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zil, as well as the two articles from the unilaterally decrees to be international united, solid, and cohesive front in the colNew York Times of September 11 and 12, waters. Diplomatic negotiation is the proper lective defense of our common interests,” Mr. dealing with the Argentine situation, be means, instead of legislation requiring other Goulart added. printed in the RECORD at this point, with And only the Executive, not Congress, can nations to accept U.S. charting of the seas. All the Latin-American countries; he went

on, are facing the same problem: "Breaking the permission of the Senator from Oreconduct diplomatic negotiations.

an agrarian structure that is manifestly gon.

Congressional foreign policy support by archaic, in which the barriers of feudalism There being no objection, the articles appropriation is also impaired when the Ex and intolerable privileges suffocate our efwere ordered to be printed in the RECORD, ecutive assumes leadership for this Govern- fort for development, industrialization and as follows:

ment in coercing another to yield to military diversification.” (From the New York Times, Nov. 12, 1963] Nations Charter. Yet the administration, in blackmail, and in violation of the United


Deficits in the balance of payments-ex-
concert with Secretary General Thant of the
U.N., did precisely this to assure the suc-

cesses of exports over imports-force the
(By Arthur Krock)
cess of Indonesia's threats of seizure of west

Latins to negotiate loans or to obtain re

financing of debts in conditions that do not WASHINGTON, November 11.-The Secretary New Guinea from the Netherlands. of State, who is a man mild of manner and

This helped to build up the revolt in Con

meet their interests, Mr. Goulart said.

The answer, he added, will not be found speech but-as they say in his native State gress. And in furthering the revolt Conof Georgia—“sot in his ways,” last week gress, of course, is using its constitutional "in palliatives or false, superficial conces

sions" by the industrialized, capital-exportsupplied one of the two reasons for Congress power to cut authorizations and grants from

ing countries. sharp reduction in the foreign aid budget the revenues contributed by American taxwhen he said he doesn't "understand it.” payers. Thus again the Constitution annoys

“Our objectives must be the establishment Merely by reading the Senate speeches of one arm of the triune Federal Government

of a new international division of labor, just

and remunerative prices for our exports of the self-named liberals who are leading the by getting in its way. fight for the budget cuts the Secretary could

Yet though this constitutional power, and

raw materials, expansion of our exports of readily discover the first reason. It is, that the reasons for the “tendency” to invoke it, manufactures and semimanufactures,” Mr.

Goulart said. the Executive proposes to give President Nas- are plain, strangely enough the Secretary of ser of Egypt the aid which pays for the State "doesn't understand it.”

The audience included, besides the dele

gates, representatives of international agenmilitary force he is using to back his refusal to withdraw his troops from Yemen; and to [From the New York Times, Nov. 12, 1963] cies, observers from a score of foreign gov

ernments and several hundred guests. Mr. continue to provide aid to President Sukarno BRAZIL QUESTIONS ALLIANCE'S VALUE TO LATIN of Indonesia, who is sworn to destroy the ECONOMY-GOULART, IN OPENING SPEECH AT

Goulart spoke in the recreation hall of São

Paulo University. new state of Malaysia, and to Brazil, where HEMISPHERIC MEETING, OMITS ROLE OF U.S.

AID President Goulart is dissipating the aid by

The conference is sponsored by the Ecofailing to control inflation. The second rea

(By Juan de Onis)

nomic and Social Council of the Organiza

tion of American States. son is that the only effective means Congress SÃO PAULO, BRAZIL, November 11.--Presihas to show disapproval of Executive policies dent João Goulart has challenged the va

FUNDS DISPUTED IN BRAZIL it disapproves is through the appropriating lidity of the Alliance for Progress as a work Mr. Goulart repeated many views he had powers that the Constitution reserves ex able remedy for Latin America's economic been expressing in the context of Brazil's clusively to Congress, foreign policy not ex problems. He called on the Latin American national politics. The country's extreme cluded.

countries today to unite in defense of their inflation, raising prices at an annual rate of The Senate, led by the Members who have common interests in trade and aid.

more than 70 percent, and policy disagreebeen the staunchest supporters of foreign In welcoming delegates to the second an ments over the use of U.S. aid funds here aid, simply has turned to the use of this nual review meeting of the Alliance for Prog- have sharply reduced Brazil's access to means to impose on the Executive budget ress, Mr. Goulart did not once mention the Alliance for Progress aid. for the next fiscal year the revision and United States and he referred to the Al In the preliminary, or technical, stage of rationalization of the foreign aid program liance only once.

this conference, which ended last week, Brathat long has been overdue. Rusk's state The Alliance is a 10-year program proposed zil disagreed with the United States and ment to his November 8 news conference that by President Kennedy to accelerate Latin with a Latin-American majority on the forhe disapproved of this “tendency to legislate America's economic and social development mation of an Alliance for Progress coordiforeign policy” is not at all surprising. What with the help of at least $20 billion in foreign nating committee. Such a body would give is surprising is his other statement that he aid.

the Latin nations a policy voice in the allidoesn't "understand” the why and where The Latin countries, in return, are expected ance, without giving them control of aid fore; and seems not to realize that with this to strive for democracy and fair distribution funds. assertion he was furnishing the general ex- of wealth.

Carlos Carvalho Pinto, Brazil's Minister of planation of the situation he "does not


Finance, was elected president of the conunderstand.”

Mr. Goulart's speech stressed an improve- ference, Edgard Seoane, First Vice President Until and unless the President and the ment in Latin America's trade position with of Peru and leader of his country's delegaSecretary of State comprehend, if they really the rest of the world. He condemned trade

tion, called Mr.

Mr. Goulart's speech "very do not, what is so clear, the part of Rusk's barriers affecting raw material exports to in- good.” He added that he would propose news conference that states a sound principle dustrialized countries.

the creation of an inter-American agrarianof government will not have the desired Present trade conditions, the Brazilian

reform cooperative bank to finance producbeneficial effect on Congress. This principle President added, “represent a continual

tion and equipment for landowners who are the Secretary phrased as follows: bleeding of our economies."

settled under national agrarian-reform pro"I am very much concerned about the “Our irreducible needs for imports, com grams. tendency in the Congress to legislate foreign bined with falling export receipts, are in policy as it might apply to specific situations large measure responsible for the inflationary [From the New York Times, Nov. 11, 1963] or specific countries.

process that destroys the values of our na HARRIMAN WARNS ARGENTINA REGIME ON OIL "It is not possible for the Congress to an tional labors," Mr. Goulart added.

CONTRACTS-SAYS PLAN TO CANCEL PACTS OF ticipate * * what the circumstances are The speech was heard by delegates from AMERICAN COMPANIES PERILS AID PROSPECTS going to be in any given situation. the 20 participating countries in this week

(By Edward C. Burks) These are responsibilities carried by the long conference. W. Averell Harriman, Under President (who is] the one the country will Secretary of State for Political Affairs, heads

BUENOS AIRES, November 10.-W. Averell hold responsible if things go wrong." the U.S. delegation.

Harriman was understood today to have

warned Argentina that her plan to cancel FLEXIBILITY IN DISUSE


contracts with U.S. oil companies could But support in Congress of this sound pre Mr. Harriman was introduced to Mr. sharply impair

sharply impair her prospects for future cept in foreign policy is impaired when the Goulart after the speech, and they exchanged American help. Executive continues disuse of the "flexibility” a friendly handshake. But U.S. officials were The grave turn in United States-Argentine in judgment it admonishes Congress not to privately disappointed with Mr. Goulart's relations became clear after a series of weekimpede—by perpetuating aid programs, such speech. There was no official American com end meetings between the highest officials as those for Egypt, Indonesia, and Brazil. ment.

here and Mr. Harriman, U.S. Under Secretary These are automatically self-defeating of the Mr. Goulart indicated that Latin America of State for Political Affairs. plain and declared objective of foreign aid. was a victim of its own divisions and com Under discussion was Argentina's anThe eventual consequence, as is now being mon weaknesses. “Reality can no longer tol nounced intention to cancel contracts with demonstrated, is that Congress will go too erate that Latin America remain an archi- U.S. companies, which have more than $300 far in its efforts to restrain Executive flexi- pelago of nations, implacably separated by million tied up in producing oil for the Arbility.

the sea of frustrations of our own difficul- gentine Government. An example was the Senate vote denying ties,” he said.

Argentine officials, from President Arturo aid to any nation interfering with American “Today, and each day more so, Latin Illia on down, are understood to have been Ashing vessels in what the United States America should present to the world a told that cancellation of the contracts would

CIX -1358


imperil both Government and private in [From the New York Times, Nov. 12, 1963) Government sources were quoted today as vestment from the United States.

ARGENTINA BARS OIL-PACT ACCORD-HARRIMAN having said that Dr. Illia has succeeded in Mr. Harriman left this afternoon to head

MISSION IS CALLED FAILURE-AIDE SAYS U.S. getting a high-level Washington negotiator the U.S. delegation to the Inter-American


like Mr. Harriman to come here, whereas Dr. Economic and Social Council meeting in São

Frondizi, despite all his friendly overtures Paulo, Brazil. He still had received no as

(By Edward C. Burks)

to the United States, had never had such surance from Argentina's new Government BUENOS AIRES, November 11.- Argentina

that the American oil contracts would not newspapers said today that W. Averell Harri-
be canceled.

man, Under Secretary of State for Political
Affairs, had failed in his mission to persuade

Argentina to soften her stand against U.S.
One authoritative U.S. source said:

WASHINGTON, November 11.-Administraoil companies. “What the Argentines are going to do I

tion officials suggested today cancellation of

Hints that the American companies incan't tell you. But the American position volved might get relatively little compensa

Argentina's contracts with United States and has been made fully clear to them. They tion when Argentina took them over were

European oil companies could upset efforts are under no illusions as to the American also printed.

to get Congress to vote more funds for the

Alliance for Progress. point of view."

The leading afternoon paper La Razón High American sources noted that the Arquoted Antulio Pozzio, Fuels and Energy

The Argentine proposal and a similar one gentine Government "has been unwilling" to

in Peru strike at the heart of the administraSecretary, as having said the companies owed explain in full its position to the oil com

tion's policy to encourage private capital, in a huge amount of back taxes. panies.

both the United States and Western Europe, The compensation to them would thus be The Argentine Government maintains that sharply reduced when they are taken over,

to supplement Government financing of Althe oil contracts are illegal, because they

liance programs. The Argentine Government intends to cancel were negotiated under the government of

Aware of the trend toward nationalization, the contracts under which the American Arturo Frondizi. The Illia government says

the Senate is considering a provision in its companies have been working here soon, President Frondizi bypassed Congress in ne

foreign aid bill that would require the Presiprobably this week. gotiating the contracts.

dent to suspend economic assistance to any The oil companies say the contracts were


country that decides to "repudiate or nullimade with a legal government.

The major point of dispute is whether the fy existing contracts or agreements” with

American companies. The American source also said the Argen- companies will receive prompt and adequate tines had not made clear that the companies compensation. They say they have in Senator HUBERT H. HUMPHREY, of Minnewould receive prompt and adequate compen vested more than $200 million here and that sota, the majority whip, who last week led sation in the event of expropriations.

Argentina's State Petroleum Authority owes a drive to restore $75 million to bring Alliance Mr. Harriman's unexpected visit here was them more than $100 million for delivered

funds back to $525 million, was dismayed at ostensibly for talks about general problems

the developments in Argentina. and the Alliance for Progress. But it was ob The dispute has caused the severest strain “Congress is no longer in a mood to give vious that the oil contract dispute was the in United States-Argentine relations in years.

lending authority to the administration so main issue.

There are reports that both the Italian

that the money can be used by our Latin The Argentine position, as explained to State Oil Authority and the Russians are

American friends to expropriate private Americans during the talks, was that the active trying to enter petroleum production

American properties." companies will be compensated in accord in Argentina when the Americans leave.

President Kennedy can be expected to exance with Argentine justice.

The issue has taken on highly national

press this concern in Miami next weekend POSITION UNSATISFACTORY TO UNITED STATES istic tones in a number of newspapers.

to Argentina's Vice President, Carlos Hum

berto Perette, diplomatic officials disclosed This was unsatisfactory to the United


today. States, since no indication of the amount of The companies involved signed contracts

Mr. Kennedy is scheduled to attend the compensation or of the promptness of pay with the Government of President Arturo

annual convention of the Inter-American ment was indicated. The U.S. position is Frondizi to drill wells and produce oil here

Press Association. Mr. Perette will be in that Argentina has a right to take over the for the State Petroleum Authority, and in

Miami for an "Argentine Friendship Week.” companies if payment is prompt and adeone case to operate a distribution system in

Diplomatic sources said it was virtually quate. But Argentine officials have indi cluding service stations. The Government

certain that the President would take adcated that payment, if any, will be small, contends that the contracts are illegal, hav

vantage of Mr. Perette's presence in Miami For instance, while the companies contend

ing gone into effect without ratification by that the Government petroleum authority

to emphasize the administration's problems Congress. The Frondizi government put the

as a sult of the proposed Argentine action. owes them more than $100 million for deliv contracts into effect by executive decree.

Mr. Perette is considered to be among those ered oil, some Government officials say that But Mr. Pozzio and others go further and

advising President Illia to assume an intranthe companies owe Argentina. maintain that since the contracts are illegal,

sigent attitude on the cancellation of the It has been argued by some in the Governthe tax-exemption clauses in them are, too.

contracts. ment that since the contracts are regarded

The Vice President has deMr. Pozzio has been quoted in the press as

nounced the contracts as unconstitutional as illegal, the tax-exemption incentives in having said it is now a question of "who

and harmful to the Argentine economy. the contracts are also void. Therefore, these

owes whom." officials say, the companies owe back taxes.

It is understood that the Vice President Mr. Harriman left yesterday after having When the contracts were signed by com

and a group of officials in the recently inwarned Argentine officials that cancellation panies with the Frondizi government, they of the contracts without adequate

augurated Argentine administration would

and went into effect by decree, without congres- prompt compensation would severely impair

like to turn over the assets of the private sional ratification. In Argentina, Congress

companies to the Government Petroleum Argentina's prospects for aid under the Allihas frequently been bypassed by executive

Authority. To keep payments for compenance for Progress.

sation to a minimum, the officials were said power.

Mr. Harriman is heading the U.S. delegaMr. Harriman's position seems to be that

to have suggested that the companies pay tion to the Inter-American Economic and he is not here to defend the oil companies

heavy retroactive taxes for the 5 years they Social Council Conference at São Paulo, or bring about proper procedure in resoly

have been in operation. Brazil. ing such a controversy.

Under the administration of President The press here is printing articles to the The explanation of the U.S. position goes

Arturo Frondizi, the companies were promeffect that the American companies knew much further than the question of con

ised special tax concessions and participation the severe risks they were taking in signing tracts with the oil companies. Essentially,

in profits. the contracts with the Frondizi government. it is this: the United States wants the Alli

The companies say Dr. Frondizi was a Mr. GRUENING. Mr. President, I ance for Progress to work with private in

legally elected President and that the pro should like to emphasize, for the benefit vestment as far as possible.

cedure for the contracts was legal. Dr. Illia's Popular Radical Party opposed

of our critics, including, especially, the

President Illia has said the companies will the contracts when they were signed several receive "just compensation under Argentine

Washington Post, who have designated years ago and campaigned in elections last law.” Mr. Harriman, however, seemed to be

those of us who are trying to reform the July on a platform of annulling them. dissatisfied with what he heard from gov program as "Secretaries of State,” that

The companies maintain that with their ernment officials on compensation or the if they would only study the program, it aid production has been virtually tripled possible renegotiation of the contracts. might be manifest to them that in trying since 1959 and that Argentina has nearly at Since the American and other foreign to eliminate extravagances and follies tained economic self-sufficiency. companies began their operations in 1959,

and correct past and continuing errors, The American companies involved include Argentine oil production has nearly tripled

we wish to save the program, not to Pan American-Argentina, a subsidiary of and the country has almost attained ecoStandard of Indiana; Esso; Tennessee Gas nomic self-sufficiency.

destroy it. Transmission (Cities Service); several drill But there were many complaints from

Mr. MORSE. I thank the Senator ing companies, and other producing com Argentine officials that the country had to from Alaska very much for the remarks panies. pay too much.

he has made. I appreciate his support.

The remarks he has made are unanswer- have tried to use foreign aid to take the We need to take a long, hard look ably correct. place of local effort and initiative.

at the need for so large a defense exI wish to make some quick comments. This is not a case of Americans becom- penditure and so large an aid expendiabout Brazil and Argentina The Sena- ing tired of the burden, which is the ture, and consider the wisdom of spendtor has referred to the New York Times favorite phrase of the President. It is a ing a good deal of that money in our article and to Brazil, raising a question question of whether the indigenous peo own country, to meet some of the imporas to whether the Alliance for Progress ple are ready and willing to do what must tant domestic issues that confront us program is of sufficient merit to be of be done to elevate their own living that are disturbing millions of Ameriany aid to that country.

standards. A people described by the can people. Over the weekend, someone in behalf President as having wealth and Mr. CHURCH. Mr. President, will the of the Argentine Government also indi- strength-ourselves—have no more obli- Senator from Oregon yield? cated that Argentina was in opposition gation to help the rest of mankind than Mr. MORSE. I yield. to the proposal made in São Paulo, at the the rest of mankind has to help itself. Mr. CHURCH. First, I commend the conference that is being held there, for I do not regard this as a moral issue, but Senator for the great service he has any multilateral procedural arrange as a practical one. I am satisfied that rendered in the course of the past 2 ments whereby Latin America would ex- in too many countries our aid is con

weeks in his intelligent opposition to cerercise some voice in the administration tinued only because it is part of the ex tain features of this bill which ought to of the Alliance for Progress program with ecutive machinery of the U.S. Govern- be questioned. Much credit is due him respect to the expenditure of funds. ment, not because it is promoting any for the improvement that has been made It is disappointing to find those com- economic growth or social progress.

in the bill. The Senator knows that I ments coming from spokesmen of two One might also ask whether foreign have sympathized with his efforts. I countries which have been such great aid is not a burden that all economically have done what I could, both in combeneficiaries under the Alliance for Prog- developed countries need

to share. Yet mittee and on the floor of the Senate, ress program, to whom the President of the President avoided mentioning the to support amendments that I believed the United States has given so much out hundreds of millions of dollars this year's were fully justified. So I have listened of his contingency fund to help shore bill contains in aid to those very same with deep interest to the excellent adup their monetary policies and, in some economically developed countries. Our dress the Senator is making. Earlier, I instances, to give them contingency fund failure to cease aiding them and their heard him say that if another $40 milmoney with which to pay off some Amer- failure to undertake their own aid pro- lion could be cut from the bill, all things ican creditors. That is another example grams makes a mockery of the Presi- considered, he would be satisfied. I of the misuse of the contingency fund. dent's contention that this is a case of the want the Senator to correct me if I misI do not believe that the American tax- obligation of rich nations to poor nations. understood his statement. payer should have that money given to We have allowed foreign aid, rather, to

Mr. MORSE. May I interrupt to exArgentina for the purpose of having that become an American obligation to every- plain my remarks? Government pay off American creditors. one else.

Mr. CHURCH. Yes. Mr. GRUENING. Of course not.

In commenting on the President's Mr. MORSE. I said I had made clear Mr. MORSE. I speak with complete speech of Friday night, I would also point to administration spokesmen this mornrespect, as a great supporter of my out that whereas he talked mostly about ing that they should take a look at the President. I am a strong supporter of health, education, and housing as objec- pending amendments and suggest where

a $40 million reduction could be made, the President. Although my support may tives of foreign aid, a good third of the not be needed, I will do everything I can whole program is military aid, which has which would round the amount out to to assist him in any way I can in the nothing to do with health, education, or

$500 million. great historic campaign of 1964, because housing. In too many places, in fact,

But I also made it very clear that I the country and the world need his con- military aid is undermining our social thought the bill ought to be cut more tinuation in office. But merely because and economic programs.

than that, and that I proposed to offer I feel that way is no reason why I should

So also do we send hundreds of mil

an amendment that would bring the agree with him when I think he is wrong lions of dollars abroad for purely polit amount down at least to the House figand when I am satisfied the facts have ical purposes. We give it, almost liter ure. I believe the amount should be cut proved him to be wrong. I believe the ally, to buy up foreign political leaders. to the House figure. But we ought to facts have proved him to be wrong in Sometimes we think that by so do- proceed to see if we cannot at least make this case. He ought to make it perfectly ing we are keeping them out of the Com a $500 million reduction, instead of the clear to Brazil and Argentina that they, munist camp; in other cases we are $460 million now provided for. That does too, will have to meet the terms and con- anxious to obtain or maintain military not mean that I will not try to bring ditions of the Act of Bogotá and the Act bases. Our aid programs to Sukarno in

about more than a $500 million reducof Punta del Este; that they will have Indonesia, to the Kingdom of Jordan,

tion. to help themselves; and that they will and to Ethiopia, Morocco, and Libya have

Mr. CHURCH. I share strongly the have to adopt some of the reforms that had that purpose. I am skeptical in the feeling of the Senator that a further cut we are entitled to have them adopt, be- extreme of their usefulness. Above all, could be made in the bill, particularly fore we pour more money into the Argen- aid for that purpose is the most difficult with respect to those countries with retine and Brazil. That is the position I to terminate, except when it is termi- spect to which we have assumed a kind take. The President will receive the sup- nated by an overthrow of the recipient of frozen position. The Senator has port not only of the United States, but government by its own people.

mentioned some of those countries in also of many other parts of the world if Finally, I am most disturbed of all his address today. he takes that position.

by the President's defense of foreign aid For example, I think of South Korea. American capital cannot bridge the for the jobs it creates for American citi- I visited South Korea in December of gulf between rich and poor. If I thought zens. If this argument becomes in- last year. I was appalled to find it a garthat gulf could be bridged by the expend- trenched in defense of foreign aid, it is rison state, so laden with military equipiture of American money, I would favor going to be raised, too, in support of con ment, ammunition dumps, and motor it. But I believe that a continuation of tinued defense spending, because it is pools that one wondered why the peninour expenditures in the present manner infinitely more applicable there. If we sula had not sunk under the weight of would only make the rich nations rich- need Federal programs to reduce unem the vast quantities of equipment and maer and the poor nations poorer. To pre- ployment, there are many that are far terial we have furnished South Korea vent that, it is necessary to effectuate the

more worthwhile to the American peo over the years. kind of reforms I have been talking about ple than foreign aid. But if the work It has been 10 years since the fighting in my speech today.

itself becomes more important to us than ended in South Korea. During that The decisions upon which industrial going to be immune from any cuts in mately half a billion dollars a year in

its product, then our defense economy is time, we have been spending approxiand agricultural growth must be based the future, no matter what turn the aid to the government of South Korea. must be made by the people of those cold war may take. I very much regret. We have fully equipped a crack army countries. They cannot be replaced with that this justification has become so there. Fifteen Republic of Korea diviforeign aid. In too many countries, we central to the case of the aid advocates. sions are on the line at the 38th parallel,

If, after 10 years of the pouring of our that our aid program to Greece was be hungry. They are concerned about treasure into that peninsula, if after all about to end, because it had gone on so disease, illiteracy, and the other really our massive effort to train and equip the long, and been so generous, that the ad- basic problems which disturb the progSouth Korean Army, the Koreans are ministrators felt it had about accom ress and the peace of the world. Howstill unprepared to assume the responsi- plished its objectives.

plished its objectives. But here we are, ever, I believe they are also concernedbility for the defense of their narrow 4 years later, still talking about aid to and if I am mistaken about this, the frontier, perhaps the American people Greece, and still saying that Greece will Senator from Oregon can correct mehave a right to ask, “When will they be soon be eligible for removal from the list. with some of the things the Senator from ready?"

So I believe the President could decide Oregon has mentioned and is concerned The same objection can be made with how to allocate another $40 million cut, about-among them, the sterile aspects respect to our policy in Formosa. Again, as between the countries which get the of the aid program, including a sizable we find a frozen attitude that still calls biggest slice of our military aid. I com- portion of the military aid program forth a quarter of a billion dollars a year mend such an approach to the Senator. which we have been maintaining in the in foreign aid expenditures to that coun- I believe it might furnish a proper for- countries enumerated by the Senator try. To what end? For what purpose?

For what purpose? mula in connection with the allocation of from Idaho. To maintain there an army that is twice a further $40 million cut, so that we I have hoped we could make the sort as big as necessary to defend the island, could then proceed to a final vote on the of reductions suggested by the Senator but not one-tenth big enough to threaten bill.

from Idaho in the military aid program, the continent? The American people Mr. MORSE. I thank the Senator and thus perhaps satisfy the Senator have a right to expect that the flow of from Idaho. I want him to know that I from Oregon and expedite final action foreign aid dollars will be tailored to the have pending an amendment which by the Senate on the bill. realities in these countries, and in cer- would cut $50 million from the author Mr. MORSE. I am sure that would be tain other countries, as well, where we ization for supporting assistance which the result. I have said all along that I persist in spending a disproportionate is proposed to be given to some of the believe the American people would supamount of our foreign aid money. I countries the Senator has discussed, and port a good, fair foreign aid programthink that here is where a further cut would cut $5 million from the authoriza- but not the wasteful, inefficient programs could readily be made.

tion for development grants. These

These which have come to characterize much Mr. MORSE. So do I.

changes would result in a substantial of our foreign aid. The people of the Mr. CHURCH. I suggest that the saving. I do not care which way we pro- United States are fed up-as is indiSenator from Oregon give some consid- ceed to attain that goal. That is why cated by the editorial from the Washingeration to an amendment that I have I think we need to take an inventory of ton Star which I have placed in the been discussing with the distinguished the pending amendments and determine RECORD—with much of the present proSenator from South Dakota (Mr. Mc- which ones are overlapping or which gram; they feel that much of it is highly GOVERN] and other Senators, an amend ones seek to attain the same ends, and wasteful and should be stopped. That is ment which would call for another $40 then reach an understanding as to which why I believe we have the responsibility million cut, limited to the four or five amendments will be offered, and in what to rewrite this bill. I believe that thus countries which receive the largest order they will be offered. I am perfect- far we have had remarkably good sucamounts of American aid, which would ly willing to do that. So I want the Sen

cess with our amendments; but I believe leave it to the discretion of the President ator to know that I have at the desk

now we have reached the point where we to decide how to allocate the cut, among amendments which seek to accomplish should hold consultations, to determine countries where the program is inexcus- the same purpose, but I would welcome what can be done toward arriving at ably large, and where the United States an opportunity to support his amend some acceptable compromises, thus has been guilty for many years of assum- ment.

speeding the bill on before the week is ing a fixed position which has not kept

Mr. McGOVERN. Mr. President, will

over. pace with the times. the Senator from Oregon yield?

Mr. GRUENING. Mr. President, will Mr. MORSE. I shall support the

The PRESIDING OFFICER (Mr. Mc- the Senator from Oregon yield? amendment. In fact, I shall shortly be NAMARA in the chair). Does the Senator

Mr. MORSE. I yield. dis ing an amendment, and in the from Oregon yield to the Senator from

Mr. GRUENING. I commend the course of my speech I shall refer in sey- South Dakota?

Senator from Idaho for his statement. eral places to the contributions which Mr. MORSE. I yield.

As I have previously suggested, I bethe Senator from Idaho has made in Mr. MCGOVERN. I have discussed lieve the proper approach is not to make connection with the very point he is now with the Senator from Idaho the matter the kind of blanket cut the other body making. We have a good case in that he has mentioned in the last few minutes. made, but to go through the program respect. But I made the suggestion to I think his suggestion would go a long country by country. This process really the administration spokesmen this way toward attaining the objective the was begun several years ago in the commorning because I thought we ought to Senator from Oregon has in mind. mittee by the Senator from Idaho, when be receiving some cooperation from the Earlier today he referred at some

at some he urged that the countries of Europe administration, in consultation, concern- length to the attitude of the American and Japan which have become prospering where the administration thinks it people in regard to foreign aid, and called ous and no longer need our aid should can make some savings, because, as I attention to the fact that among the be removed from our aid program. pointed out in my remarks earlier, in my American people there is increasing op If we total the savings which will be opinion, the appropriation will not go position to foreign aid. I believe-al- made by eliminating from the aid probeyond $3 billion, and I think it will end though I could be mistaken—that the gram our aid programs for France, West with less than $3 billion. The adminis- American people are strongly in favor Germany, Belgium, The Netherlands, tration ought to be consulting with the of a considerable portion of the foreign Japan, and also Taiwan, Brazil, and Aropponents of the bill and the proponents aid program. I think there is in our gentina, as well as the aggressor naof the bill, to see if there is not some area country a great humanitarian

tions, it is apparent that we could easily in which our differences could be recon- tion—which the Senator from Oregon cut from the bill authorizations in the ciled in what could be a conscionable praises and shares—which leads us to be amount of $1,500 million, and perhaps compromise.

concerned about the welfare of people in more. In each case, such a cut can be Mr. CHURCH. I suggest that this other parts of the world. I know that justified. might very well prove to be the proper during the time I was privileged to work For example, when I visited Taiwan, area in which to make a final cut. The with the food-for-peace program, there several years ago, I was amazed to obfive countries receiving the largest was almost unanimous support of the serve the variety and abundance of our amounts of our military assistance are program, insofar as we were able to eval- aid programs there. Our funds were beVietnam, Korea, Turkey, China, and uate the sentiment, in terms of our mail ing used for almost every sort of program Greece. I recall that 4 years ago, when and our conversations with people all the human mind could conceive of. The I first became a member of the Foreign over the country. They do not want hu- projects included power plants, paper Relations Committee, we were assured man beings anywhere in the world to plants, fertilizer plants, jute plants, fac

tories of various kinds and the rebuilding and that if a country desired to buy

and that if a country desired to buy to assure our allies that the United States of their fishing fleet-and of course tre equipment from the United States, it would not let them down suddenly. mendous military aid. Of course, the could not do so under the Morse amend

So in fiscal year 1960, we provided aid original purpose of our aid to Taiwan ment. If my amendment is subject to to these countries in Europe defined by was to help that island defend itself from such an interpretation, it will be mod the United Nations as being economically attack by the Red Chinese. But that ob- ified before I finally call for a vote on

developed totaling $886 million plus $108 jective was attained long ago. If, after it. But in my judgment, the objective million more to Japan. The figures we have poured billions of American dol- of the amendment is one that deserves broke down as follows: lars into that little island, it is not yet the support of the Senate.

Fiscal year 1960 self-sufficient, I believe it is well for us The amendment would prohibit fur

[In millions) to ask how much longer we intend to do ther aid of any kind to economically de Country:

Amount for Taiwan what we would not dream of veloped countries, other than what is


$1.0 doing for ourselves.


9.8 necessary to fulfill firm commitments


36. 5 As for the countries of South America, made prior to July 1, 1963. Even in the


0 it is clear that Brazil and Argentina are case of these prior commitments, the


72.5 more or less in a condition of instability; amendment directs the President to ter


137.6 they do not live up to their commitments, minate them at the earliest practicable Iceland--

4.9 and do not even attempt to follow the time and to report to the House and Ireland

0 prescriptions which we think desirable in Senate by July, 1965, on what progress Italy---

162.2 connection with our aid. They have not he has made. The committee bill bans


49.5 Norway

34. 1 followed the principles adopted at the only grant aid to these countries, and it


10.5 Punta del Este Conference and which also makes an exception of $1 million


0 President Kennedy has wisely pre- per country in grant aid for military

United Kingdom--

116.5 scribed. training expenses.


108.1 In each case, the cuts now contem I understand that some think that the European regional.

229.6 plated can be justified. restrictions upon the President are too

That was where things stood in 1960 When I visited Iran, I was very favor- great. If they believe that the language

when Members of the Senate began exably impressed with what the Shah and should be modified in some respect in

pressing increasing displeasure with our AID administration there were at- regard to those restrictions, I am open

continued aid to these nations. That tempting to do with our aid; the Shah is to suggestions for modifications in that

was when the assurances were poured in deserving of the highest praise for the respect. But what I wish to do is to ac

that their programs were being termireforms he is attempting to carry out; complish the main objective of the

nated, and that if Congress would just but I doubt very much that the large amendment, which I now proceed to

refrain from putting anything into the amounts we are pouring into Iran, to discuss.

law about it, the administration would help build up an army for Iran, would The "economically developed coun

take care of the matter. ever stop the Russians if they determined tries” referred to in the amendment are

So the figures came in for the next fisto move into that country—in which case those nations listed as exceptions to the

year—1961. They

They showed that the military forces of Iran would offer definition of "economically less developed

Western Europe that year received $569.4 little more defense than a paper wall. In nations” contained in the United Nations million from us in all forms of aid, plus my opinion, we should end or at least General Assembly Resolution 1875 (S.IV)

another $115.8 million for Japan. That diminish our military aid there, and and in addition, West Germany and

was a net reduction of a little more than should devote the money thus saved to Switzerland. These latter countries are

$300 million. But it was not enough for economic development, with which, as not U.N. members and hence are not our friend the Senator from Idaho [Mr. the Senator from South Dakota has said, listed as exceptions to the General As CHURCH] and many of the rest of us. the American people are in sympathy. sembly definition.

It was in 1961, as I recall, that the Of course, we wish to help other nations Although the amendment does not list Senator from Idaho offered an amendget rid of illiteracy, ill health, poverty, the countries by name, they are Aus ment on the Senate floor calling for a and other conditions which encourage tralia, Austria, Belgium, Byelorussian more specific termination of aid to decommunism; but I believe it apparent S.S.R., Canada, Czechoslovakia, Den- veloped countries. But that was the that we can still save a vast amount of mark, Finland, France, Hungary, Ice year of the Berlin crisis. How well I money by eliminating some of the mili- land, Ireland, Italy, Japan, Luxembourg, remember the argument made here on tary aid. We have pointed out that in Netherlands,

Zealand, Norway, the Senate floor that to cut our aid to Latin America our military aid has not Poland, Rumania, South Africa, Sweden, our Western Allies at that critical time served defense, but, instead, has served Ukrainian S.S.R., Union of Soviet Social would appear to be an expression of to support military juntas which seek to ist Republics, and the United Kingdom.

ist Republics, and the United Kingdom. lack of American interest in the welfare overthrow constitutional governments. Of course, the United States is also listed

of Europe. Of course, we had already I believe we should go into the mili- by the U.N. resolution as an economically

by the U.N. resolution as an economically put over $41 billion into Western Europe tary program also country by country, developed country.

as an expression of our concern for its just as we should do in respect to the Hence, the effect of my amendment security; but as we are hearing today economic program. Then I believe we would be to prohibit any form of aid from France in particular, there is never should come forth with a cut that would under this Foreign Assistance Act to

under this Foreign Assistance Act to enough that America can do to satisfy be justifiable and defensible, and that these nations except for existing com the Europeans that we mean what we would be substantially larger than any- mitments, and existing commitments to say. That is a hopeless cause. There thing that has yet been considered.

them are to be renegotiated downward is not enough money and there are not (At this point Mr. NELSON took the as quickly as possible.

enough American troops in our whole chair as Presiding Officer.)

It was as long ago as 1960 that the country that we could put into the conMr. MORSE. Mr. President, I now

Senator from Idaho (Mr. CHURCH] first tinent of Europe to satisfy a great many wish to say a few words about my amend; began pressing for language in the for- of its people that the United States ment numbered 306. At the outset I

means to fulfill its treaty obligation to wish to make it very clear that if any eign aid law that would bring about a

consider an attack on a NATO member Senator has any suggestions for a mod- termination in aid to the economically as an attack upon the United States.

well-off nations of Western Europe and Yet just a few days ago, President Kenification of the amendment which would improve it, I should be very glad to con- Japan. Even at that time, the Foreign nedy told us that we had to send addisider modifications. I believe that when Relations Committee and the Congress tional American troops to Germany that Senators hear me through, my objec- were met with the self-contradictory an

year because of the unfulfilled committive will be perfectly clear. I have been

swer that aid to these nations was being ments of our allies-chiefly France. told that a rumor is being circulated that closed out and besides, the aid still being So in fiscal 1962, another $436.3 milthe amendment would prevent sales on sent was necessary to afford a certain lion went into the economically develthe part of people in the United States, amount of flexibility to the President and oped countries of Europe, plus another

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