reconsidered.
the introduction of American business Senator from South Carolina would vote
Mr. FULBRIGHT. Mr. President, I into the aid program. Many of my pro"yea,” and the Senator from Minnesota move to lay on the table the motion to posals have been accepted: Properly would vote "nay." reconsider.
applied foreign economic aid is so essenOn this vote, the Senator from Louisi
The motion to lay on the table was
tial to our national interest that we ana [Mr. LONG] is paired with the Senaagreed to.
must use every available resource intor from California (Mr. ENGLE). If
PRIVATE ENTERPRISE ADVISORY COMMITTEE present and voting, the Senator from
cluding U.S. private enterprise as well
as the organs of our Government in the Louisiana would vote "yea," and the Sen
FOR FOREIGN AID
endeavor to make it effective. ator from California would vote "nay." Mr. JAVITS. On behalf of myself, the
What is required is the marshaling of On this vote, the Senator from Okla- Senator from Minnesota [Mr. HUM
the private U.S. economy in a major and homa [Mr. EDMONDSON] is paired with PHREY], the Senator from Oregon [Mr. imaginative manner behind the developthe Senator from Florida (Mr. HOL- MORSE), and the Senator from Alaska ment effort. LAND). If present and voting, the Sena [Mr. GRUENING), I offer to the committee
My amendment, which calls for the tor from Oklahoma would vote "yea," amendment, as amended, the amend establishment of an Advisory Committee and the Senator from Florida would vote ment which I send to the desk and ask on Private Enterprise in Foreign Aid “nay.” to have stated.
would begin to accomplish this purpose. CIX -1354
The purpose of this Committee would be dollar and local currency loans to pri- dations regarding the effective utilizato make recommendations to the Admin. vate business and the Foreign Assistance
vate business and the Foreign Assistance tion of private enterprise in the foreign istrator of the aid program for achieving Act of 1963, now before us, lends further
Act of 1963, now before us, lends further aid program is essential now: the most effective utilization of private emphasis to encourage and facilitate First. The Clay Committee created by enterprise in carrying out the objectives participation by private enterprise, the
participation by private enterprise, the the President on December 10, 1962, is of the Foreign Assistance Act of 1961, potential of private enterprise in the aid not authorized by statute or an Execuas amended. The Committee would con- program has not been developed.
tive order; the amendment I propose sist of not more than nine members— The foreign aid program has profited would authorize an advisory committee men and women of stature from the busi- from infusion of new ideas from Amer
from infusion of new ideas from Amer- by the Congress to do a specific job for a ness and professional world, the univer- ican business, universities, foundations specific period; sities, foundations, and persons with on numerous occasions in the past, with Second. While the Clay Committee is extensive experience in government. major and beneficial results both in charged to look into all U.S. GovernDuring the life of this Committee, it terms of specific legislation and new ment's foreign operations programs in would make continuous recommenda- emphasis in terms of the national inter
emphasis in terms of the national inter- the economic and military fields, the adtions in close cooperation with the head est of the United States. The recom visory committee I propose would devote of the agency and with those actually mendations of the Harriman committee
mendations of the Harriman committee itself specifically to improving the pricharged with carrying out the private in 1947 'resulted in the guidelines which
in 1947 'resulted in the guidelines which vate enterprise operations of the proenterprise activities of the agency. The served as ground rules for the Marshall gram.
gram. The Clay Committee, given its Committee would cease to exist at the plan; the Randall Commission in 1954
plan; the Randall Commission in 1954 broad task, cannot be expected to deal end of 1 year.
made a series of recommendations which with such a specific problem on a conThe amendment springs from a sug in turn had major legislative conse tinuing basis. gestion of William S. Paley, chairman quences in the area of military aid, on Third. I have discussed my proposal of the board of CBS. He aptly char the issue of loans versus grants, the with AID Administrator Bell, who favors acterized the lack of close relationship formulation of projects supported by aid,
formulation of projects supported by aid, it as an important aid to the program. of private enterprise to our aid program and so forth; the Fairless committee in The Senate by its actions this week during the course of an address on for- 1957 made recommendations regarding
1957 made recommendations regarding has clearly indicated that unless the aid eign aid before the 49th National Foreign the greater utilization of private enter- program is recast, the entire foreign aid Trade Convention on October 20, 1962: prise through foreign aid, pointed out
prise through foreign aid, pointed out program may be lost next year. This An obvious weakness of our aid program
the need for long-range economic de- advisory committee would play a major is the continuous failure to harness American velopment planning, reaffirmed the need role in the reshaping of this vital aid private enterprise effectively to the develop- of military aid expenditures and collec program so that by its more effective ment task. Each year language stressing tive security; the Boescheustein com functioning it could assure its own this need is piously included in the aid leg- mittee in 1959 made a series of construc continuance. islation. But year after year the matter
tive proposals regarding development I am gratified that the amendment remains deadlocked; Government on the one side skeptical of giving private interests
loans, investment guarantees, taxation has found favor in the eyes of Senators special advantages; and private business on
and antitrust action; the report prepared who are opposed to many parts of the the other side unprepared to use stockhold in 1959 by Ralph I. Straus as special program—such as the Senator from Oreers' money without greater guarantees or
consultant to the Under Secretary of gon [Mr. MORSE), who has been leading inducements than are now offered.
State for Economic Affairs pursuant to the opposition, and the Senator from What is needed is a formula, or mechanism, section 413(c) of the Mutual Security
section 413(c) of the Mutual Security Alaska (Mr. GRUENING]—and that it has or set of ground rules, which will harness
Act of 1954, as amended—an amend- also found favor in the eyes of Senators the colossal power, imagination, and expe
ment which I proposed in 1958 and which who very strongly favor the program, rience of American business and finance to
was then accepted_further strength such as the Senator from Minnesota the foreign development task. For several years leaders from various branches of Amer
ened the role of the private sector in [Mr. HUMPHREY]—and also that the ican life have stressed this need and have foreign aid by calling for the greater amendment is acceptable to the adminproposed plans-for new credit devices, new use of tax policy in stimulating foreign istrator of the program, Mr. Bell. kinds of guarantees, new forms of contracts, investment, the greater use of invest Mr. President, one thing on which all new patterns of business-government col
ment guarantees in lieu of direct loans; can agree is that there must be a better laboration. But few of the ideas that have
the creation of credit insurance for way. One of the great failures of the been put forward have been translated in action.
exports, direct Government dollar and program has been the failure to tie it in
Cooley loans to private enterprises directly with the U.S. private enterprise It is my considered view, and this view abroad; and requested specific steps in
abroad; and requested specific steps in system, so that our corporations—both in has widespread support in the business the application of our antitrust laws to
the application of our antitrust laws to regard to the aid side of the program world, including Mr. Paley, that only foreign investment.
and in regard to the technical assistance through the high level advisory group The Clay Committee, in its March 1963
side—could themselves carry out whole that I propose can we revitalize and report, made a series of proposals regard
report, made a series of proposals regard- sections of foreign aid, which essentially make a lasting success of our aid effort. ing the entire program, a good many of
is a business operation. The time has arrived to recognize that which have been reflected in the bill re
For years, I have been convinced that the potential for the most dramatic con ported out by the Senate Foreign Rela
this could be done more cheaply, more tribution to the economic development of tions Committee, including a provision effectively, and with greater credit to our the free world lies in creating opportuni- prohibiting assistance for Government
country and more impact on the counties for the citizens in the developing owned manufacturing, utility, merchan
tries which receive our aid if much of it nations to apply their own skill and re dising or processing enterprises abroad;
were carried out by the U.S. private ensources in partnership with the private reductions in the overall authorization terprise system. enterprise of the United States and other for the fiscal year 1963 program, and
I find it very interesting to note that aiding nations and without unjustifiable harder terms for development loans. in the bill it is proposed, for the first interference and restraint by govern The Senate Foreign Relations Commit
time, that use be made of the machinery ments. In my view, the U.S. foreign aid tee's report on the fiscal year 1963 bill of the International Bank for Reconprogram should be made the primary also calls for a greater concentration of struction and Development, to channel vehicle to demonstrate the great force U.S. aid in the future as well as the in
loans. of private enterprise for creating con creased channeling of U.S. aid through Mr. SCOTT. Mr. President, will the ditions for human opportunity and dig- multilateral agencies, further reflecting
multilateral agencies, further reflecting Senator from New York yield to me? nity and the evolution of stable and the Clay Committee's recommendations. Mr. JAVITS. I yield. democratic institutions.
Some may say "Why have another ad Mr. SCOTT. I am glad the Senator Although there has been notable prog- visory committee with the Clay Com from New York has offered the amendress in broadening the private enterprise mittee still in office?” I believe that ment, for I believe it has a meritorious activities of AID; namely, in the area of there are at least three specific reasons aspect. I believe it most important that investment guarantees, support to local why an advisory committee specifically private enterprise be utilized to the maxdevelopment banks, investment surveys, charged to make continuing recommen imum extent possible in connection with
the administration of our foreign aid. kindly said, having worked in that field private enterprise activity, which demSo I hope the amendment will be accept- for so many years, it is very gratifying
for so many years, it is very gratifying onstrates how very essential it is that a ed by the Senator in charge of the bill, to me that we have finally come to the mechanism such as the Advisory Comand I am very glad to support the point at which the mechanism is ac mittee on Private Enterprise would preamendment.
cepted as an essential way in which to pare should be introduced into the whole Mr. JAVITS. Mr. President, I appre operate this great program.
foreign aid program. ciate very much the support of the Sen I ask unanimous consent to have There being no objection, the comator from Pennsylvania.
printed at this point in my remarks com- parisons were ordered to be printed in Mr. FULBRIGHT. Mr. President, will parisons prepared by the AID of its own the RECORD, as follows: the Senator from New York yield briefly to me?
Comparisons of AID private enterprise activity commitments or authorization basis, fiscal Mr. JAVITS. I am glad to yield to the
years 1963 versus 1962 distinguished Chairman of the Foreign
[In millions of dollars] Relations Committee. Mr. FULBRIGHT. Mr. President, I
Fiscal year 1963 Fiscal year 1962 have discussed the amendment with the able Senator from New York. As Sena1. All U.S. economic assistance_
2, 617.1 tors know, for a long time he has been (a) of which development loans (including PSP)...
1,097.0 giving his attention to the problem of 2. Development loans authorized with primarily private impact: (a) Direct to private undertakings (#).
(?) increasing participation by private en(b) Nonproject commodity loans.
575.5 terprise in this field. I think the amend(c) Loans to development banks (#)
4 95.5 (13)
69.5 (8) ment is a good one, and I am very glad
3. Investment guarantees issued:
6 367 (95) to accept it, for I believe it will make (b) Specific risk outstanding June 30.
796 (362) a definite contribution to improved ad(c) Extended risk coverage issued (#).
(6) (d) Extended risk outstanding June 30.
(6) ministration of the bill. (e) LA housing coverage issued (#).
71 (1) Mr. JAVITS. I thank the Senator 4. Cooley loans (Public Law 480, 104(g) authorized (#)) (1) LA housing outstanding June 30.
1 (1) 8 9 45.4 (38)
8 26.7 (43) from Arkansas, and I am very apprecia- 5. Investment surveys approved (#).
10 0. 348
0.002 (1) tive of his support. Mr. MORSE. Mr. President, will the
1 Total is for all AID commitments (using authorization for development loans), excluding Inter-American DevelSenator from New York yield briefly to opment Bank trust fund but including
P$P loans under development loans. me?
2 Total of 14 loans for $167 million includes fiscal year 1962 overlap of loans made by AID from its formation Nov. 4,
1962. Mr. JAVITS. I yield.
Development loans for purchase of commodities, components, machinery, and parts to sustain industrial producMr. MORSE. I am very glad that the tion are considered to have primarily a private impact of the totals for fiscal year 1963 and fiscal year 1962, for
nonproject loans to India alone totaled $240 million and $243 million, respectively, of which over 85 percent is distinguished Senator in charge of the estimated to have supported private industrial and commercial enterprises. Commodity loans financed by supportbill, the chairman of the Foreign Rela- ing assistance commitments ($333 million and $395 million in fiscal year 1963 and fiscal year 1962, respectively) may
have comparable private impact, but differing primary
purposes, are not included. tions Committee, will accept the amend 4 Loans to development banks facilitate relending to private activities in industry, agriculture, and housing. By ment and will take it to conference. I June 30, 1963, AID and its predecessor agencies had authorized 57 dollar loans totaling $372 million (net) for such believe it important that there be a yea
institutions in 32 developing countries. Counting local currency loans, the United States has supported 85 such in
stitutions in 46 countries with over $1 billion in dollars and local currencies. and-nay vote on the question of agreeing 1 Total issued includes DLF all-risk guarantee extended in August 1962 to VALCO project. to the amendment, for the benefit of the
6 All-risk guarantees issued by DLF are carried in specific risk totals.
1 As of September 1963, 7 extended risk guarantees have been authorized totaling some $33 million for self-liquidating conferees. So, Mr. President, on the pilot housing projects in Latin
America, and 4 others totaling some $25 million are under intensive review. question of agreeing to this amendment . Equivalent.
• Between Jan. 1, 1962, and June 30, 1963, AID approved 68 Cooley loans amounting to $61.2 million. During fiscal to the committee amendment as amend- year 1964 AID
approved the largest loan made to dato $17.5 million equivalent in Indian rupees for a joint Ünited ed, I ask for the yeas and nays.
States-Indian fertilizer plant which is rece ving dollar financing from the Export-Import Bank. Currently some
$148 million of Cooley funds in 24 different countries are available. The yeas and nays were ordered.
10 As of September 1963, over 50 investment surveys costing an estimated $1.3 million were being undertaken by Mr. MORSE. Mr. President, if the potential private U.S. investors and operating companies in some 18 less developed countries. Surveys cover posSenator from New York will yield further States may bear up to half of survey costs, but only if investment does not result.
sible investments in such fields as papermaking, prestressed concrete, food processing, and plastics. The United to me, I believe several points should be stated for the RECORD, for the assistance Mr. KEATING. Mr. President, will others, I feel that the leaders of Amerof the conferees. the Senator yield?
ican business and labor should have a Mr. JAVITS. In a moment I shall be Mr. JAVITS. I yield.
voice, and the amendment offered by the glad to yield for that purpose to the Mr. KEATING. I wish to express my
I wish to express my Senator will give them an opportunity Senator from Oregon.
strong support for the amendment of- to be heard. Mr. President, this amendment springs fered by my colleague. It would be a Mr. JAVITS. I am very grateful to from a speech made by William S. Paley, constructive and effective addition to the my colleague. chairman of the Columbia Broadcasting bill. I compliment the Senator on the Mr. MORSE. Mr. President, I wish to System, on October 20, 1962, to the 49th initiative and farsightedness of the speak for the purpose of clarifying the National Foreign Trade Convention. In proposed language.
record for conference reference. Many cidentally, I point out that he headed one I know that a recommendation has of us have frequently been in conference of the major committees in the material been made in the committee report that when we have been asked by the conresources field, which also, in its way, more aid be granted through interna- ferees to show them the basis for the some years ago aided the Government. tional organizations. This may raise se
This may raise se- action taken by the Senate. The SenaI took up the proposal with the AID, rious questions since under existing law tor from New York deserves great credit and in that connection we have been U.S. firms provide 80 percent of the goods for the work that he has been doing in attempting to find a plan by means of used under the program, If interna- that field,
field, particularly in connection which this proposal would work. The tional institutions were used, U.S. firms with the wonderful work that he has Agency favors the amendment, particu- would have no preference. Contracts been doing in Mexico. He has gone to larly in view of the fact that it calls for might even go to Communist countries Mexico several times and has talked with an operation very much in line with a for equipment paid for by U.S. dollars. It business groups in connection with the similar operation in connection with the seems to me that one of the things which object of trying to arrive at an arrangeUSIA which has been very successful. the Advisory Committee, which would ment whereby a private segment of our
It is clear that it is most important be established under the amendment economy would play a great role in carthat segments of the U.S. private enter- of my colleague, could well do, would rying out our foreign aid program. prise system be utilized in order to carry be to look out for the interests of Amer In recent years I have spoken before this out.
ican enterprise and American workers in on various occasions to U.S. Chamber of Mr. President, as the chairman of the connection with any change in the focus Commerce groups in various Latin Foreign Relations Committee, the Sen- or method of giving aid to international American countries and other American ator from Arkansas [Mr. FULBRIGHT] so organizations. On this point, as on businessmen's groups not associated
with the U.S. Chamber of Commerce gram itself, but also with the know-how not have to worry about political freeabroad. I have always discussed in those that ought to be brought to work in con dom. speeches, in part, the need for consider- nection with the administration of the I could take more time—but I shall ing our American businessmen and orga- whole housing program under AID. not—to list one type of industry and nizations abroad as American economic What we are pleading for is a delega- business after another which needs to ambassadors working with the State De- tion of authority, under reasonable su be established in Latin America so that partment.
pervision, to segments of the private political freedom can be made secure. I speak only of Latin America be economy best qualified to administer the
Consider the question of finance. Concause I do not know what the situation program.
sider the small business operation. Why is in other countries, but I suspect that Mr. CARLSON. Mr. President, will should it not be done by a direct relait is no different. At least in Latin the Senator yield?
tionship between representatives of America there is a very great feeling on Mr. MORSE. I yield to the Senator American business and representatives the part of our American business inter- from Kansas.
of Latin American business? The buests that they have not been taken into Mr. CARLSON. I heartily concur reaucrats may be hesitant about that, a cooperative partnership arrangement with the pending amendment. I think but if it should result in diminishing an with our State Department and with our it is most important to begin to develop already overpopulated bureaucracy in foreign aid Administrator in connection as rapidly as we can, full cooperation connection with foreign aid, so much the with the administration of our foreign between the Alliance for Progress in better for the Javits amendment. aid program. Great sums of money Latin America and private industry. We There were many long discussions in could be saved. Responsible and reli- are making progress. But I believe that the Committee on Foreign Relations able business interests abroad would there is still plenty of room for more. about the overmanning of the foreign consider this an opportunity for great The distinguished Senator from Oregon aid program. It is overmanned. We public service on their part, patriotically mentioned housing. I am proud of the could save great sums of money by cutmotivated.
fact that the Garvey Corp. in Wichita, ting into the surplus personnel of forI should like to cite an example or Kansas, has built some homes in Peru. eign aid around the world. two. First, I refer to the housing pro They are attempting to build some in Many complaints have been made to gram in Latin America. We are work Colombia and other Latin American us by people who have gone to various ing hard to export to Latin America a states. That is a project of private in- parts of the world and have found a system of building and loan associa dustry. I believe that is the way we surplus of personnel in the foreign aid tions. It is true that the National Orga- should proceed. That is one way to im program. This amendment would help nization of Building & Loan Associa prove the situation in that area.
in that regard. tions has been cooperating with us. For Mr. MORSE. Mr. President, the last If wisely used and developed, this proexample, it has made available to us point in making the legislative record, posal could help to decrease some waste some of their men. To mention two, before I take my seat, is that I believe the in foreign aid, and to decrease personnel there is Mr. Gordon, and Mr. Courshon, proposal will prove to be the most benefi
as well. who have worked with my committee not cial effect of our program in Latin Amer The important thing is that the only in Latin America but they have ica. I will confine myself to Latin Amer amendment would give us a great opworked for the State Department in ica. This would also be true of other portunity to export our system of priAfrica in connection with the building parts of the world. What are we really vate enterprise. Until we can make that and loan concept. That kind of housing trying to do under our Alliance for Prog available to the masses of the people in program should not be administered by ress program? We are attempting to Latin America, we shall not have an opAID at all, except that AID should be establish a system of economic freedom portunity to make political freedom sein the seat of overseeing—with the posi- for the benefit of all the people of Latin cure there. tion of, shall I say, a regulator. But America.
Mr. President, I yield the floor. the actual administering of that part of It is not easy to establish such a sys Mr. JAVITS. Mr. President, I shall the program should be done entirely tem. It is necessary to export the in- complete the argument, and then the by the private segment of the economy stitutions which have the technology and Senate can vote. I wish to mention two under such rules, regulations, and policy the know-how to create the industries things which I consider to be quite imrestrictions that we can justifiably im- and the businesses which will produce portant. pose.
the jobs which will make men economi If we are to do this, and do it honestThat is not the only segment of the cally free. What we really are attempt ly and well, there is required a revised private economy that can be put to work ing to do is to export the form of view on the part of AID and the State under the AID program. We are trying economic freedom, we implement Department. This has been one of the to be of assistance in Latin America in economic freedom, called the private real problems in respect to cooperation connection with the building of some enterprise system.
between private enterprise and the Govbasic industry.
If we cannot sell the private enterprise ernment, in that there has been a muFor example, I have been in a couple system in Latin America we can forget tual suspicion. It is to be hoped that of great steel plants in Latin America about political freedom in Latin Amer the committee will be high level enough built by American concerns. One is in ica. We must get the horse before the and representative enough to dispel that Argentina and another is in Brazil. Both cart, instead of the cart before the suspicion. That is important, Mr. Presiwere built by the McGee Construction horse. That is what has been wrong with dent. Co. of Ohio. The McGee Construction much of our Latin American policy for I started representing business when I Co. of Ohio—at least their executives, many years. We have been trying to was a young man, and later represented their policymakers and other com talk to those people in terms of political big business. I know it from being closepanies in the heavy construction indus- reforms, which has been a waste of our ly associated with it. I know how imtry, such as the McGee Construction Co., time and our money. We must talk to
portant this consideration is. ought to have turned over to them, un them and act with them in relation to Secondly, the efforts of well-intender the supervision of the AID program, our economic forms. Then they will tioned men, like the Senator from Orea very important administrative job in achieve political freedom.
gon [Mr. MORSE) and other Senators who connection with the developing of heavy It is necessary to establish building feel deeply that something is wrong with industry under the AID program.
and loan associations, to build heavy in the aid program, are inevitably frusWe might go on down the line. The dustries, not on a government-to-gov
trated because no alternatives are proSenator from Kansas [Mr. CARLSON] is ernment basis but on a project-to-project posed for our consideration. present in the Chamber. In connection basis, so that the private segment of the I should like to have the legislative with the first item mentioned, namely, American economy can be the economic history show that if the committee is to the matter of housing, in his State there ambassadors and administrators repre be worth its salt-and its record is yet is a company that could make a great senting the U.S. Government—under to be made—it must help us by providcontribution in the field of housing, not fair regulations. Then economic free- ing alternatives, so that those who have only in connection with the building pro- dom will be established; and we shall a deep disquiet about this program may